VA awards $6M construction contract for Milwaukee women's clinic, highlighting need for specialized healthcare facilities

Contract Overview

Contract Amount: $6,042,696 ($6.0M)

Contractor: Industrial Maintenance Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-12

End Date: 2026-04-22

Contract Duration: 1,106 days

Daily Burn Rate: $5.5K/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: CONSTRUCTION PROJECT 695-19-132 CONSTRUCT WOMEN'S CLINIC AT THE MILWAUKEE VA MEDICAL CENTER.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53295

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.0 million to INDUSTRIAL MAINTENANCE SERVICES INC for work described as: CONSTRUCTION PROJECT 695-19-132 CONSTRUCT WOMEN'S CLINIC AT THE MILWAUKEE VA MEDICAL CENTER. Key points: 1. Contract awarded to Industrial Maintenance Services Inc. for construction services. 2. Project aims to enhance healthcare access for women veterans. 3. Fixed-price contract type suggests predictable cost outcomes. 4. Contract duration of 1106 days indicates a significant construction timeline. 5. Geographic focus on Wisconsin for this specific facility. 6. The award represents a targeted investment in veteran healthcare infrastructure.

Value Assessment

Rating: good

The contract value of approximately $6 million for constructing a women's clinic appears reasonable for a specialized healthcare facility. Benchmarking against similar VA construction projects for medical clinics 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 any unforeseen site conditions.

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 a broad solicitation process. While the specific number of bidders is not provided, this approach generally fosters competitive pricing and allows for a wider pool of qualified contractors to submit proposals. This method is preferred for ensuring fair market value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is designed to yield the most competitive pricing by allowing all eligible businesses to bid, thereby driving down costs.

Public Impact

Women veterans in the Milwaukee area will benefit from improved access to specialized healthcare services. The project will result in the construction of a new, dedicated women's clinic facility. The geographic impact is concentrated in Milwaukee, Wisconsin, serving the local veteran population. The construction phase will likely create temporary jobs in the local construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting service delivery timeline.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Ensuring the facility meets all specific healthcare and accessibility standards for women veterans.

Positive Signals

Clear objective to improve veteran healthcare access.
Use of a firm-fixed-price contract to manage budget.
Award to a contractor through a competitive bidding process.

Sector Analysis

The construction sector, particularly for specialized healthcare facilities, is a significant area of federal spending. This contract fits within the broader category of healthcare infrastructure development, which is a priority for the Department of Veterans Affairs. Comparable spending benchmarks would involve analyzing the cost per square foot for similar medical facility constructions across different regions and agencies.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small business set-asides is likely minimal unless Industrial Maintenance Services Inc. plans to subcontract a portion of the work to small businesses. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this construction project will likely be managed by the Department of Veterans Affairs' project management and contracting officers. Accountability measures will be tied to the contract's performance milestones and adherence to the firm-fixed-price agreement. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided in this data.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Women's Health Services
Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns due to unforeseen conditions
Ensuring specialized healthcare facility compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.0 million to INDUSTRIAL MAINTENANCE SERVICES INC. CONSTRUCTION PROJECT 695-19-132 CONSTRUCT WOMEN'S CLINIC AT THE MILWAUKEE VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL MAINTENANCE SERVICES 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 $6.0 million.

What is the period of performance?

Start: 2023-04-12. End: 2026-04-22.

What is the track record of Industrial Maintenance Services Inc. with VA construction projects?

Information regarding the specific track record of Industrial Maintenance Services Inc. with the Department of Veterans Affairs for construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous VA contracts. This would help gauge their reliability and experience in delivering similar projects on time and within budget. Without this historical data, it's difficult to definitively assess their suitability beyond the current award.

How does the awarded amount compare to similar VA women's clinic construction projects?

The awarded amount of approximately $6 million for the construction of a women's clinic at the Milwaukee VA Medical Center needs to be benchmarked against similar projects to assess value for money. Factors such as square footage, complexity of medical equipment installation, and regional construction cost indices would be crucial for a fair comparison. If comparable projects of similar scope and size have been awarded for significantly less, it might indicate a potential overpricing or scope difference. Conversely, if costs are in line or lower, it suggests competitive pricing for the services rendered.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risks associated with this firm-fixed-price contract, despite its cost control benefits, include potential for scope creep if not managed tightly, and the contractor's incentive to cut corners on quality to maximize profit if margins are thin. Unforeseen site conditions (e.g., environmental hazards, unexpected structural issues in existing facilities) could lead to change orders, potentially increasing the final cost. Delays in permitting, material availability, or labor shortages could also impact the project timeline and, indirectly, costs if liquidated damages are applicable. The VA's oversight will be critical in mitigating these risks.

How effective is the 'full and open competition after exclusion of sources' method for this type of project?

The 'full and open competition after exclusion of sources' method is generally effective for specialized construction projects like a women's clinic, as it allows the agency to solicit bids from a wide range of qualified contractors while potentially excluding those who may not meet specific technical or security requirements upfront. This approach aims to balance broad competition with the need for specialized expertise, theoretically leading to better pricing and performance. Its effectiveness hinges on clear solicitation requirements and a robust evaluation process to ensure the best value is obtained, rather than just the lowest bid.

What is the historical spending trend for VA construction projects in Wisconsin?

Analyzing historical spending trends for VA construction projects in Wisconsin would provide context for the $6 million award. This would involve examining the volume and value of similar contracts awarded by the VA within the state over the past several years. Trends might reveal increasing construction costs, a focus on specific types of facilities, or shifts in contracting strategies. Understanding these patterns can help determine if this contract represents a typical investment or an outlier, informing future budget projections and procurement strategies for the region.

What are the implications of the 1106-day duration for service delivery?

A contract duration of 1106 days (approximately three years) for the construction of a women's clinic indicates a substantial project timeline. This extended duration implies significant scope, complexity, or potential phasing of the construction. For service delivery, it means that the enhanced healthcare services for women veterans will not be available until the completion of this multi-year project. This necessitates careful planning by the VA to manage veteran expectations and potentially provide interim solutions or alternative care arrangements during the construction period.

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: SEALED BID

Solicitation ID: 36C25223B0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1920 20TH AVE N, ESCANABA, MI, 49829

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

Financial Breakdown

Contract Ceiling: $6,042,696

Exercised Options: $6,042,696

Current Obligation: $6,042,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline