VA Awards $2.46M Contract for Inpatient Dialysis Construction to Venergy Group LLC

Contract Overview

Contract Amount: $2,457,390 ($2.5M)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-21

End Date: 2025-08-29

Contract Duration: 800 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF INPATIENT DIALYSIS

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to VENERGY GROUP LLC for work described as: CONSTRUCTION OF INPATIENT DIALYSIS Key points: 1. Contract awarded for a significant construction project valued at $2.46 million. 2. Venergy Group LLC secured the contract, indicating potential specialization in this niche. 3. The project involves construction, a sector often subject to cost overruns and delays. 4. The Department of Veterans Affairs is the contracting agency, suggesting a focus on veteran healthcare infrastructure.

Value Assessment

Rating: fair

The contract value of $2.46 million for construction needs to be benchmarked against similar VA or federal projects to assess pricing fairness. Without comparable data, it's difficult to definitively state if the price is excellent or concerning.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition scenario. This method might lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this construction project. The effectiveness of the competition method will directly impact the value for money achieved.

Public Impact

Enhances healthcare infrastructure for veterans requiring dialysis treatment. Potential for job creation in the construction sector within Arkansas. Ensures specialized medical facilities are available to meet patient needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs.
Construction projects are prone to schedule delays and cost overruns.
Lack of specific performance metrics in the provided data.

Positive Signals

Addresses a critical healthcare need for veterans.
Contract awarded by a major federal agency (VA).
Fixed-price contract can offer cost certainty if well-defined.

Sector Analysis

The construction sector, particularly for specialized medical facilities, requires careful oversight due to potential complexities and cost fluctuations. Benchmarking against similar healthcare construction projects is crucial for value assessment.

Small Business Impact

The data indicates the prime contractor is Venergy Group LLC. There is no explicit information on small business participation or subcontracting in the provided details.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality control, should be in place.

Related Government Programs

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

Risk Flags

Limited competition may lead to suboptimal pricing.
Construction projects carry inherent risks of delays and cost overruns.
Potential for scope creep if project requirements are not clearly defined.
Dependence on a single contractor for a critical facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to VENERGY GROUP LLC. CONSTRUCTION OF INPATIENT DIALYSIS

Who is the contractor on this award?

The obligated recipient is VENERGY 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 $2.5 million.

What is the period of performance?

Start: 2023-06-21. End: 2025-08-29.

How does the awarded price compare to similar inpatient dialysis facility construction projects within the VA or other federal agencies?

Benchmarking the $2.46 million contract against similar projects is essential for a comprehensive value assessment. Without access to a database of comparable federal construction contracts, it's challenging to determine if this price is competitive. Factors like location, specific facility requirements, and prevailing market rates in Arkansas would influence the comparison.

What are the specific risks associated with Venergy Group LLC's ability to complete this project on time and within budget?

The primary risks involve potential construction delays and cost overruns, common in projects of this nature. Assessing Venergy Group LLC's past performance, financial stability, and experience with similar VA projects would provide insight into their risk mitigation capabilities. The limited competition aspect might also imply fewer checks and balances on performance.

To what extent will this new facility improve the effectiveness of dialysis care for veterans in the region?

The effectiveness will depend on the facility's capacity, technological integration, staffing levels, and accessibility for veterans. While the construction itself addresses infrastructure needs, the ultimate effectiveness hinges on operational planning and resource allocation post-construction. Improved access and modern facilities are expected to enhance patient outcomes and experience.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25622R0140

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3130 SEMINOLE RD, FORT PIERCE, FL, 34951

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: $2,457,390

Exercised Options: $2,457,390

Current Obligation: $2,457,390

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline