VA awards $455K contract for cancer center upgrade to Above Group Inc

Contract Overview

Contract Amount: $454,790 ($454.8K)

Contractor: Above Group Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-03

End Date: 2026-05-24

Contract Duration: 872 days

Daily Burn Rate: $522/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CANCER CENTER UPGRADE

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $454,789.7 to ABOVE GROUP INC. for work described as: CANCER CENTER UPGRADE Key points: 1. Contract awarded using full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The contract type is a definitive contract with a firm fixed price, suggesting cost certainty for the government. 3. Above Group Inc. is the sole contractor, raising questions about the extent of competition. 4. The contract duration is 872 days, spanning over two years. 5. The project is located in Florida, potentially benefiting the local economy and workforce. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

The contract value of $454,789.7 for engineering services related to a cancer center upgrade appears to be within a reasonable range for such specialized projects. However, without specific details on the scope of work, it's difficult to benchmark against similar contracts precisely. The firm fixed-price structure provides cost predictability. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar facility upgrades.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The number of bidders (7) suggests a moderate level of interest, but the exclusion of sources might limit the full spectrum of competitive pricing. The final award to a single entity implies that Above Group Inc. was deemed the most advantageous offer.

Taxpayer Impact: The exclusion of sources, even with 7 bidders, could potentially lead to a less competitive outcome than a truly unrestricted full and open competition, possibly impacting the final price paid by taxpayers.

Public Impact

Veterans in Florida will benefit from an upgraded cancer center, potentially leading to improved healthcare services. The contract supports the Department of Veterans Affairs' mission to provide comprehensive medical care. The project is geographically focused in Florida, likely creating or sustaining jobs in the engineering and construction sectors within the state. Specialized engineering services are being delivered, contributing to the modernization of healthcare infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to understand the rationale and potential impact on competition.
Limited public information on Above Group Inc.'s track record for similar large-scale healthcare facility upgrades.
The definitive contract type, while offering price certainty, can sometimes be less flexible for evolving project needs compared to other contract types.

Positive Signals

The contract utilizes a firm fixed-price structure, which is generally favorable for cost control.
The award followed a competitive process with 7 bidders, indicating some level of market engagement.
The project directly supports the healthcare infrastructure for veterans, a key government priority.

Sector Analysis

The engineering services sector, particularly those supporting healthcare infrastructure, is a significant market within the federal contracting landscape. This contract falls under the broader category of professional, scientific, and technical services. The market for upgrading medical facilities is driven by the need for modernization, compliance with new regulations, and the expansion of services. Benchmarking this contract's value would ideally involve comparing it to other engineering contracts for hospital or specialized medical center renovations, considering factors like square footage, complexity of systems, and geographic location.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting requirements for small businesses. The award to Above Group Inc. (assuming it is not a small business) suggests that larger firms were likely involved in the bidding process. Further review would be needed to determine if any small business participation is mandated or occurred voluntarily.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and financial reviews. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Engineering and Architectural Services
Department of Veterans Affairs Capital Investments

Risk Flags

Limited information on contractor's past performance.
Ambiguity in the 'exclusion of sources' rationale.
Potential for scope creep in complex facility upgrades.
Need for detailed cost benchmarking against similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $454,789.7 to ABOVE GROUP INC.. CANCER CENTER UPGRADE

Who is the contractor on this award?

The obligated recipient is ABOVE GROUP INC..

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 $454,789.7.

What is the period of performance?

Start: 2024-01-03. End: 2026-05-24.

What is the specific scope of the cancer center upgrade project?

The provided data indicates the contract is for a 'CANCER CENTER UPGRADE' and falls under 'Engineering Services' (NAICS 541330). However, the precise details of the upgrade are not specified. This could range from minor renovations and equipment installation to significant structural changes or the addition of new wings. Understanding the detailed scope of work, including architectural plans, equipment specifications, and any required compliance upgrades (e.g., for radiation shielding, specialized HVAC, or accessibility), is crucial for a comprehensive assessment of the contract's value and the contractor's performance. Without this granular information, it's challenging to determine if the $454,789.7 award is commensurate with the actual work performed.

What is the track record of Above Group Inc. with the Department of Veterans Affairs or similar healthcare projects?

Information regarding Above Group Inc.'s specific track record with the Department of Veterans Affairs (VA) or on similar large-scale healthcare facility upgrades is not detailed in the provided data. A thorough analysis would require examining past performance evaluations, previous contracts awarded to Above Group Inc. by the VA or other federal agencies, and their history with projects of comparable size and complexity. Understanding their experience in specialized areas like cancer center construction or renovation is key to assessing their capability and the potential risks associated with this contract. A lack of readily available public information on their past performance could be a flag for further due diligence.

How does the $454,789.7 contract value compare to similar cancer center upgrade projects?

Benchmarking the $454,789.7 contract value for a cancer center upgrade requires detailed comparison with similar projects. Factors such as the size of the facility being upgraded (square footage), the extent of the renovation (e.g., cosmetic vs. structural, equipment integration), the specific medical technologies involved, and the geographic location significantly influence costs. Without these specifics, a direct comparison is difficult. However, for context, smaller-scale renovations or specific equipment installations in healthcare settings can range from tens of thousands to millions of dollars. This contract appears to be for a moderate-sized project or a specific phase of a larger upgrade, given the value. A more precise comparison would necessitate access to data on comparable VA or other federal healthcare construction projects.

What are the potential risks associated with a definitive contract for this type of project?

Definitive contracts, especially those with a firm fixed price, offer cost certainty but can introduce risks if the scope of work is not perfectly defined or if unforeseen issues arise during the project. For a cancer center upgrade, potential risks include encountering unexpected structural problems, discovering hazardous materials, or facing delays due to specialized equipment procurement or installation. If the contract's scope is too rigid, it might not accommodate necessary design changes or technological advancements during the project lifecycle. The 'exclusion of sources' aspect also carries a risk if it inadvertently limited the pool of highly qualified contractors, potentially impacting overall project quality or innovation.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

This designation implies a nuanced approach to competition. 'Full and open competition' generally means all responsible sources are permitted to submit offers. However, the addition of 'after exclusion of sources' indicates that prior to the solicitation, certain potential offerors were deliberately excluded. The reasons for exclusion are critical – they could be based on specific qualifications, past performance issues, or other criteria deemed necessary by the agency. While it aims to ensure a qualified pool, it inherently limits the breadth of competition compared to a completely unrestricted process. The fact that 7 bids were received suggests sufficient interest remained, but the exclusion raises questions about whether the most competitive pricing and innovative solutions were fully explored.

How has the VA historically allocated funds for cancer center upgrades or similar medical facility projects?

Historical spending patterns for the VA's cancer center upgrades or similar medical facility projects would reveal trends in investment, project types, and average contract values. Analyzing past VA budgets and contract awards related to capital improvements and medical infrastructure would provide context for the current $454,789.7 contract. For instance, have such upgrades typically been awarded as single, large contracts or broken down into smaller, specialized service contracts? Are there recurring contractors for these types of projects? Understanding historical allocation can highlight whether this contract represents a typical investment or an outlier, and whether the VA favors specific contracting approaches for medical facility enhancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24823R0121

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 305 EAST DR, MELBOURNE, FL, 32904

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $454,790

Exercised Options: $454,790

Current Obligation: $454,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline