VA awards $12.5M for elevator upgrades at Spokane medical center, highlighting construction needs

Contract Overview

Contract Amount: $12,525,703 ($12.5M)

Contractor: Elevated Technologies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-15

End Date: 2026-12-11

Contract Duration: 970 days

Daily Burn Rate: $12.9K/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: PROJECT 668-18-109 REFURBISH AND UPGRADE ELEVATORS IN BLDG. 1 AND 27 AT MANN-GRANDSTAFF VA MEDICAL CENTER IN SPOKANE, WASHINGTON.

Place of Performance

Location: SPOKANE, SPOKANE County, WASHINGTON, 99205

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.5 million to ELEVATED TECHNOLOGIES, INC for work described as: PROJECT 668-18-109 REFURBISH AND UPGRADE ELEVATORS IN BLDG. 1 AND 27 AT MANN-GRANDSTAFF VA MEDICAL CENTER IN SPOKANE, WASHINGTON. Key points: 1. The contract addresses critical infrastructure maintenance for patient and staff accessibility. 2. Elevated Technologies, Inc. secured the award, indicating a competitive landscape for specialized construction services. 3. The fixed-price contract structure aims to control costs for the government. 4. The project duration of 970 days suggests a complex scope of work. 5. This award falls within the broader category of healthcare facility construction and modernization. 6. The value of the contract is benchmarked against similar facility upgrade projects.

Value Assessment

Rating: good

The contract value of $12.5 million for elevator refurbishment and upgrades at a VA medical center appears reasonable given the scope. While direct comparisons are difficult without specific project details, similar large-scale building system upgrades in healthcare facilities often range in the millions. The firm fixed-price nature suggests the contractor bears cost overruns, which is favorable for the government. Benchmarking against other VA facility modernization projects would provide further context on value for money.

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 open, specific sources may have been excluded for defined reasons. There were 2 bids received, indicating a moderate level of competition. This suggests that while multiple firms were aware of and potentially considered the opportunity, the final pool of bidders was constrained, which could impact price discovery compared to a truly open competition with more participants.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a competitive price, but there may be room for improvement if more qualified bidders could have been included. The exclusion of sources warrants scrutiny to ensure it was justified and did not limit taxpayer benefit.

Public Impact

Veterans and staff at the Mann-Grandstaff VA Medical Center in Spokane, Washington, will benefit from improved accessibility and safety. The project ensures the continued operational efficiency of critical building infrastructure. The geographic impact is concentrated in Spokane, Washington, supporting local economic activity through construction. The project will likely involve skilled construction labor, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the complexity of elevator systems and the 970-day duration.
Ensuring the chosen technology meets long-term VA needs and is compatible with existing infrastructure.
Managing potential cost increases if unforeseen structural issues arise during the upgrade process.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
The award to a single contractor streamlines project management and accountability.
The project addresses a clear and necessary infrastructure need for a federal medical facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on facility upgrades and maintenance for a healthcare institution. The market for such specialized construction services is competitive, with numerous firms capable of undertaking complex building projects. Spending on healthcare infrastructure modernization is a significant area for government investment, driven by the need to maintain aging facilities and adapt to evolving healthcare delivery models. Comparable spending benchmarks would involve analyzing other large-scale renovation or construction contracts for federal buildings, particularly medical centers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The prime contractor, Elevated Technologies, Inc., may still engage small businesses as subcontractors, but this is not mandated by the contract's award structure. The absence of a small business set-aside means the primary competition was open to all eligible firms, potentially limiting direct opportunities for small businesses unless they are part of larger joint ventures or subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract, which holds the contractor responsible for delivering the specified upgrades within the agreed-upon cost. Transparency is generally maintained through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected in the procurement or execution of the contract.

Related Government Programs

VA Medical Facility Construction
Federal Building Modernization
Infrastructure Upgrades
Elevator Modernization Projects
Healthcare Construction Services

Risk Flags

Limited competition may impact price optimization.
Potential for schedule overruns on complex infrastructure projects.
Need for clear justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.5 million to ELEVATED TECHNOLOGIES, INC. PROJECT 668-18-109 REFURBISH AND UPGRADE ELEVATORS IN BLDG. 1 AND 27 AT MANN-GRANDSTAFF VA MEDICAL CENTER IN SPOKANE, WASHINGTON.

Who is the contractor on this award?

The obligated recipient is ELEVATED TECHNOLOGIES, 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 $12.5 million.

What is the period of performance?

Start: 2024-04-15. End: 2026-12-11.

What is the track record of Elevated Technologies, Inc. with the Department of Veterans Affairs and similar federal agencies?

A review of federal procurement data would be necessary to fully assess Elevated Technologies, Inc.'s track record. This would involve examining past contracts awarded to the company by the VA and other federal agencies, including their performance history, any reported issues or disputes, and the types and values of projects completed. Understanding their experience with similar elevator modernization projects, particularly in healthcare settings, would be crucial. A history of successful, on-time, and within-budget project completion would indicate a lower risk, while a pattern of performance issues or contract modifications might raise concerns about their capacity to execute this specific project effectively.

How does the awarded price of $12.5 million compare to similar elevator upgrade projects at other VA medical centers or federal facilities?

Benchmarking this $12.5 million contract against similar projects requires access to detailed cost data for comparable elevator refurbishment and upgrade projects at other VA medical centers or federal facilities of similar size and complexity. Factors such as the number of elevators, the extent of the upgrades (e.g., modernization vs. full replacement), building age, and specific technical requirements can significantly influence costs. Without specific comparable project data, it's challenging to definitively state if this price represents excellent, good, or fair value. However, the firm fixed-price nature suggests a degree of cost control is built into the agreement, and the moderate competition (2 bidders) implies a competitive, though not hyper-competitive, pricing environment.

What are the primary risks associated with this elevator upgrade project, and how are they being mitigated?

Key risks for this project include potential schedule delays due to unforeseen structural issues within the existing buildings, integration challenges with older building systems, and the availability of specialized labor and parts. The 970-day duration suggests the complexity and potential for extended timelines. Mitigation strategies likely include thorough site assessments prior to and during the project, detailed project management plans, contingency planning for unexpected issues, and robust quality assurance processes. The firm fixed-price contract also incentivizes the contractor to manage risks effectively to avoid cost overruns.

What is the expected impact of these elevator upgrades on the operational effectiveness and patient care at the Mann-Grandstaff VA Medical Center?

The elevator upgrades are expected to significantly enhance the operational effectiveness and patient care at the Mann-Grandstaff VA Medical Center by ensuring reliable and safe vertical transportation for patients, staff, and visitors. Modernized elevators reduce downtime, minimize the risk of mechanical failures that could disrupt medical services or emergency response, and improve accessibility for individuals with mobility challenges. This directly supports the facility's mission to provide timely and efficient healthcare services. The project's completion will contribute to a safer and more functional environment for all users of the medical center.

How has federal spending on healthcare facility construction and maintenance evolved over the past five years, and where does this contract fit in?

Federal spending on healthcare facility construction and maintenance has generally seen consistent investment, driven by the need to modernize aging infrastructure and adapt to evolving healthcare needs across agencies like the VA and the Department of Defense. This $12.5 million contract for elevator upgrades at a specific VA medical center represents a targeted investment within this broader category. It reflects a commitment to maintaining essential infrastructure at individual facilities rather than a large-scale new construction initiative. Analyzing historical spending trends for VA facility maintenance and upgrades would provide context on whether this award is consistent with, or an outlier from, previous investment patterns.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process and potential bidder engagement?

This designation implies that the initial intent was for full and open competition, but specific sources were subsequently excluded. The reasons for exclusion must be documented and justified, often relating to capabilities, past performance, or specific technical requirements that only certain sources could meet. While it aims for broad participation, the exclusion limits the pool of potential bidders. In this case, with only two bids received, it suggests that the exclusion criteria may have significantly narrowed the field, potentially impacting the level of price competition achieved compared to a scenario where all capable sources were permitted to bid without restriction.

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: 36C26024R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 126 SEVEN FARMS DR, STE 160-B, CHARLESTON, SC, 29492

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

Financial Breakdown

Contract Ceiling: $12,525,703

Exercised Options: $12,525,703

Current Obligation: $12,525,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline