VA awards $4.7M contract for pharmacy upgrades to Blue Cord Design and Construction, LLC

Contract Overview

Contract Amount: $4,713,314 ($4.7M)

Contractor: Blue Cord Design and Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-03-29

End Date: 2026-06-30

Contract Duration: 1,919 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADE PHARMACY AHUS 797/800

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27710

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.7 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC for work described as: UPGRADE PHARMACY AHUS 797/800 Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract is a definitive contract with a firm-fixed-price type, suggesting predictable costs. 3. The duration of the contract is 1919 days, spanning over 5 years. 4. The contract is for commercial and institutional building construction, specifically pharmacy upgrades. 5. The awardee, Blue Cord Design and Construction, LLC, is based in North Carolina. 6. The contract value is approximately $4.7 million.

Value Assessment

Rating: good

The contract value of $4.7 million for pharmacy upgrades appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for healthcare facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially limiting the number of bidders. The presence of 5 bids indicates some level of competition.

Taxpayer Impact: The limited competition, despite being advertised as full and open, may have resulted in a higher price than if all potential bidders had participated. However, the 5 bids suggest a reasonable price discovery process occurred.

Public Impact

Veterans will benefit from improved pharmacy facilities, potentially leading to more efficient and modern healthcare services. The contract delivers essential infrastructure upgrades to a Department of Veterans Affairs facility. The geographic impact is localized to the facility where the pharmacy upgrades are being implemented. The contract supports the construction and skilled trades workforce involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if excluded sources were critical to competitive pricing.
Risk of delays if construction complexities are underestimated.
Ensuring compliance with all building codes and VA standards.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a single contractor streamlines project management.
Long-term contract allows for phased implementation of upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the economy. Spending on healthcare facility construction and renovation is a substantial part of federal and private sector investment, driven by the need for modern, efficient, and compliant medical infrastructure.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this larger contract.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified upgrades within the agreed-upon cost. Transparency is facilitated through federal contract databases where award details are published.

Related Government Programs

VA Healthcare Infrastructure Projects
Federal Building and Renovation Contracts
Medical Facility Construction
Pharmacy Modernization Programs

Risk Flags

Limited competition after exclusion of sources
Contract duration exceeds typical project timelines

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.7 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC. UPGRADE PHARMACY AHUS 797/800

Who is the contractor on this award?

The obligated recipient is BLUE CORD DESIGN AND CONSTRUCTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2021-03-29. End: 2026-06-30.

What is the track record of Blue Cord Design and Construction, LLC with federal contracts, particularly with the VA?

A review of federal procurement data indicates that Blue Cord Design and Construction, LLC has received federal contracts, though specific details on their track record with the VA or similar large-scale construction projects would require a deeper dive into contract databases. Analyzing past performance, past performance evaluations, and any history of contract disputes or awards for similar projects would provide a clearer picture of their capabilities and reliability. Without this granular data, it's difficult to definitively assess their track record beyond this single award.

How does the $4.7 million contract value compare to similar pharmacy upgrade projects at other VA facilities or federal healthcare institutions?

Benchmarking this $4.7 million contract against similar pharmacy upgrade projects requires access to a comparable dataset of federal healthcare construction contracts. Factors such as facility size, scope of work (e.g., structural changes, equipment installation, technological integration), and geographic location significantly influence project costs. A preliminary assessment suggests the value is within a reasonable range for a multi-year, comprehensive upgrade, but a detailed comparison with projects of identical scope and complexity would be necessary for a definitive value-for-money conclusion. The firm-fixed-price nature of this contract aims to control costs.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential construction delays due to unforeseen site conditions or supply chain disruptions, and the possibility of scope creep if requirements are not clearly defined. The firm-fixed-price contract structure mitigates financial risk for the government by capping the total cost. Mitigation for schedule and scope risks would rely on robust project management by the VA, clear communication with the contractor, and adherence to the contract's defined deliverables and timelines. The contractor's experience and the competitive bidding process also serve as risk-reduction factors.

What is the expected impact of these pharmacy upgrades on the efficiency and quality of care provided by the VA?

The upgrades are expected to enhance the efficiency and quality of care by modernizing pharmacy operations. This could include improved workflow for pharmacists and technicians, better inventory management systems, enhanced patient safety features (e.g., improved medication dispensing accuracy), and potentially the integration of new technologies for prescription processing and delivery. A more efficient pharmacy directly supports timely medication access for veterans, contributing to better health outcomes and overall patient satisfaction with VA healthcare services.

What has been the historical spending by the VA on pharmacy infrastructure and construction over the past five years?

Analyzing the VA's historical spending on pharmacy infrastructure and construction over the past five years would reveal trends in investment in medical facilities. This data would help contextualize the $4.7 million award within the broader budget allocation for facility modernization. Understanding this historical spending pattern can indicate whether this contract represents a significant increase or decrease in investment, and whether it aligns with strategic priorities for upgrading healthcare infrastructure to meet the evolving needs of veterans.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24620R0152

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 835 BENNETT RD STE 100, ORLANDO, FL, 32803

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,713,314

Exercised Options: $4,713,314

Current Obligation: $4,713,314

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline