VA awards $2.45M contract for negative pressure room upgrades to Birmingham Industrial Construction, LLC

Contract Overview

Contract Amount: $2,450,314 ($2.5M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-05

End Date: 2026-05-20

Contract Duration: 2,053 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADE NEGATIVE PRESSURE ROOMS. VISN 7 MATOC IDIQ BASE AWARD. TASK ORDERS WILL BE AWARDED OFF THIS CONTRACT AT ALL VISN7 MEDICAL FACILITIES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: UPGRADE NEGATIVE PRESSURE ROOMS. VISN 7 MATOC IDIQ BASE AWARD. TASK ORDERS WILL BE AWARDED OFF THIS CONTRACT AT ALL VISN7 MEDICAL FACILITIES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. The contract has a long performance period, extending over 2000 days. 4. The contract is an IDIQ (Indefinite Delivery Indefinite Quantity) with a base award, indicating potential for future task orders. 5. The contract is for construction services, specifically upgrading negative pressure rooms. 6. The contractor, Birmingham Industrial Construction, LLC, is a new awardee for this type of service. 7. The contract is managed by the Department of Veterans Affairs, VISN 7. 8. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $2.45 million for upgrading negative pressure rooms appears to be a base award for an IDIQ contract. Without specific details on the scope of work for this base award or comparable projects, a precise value-for-money assessment is difficult. However, the firm-fixed-price structure is generally favorable for the government as it caps costs. The duration of the contract (over 2000 days) suggests a phased approach or multiple task orders, which could lead to higher overall spending than the base award indicates. Benchmarking against similar construction projects for medical facilities would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the term 'full and open competition' implies a broad solicitation, the 'exclusion of sources' clause suggests specific criteria or circumstances led to limiting the pool of potential bidders. The number of bidders is not specified in the provided data, making it difficult to fully assess the level of competition. A truly open competition typically involves multiple bidders vying for the contract, which generally drives down prices and increases value for the government.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best possible pricing through a competitive bidding process. However, the 'exclusion of sources' aspect warrants further investigation to ensure no potentially competitive firms were unfairly excluded.

Public Impact

Benefits veterans by improving healthcare infrastructure at VISN 7 medical facilities. Delivers upgraded negative pressure rooms, crucial for infection control and patient safety. Geographic impact is concentrated within VISN 7 medical facilities across Alabama. Workforce implications include employment opportunities for construction labor and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type needs clarification to ensure fair market access.
The long contract duration could lead to cost overruns if not managed effectively.
Potential for scope creep or unmanaged task orders under the IDIQ structure.
Limited data on the contractor's past performance in similar large-scale healthcare construction projects.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor.
Awarded through a full and open competition process, indicating an attempt to maximize competition.
Contract aims to improve critical healthcare infrastructure for veterans.
The IDIQ structure allows for flexibility in addressing future needs for negative pressure rooms.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses firms that build new commercial and institutional buildings, as well as those that perform additions, alterations, or repairs. The specific focus on upgrading negative pressure rooms is a specialized niche within healthcare construction, requiring adherence to strict building codes and health standards. The overall market for healthcare construction is substantial, driven by the need for modern, safe, and efficient medical facilities. This contract represents a small portion of the broader federal construction spending, which often includes large-scale infrastructure projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors to Birmingham Industrial Construction, LLC, depending on the subcontracting plan negotiated for this contract. The absence of a small business set-aside means that larger, more established construction firms were eligible to compete and were likely the primary focus of the solicitation.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs (VA), specifically VISN 7. As a firm-fixed-price IDIQ contract, oversight will focus on ensuring that task orders are within the scope of the base contract, that performance meets specified quality standards, and that costs remain within the contract ceiling. The VA has an Office of Inspector General (OIG) that conducts audits and investigations into VA programs and contracts to ensure accountability and prevent waste, fraud, and abuse. Transparency will depend on the VA's public reporting practices for task order awards under this IDIQ.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Building Envelope Upgrades
Infection Control Systems
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Firm Fixed Price Contracts

Risk Flags

Competition Clause Ambiguity
Limited Contractor Performance Data
Long Contract Duration Risk
Potential for Unspecified Task Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. UPGRADE NEGATIVE PRESSURE ROOMS. VISN 7 MATOC IDIQ BASE AWARD. TASK ORDERS WILL BE AWARDED OFF THIS CONTRACT AT ALL VISN7 MEDICAL FACILITIES

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL 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 $2.5 million.

What is the period of performance?

Start: 2020-10-05. End: 2026-05-20.

What is the specific scope of work covered by the base award of $2.45 million, and how does it differ from potential future task orders?

The provided data indicates that the $2.45 million is a base award for an IDIQ contract focused on upgrading negative pressure rooms at VISN 7 medical facilities. Typically, a base award on an IDIQ contract establishes the initial contract terms, pricing structure, and a minimum guaranteed amount of work or funding. The specific scope for this base award is not detailed but likely involves initial assessments, planning, or a limited set of upgrades. Future task orders, which will be awarded off this contract, will define the specific projects, locations, and detailed scope of work for additional negative pressure room upgrades across VISN 7. The total value of the contract could significantly exceed the base award as task orders are issued, up to the contract's ceiling, if one is established.

How does the pricing of this contract compare to similar construction projects for negative pressure rooms in other VA facilities or federal healthcare institutions?

A direct comparison of pricing is challenging without detailed cost breakdowns for the scope of work and specific materials used in this $2.45 million base award. The contract is firm-fixed-price, meaning the price is set regardless of the contractor's actual costs. To benchmark effectively, one would need to identify comparable projects (e.g., similar square footage, complexity of upgrades, specific equipment) awarded around the same time period to similar types of contractors. Factors like geographic location (labor costs, material availability), the specific requirements for negative pressure (e.g., air changes per hour, filtration levels), and the age and condition of the existing facilities significantly influence costs. A comprehensive analysis would require access to detailed cost data from multiple sources.

What are the key performance indicators (KPIs) used to evaluate the success of Birmingham Industrial Construction, LLC under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for construction contracts of this nature, typical KPIs would likely include adherence to project schedules, quality of workmanship (meeting building codes and specifications), safety compliance (e.g., incident rates), budget management (ensuring task orders are within allocated funds), and overall client satisfaction. For negative pressure rooms, specific performance metrics related to air pressure differentials, filtration efficiency, and system reliability would also be critical. The VA would monitor these KPIs through site inspections, progress reports, and potentially post-occupancy evaluations.

What is the historical spending pattern for negative pressure room upgrades within VISN 7 or the broader VA system?

The provided data does not contain historical spending patterns for negative pressure room upgrades within VISN 7 or the broader VA system. To establish such a pattern, one would need to analyze past VA contracts related to healthcare facility construction, specifically focusing on projects involving upgrades or installations of isolation rooms, operating rooms, or other areas requiring specialized air handling and pressure control. This analysis would involve searching federal procurement databases (like FPDS or SAM.gov) for relevant contract awards over several fiscal years, identifying the total amounts spent, the types of projects undertaken, and the contractors involved. Understanding historical spending can help contextualize the current $2.45 million base award and identify trends or significant shifts in investment.

What is the track record of Birmingham Industrial Construction, LLC in executing similar federal construction contracts, particularly within the healthcare sector?

The provided data identifies Birmingham Industrial Construction, LLC as the contractor but offers no details regarding their track record, especially within the federal healthcare sector. To assess their experience, one would need to research their past performance on government contracts. This would involve searching federal procurement databases for previous awards to this company, examining the types and values of those contracts, their performance ratings (if available), and whether they have successfully completed projects of similar scope and complexity, particularly those involving specialized healthcare construction like negative pressure rooms. A lack of readily available information on past performance could be a risk indicator.

How does the 'exclusion of sources' clause impact the potential for competition and taxpayer value in this contract?

The 'exclusion of sources' clause, when used in conjunction with 'Full and Open Competition,' suggests that while the competition was intended to be broad, certain potential sources were deliberately excluded based on specific criteria. This could be due to requirements for specialized expertise, past performance, security clearances, or other factors deemed critical for the project's success. While this can ensure that only qualified contractors participate, it inherently limits the number of bidders compared to a truly unrestricted competition. The impact on taxpayer value depends on the justification for the exclusion; if the exclusions were necessary and well-reasoned, it might lead to a more efficient execution by highly capable firms. However, if the exclusions were arbitrary or overly restrictive, it could stifle competition, potentially leading to higher prices and reduced value for taxpayers.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,450,314

Exercised Options: $2,450,314

Current Obligation: $2,450,314

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24718D0133

IDV Type: IDC

Timeline