VA awards $14.9M contract for operating room renovations to Blue Cord Design and Construction, LLC

Contract Overview

Contract Amount: $14,920,427 ($14.9M)

Contractor: Blue Cord Design and Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-11

End Date: 2026-12-18

Contract Duration: 1,529 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROJECT 509-14-106, RENOVATE & UPGRADE OPERATING ROOMS.

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29209

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.9 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC for work described as: PROJECT 509-14-106, RENOVATE & UPGRADE OPERATING ROOMS. Key points: 1. The contract value of $14.9 million for operating room renovations appears to be within a reasonable range for such specialized construction projects. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract duration of 1529 days (over 4 years) indicates a significant, long-term project with potential for cost overruns if not managed effectively. 4. The fixed-price contract type shifts performance risk to the contractor, which can be beneficial for cost certainty. 5. The project is categorized under Commercial and Institutional Building Construction, a sector with established cost benchmarks. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses should be monitored.

Value Assessment

Rating: good

The contract value of $14.9 million for renovating and upgrading operating rooms is substantial. While specific benchmarks for operating room renovations are highly variable based on scope and location, this amount is not inherently excessive for a project of this scale and duration. Further analysis would require detailed project specifications and comparison to similar VA or other federal agency projects. The firm fixed-price nature of the contract provides cost certainty, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, there was a specific reason for excluding certain sources, which warrants further investigation. However, the 'full and open' designation generally implies multiple bidders were considered, leading to a more competitive pricing environment.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes a competitive bidding process, which should drive down costs and ensure the government receives the best value.

Public Impact

Veterans will benefit from modernized and potentially more efficient operating room facilities, leading to improved healthcare delivery. The project will deliver essential upgrades to critical medical infrastructure within a VA facility. The geographic impact is localized to the specific VA facility where the renovations are taking place in South Carolina. The project will likely create or sustain jobs in the construction sector, including skilled trades, in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration of the contract, which could increase costs beyond the initial award amount.
The 'Exclusion of Sources' clause in the competition type needs clarification to ensure no potential cost savings were missed by limiting the bidder pool.
Performance monitoring will be critical over the 4+ year duration to ensure quality and adherence to schedule.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, transferring significant risk to the contractor.
The use of 'Full and Open Competition' suggests a structured procurement process aimed at achieving competitive pricing.
The project addresses critical healthcare infrastructure needs, directly benefiting veteran care.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects, from office buildings to healthcare facilities. Operating room renovations are a specialized subset requiring adherence to strict health and safety codes, advanced technological integration, and infection control measures. The market for such specialized construction is competitive, with firms possessing specific expertise commanding higher value. Benchmarking this contract would involve comparing it to similar hospital or surgical center renovation projects, considering factors like square footage, complexity of systems installed, and duration.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a larger entity or that the competition was open to all qualified bidders, regardless of size. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by the contract type or set-aside status. Further review of the contract's subcontracting plan, if available, would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Given the long duration and significant value, regular progress reviews, site inspections, and financial audits would be expected. Transparency can be enhanced through public contract databases and reporting requirements. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Federal Construction Contracts
Operating Room Design and Construction

Risk Flags

Potential for cost escalation due to long contract duration.
Need for clarification on 'Exclusion of Sources' in competition.
Risk of performance issues over extended project timeline.
Ensuring adequate small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.9 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC. PROJECT 509-14-106, RENOVATE & UPGRADE OPERATING ROOMS.

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 $14.9 million.

What is the period of performance?

Start: 2022-10-11. End: 2026-12-18.

What specific upgrades are included in the operating room renovations, and how do they align with current medical technology standards?

The provided data does not detail the specific upgrades included in the operating room renovations. However, projects of this nature typically involve modernization of surgical lighting, anesthesia gas systems, patient monitoring equipment, imaging integration, HVAC systems for sterile environments, and potentially structural modifications to accommodate new equipment or workflows. To assess alignment with current standards, a review of the Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary. This would outline the technical requirements, performance standards, and any specific technological integrations mandated by the Department of Veterans Affairs to ensure state-of-the-art facilities that support advanced surgical procedures and patient safety.

How does the $14.9 million contract value compare to similar operating room renovation projects within the VA or other federal healthcare facilities?

Benchmarking the $14.9 million contract value requires detailed comparison with similar projects. Factors such as the size of the operating rooms, the extent of the renovation (e.g., cosmetic vs. complete gut and rebuild), the complexity of integrated medical technologies, and the geographic location significantly influence costs. Without access to the specific scope of work for this VA project and comparable project data (e.g., cost per square foot, cost per operating room), a precise comparison is difficult. However, for major renovations involving multiple ORs and advanced systems, $14.9 million can be within a reasonable range, especially considering the specialized nature of healthcare construction and the firm fixed-price contract type which may include contingencies for the contractor.

What are the primary risks associated with a 1529-day (over 4-year) contract for operating room renovations, and what mitigation strategies are in place?

The primary risks associated with a 1529-day contract for operating room renovations include significant potential for scope creep, material price escalation, labor shortages, unforeseen site conditions, and technological obsolescence during the project lifecycle. Mitigation strategies typically involve robust contract management, including detailed change order control processes, regular progress reviews, and performance monitoring. The firm fixed-price contract shifts some financial risk to the contractor, incentivizing them to manage costs. However, the VA must ensure clear specifications and proactive oversight to prevent delays and cost overruns. Contingency planning for material sourcing and labor availability is also crucial for such long-duration projects.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply for cost-effectiveness and potential bidder pool limitations?

The 'Full and Open Competition After Exclusion of Sources' method implies that the procurement was initially intended to be open to all responsible sources, but specific sources were excluded for documented reasons (e.g., national security, specific technical capabilities, prior performance issues). While it aims for broad competition, the exclusion of sources inherently limits the potential bidder pool compared to a purely 'full and open' competition. This limitation could potentially impact the level of price competition achieved. The justification for excluding sources is critical; if the exclusions were arbitrary or unnecessary, it could lead to higher costs for taxpayers. Conversely, if the exclusions were well-founded and necessary for project success, the resulting competition among the remaining qualified bidders might still yield good value.

What is the track record of Blue Cord Design and Construction, LLC in performing similar large-scale healthcare construction projects for the federal government?

Information regarding the specific track record of Blue Cord Design and Construction, LLC in performing large-scale healthcare construction projects for the federal government is not provided in the data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), project history, financial stability, and any past issues or successes on similar federal contracts. Without this information, it is difficult to definitively assess their capability and reliability for this significant operating room renovation project. Further due diligence by the VA would have been necessary prior to award.

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

Solicitation ID: 36C24722B0016

Offers Received: 3

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: $14,920,427

Exercised Options: $14,920,427

Current Obligation: $14,920,427

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24718D0134

IDV Type: IDC

Timeline