VA awards $16.5M for primary care and women's health building, with 2 bids received

Contract Overview

Contract Amount: $16,551,630 ($16.6M)

Contractor: Valiant Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-02

End Date: 2026-05-30

Contract Duration: 940 days

Daily Burn Rate: $17.6K/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: CONSTRUCT PRIMARY CARE AND WOMEN'S HEALTH BUILDING PROJECT NO 657-503

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.6 million to VALIANT CONSTRUCTION LLC for work described as: CONSTRUCT PRIMARY CARE AND WOMEN'S HEALTH BUILDING PROJECT NO 657-503 Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Limited competition suggests potential for higher pricing than a more robust bidding process. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of 940 days indicates a significant construction undertaking. 5. The contract falls within the Commercial and Institutional Building Construction NAICS code. 6. This project supports the VA's mission to provide healthcare services to veterans.

Value Assessment

Rating: good

The contract value of $16.55 million for the construction of a primary care and women's health building is within a typical range for such specialized medical facilities. Benchmarking against similar VA construction projects or large-scale commercial building projects would provide a more precise value-for-money assessment. However, given the scope and complexity implied by the services, the price appears to be a fair reflection of market rates for construction of this magnitude.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be open, certain sources were excluded. Only two bids were received, which is a low number for a project of this value. This limited competition may have impacted the government's ability to secure the most competitive pricing, as fewer bidders generally lead to less price pressure.

Taxpayer Impact: With only two bids, taxpayers may not have benefited from the full spectrum of competitive pricing that a larger pool of bidders could have provided, potentially leading to a higher final cost.

Public Impact

Veterans in Illinois will benefit from improved access to primary care and specialized women's health services. The project will result in the construction of a new, modern healthcare facility. The geographic impact is localized to the area served by the VA facility in Illinois. The construction phase will likely create jobs in the local building and trades sector. The completed facility will enhance the VA's capacity to deliver essential healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could lead to suboptimal pricing for taxpayers.
Exclusion of sources in the competition process warrants further investigation into justification.
Long project duration (940 days) increases exposure to potential delays and unforeseen issues.

Positive Signals

Firm Fixed Price contract type protects the government from cost overruns.
The project addresses a critical need for enhanced healthcare facilities for veterans.
The contractor, Valiant Construction LLC, is likely experienced in commercial building projects.

Sector Analysis

The construction industry, particularly for specialized facilities like healthcare buildings, is a significant sector. This contract falls under Commercial and Institutional Building Construction. The market for healthcare construction is driven by demand for new facilities, upgrades, and expansions, often influenced by government healthcare initiatives and demographic shifts. Comparable spending benchmarks would involve analyzing costs per square foot for similar medical facilities in the region or nationally.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this specific contract may not directly benefit small businesses through a set-aside, the prime contractor, Valiant Construction LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be a key factor in assessing the overall impact on the small business ecosystem for this project.

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 complete the work for the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight are not provided.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Department of Veterans Affairs Capital Investments
Commercial Building Construction Contracts

Risk Flags

Limited competition
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.6 million to VALIANT CONSTRUCTION LLC. CONSTRUCT PRIMARY CARE AND WOMEN'S HEALTH BUILDING PROJECT NO 657-503

Who is the contractor on this award?

The obligated recipient is VALIANT 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 $16.6 million.

What is the period of performance?

Start: 2023-11-02. End: 2026-05-30.

What is the track record of Valiant Construction LLC on similar government contracts?

Information regarding Valiant Construction LLC's specific track record on similar government contracts 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 or other federal projects. Understanding their experience with healthcare facilities and projects of comparable scale and complexity is crucial for evaluating their capability to successfully execute this contract. Further research into their project portfolio and client feedback would be necessary to fully gauge their reliability and past performance.

How does the $16.55 million contract value compare to similar VA primary care and women's health building projects?

Direct comparison of the $16.55 million contract value requires access to a database of similar VA construction projects, including their scope, size (square footage), location, and final awarded price. Without this comparative data, it's challenging to definitively benchmark the value. However, for a specialized medical facility, this figure is not inherently excessive, assuming a substantial size and complexity. Factors like regional construction costs, specific technological requirements for healthcare facilities, and the duration of the project (940 days) all influence the overall cost. A detailed cost-per-square-foot analysis against comparable projects would provide a more robust assessment.

What are the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type suggests that while the competition was intended to be open, specific sources were deliberately excluded based on predefined criteria or justifications. Common reasons for such exclusions can include specific technical capabilities, past performance issues with certain contractors, or requirements for specialized certifications or security clearances that only a subset of potential bidders possess. The Federal Acquisition Regulation (FAR) outlines the conditions under which sources may be excluded. A detailed justification for the exclusion of specific sources would typically be documented by the agency and may be available through agency procurement records or Freedom of Information Act requests.

What are the potential risks associated with a 940-day construction timeline for this facility?

A 940-day construction timeline, approximately 2.5 years, presents several potential risks. Foremost is the risk of project delays due to unforeseen site conditions, weather, material shortages, labor disputes, or design changes. Extended timelines also increase the likelihood of cost escalation, even with a firm-fixed-price contract, if escalation clauses are present or if delays lead to claims. Furthermore, a longer duration means the facility's intended benefits are deferred, impacting the VA's ability to serve veterans. Effective project management, proactive risk mitigation strategies, and clear communication channels are essential to manage these risks.

What is the expected impact of this new facility on veteran healthcare access in Illinois?

The construction of this new primary care and women's health building is expected to significantly improve veteran healthcare access in Illinois by providing modern, potentially expanded, and specialized services. This facility aims to consolidate or enhance existing services, potentially reducing wait times and improving the quality of care. The increased capacity and updated infrastructure should allow the VA to serve a larger veteran population or offer a broader range of treatments, particularly in women's health, which is a growing area of focus. The specific impact will depend on the facility's size, the number of providers, and the services offered, but the intent is clearly to bolster healthcare delivery.

How does the firm-fixed-price contract type benefit the VA in this construction project?

The firm-fixed-price (FFP) contract type is highly beneficial for the VA in this construction project as it shifts the majority of the financial risk to the contractor, Valiant Construction LLC. Under an FFP agreement, the contractor is obligated to complete the entire scope of work for the agreed-upon price, regardless of any cost overruns they may encounter. This provides the VA with cost certainty and predictability, making budgeting more straightforward and protecting taxpayer funds from unexpected increases in labor, material, or other direct costs. While it may lead to a higher initial bid price compared to cost-reimbursement contracts, the FFP structure minimizes the government's exposure to financial risk.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25523R0084

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4124 WAHL STREET BLVD, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $16,551,630

Exercised Options: $16,551,630

Current Obligation: $16,551,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline