VA awards $6.5M contract for lab and pathology renovations to Bridger National Construction LLC

Contract Overview

Contract Amount: $6,510,853 ($6.5M)

Contractor: Bridger National Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-11-21

End Date: 2026-04-15

Contract Duration: 1,241 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 550-20-110 RENOVATE LAB AND PATHOLOGY

Place of Performance

Location: DANVILLE, VERMILION County, ILLINOIS, 61832

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.5 million to BRIDGER NATIONAL CONSTRUCTION LLC for work described as: PROJECT 550-20-110 RENOVATE LAB AND PATHOLOGY Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The contract is a firm fixed-price definitive contract, providing cost certainty. 3. Project duration spans over 1200 days, indicating a significant scope of work. 4. The contractor, Bridger National Construction LLC, is relatively new to federal contracting. 5. Geographic location in Illinois may impact local construction labor availability and costs. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $6.5 million for lab and pathology renovations appears within a reasonable range for a project of this scope and duration. However, without specific details on the scope of work, square footage, or complexity of the renovations, a precise value-for-money assessment is challenging. Benchmarking against similar VA facility renovation projects would provide a clearer picture of whether the pricing is competitive. The firm fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for the government if the contractor accurately priced the work.

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 is a specific type of competitive procedure. While it indicates competition, the 'exclusion of sources' part suggests that certain pre-qualified or previously considered sources might have been involved, or that specific requirements led to the exclusion of others. The presence of 4 bids (no) indicates a degree of competition, but the exact level of competition and its impact on price discovery would depend on the number of *qualified* bidders and the nature of the exclusions.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging multiple bidders to offer competitive prices. However, the specific exclusion of sources warrants further scrutiny to ensure that the most advantageous offers were indeed considered and that the final price reflects true market value.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs and the veterans it serves, who will gain improved laboratory and pathology facilities. The project will deliver renovated and modernized lab and pathology spaces, enhancing diagnostic capabilities and patient care. The geographic impact is concentrated in Illinois, where the renovation work will take place. The project will likely create or sustain jobs within the construction sector in Illinois, benefiting local tradespeople and suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's limited federal contracting history may present execution risks.
The long project duration (over 3 years) increases the potential for cost overruns or scope creep if not managed effectively.
The 'exclusion of sources' clause in the competition type requires further investigation to ensure full market potential was leveraged.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through a competitive process, indicating potential for good value.
The project addresses critical infrastructure needs for veteran healthcare services.

Sector Analysis

The construction sector, specifically commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of facilities renovation and modernization. Federal spending in this sector often involves complex projects with long lead times and substantial budgets. Benchmarking this $6.5 million project against similar renovation contracts for healthcare or institutional facilities would provide context on its scale and cost-effectiveness.

Small Business Impact

This contract was not set aside for small businesses (sb: false). The award to Bridger National Construction LLC, a company with a limited federal contracting history, does not provide immediate insight into its size category. The absence of a small business set-aside means that larger firms were likely eligible and potentially competed. There is no explicit information on subcontracting plans, but for a project of this nature, it is common for prime contractors to utilize small businesses for specialized services, which could still offer opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting and project management offices. The firm fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality standards. Transparency will be facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
General Services Administration (GSA) Building Construction
Department of Defense Facilities Renovation

Risk Flags

Contractor performance risk due to limited federal experience.
Potential for cost overruns or scope creep on long-duration project.
Uncertainty regarding the impact of 'exclusion of sources' on competition level.
Need for detailed scope review to validate value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.5 million to BRIDGER NATIONAL CONSTRUCTION LLC. PROJECT 550-20-110 RENOVATE LAB AND PATHOLOGY

Who is the contractor on this award?

The obligated recipient is BRIDGER NATIONAL 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 $6.5 million.

What is the period of performance?

Start: 2022-11-21. End: 2026-04-15.

What is the specific scope of work for the lab and pathology renovations?

The provided data does not detail the specific scope of work for PROJECT 550-20-110. It is identified as 'RENNOVATE LAB AND PATHOLOGY' under NAICS code 236220 (Commercial and Institutional Building Construction). To understand the full scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This would typically include details on the extent of demolition, construction, installation of specialized equipment, HVAC, electrical, and plumbing upgrades required for the laboratory and pathology areas. The duration of 1241 days suggests a comprehensive renovation rather than a minor upgrade.

How does Bridger National Construction LLC's track record compare to similar contractors for VA projects?

Bridger National Construction LLC appears to have a limited federal contracting history based on the provided data. A deeper analysis would involve searching federal procurement databases (like FPDS) for other contracts awarded to this entity. Comparing their past performance, contract values, and types of projects against established contractors who frequently undertake VA facility renovations would be necessary. Without this comparative data, it's difficult to definitively assess their track record relative to industry peers. The current award is a significant step, but its success will be a key indicator for future performance evaluations.

Is the $6.5 million contract value competitive for a project of this duration and type?

The $6.5 million contract value for a project spanning 1241 days (approximately 3.4 years) for lab and pathology renovations requires context. The average annual cost is roughly $1.9 million. To assess competitiveness, this figure should be benchmarked against similar renovation projects in healthcare settings, considering factors like square footage, complexity of required systems (e.g., specialized ventilation, hazardous material handling), and geographic location. The fact that it was awarded under 'Full and Open Competition After Exclusion of Sources' with 4 bids suggests some level of market interest, but the specific pricing competitiveness depends on the details of the bids received and the market rates for construction services in Illinois.

What are the potential risks associated with a firm fixed-price contract for a long-duration project?

Firm fixed-price (FFP) contracts are generally preferred for their cost certainty. However, for long-duration projects like this 1241-day renovation, risks can emerge. The primary risk is that the contractor may have underestimated costs, leading to potential quality compromises or requests for change orders if they are not adequately managed. Conversely, if the contractor significantly overestimated costs, the government might be paying a premium. Effective project management and oversight by the VA are crucial to ensure the contractor performs diligently, maintains quality, and adheres to the fixed price without compromising the project's objectives or resorting to excessive change requests.

How does the 'Full and Open Competition After Exclusion of Sources' impact price discovery and taxpayer value?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) is a less common method than standard full and open competition. It implies that the agency initially considered a broader range of sources but then excluded some based on specific criteria before proceeding with a competitive solicitation. While it still aims for competition, the exclusion of certain sources might limit the pool of potential bidders. If the exclusions were justified and based on necessary qualifications, it could lead to a competitive environment among highly capable firms. However, if the exclusions were too broad or arbitrary, it could stifle competition, potentially leading to higher prices than if a truly open competition had been conducted. Taxpayer value is maximized when the broadest possible base of qualified competitors can bid.

What is the historical spending pattern for lab and pathology renovations by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for lab and pathology renovations by the VA. To analyze this, one would need to access historical contract data from sources like the Federal Procurement Data System (FPDS) or agency-specific spending reports. Such an analysis would involve identifying similar contracts awarded over several fiscal years, examining their values, durations, and the contractors involved. Understanding historical spending can reveal trends in project costs, identify frequently used contractors, and highlight any significant increases or decreases in investment in this specific area of healthcare infrastructure.

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: 36C25222B0033

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6603 N HIAWATHA AVENUE, CHICAGO, IL, 60646

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: $6,510,853

Exercised Options: $6,510,853

Current Obligation: $6,510,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline