VA awards $21.9M sterile processing expansion contract to Onsite Construction Group LLC

Contract Overview

Contract Amount: $21,940,162 ($21.9M)

Contractor: Onsite Construction Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-31

End Date: 2028-03-10

Contract Duration: 1,075 days

Daily Burn Rate: $20.4K/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: 589-22-885 EXPAND STERILE PROCESSING SERVICE SPACE TO MEET REQUIREMENTS

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64128

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.9 million to ONSITE CONSTRUCTION GROUP LLC for work described as: 589-22-885 EXPAND STERILE PROCESSING SERVICE SPACE TO MEET REQUIREMENTS Key points: 1. Contract aims to enhance sterile processing capabilities for the VA. 2. Focus on expanding existing space to meet evolving requirements. 3. Definitive contract type suggests a long-term relationship for services. 4. Firm Fixed Price structure provides cost certainty for the government. 5. Contract duration of 1075 days indicates a significant project timeline. 6. Geographic focus on Missouri for service delivery.

Value Assessment

Rating: good

The contract value of $21.9 million for sterile processing space expansion appears reasonable given the project's scope and duration. Benchmarking against similar construction projects for healthcare facilities would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overruns, which is a positive indicator for value.

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 robust bidding process. While the exact number of bidders is not specified, this competition level generally leads to better price discovery and a wider range of potential solutions. The exclusion of sources suggests specific criteria were met by the selected contractor.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price and ensured the government received the best value for its investment in critical healthcare infrastructure.

Public Impact

Veterans will benefit from improved sterile processing services, leading to enhanced patient safety and care. The project will involve construction and expansion of specialized healthcare facilities. Services are geographically focused within Missouri. The construction activities will likely create employment opportunities in the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting service availability.
Ensuring compliance with stringent healthcare facility standards throughout construction.

Positive Signals

Clear project scope for expanding sterile processing capabilities.
Firm Fixed Price contract provides budget predictability.
Long-term contract duration allows for focused execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically tailored for healthcare facilities. The market for healthcare construction is substantial, driven by the need for modern, compliant, and specialized spaces. This project aligns with the VA's ongoing efforts to upgrade and expand its medical infrastructure to meet the needs of veterans.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses will have opportunities to participate in the subcontracting effort.

Oversight & Accountability

Oversight 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, requiring the contractor to deliver specified services within budget. Transparency is facilitated through federal contract databases, though specific project oversight details are not provided.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Sterile Processing Services Contracts
Commercial Building Construction

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Ensuring compliance with healthcare construction standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.9 million to ONSITE CONSTRUCTION GROUP LLC. 589-22-885 EXPAND STERILE PROCESSING SERVICE SPACE TO MEET REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is ONSITE CONSTRUCTION GROUP 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 $21.9 million.

What is the period of performance?

Start: 2025-03-31. End: 2028-03-10.

What is the track record of ONSITE CONSTRUCTION GROUP LLC with the Department of Veterans Affairs?

A review of federal procurement data indicates that ONSITE CONSTRUCTION GROUP LLC has received multiple contracts from various federal agencies, including the Department of Veterans Affairs. While specific details on past performance with the VA for similar projects are not immediately available in this summary, the award of this definitive contract suggests a level of confidence in their capabilities. Further investigation into their past performance ratings, any past disputes, and the types of projects they have completed for the VA would provide a more comprehensive understanding of their track record.

How does the awarded amount compare to similar VA sterile processing expansion projects?

Direct comparison of the $21.9 million award for this specific sterile processing space expansion to similar VA projects is challenging without access to a detailed database of comparable contracts. Factors such as facility size, scope of expansion, specific technological requirements for sterile processing, and geographic location significantly influence project costs. However, the firm fixed-price nature of this contract suggests that the VA has established a clear budget and expects the contractor to deliver within that amount. Benchmarking against industry standards for healthcare construction of this scale would be the next step in a thorough value assessment.

What are the primary risks associated with this contract for the VA?

The primary risks for the VA in this contract include potential construction delays that could impact the timely availability of expanded sterile processing services, and the risk of unforeseen site conditions requiring scope adjustments or cost increases, despite the firm fixed-price structure. Ensuring the contractor adheres to all stringent healthcare construction codes and regulations is also critical. Furthermore, the long duration of the contract (1075 days) increases the exposure to potential changes in requirements or economic conditions over time, although the fixed-price nature mitigates direct cost impacts.

How effective is the firm fixed-price contract type in managing costs for this project?

The Firm Fixed Price (FFP) contract type is generally considered highly effective for managing costs when the scope of work is well-defined, as is expected for a construction project of this nature. It shifts the risk of cost overruns to the contractor, providing the VA with significant budget certainty. The contractor is incentivized to control costs and work efficiently to maximize profit. However, if unforeseen issues arise that necessitate significant changes to the scope, the FFP structure can sometimes lead to more complex change order negotiations.

What is the historical spending trend for sterile processing services or related construction by the VA?

Analyzing the historical spending trend for sterile processing services or related construction by the VA requires access to detailed historical procurement data. Generally, the VA, as a large healthcare provider, consistently invests in infrastructure and services to maintain and improve its facilities. Spending on construction projects, especially those related to critical patient care areas like sterile processing, is expected to be significant and ongoing, driven by the need to modernize aging facilities and adapt to new medical technologies and patient volumes. This specific contract represents a portion of that broader investment strategy.

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: 36C25524R0097

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 NE 63RD ST, OKLAHOMA CITY, OK, 73105

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: $21,940,162

Exercised Options: $21,940,162

Current Obligation: $21,940,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline