VA awards $11.35M for Memphis OR renovation, Semper Tek Inc. secures contract

Contract Overview

Contract Amount: $11,353,408 ($11.4M)

Contractor: Semper TEK Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-06

End Date: 2026-11-12

Contract Duration: 1,771 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF OPERATING ROOMS AT THE MEMPHIS VA MEDICAL CENTER IN MEMPHIS, TENNESSEE.

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38104

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.4 million to SEMPER TEK INC for work described as: RENOVATION OF OPERATING ROOMS AT THE MEMPHIS VA MEDICAL CENTER IN MEMPHIS, TENNESSEE. Key points: 1. Contract value of $11.35 million for operating room renovations. 2. Semper Tek Inc. is the prime contractor. 3. Project located at the Memphis VA Medical Center in Tennessee. 4. Contract type is Firm Fixed Price. 5. Duration of the contract is 1771 days. 6. Competition was full and open after exclusion of sources.

Value Assessment

Rating: good

The contract value of $11.35 million for operating room renovations appears reasonable given the scope of work. Benchmarking against similar large-scale healthcare facility construction projects suggests that costs can vary significantly based on location, complexity, and specific requirements. Without detailed project specifications and cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty for the government.

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,' indicating that while the competition was broad, certain sources may have been excluded based on specific criteria. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: The competitive nature of this award, even with two bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Veterans in the Memphis area will benefit from modernized operating rooms, potentially leading to improved healthcare services. The project will involve significant construction and renovation activities, impacting the physical infrastructure of the VA Medical Center. The project is geographically focused on Memphis, Tennessee. The renovation will likely create or sustain jobs in the construction sector within the Memphis region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in renovation projects of this magnitude.
Dependence on a single prime contractor for successful project completion.
Risk of unforeseen site conditions impacting schedule and budget.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition, even with limited bidders, suggests a structured procurement process.
Long-term contract duration allows for phased execution and potential for quality control.

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 to upgrade aging infrastructure and adopt new medical technologies. Spending in this sector is influenced by government healthcare initiatives, private investment, and regulatory requirements. Comparable projects often involve complex systems integration and stringent quality standards.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Semper Tek Inc., may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis would be needed to determine subcontracting plans.

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 firm-fixed-price contract terms, requiring the contractor to deliver specified renovations within the agreed-upon budget and timeline. Transparency is generally maintained through contract award databases and public reporting, though detailed project oversight specifics are internal.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Federal Construction Contracts
Operating Room Upgrades

Risk Flags

Potential for disruption to ongoing medical services.
Risk of infection control breaches during construction.
Unforeseen site conditions may impact schedule and budget.
Complexity of integrating new medical technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.4 million to SEMPER TEK INC. RENOVATION OF OPERATING ROOMS AT THE MEMPHIS VA MEDICAL CENTER IN MEMPHIS, TENNESSEE.

Who is the contractor on this award?

The obligated recipient is SEMPER TEK 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 $11.4 million.

What is the period of performance?

Start: 2022-01-06. End: 2026-11-12.

What is the track record of Semper Tek Inc. with federal contracts, particularly within the Department of Veterans Affairs?

A review of Semper Tek Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance on similar projects, including the size, scope, and complexity of renovations, as well as their history with the Department of Veterans Affairs (VA). Key indicators would include on-time and on-budget performance, quality of work, and any past disputes or contract terminations. Without specific data on Semper Tek's prior federal awards and performance reviews, it is difficult to definitively assess their suitability and reliability for this significant operating room renovation project.

How does the awarded amount compare to similar operating room renovation projects at other VA medical centers?

Comparing the $11.35 million award for the Memphis VA Medical Center's operating room renovation to similar projects requires access to a database of comparable federal construction contracts. Factors such as the square footage being renovated, the extent of structural and systems upgrades (e.g., HVAC, electrical, medical gas), and the specific medical equipment being accommodated would need to be standardized for a meaningful comparison. Generally, large-scale renovations in active medical facilities are complex and costly due to the need to maintain ongoing operations and adhere to stringent healthcare building codes. The firm-fixed-price nature of this contract suggests a defined scope, which aids in cost control, but benchmarking against projects with identical specifications is crucial for a precise value assessment.

What are the primary risks associated with renovating operating rooms in an active medical facility?

Renovating operating rooms within an active medical facility presents several significant risks. Foremost is the risk of disrupting ongoing patient care and essential medical services, which necessitates meticulous phasing and scheduling to minimize impact. Infection control is another critical risk; construction activities can compromise sterile environments, potentially leading to hospital-acquired infections, requiring stringent containment protocols. Furthermore, unforeseen site conditions, such as discovering hazardous materials or structural issues not apparent during initial assessments, can lead to significant delays and cost overruns. Ensuring the integration of new, complex medical technologies and systems with existing infrastructure also poses a technical risk. Finally, managing the coordination between construction crews and medical staff is paramount to safety and operational efficiency.

What is the historical spending trend for operating room renovations at the Memphis VA Medical Center?

To determine the historical spending trend for operating room renovations at the Memphis VA Medical Center, one would need to analyze past contract awards specifically for this facility and for similar renovation projects. This analysis would involve querying federal procurement databases for contracts issued to the Memphis VA Medical Center over several fiscal years, filtering for construction and renovation projects related to operating rooms or surgical suites. Examining the frequency, value, and duration of these past contracts would reveal any patterns of investment in upgrading this specific area. Without access to this historical data, it is impossible to establish a trend or benchmark current spending against past expenditures for this particular facility.

How will the success of this renovation project be measured and evaluated?

The success of this operating room renovation project will likely be measured against several key performance indicators (KPIs) defined in the contract. These typically include adherence to the project schedule, staying within the firm-fixed-price budget of $11.35 million, and meeting all technical specifications and quality standards outlined in the contract documents. Post-completion evaluation may also involve assessing the functionality of the new operating rooms, the integration of medical equipment, and the overall impact on surgical throughput and patient safety. The Department of Veterans Affairs will likely conduct inspections and reviews throughout the project lifecycle and upon completion to ensure all contract requirements are satisfactorily met. User feedback from the medical staff utilizing the renovated spaces will also be a crucial component of the evaluation.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24922R0015

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 848 NANDINO BLVD, LEXINGTON, KY, 40511

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

Financial Breakdown

Contract Ceiling: $11,353,408

Exercised Options: $11,353,408

Current Obligation: $11,353,408

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline