VA Awards $10.56M Contract for Dementia Unit Renovation at Tomah Medical Center

Contract Overview

Contract Amount: $10,564,944 ($10.6M)

Contractor: U.S. VET General Contracting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-10

End Date: 2026-06-19

Contract Duration: 1,075 days

Daily Burn Rate: $9.8K/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 676-15-201 RENOVATE 3RD FLOOR OF BUILDING 406 FOR DEMENTIA UNIT AT TOMAH VA MEDICAL CENTER, TOMAH, WISCONSIN 54660

Place of Performance

Location: TOMAH, MONROE County, WISCONSIN, 54660

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.6 million to U.S. VET GENERAL CONTRACTING, LLC for work described as: CONSTRUCTION PROJECT 676-15-201 RENOVATE 3RD FLOOR OF BUILDING 406 FOR DEMENTIA UNIT AT TOMAH VA MEDICAL CENTER, TOMAH, WISCONSIN 54660 Key points: 1. The contract is for a significant renovation project at the Tomah VA Medical Center. 2. U.S. VET GENERAL CONTRACTING, LLC was awarded the contract. 3. The project aims to improve facilities for dementia care. 4. The award value is substantial for a single construction project.

Value Assessment

Rating: good

The contract value of $10.56 million appears reasonable for a large-scale renovation of a medical facility's third floor, including specialized dementia unit requirements. Benchmarking against similar VA or healthcare construction projects of comparable scope and complexity would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition where some sources were excluded. This method might impact price discovery compared to unrestricted full and open competition, potentially leading to higher costs.

Taxpayer Impact: Taxpayers are funding a critical infrastructure upgrade for veteran healthcare, specifically for dementia care. The effectiveness of the spending will depend on the project's successful completion within budget and its impact on patient care.

Public Impact

Improved facilities for veterans requiring dementia care. Potential for enhanced quality of life and treatment for patients. Economic impact through construction jobs in Wisconsin. Modernization of a key VA medical center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have reduced price competitiveness.
Potential for cost overruns in large construction projects.
Project duration of nearly 3 years requires careful monitoring.

Positive Signals

Addresses a critical need for specialized veteran healthcare.
Awarded to a specific contracting company, potentially indicating specialized capabilities.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector often characterized by significant capital investment and varying levels of competition. Spending benchmarks for similar VA medical facility renovations can range widely based on scope, location, and specific requirements.

Small Business Impact

The data indicates that the award was not made to a small business (ss: false, sb: false). Therefore, this specific contract does not appear to directly benefit small businesses, though the prime contractor may utilize small business subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to ensure the project stays on schedule, within budget, and meets the quality standards required for a medical facility, especially for a sensitive unit like dementia care.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may have resulted in a higher price.
Long project duration increases risk of delays and cost overruns.
Construction projects in healthcare settings can face unique challenges.
Potential for scope creep if requirements are not strictly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.6 million to U.S. VET GENERAL CONTRACTING, LLC. CONSTRUCTION PROJECT 676-15-201 RENOVATE 3RD FLOOR OF BUILDING 406 FOR DEMENTIA UNIT AT TOMAH VA MEDICAL CENTER, TOMAH, WISCONSIN 54660

Who is the contractor on this award?

The obligated recipient is U.S. VET GENERAL CONTRACTING, 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 $10.6 million.

What is the period of performance?

Start: 2023-07-10. End: 2026-06-19.

What specific criteria were used to exclude sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final contract price?

The exclusion of sources typically occurs when specific capabilities, past performance, or certifications are required that only a limited number of contractors possess. The impact on price is difficult to quantify without knowing the number of bidders and the competitive landscape. However, limiting the pool of potential bidders can sometimes reduce competitive pressure, potentially leading to a higher price than if all qualified firms were allowed to compete.

What are the key performance indicators (KPIs) for this renovation project, and how will their achievement be measured to ensure effectiveness and value for taxpayer money?

Key performance indicators would likely include adherence to the project schedule, staying within the $10.56 million budget, meeting all construction quality standards, and achieving specific functional requirements for the dementia unit. Effectiveness will be measured post-completion through patient and staff feedback, operational efficiency, and the unit's ability to provide a safe and therapeutic environment.

Given the project's duration and the specialized nature of a dementia unit, what risk mitigation strategies are in place to address potential delays, cost escalations, or unforeseen site conditions?

Mitigation strategies likely include detailed project planning, contingency funds for unforeseen issues, regular progress reviews with the contractor, and clear communication channels. For a dementia unit, specific considerations might involve infection control during renovation, minimizing disruption to existing operations, and ensuring the final design meets the unique needs of dementia patients, such as safety features and calming aesthetics.

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: 36C25223B0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5350 PAULSON RD, MC FARLAND, WI, 53558

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $10,564,944

Exercised Options: $10,564,944

Current Obligation: $10,564,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline