VA awards $5M contract for patient privacy renovations at B39-2 West facility

Contract Overview

Contract Amount: $4,997,944 ($5.0M)

Contractor: Daniels Building CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-29

End Date: 2026-01-31

Contract Duration: 1,585 days

Daily Burn Rate: $3.2K/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: 515-20-102 RENOVATE B39-2 WEST PATIENT PRIVACY

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.0 million to DANIELS BUILDING CO INC for work described as: 515-20-102 RENOVATE B39-2 WEST PATIENT PRIVACY Key points: 1. Contract awarded to DANIELS BUILDING CO INC for facility renovations. 2. Project focuses on enhancing patient privacy within the B39-2 West facility. 3. The contract duration is 1585 days, ending January 31, 2026. 4. This is a firm-fixed-price contract, indicating a set price for the work. 5. The award was made under full and open competition. 6. The contract value is approximately $5 million.

Value Assessment

Rating: good

The contract value of approximately $5 million for facility renovations appears reasonable given the scope of work involving patient privacy enhancements. Benchmarking against similar construction projects for healthcare facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor has a clear understanding of the project's requirements and associated costs, which can help control overall expenditure.

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 bidders were likely considered. The presence of competition is generally positive for price discovery and ensuring the government receives competitive pricing. The specific number of bidders (2) suggests a moderate level of competition for this particular project.

Taxpayer Impact: The competitive bidding process for this renovation project likely resulted in a more favorable price for taxpayers compared to a sole-source award.

Public Impact

Veterans receiving care at the B39-2 West facility will benefit from improved patient privacy. The project will enhance the physical infrastructure of a Department of Veterans Affairs facility. The geographic impact is localized to the facility where the renovations are taking place. The construction work will likely involve local labor and subcontractors, providing economic benefits to the Michigan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise.
Delays in project completion could impact the timeline for privacy improvements.

Positive Signals

Firm-fixed-price contract helps manage budget certainty.
Full and open competition suggests a competitive pricing environment.
Clear project scope focused on patient privacy.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for healthcare facility construction and renovation is substantial, driven by the need for modern, compliant, and patient-centered healthcare environments. Spending in this sector is influenced by healthcare demand, regulatory requirements, and technological advancements in medical care.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Further investigation would be needed to determine if DANIELS BUILDING CO INC has a history of subcontracting with small businesses or if there are any indirect impacts on the small business ecosystem through this award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon budget. Transparency can be assessed through publicly available contract data and reporting mechanisms.

Related Government Programs

VA Facility Renovations
Healthcare Construction Projects
Patient Privacy Enhancements
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for scope creep
Risk of construction delays
Ensuring patient care continuity during renovation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.0 million to DANIELS BUILDING CO INC. 515-20-102 RENOVATE B39-2 WEST PATIENT PRIVACY

Who is the contractor on this award?

The obligated recipient is DANIELS BUILDING CO 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 $5.0 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-01-31.

What is the track record of DANIELS BUILDING CO INC with the Department of Veterans Affairs?

A review of DANIELS BUILDING CO INC's contract history with the Department of Veterans Affairs (VA) would be necessary to assess their performance on previous projects. This would involve examining past contract values, project types, completion timeliness, and any reported issues or awards. Understanding their experience with similar healthcare renovation projects, particularly those involving patient privacy, would provide valuable insight into their capability to successfully execute this current contract. Without specific historical data on their VA engagements, it is difficult to definitively assess their track record.

How does the awarded price compare to similar VA patient privacy renovation projects?

To benchmark the value of this $5 million contract, a comparative analysis with similar VA patient privacy renovation projects would be required. This would involve identifying contracts with comparable scope, facility type (e.g., hospital, clinic), square footage, and geographic location. Factors such as the complexity of the privacy enhancements (e.g., soundproofing, visual barriers, electronic systems) and the age and condition of the existing facility would also need to be considered. A detailed comparison would help determine if the awarded price represents a fair market value and indicates good value for taxpayer money.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential cost overruns due to unforeseen site conditions or material price fluctuations, and schedule delays caused by weather, labor shortages, or supply chain disruptions. For a healthcare facility renovation, risks also extend to ensuring minimal disruption to ongoing patient care and maintaining stringent infection control protocols. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, but significant scope changes or unforeseen complexities could still lead to disputes or require contract modifications. The contractor's experience and the thoroughness of the initial site assessment are key mitigating factors.

How effective are VA facility renovations in improving patient privacy?

The effectiveness of VA facility renovations in improving patient privacy is generally high, provided the renovations are well-designed and executed according to best practices. Enhancements such as upgraded room layouts, improved sound insulation, and visual screening directly address patient confidentiality concerns. The success hinges on the specific interventions implemented; for instance, converting multi-bed wards to single-patient rooms or adding private consultation areas significantly boosts privacy. Regular post-occupancy evaluations and patient feedback mechanisms are crucial for assessing the actual impact and identifying areas for further improvement in future projects.

What has been the historical spending trend for VA facility renovations over the past five years?

Analyzing the historical spending trend for VA facility renovations over the past five years would reveal the agency's investment patterns in infrastructure upgrades. This would involve aggregating contract data for facility maintenance, repair, and modernization across all VA medical centers and facilities. A rising trend might indicate increased focus on infrastructure modernization or addressing deferred maintenance, while a declining trend could suggest budget constraints or shifting priorities. Understanding this trend provides context for the current $5 million award, indicating whether it aligns with or deviates from historical spending levels and the overall strategic direction of the VA's capital improvement program.

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: SEALED BID

Solicitation ID: 36C25021B0060

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33900 W EIGHT MILE RD STE 161, FARMINGTON HILLS, MI, 48335

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: $4,997,944

Exercised Options: $4,997,944

Current Obligation: $4,997,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline