VA renovates Building 200 Wing D2 for isolation ward for $13.96M, awarded to Valiant Construction LLC

Contract Overview

Contract Amount: $13,962,748 ($14.0M)

Contractor: Valiant Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-05

End Date: 2025-09-17

Contract Duration: 713 days

Daily Burn Rate: $19.6K/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: 621-20-107-RENOVATE BLDG.-200_WING D2 FOR ISOLATION WARD

Place of Performance

Location: MOUNTAIN HOME, WASHINGTON County, TENNESSEE, 37684

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.0 million to VALIANT CONSTRUCTION LLC for work described as: 621-20-107-RENOVATE BLDG.-200_WING D2 FOR ISOLATION WARD Key points: 1. The contract value of $13.96 million for building renovation appears within a reasonable range for a project of this scope, though specific benchmarks are needed for definitive value assessment. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven price discovery. 3. The definitive contract type indicates a single order placed against a pre-existing agreement, with a fixed price to manage cost certainty. 4. The project's focus on creating an isolation ward highlights its critical role in enhancing healthcare infrastructure and patient safety. 5. The duration of 713 days suggests a complex renovation requiring significant planning and execution time. 6. The absence of small business set-asides means opportunities for smaller firms may be limited unless they are subcontractors.

Value Assessment

Rating: fair

The contract value of $13.96 million for renovating a building wing for an isolation ward needs to be benchmarked against similar construction projects to determine value for money. Without specific details on the scope of work, such as square footage, complexity of the isolation features, and required materials, a precise comparison is difficult. However, for a significant renovation project of this nature, the price appears to be within a plausible range, assuming standard construction costs and market conditions in Tennessee. Further analysis would require comparing this cost to per-square-foot renovation costs for similar healthcare facilities.

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 proposals were solicited from all eligible responsible sources. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially lead to lower prices, three offers generally provide a basis for price comparison and selection of the most advantageous offer for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible price and quality by allowing a wide range of contractors to bid, fostering a competitive environment that can drive down costs.

Public Impact

The primary beneficiaries are patients requiring isolation care within the Department of Veterans Affairs healthcare system, ensuring a safer and more effective treatment environment. The project delivers enhanced healthcare infrastructure by creating a dedicated isolation ward, improving the facility's capacity to manage infectious diseases or protect vulnerable patients. The geographic impact is localized to the facility where Building 200, Wing D2 is located, likely serving veterans in the surrounding region. The contract supports the construction workforce, including skilled tradespeople and project managers involved in the renovation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues or material price increases occur during the extended renovation period.
Risk of project delays impacting the facility's ability to utilize the isolation ward as planned.
Dependence on a single contractor (Valiant Construction LLC) for the entire project scope, concentrating risk.
The 'after exclusion of sources' clause in the competition type warrants scrutiny to ensure no viable sources were unfairly excluded.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, limiting the risk of budget overruns.
Awarding to a single contractor for the full scope can streamline project management and ensure cohesive execution.
The project addresses a critical healthcare need, indicating strong alignment with the VA's mission and public health objectives.
The duration of 713 days allows for thorough planning and execution, potentially leading to a higher quality outcome.

Sector Analysis

The construction sector, specifically commercial and institutional building construction, is a significant area of federal spending. The Department of Veterans Affairs is a major client within this sector, consistently investing in upgrading and expanding its healthcare facilities. This contract fits within the broader trend of infrastructure improvements and healthcare facility modernization. Comparable spending benchmarks would involve analyzing the cost per square foot for similar healthcare renovation projects across federal and private sectors.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Valiant Construction LLC voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

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, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Building Renovation Contracts
Isolation Unit Construction
Federal Construction Projects

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Contractor performance risk related to quality of work and adherence to timelines.
Dependency on specialized materials or equipment that may face supply chain disruptions.
Coordination challenges with ongoing operations at the VA facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.0 million to VALIANT CONSTRUCTION LLC. 621-20-107-RENOVATE BLDG.-200_WING D2 FOR ISOLATION WARD

Who is the contractor on this award?

The obligated recipient is VALIANT 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 $14.0 million.

What is the period of performance?

Start: 2023-10-05. End: 2025-09-17.

What is the track record of Valiant Construction LLC with the Department of Veterans Affairs and other federal agencies?

A review of federal contract databases indicates that Valiant Construction LLC has received multiple awards from the Department of Veterans Affairs, primarily for construction and renovation services. These contracts range in value and scope, suggesting established experience with VA projects. Further analysis would involve examining past performance reviews, any documented disputes or contract terminations, and the overall success rate of their previous federal engagements. Understanding their history with the VA specifically can provide insight into their reliability and capability for executing this current project effectively and within budget.

How does the cost per square foot for this renovation compare to similar VA isolation ward projects?

To accurately benchmark the cost per square foot, specific details about the size (square footage) of Wing D2 and the extent of the renovation are required. Assuming a hypothetical square footage, the $13.96 million contract value could be divided to derive a per-square-foot cost. This figure would then need to be compared against historical data for similar healthcare renovation projects, particularly those involving specialized isolation features, undertaken by the VA or other federal agencies. Factors such as regional construction costs, material prices, and the complexity of the isolation requirements (e.g., air filtration, negative pressure systems) significantly influence this metric. Without these specifics, a precise comparison is challenging, but the VA generally aims for competitive pricing through its procurement processes.

What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?

Key performance indicators for this firm fixed-price construction contract likely include adherence to the project schedule, quality of workmanship, compliance with building codes and VA standards, and completion within the contracted budget. Performance monitoring is typically conducted by the VA's contracting officer's representative (COR) or a designated project manager. This involves regular site inspections, review of progress reports submitted by Valiant Construction LLC, and milestone completion verification. Failure to meet KPIs could result in contractual remedies, such as liquidated damages for delays or requirements for corrective actions, as stipulated in the contract terms.

What is the historical spending pattern for building renovations at this specific VA facility or for similar isolation ward projects nationwide?

Analyzing historical spending for building renovations at this specific VA facility would require access to past contract awards and budget allocations for that location. Similarly, understanding nationwide spending on VA isolation ward projects involves aggregating data from numerous contracts. Generally, the VA undertakes significant capital investments to maintain and upgrade its extensive network of medical centers. Spending on specialized units like isolation wards can fluctuate based on public health needs, technological advancements in infection control, and the age of existing infrastructure. Trends may show increased investment following major public health events or as older facilities are modernized. This contract represents a specific investment aligned with the VA's ongoing efforts to enhance its healthcare capabilities.

Are there any identified risks associated with the contractor's past performance or the project's complexity?

Risk assessment involves evaluating both the contractor's history and the inherent complexities of the project. Valiant Construction LLC's past performance record with the VA and other agencies is a primary source for identifying potential risks. This includes reviewing any history of contract disputes, delays, cost overruns, or quality issues on previous projects. The complexity of renovating a building wing for an isolation ward also presents risks, such as encountering unforeseen structural problems, managing specialized HVAC and containment systems, and coordinating with ongoing facility operations. The firm fixed-price nature of the contract shifts some financial risk to the contractor, but schedule and quality risks remain significant considerations.

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: 36C24923R0030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4124 WAHL STREET BLVD, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $13,962,748

Exercised Options: $13,962,748

Current Obligation: $13,962,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline