VA awards $8.4M construction contract for Lake Nona facility renovation, emphasizing emergency and observation unit upgrades

Contract Overview

Contract Amount: $8,431,564 ($8.4M)

Contractor: Blue Cord Design and Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-04

End Date: 2027-03-28

Contract Duration: 601 days

Daily Burn Rate: $14.0K/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: CONSTRUCTION SERVICES, RENOVATE LAKE NONA BUILDING 2 FOR EMERGENCY DEPARTMENT AND OBSERVATION UNIT, PROJECT 675-23-100

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.4 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC for work described as: CONSTRUCTION SERVICES, RENOVATE LAKE NONA BUILDING 2 FOR EMERGENCY DEPARTMENT AND OBSERVATION UNIT, PROJECT 675-23-100 Key points: 1. Contract value appears reasonable for a significant renovation project of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 601 days indicates a substantial construction timeline. 5. The contract is positioned within the healthcare construction sector, focusing on critical patient care facilities. 6. Award to a single contractor, BLUE CORD DESIGN AND CONSTRUCTION, LLC, warrants review of past performance.

Value Assessment

Rating: good

The contract value of approximately $8.4 million for renovating an emergency department and observation unit is within a typical range for such specialized healthcare construction projects. Benchmarking against similar VA facility renovations or other institutional building construction projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the final cost will depend on the contractor's efficiency and management of unforeseen issues.

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,' which typically means that after an initial exclusion of certain sources, the remaining opportunities were competed openly. The presence of 3 bidders suggests a moderate level of competition. While more bidders could potentially drive prices lower, three offers generally indicate sufficient market interest to achieve a competitive price.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it allows a wider range of contractors to bid, fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The primary beneficiaries are veterans requiring emergency and observation care at the Lake Nona facility. The project will deliver upgraded and potentially expanded emergency and observation unit services. The geographic impact is localized to the Lake Nona, Florida area, serving the veteran population there. The construction workforce in Florida will be directly impacted through job creation during the project duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the complexity of hospital renovations.
Ensuring the selected contractor has specific experience with healthcare facility construction and infection control protocols.
Monitoring adherence to the firm-fixed-price contract to prevent scope creep and cost overruns.

Positive Signals

The use of full and open competition suggests a robust selection process.
The firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical healthcare needs for veterans, indicating a high-priority service delivery.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facilities. The market for healthcare construction is substantial, driven by the need for modern, efficient, and specialized medical spaces. This project aligns with the VA's ongoing efforts to modernize its infrastructure and improve patient care capabilities across its network. Comparable spending benchmarks would involve analyzing other large-scale renovations or new constructions of hospital wings or specialized medical units.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a firm-fixed-price contract awarded through full and open competition, there is no explicit requirement for subcontracting with small businesses unless stipulated in the contract terms or if the prime contractor voluntarily engages them. The impact on the small business ecosystem would depend on whether BLUE CORD DESIGN AND CONSTRUCTION, LLC utilizes small businesses for specialized services or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally maintained through federal 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
Emergency Department Upgrades
Observation Unit Construction
Federal Construction Contracts

Risk Flags

Contractor Performance Risk
Schedule Delay Risk
Healthcare Construction Compliance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.4 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC. CONSTRUCTION SERVICES, RENOVATE LAKE NONA BUILDING 2 FOR EMERGENCY DEPARTMENT AND OBSERVATION UNIT, PROJECT 675-23-100

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 $8.4 million.

What is the period of performance?

Start: 2025-08-04. End: 2027-03-28.

What is the track record of BLUE CORD DESIGN AND CONSTRUCTION, LLC with the Department of Veterans Affairs and similar healthcare construction projects?

A thorough review of BLUE CORD DESIGN AND CONSTRUCTION, LLC's past performance is crucial. This includes examining their history with the VA and other federal agencies, specifically looking at their experience with healthcare construction, emergency departments, and observation units. Key metrics to assess would be on-time and on-budget project completion rates, quality of work, and any history of disputes or contract modifications. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in evaluating their suitability for this significant renovation project. Understanding their specific expertise in hospital environments, including infection control and compliance with healthcare regulations, is paramount to ensuring successful project execution.

How does the awarded price of $8.4 million compare to similar VA emergency department and observation unit renovation projects?

Benchmarking this $8.4 million contract against similar projects is essential for assessing value for money. This comparison should consider the square footage renovated, the complexity of the required upgrades (e.g., specialized medical equipment installation, structural modifications), and the geographic location, as construction costs vary regionally. Analyzing historical data for VA projects of similar scope, duration (601 days), and contract type (firm-fixed-price) would provide a baseline. If comparable projects show significantly lower or higher costs for similar work, it could indicate potential overpricing or exceptional value. Without specific comparable project data, it's difficult to definitively state if the price is optimal, but it falls within a plausible range for substantial healthcare facility renovations.

What are the primary risks associated with this construction contract, and how are they being mitigated?

Key risks include potential construction delays due to unforeseen site conditions, complexity of integrating new facilities within an existing operational hospital, and ensuring adherence to stringent healthcare construction standards. Mitigation strategies are primarily addressed through the contract type: a firm-fixed-price contract shifts the risk of cost overruns to the contractor. The specified duration of 601 days allows for a structured timeline, and the VA's oversight will involve monitoring progress, quality, and compliance. The selection of a contractor with proven experience in healthcare renovations is also a critical risk mitigation factor. Furthermore, the 'Full and Open Competition' process aims to select a capable contractor, reducing the risk of poor performance.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for this type of specialized construction?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. While 'Full and Open Competition' is generally the most competitive, the 'exclusion of sources' component suggests initial limitations. The fact that three bids were received indicates a reasonable level of competition, which is generally effective in promoting competitive pricing. However, the effectiveness is maximized when the exclusion criteria are justified and do not unduly limit the pool of qualified bidders. If the exclusion was minimal and the remaining market offered sufficient competition, this method can yield competitive pricing. A higher number of bidders typically correlates with better price discovery for the government.

What is the projected impact of this contract on the VA's overall healthcare infrastructure modernization goals?

This contract directly supports the VA's broader goals of modernizing its healthcare infrastructure to provide state-of-the-art care. By renovating and upgrading critical facilities like emergency departments and observation units, the VA enhances its capacity to handle patient surges, improve patient outcomes, and ensure a safe and efficient care environment. Such upgrades are essential for maintaining the relevance and effectiveness of VA facilities in meeting the evolving healthcare needs of veterans. This project represents a tangible investment in improving the quality and accessibility of care at the Lake Nona facility, contributing to the overall resilience and capability of the VA healthcare system.

Are there any specific performance metrics or KPIs tied to this contract that will measure the success of the renovation?

While the provided data does not detail specific Key Performance Indicators (KPIs), construction contracts of this magnitude typically include performance metrics. These often revolve around adherence to the project schedule, quality of workmanship (meeting building codes and specifications), safety compliance on-site, and successful completion of all contract requirements. The VA's project managers and contracting officers will monitor these aspects throughout the project lifecycle. Post-completion, the success will be measured by the facility's operational readiness, its ability to meet patient care demands, and user satisfaction from both staff and patients. Formal acceptance of the completed work by the VA signifies the contractor's fulfillment of contractual obligations.

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: 36C24825R0025

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: $8,431,564

Exercised Options: $8,431,564

Current Obligation: $8,431,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline