VA awards $13.7M contract for Dallas medical center renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $13,698,638 ($13.7M)

Contractor: Pointer Construction Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-16

End Date: 2026-12-11

Contract Duration: 816 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF 8TH FLOOR OF BUILDING 2J FOR INPATIENT PROCESSING AT THE DALLAS VETERANS AFFAIRS MEDICAL CENTER.

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33309

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.7 million to POINTER CONSTRUCTION GROUP LLC for work described as: RENOVATION OF 8TH FLOOR OF BUILDING 2J FOR INPATIENT PROCESSING AT THE DALLAS VETERANS AFFAIRS MEDICAL CENTER. Key points: 1. Contract focuses on essential facility upgrades for patient processing. 2. Competition level suggests a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration spans over two years, indicating a significant scope. 5. Contractor has a history of federal awards, suggesting some experience. 6. Geographic focus on Texas for this specific medical center improvement.

Value Assessment

Rating: good

The contract value of $13.7 million for renovating an 8th-floor inpatient processing area appears reasonable for a medical facility upgrade of this scale. Benchmarking against similar construction projects for healthcare facilities would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope is well-defined. The contractor, Pointer Construction Group LLC, has a history of federal awards, which can imply a level of established performance, though specific project outcomes are not detailed here.

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 that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially related to qualifications or prior performance. With 6 bidders, the competition level indicates a moderate interest in the contract. This level of competition is generally sufficient to promote price discovery and encourage competitive pricing, though a higher number of bidders often leads to more aggressive pricing.

Taxpayer Impact: A moderate number of bidders suggests that taxpayers are likely receiving a fair price, as multiple companies vied for the work. However, the exclusion of certain sources warrants scrutiny to ensure no potentially lower-cost, qualified bidders were unfairly barred.

Public Impact

Patients at the Dallas VA Medical Center will benefit from improved inpatient processing areas. The renovation will enhance the operational efficiency of the medical center. The project is geographically focused on Dallas, Texas. Local construction workforce may see employment opportunities during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial renovation plans are not precisely defined.
Risk of delays due to unforeseen site conditions in an existing medical facility.
Dependence on contractor's ability to manage complex construction within an active healthcare environment.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks for the government.
Multiple bidders indicate a competitive market for this type of construction.
Contract duration allows for thorough execution of renovation tasks.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area often supports infrastructure improvements and facility upgrades for government agencies. The market for healthcare construction is particularly robust, driven by the need for modern, efficient medical facilities. Comparable spending benchmarks would typically look at per-square-foot renovation costs for similar medical spaces.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically for small businesses in the provided data. This means that opportunities for small business participation may be limited unless the prime contractor voluntarily includes them in their subcontracting plans. The absence of a small business set-aside could mean that larger firms dominated the bidding process.

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 holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through federal contract databases, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Federal Building Renovations
Commercial Construction Contracts

Risk Flags

Potential for disruption to ongoing medical operations.
Risk of encountering unforeseen site conditions.
Need for strict infection control measures.
Contract awarded under 'limited' competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.7 million to POINTER CONSTRUCTION GROUP LLC. RENOVATION OF 8TH FLOOR OF BUILDING 2J FOR INPATIENT PROCESSING AT THE DALLAS VETERANS AFFAIRS MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is POINTER 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 $13.7 million.

What is the period of performance?

Start: 2024-09-16. End: 2026-12-11.

What is Pointer Construction Group LLC's track record with the Department of Veterans Affairs and other federal agencies?

Pointer Construction Group LLC has a history of receiving federal contracts, including those with the Department of Veterans Affairs. Analyzing their past performance on similar renovation or construction projects for the VA and other agencies is crucial. This includes examining contract values, project completion timeliness, any reported disputes or contract modifications, and overall client satisfaction. A review of their award history in federal procurement databases can reveal the extent and nature of their experience, providing insight into their capability to successfully execute this $13.7 million renovation project.

How does the $13.7 million contract value compare to similar VA medical center renovation projects?

To assess the value for money, the $13.7 million contract for renovating the 8th floor of the Dallas VA Medical Center should be benchmarked against similar projects. This comparison would ideally involve projects of comparable scope (e.g., inpatient processing area upgrades), size (square footage), and location. Factors such as the age and condition of the existing facility, the complexity of the required upgrades (e.g., specialized medical equipment integration), and prevailing construction labor and material costs in the Dallas area would influence the benchmark. Without specific comparable data, it's difficult to definitively state if this price is high or low, but it represents a significant investment in facility modernization.

What are the primary risks associated with renovating an existing inpatient processing area in a functional medical center?

Renovating an active inpatient processing area within a functional medical center presents several key risks. Foremost is the potential for disruption to ongoing patient care and operations, requiring meticulous phasing and scheduling to minimize impact. Unforeseen conditions within the existing building structure (e.g., asbestos, outdated electrical/plumbing systems, structural issues) are common and can lead to delays and cost overruns. Maintaining stringent infection control protocols during construction is critical to prevent healthcare-associated infections. Furthermore, coordinating work with hospital staff and ensuring the safety of patients, visitors, and construction personnel requires robust management and communication.

What is the expected impact of this renovation on the efficiency and quality of patient processing at the Dallas VA Medical Center?

The renovation of the 8th floor for inpatient processing is expected to significantly enhance the efficiency and quality of services delivered at the Dallas VA Medical Center. Modernizing the space should allow for better workflow, improved patient throughput, and potentially reduced wait times. Updated facilities can also lead to a more comfortable and less stressful environment for both patients and staff. The specific improvements will depend on the detailed design, but the goal is typically to incorporate modern healthcare design principles that optimize functionality, incorporate new technologies, and ensure compliance with current healthcare standards, ultimately contributing to better patient care outcomes.

How has federal spending on healthcare facility construction and renovation trended in recent years, and where does this contract fit?

Federal spending on healthcare facility construction and renovation has generally seen consistent investment, particularly from agencies like the Department of Veterans Affairs (VA) and the Department of Defense (DoD) for their medical facilities. This spending is driven by the need to maintain aging infrastructure, modernize outdated facilities, and expand capacity to meet veteran and military healthcare demands. The $13.7 million contract for the Dallas VA Medical Center renovation fits within this trend of ongoing investment in healthcare infrastructure. It represents a specific project aimed at improving a critical functional area within a larger medical complex, reflecting the broader federal commitment to providing quality healthcare facilities.

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: 36C25724R0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5101 NW 21ST AVE, FORT LAUDERDALE, FL, 33309

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,698,638

Exercised Options: $13,698,638

Current Obligation: $13,698,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline