VA awards $8.78M contract for patient room renovations, highlighting construction sector activity

Contract Overview

Contract Amount: $8,783,103 ($8.8M)

Contractor: Pointer Construction Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-27

End Date: 2026-04-20

Contract Duration: 662 days

Daily Burn Rate: $13.3K/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: BB RENOVATE BLDG 1, 5 SOUTH TO PRIVATE PATIENT ROOMS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.8 million to POINTER CONSTRUCTION GROUP LLC for work described as: BB RENOVATE BLDG 1, 5 SOUTH TO PRIVATE PATIENT ROOMS Key points: 1. Contract value of $8.78 million for building renovations indicates significant investment in healthcare infrastructure. 2. The use of a firm-fixed-price contract suggests a defined scope and budget, potentially mitigating cost overruns. 3. Competition dynamics, while involving multiple bidders, warrant further examination to ensure optimal value. 4. The project's duration of 662 days points to a substantial renovation effort. 5. Geographic focus on Florida suggests targeted infrastructure improvements within the VA system. 6. The contract's classification as a definitive contract implies a long-term agreement for services.

Value Assessment

Rating: good

The contract value of $8.78 million for renovating building 1, 5 South into private patient rooms appears reasonable for a project of this scope. Benchmarking against similar healthcare facility renovation projects would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control, assuming the scope was well-defined. The number of bids received (3) suggests some level of market interest, but a higher number could potentially drive down costs further.

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, indicating that multiple potential bidders were considered. Three bids were received, which suggests a moderate level of competition for this project. While three bidders are better than one, a higher number of competitive bids often leads to more aggressive pricing and a stronger demonstration of fair market value.

Taxpayer Impact: The full and open competition, despite receiving three bids, aims to ensure that taxpayer funds are used efficiently by encouraging competitive pricing. The process seeks to identify the most cost-effective solution for the government.

Public Impact

Patients at the specified VA facility will benefit from upgraded, private rooms, potentially improving comfort and care. The renovation project will deliver improved healthcare infrastructure for the Department of Veterans Affairs. The project's geographic impact is concentrated in Florida, specifically at the VA facility where Building 1, 5 South is located. The construction and renovation activities will likely create or sustain jobs within the local Florida workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in renovation projects, which could impact final costs despite the fixed-price nature.
Ensuring timely completion within the 662-day duration is crucial to minimize disruption to patient care.
Verification of contractor's past performance on similar large-scale healthcare construction projects is important.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust process for selecting the contractor.
The project addresses a clear need for improved patient facilities within the VA system.

Sector Analysis

The commercial and institutional building construction sector is a significant part of the U.S. economy, encompassing a wide range of projects from office buildings to healthcare facilities. Federal spending in this sector, particularly for healthcare infrastructure, is substantial as agencies like the VA continually upgrade and maintain their facilities. This contract fits within the broader trend of government investment in modernizing healthcare infrastructure to meet evolving patient needs and standards. Comparable spending benchmarks would involve analyzing other VA renovation projects or similar healthcare construction contracts awarded by federal agencies.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Pointer Construction Group LLC, may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified renovations within the agreed-upon price and timeline. Transparency is facilitated through contract award databases and public reporting, though detailed project-specific oversight activities are typically internal.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Federal Building Renovations
Construction Services for Government Agencies

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of project delays impacting facility operations.
Need to verify contractor's experience with healthcare environments.
Ensuring compliance with all relevant building and healthcare codes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.8 million to POINTER CONSTRUCTION GROUP LLC. BB RENOVATE BLDG 1, 5 SOUTH TO PRIVATE PATIENT ROOMS

Who is the contractor on this award?

The obligated recipient is POINTER CONSTRUCTION GROUP 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 $8.8 million.

What is the period of performance?

Start: 2024-06-27. End: 2026-04-20.

What is Pointer Construction Group LLC's track record with the Department of Veterans Affairs and similar healthcare construction projects?

A thorough review of Pointer Construction Group LLC's past performance with the Department of Veterans Affairs (VA) and on comparable healthcare construction projects is essential. This would involve examining contract histories for on-time and on-budget delivery, quality of work, and any instances of disputes or contract modifications. Data from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be critical. Understanding their experience with patient room renovations, infection control measures, and working within active healthcare environments will provide insight into their capability to successfully execute this $8.78 million project.

How does the $8.78 million contract value compare to similar VA patient room renovation projects?

To benchmark the value of this $8.78 million contract, a comparative analysis with similar Department of Veterans Affairs (VA) patient room renovation projects is necessary. This would involve identifying contracts awarded over the past 2-3 years for projects of comparable size, scope (e.g., number of rooms, complexity of upgrades), and geographic location. Factors such as square footage renovated, type of upgrades (e.g., plumbing, electrical, finishes), and the specific medical facility context should be considered. If this contract's cost per square foot or per room is significantly higher or lower than similar projects, it could indicate either exceptional value or potential issues with pricing or scope definition.

What are the primary risks associated with this specific building renovation contract?

The primary risks associated with this $8.78 million building renovation contract include potential scope creep, where unforeseen issues during demolition or construction necessitate additional work beyond the original plan, potentially impacting the firm-fixed-price. Delays in the 662-day schedule are also a risk, which could arise from material shortages, labor availability, or coordination challenges within an active medical facility. Furthermore, ensuring compliance with stringent healthcare construction codes and infection control protocols presents a technical risk. The contractor's ability to manage these risks effectively, given their experience and the contract's structure, is a key factor in project success.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for this renovation?

The firm-fixed-price (FFP) contract type is generally effective in ensuring cost control and predictability for well-defined projects like this renovation. It places the risk of cost overruns on the contractor, incentivizing them to manage their expenses efficiently and adhere to the agreed-upon budget. This can contribute to program effectiveness by ensuring the project is completed within financial constraints. However, the effectiveness of FFP relies heavily on a clearly defined scope of work. If the scope is ambiguous or significant unforeseen conditions arise, it can lead to change orders, potentially negating some of the cost certainty benefits and requiring careful negotiation.

What are the historical spending patterns for building renovations at this specific VA facility or within this VA region?

Analyzing historical spending patterns for building renovations at the specific VA facility or within its broader region is crucial for context. This involves examining past contract awards for similar construction and renovation projects over the last five to ten years. Key metrics to consider include the total amount spent annually on renovations, the average contract value, the frequency of major renovation projects, and the types of construction services procured. Understanding these patterns can reveal trends in infrastructure investment, identify periods of heightened activity, and provide a baseline against which the current $8.78 million contract can be assessed for its significance within the facility's or region's capital improvement history.

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: 36C24823R0199

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5101 NW 21ST AVE, FORT LAUDERDALE, FL, 33309

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,783,103

Exercised Options: $8,783,103

Current Obligation: $8,783,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline