VA Awards $11.5M Contract for Specialty Clinic Renovation to Birmingham Industrial Construction
Contract Overview
Contract Amount: $11,495,391 ($11.5M)
Contractor: Birmingham Industrial Construction, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-10-01
End Date: 2029-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $7.9K/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: RENOVATE 5B NORTH AND EAST FOR SPECIALTY CLINIC
Place of Performance
Location: DUBLIN, LAURENS County, GEORGIA, 31021
State: Georgia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $11.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: RENOVATE 5B NORTH AND EAST FOR SPECIALTY CLINIC Key points: 1. Contract awarded for renovation of 5B North and East for a specialty clinic. 2. The contract has a fixed price of $11,495,391. 3. Competition was full and open after exclusion of sources. 4. The contract duration is 1460 days, ending September 30, 2029.
Value Assessment
Rating: good
The contract's firm fixed price suggests a clear understanding of project scope and cost. Benchmarking against similar VA clinic renovation projects would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after excluding specific sources, indicating a broad search for qualified bidders. This method generally promotes competitive pricing.
Taxpayer Impact: The firm fixed price structure aims to control costs, ensuring taxpayer funds are used efficiently for the clinic renovation.
Public Impact
Improved healthcare facilities for veterans. Potential for enhanced patient care and access to specialty services. Economic activity through construction and associated services.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Exclusion of sources in competition may limit ultimate price discovery.
- Long contract duration could introduce unforeseen cost escalations.
- Firm fixed price may not account for all potential construction complexities.
Positive Signals
- Full and open competition is a positive sign for market engagement.
- Clear project scope for specialty clinic renovation.
- Defined contract end date provides timeline certainty.
Sector Analysis
The construction sector, particularly for institutional buildings like healthcare facilities, is subject to material costs, labor availability, and regulatory compliance. This contract falls within the commercial and institutional building construction NAICS code.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this contract, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and adherence to terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns despite fixed price.
- Long-term project duration introduces schedule and scope risks.
- Limited competition due to source exclusion.
- Dependence on contractor's ability to manage complex renovation.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $11.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. RENOVATE 5B NORTH AND EAST FOR SPECIALTY CLINIC
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 $11.5 million.
What is the period of performance?
Start: 2025-10-01. End: 2029-09-30.
What specific specialty services will this clinic provide, and how does the renovation align with VA's strategic healthcare goals?
The provided data does not specify the exact specialty services. However, renovations for specialty clinics typically aim to enhance patient care by providing dedicated spaces for specific medical needs, potentially improving diagnostic capabilities and treatment outcomes. This aligns with the VA's broader mission to deliver comprehensive healthcare to veterans.
What were the key factors leading to the exclusion of certain sources during the 'full and open competition after exclusion of sources' process?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary, and only a limited number of contractors can meet them. This process aims to ensure the best fit for specialized projects while still allowing broader competition among qualified entities, though it can sometimes limit the overall competitive landscape.
How will the firm fixed price contract mitigate risks associated with potential cost overruns during the multi-year renovation period?
A firm fixed price contract places the risk of cost overruns on the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of unforeseen expenses. However, the initial pricing must be robust enough to account for anticipated risks, and the VA's oversight will be crucial in ensuring the contractor manages the project effectively within budget.
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: 36C24725R0054
Offers Received: 5
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: $11,495,391
Exercised Options: $11,495,391
Current Obligation: $11,495,391
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-10-01
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2025-09-29
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