VA awards $14.5M MATOC Task Order to Povolny Group for urgent care building renovation in Colorado

Contract Overview

Contract Amount: $14,517,500 ($14.5M)

Contractor: THE Povolny Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-11-25

Contract Duration: 421 days

Daily Burn Rate: $34.5K/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: MATOC TASK ORDER, RENOVATE URGENT CARE BUILDING 1

Place of Performance

Location: GRAND JUNCTION, MESA County, COLORADO, 81501

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.5 million to THE POVOLNY GROUP INC for work described as: MATOC TASK ORDER, RENOVATE URGENT CARE BUILDING 1 Key points: 1. The contract value represents a significant investment in healthcare infrastructure for veterans. 2. The renovation aims to improve the functionality and capacity of a critical urgent care facility. 3. The fixed-price contract type suggests a defined scope and budget, potentially mitigating cost overruns. 4. The duration of 421 days indicates a substantial project requiring careful project management. 5. The award was made under full and open competition, implying a robust bidding process. 6. The contractor, The Povolny Group Inc., has a track record with federal contracts.

Value Assessment

Rating: good

The $14.5 million task order for renovating an urgent care building appears reasonable given the scope of construction and the fixed-price nature of the contract. Benchmarking against similar large-scale commercial and institutional building construction projects within the Department of Veterans Affairs or other federal agencies would provide a clearer picture of value for money. However, the absence of specific cost breakdowns makes a detailed per-unit cost analysis challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The presence of four bidders suggests a competitive environment, which generally leads to better pricing and value for the government. The specific details of the bidding process and the number of proposals received would offer more insight into the intensity of the competition.

Taxpayer Impact: The competitive bidding process for this renovation project is beneficial for taxpayers as it likely resulted in a more cost-effective outcome compared to a sole-source award. It ensures that taxpayer funds are utilized efficiently by selecting the most qualified and cost-competitive offeror.

Public Impact

Veterans in Colorado will benefit from an upgraded and potentially expanded urgent care facility. The renovation will enhance the delivery of critical healthcare services, improving patient access and quality of care. The project is geographically focused on Colorado, directly impacting the local veteran population. The construction activities will likely create temporary employment opportunities within the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of unforeseen structural issues during renovation that could impact budget and timeline.
Dependence on the contractor's ability to manage a complex construction project effectively.

Positive Signals

Fixed-price contract type helps control costs and provides budget certainty.
Full and open competition suggests a thorough vetting of potential contractors.
The Department of Veterans Affairs has a vested interest in ensuring the successful completion of healthcare facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for healthcare facility construction and renovation is substantial, driven by the need for modern, efficient, and specialized medical spaces. The VA's ongoing investment in its infrastructure highlights the importance of this sector for government service delivery. Comparable spending benchmarks would involve analyzing other large-scale renovation or new construction projects for federal healthcare facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity. Further analysis would be needed to determine if the prime contractor has a subcontracting plan that includes opportunities for small businesses in the construction trades or material supply.

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 fixed-price contract type, which incentivizes the contractor to complete the work within the agreed-upon budget. Transparency can be assessed through public contract databases and reporting requirements. The Inspector General's office may conduct audits or investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Department of Veterans Affairs Healthcare Construction
Federal Building and Renovation Projects
Urgent Care Facility Development
MATOC Task Orders

Risk Flags

Potential for schedule delays
Risk of cost overruns due to unforeseen conditions
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.5 million to THE POVOLNY GROUP INC. MATOC TASK ORDER, RENOVATE URGENT CARE BUILDING 1

Who is the contractor on this award?

The obligated recipient is THE POVOLNY GROUP INC.

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 $14.5 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-11-25.

What is the track record of The Povolny Group Inc. with the Department of Veterans Affairs?

The Povolny Group Inc. has a history of performing work for the Department of Veterans Affairs, as indicated by this task order. To fully assess their track record, a review of their past performance on similar VA projects would be necessary. This would include examining contract completion history, any past performance evaluations, and any instances of disputes or contract modifications. Understanding their experience with healthcare facility construction specifically would be crucial, as these projects often have unique requirements and complexities compared to other types of construction.

How does the awarded price compare to similar VA urgent care building renovations?

Without access to a database of comparable VA urgent care building renovation projects with detailed cost breakdowns, it is difficult to definitively benchmark the $14.5 million award. Factors such as the size of the facility, the extent of the renovation (e.g., structural, MEP, finishes), the age of the building, and local construction market conditions in Colorado would significantly influence project costs. A comprehensive value assessment would require comparing this contract's cost per square foot or per functional unit against similar projects completed by the VA or other federal agencies in comparable geographic areas.

What are the primary risks associated with this renovation project?

The primary risks associated with this renovation project include potential unforeseen structural or environmental issues discovered during demolition, which could lead to cost overruns and schedule delays. Another significant risk is the contractor's ability to manage the project effectively, ensuring quality workmanship and adherence to the fixed-price budget. Furthermore, disruptions to ongoing urgent care services during renovation could pose operational challenges. The fixed-price nature of the contract shifts some of the financial risk to the contractor, but significant unforeseen issues could still impact the project's overall success and timeline.

How effective is the full and open competition process in ensuring value for this type of construction contract?

The full and open competition process is generally considered highly effective in ensuring value for construction contracts like this one. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages contractors to offer their best value proposition. The presence of four bidders in this case suggests a healthy level of competition. However, the effectiveness also depends on the clarity of the solicitation documents and the evaluation criteria used to select the winning bid, ensuring that the lowest price is not the sole determinant if quality or technical approach is also critical.

What is the historical spending pattern for urgent care building renovations by the VA?

Historical spending patterns for VA urgent care building renovations would reveal trends in contract values, frequency of awards, and the types of contractors utilized. Analyzing past VA spending data would help determine if $14.5 million is a typical investment for such projects or if it represents a significant outlier. It could also highlight whether the VA favors specific contract types (e.g., fixed-price vs. cost-plus) or competition strategies for these renovations. Understanding these patterns can inform future budgeting and procurement strategies for the VA's infrastructure needs.

What are the implications of the 421-day duration for project management and potential disruptions?

A duration of 421 days (approximately 14 months) for a building renovation project indicates a substantial undertaking. This extended timeline necessitates robust project management from both the contractor and the VA to ensure progress stays on track and within budget. It also implies that the urgent care facility will experience prolonged periods of disruption, potentially requiring temporary relocation of services or phased renovations to maintain partial operations. Careful planning is required to minimize the impact on patient care and ensure a smooth transition back to full operational capacity upon completion.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1906 LIVINGSTON AVE, SAINT PAUL, MN, 55118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,517,500

Exercised Options: $14,517,500

Current Obligation: $14,517,500

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25924D0042

IDV Type: IDC

Timeline