VA Awards $3M Contract for Cath Lab Renovation at Madison Hospital to Progressive Construction Services LLC

Contract Overview

Contract Amount: $3,045,986 ($3.0M)

Contractor: Progressive Construction Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-11

End Date: 2026-04-16

Contract Duration: 948 days

Daily Burn Rate: $3.2K/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: PCS TASK ORDER #3 FOR RENOVATE FOR CATH LAB, 607-CSI-106, UNDER THE CONSTRUCTION MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE WM S. MIDDLETON VA HOSPITAL, MADISON WISCONSIN.

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53705

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to PROGRESSIVE CONSTRUCTION SERVICES LLC for work described as: PCS TASK ORDER #3 FOR RENOVATE FOR CATH LAB, 607-CSI-106, UNDER THE CONSTRUCTION MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE WM S. MIDDLETON VA HOSPITAL, MADISON WISCONSIN. Key points: 1. The contract is for a significant renovation of a Cath Lab, a critical healthcare facility. 2. Awarded under a Construction MATOC, indicating a pre-competed framework for task orders. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The project duration is 948 days, suggesting a complex and lengthy renovation.

Value Assessment

Rating: good

The contract value of $3.05M for a Cath Lab renovation appears reasonable given the scope and duration. Benchmarking against similar healthcare construction projects would provide a more precise assessment, but the fixed-price nature suggests a defined cost expectation.

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,' which implies a competitive process was used, but specific sources may have been excluded. This method aims for fair pricing but could limit the pool of bidders.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally promotes competitive pricing, potentially leading to better value for taxpayers compared to sole-source awards.

Public Impact

Improved healthcare infrastructure for veterans at the WM S. Middleton VA Hospital. Potential for enhanced medical services and patient care with the renovated Cath Lab. Supports the construction industry and creates jobs through the awarded contract. Ensures the VA can maintain and upgrade critical medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and renovation nature.
Reliance on a MATOC may limit the breadth of initial competition for this specific task order.
The 'exclusion of sources' clause warrants further investigation into the rationale and impact on competition.

Positive Signals

Firm Fixed Price contract type mitigates cost overrun risk for the government.
Awarded under an existing MATOC, suggesting a streamlined procurement process.
The project addresses a critical need for healthcare facility upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Construction spending for healthcare facilities can vary significantly based on complexity, location, and specific medical equipment requirements. Benchmarks for similar renovations are often project-specific.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business set-asides were considered or if the prime contractor utilized small business subcontractors.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established oversight mechanisms for construction projects. The use of a MATOC and a fixed-price contract suggests a degree of pre-defined accountability, but ongoing monitoring of progress and quality is essential.

Related Government Programs

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

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Long project duration increases risk of unforeseen issues or cost escalation (though mitigated by FFP).
Complexity of Cath Lab renovations requires specialized expertise.
Lack of small business awardee information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to PROGRESSIVE CONSTRUCTION SERVICES LLC. PCS TASK ORDER #3 FOR RENOVATE FOR CATH LAB, 607-CSI-106, UNDER THE CONSTRUCTION MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE WM S. MIDDLETON VA HOSPITAL, MADISON WISCONSIN.

Who is the contractor on this award?

The obligated recipient is PROGRESSIVE CONSTRUCTION SERVICES 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 $3.0 million.

What is the period of performance?

Start: 2023-09-11. End: 2026-04-16.

What specific criteria were used to exclude certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion impact the final price or contractor selection

The rationale behind excluding specific sources needs to be documented by the agency. Typically, exclusions might be based on past performance, technical capabilities, or specific certifications required for specialized work like Cath Lab renovations. If the excluded pool contained highly competitive firms, their absence could have led to a less competitive bidding environment and potentially a higher price than if all qualified firms had participated.

What is the estimated cost per square foot or per procedure room for this Cath Lab renovation, and how does it compare to industry benchmarks for similar projects?

Calculating a precise cost per square foot or per procedure room requires detailed project specifications, including the size of the renovated area and the complexity of the new installations. Without this granular data, a direct benchmark comparison is difficult. However, Cath Lab renovations are typically high-cost due to specialized equipment, shielding, and infrastructure requirements, often exceeding standard commercial construction costs.

What mechanisms are in place to ensure the quality of the renovation and the timely completion of the project, given the nearly three-year duration?

The VA likely employs project managers and construction inspectors to oversee the work, ensuring adherence to plans, specifications, and quality standards. Milestones and payment schedules tied to progress are common. For a project of this duration, regular progress meetings, detailed reporting requirements, and clear contractual remedies for delays or deficiencies are crucial for effective oversight and accountability.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 944 N PARKER DR, JANESVILLE, WI, 53545

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: $3,045,986

Exercised Options: $3,045,986

Current Obligation: $3,045,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25222D0025

IDV Type: IDC

Timeline