VA Awards $3M Pharmacy Construction Contract to DAX Safety & Staffing Solutions

Contract Overview

Contract Amount: $3,054,616 ($3.1M)

Contractor: DAX Safety & Staffing Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-04

End Date: 2026-04-16

Contract Duration: 589 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EXPAND PHARMACY CONSTRUCTION

Place of Performance

Location: BOISE, ADA County, IDAHO, 83702

State: Idaho Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to DAX SAFETY & STAFFING SOLUTIONS, LLC for work described as: EXPAND PHARMACY CONSTRUCTION Key points: 1. Contract awarded for pharmacy construction services. 2. Competition method: Full and Open after exclusion of sources. 3. Contract type: Definitive contract with a Firm Fixed Price. 4. Project duration is 589 days. 5. Small business participation is not indicated.

Value Assessment

Rating: fair

The contract value of $3.05 million for pharmacy construction appears reasonable given the project scope and duration. Benchmarking against similar VA construction projects would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was conducted as 'Full and Open Competition After Exclusion of Sources,' suggesting a limited initial pool but still aiming for broad participation. This method can impact price discovery by potentially reducing the number of bidders compared to a purely full and open process.

Taxpayer Impact: Taxpayer funds are being used for essential facility upgrades. The chosen competition method aims for value while ensuring specific requirements are met.

Public Impact

Enhances VA healthcare infrastructure by expanding pharmacy facilities. Supports veteran access to essential pharmaceutical services. Potential for job creation during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Lack of explicit small business participation.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Definitive contract structure for defined scope.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for the VA is significant, driven by the need to maintain and upgrade healthcare facilities nationwide.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract. Further investigation may be needed to determine if opportunities were missed for small businesses in this construction project.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight procedures 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.
Potential for cost increases due to project duration.
Lack of explicit small business set-aside.
Need for detailed oversight to ensure quality and schedule adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to DAX SAFETY & STAFFING SOLUTIONS, LLC. EXPAND PHARMACY CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is DAX SAFETY & STAFFING SOLUTIONS, 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 $3.1 million.

What is the period of performance?

Start: 2024-09-04. End: 2026-04-16.

What specific factors led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance requirements, or unique project needs necessitate limiting the initial bidder pool. This can sometimes lead to higher prices if the reduced competition prevents a wider range of competitive bids. A detailed review of the solicitation documents and award justification would clarify the reasons for exclusion and its potential price impact.

What are the key performance indicators (KPIs) for this construction project, and how will their achievement be measured to ensure value for taxpayer money?

Key performance indicators for construction projects often include adherence to schedule, budget compliance, quality of workmanship, safety record, and meeting all specified design and functional requirements. The VA likely has a quality assurance surveillance plan (QASP) to monitor these KPIs. Regular site inspections, progress reports, and milestone reviews are standard methods to ensure the contractor meets contractual obligations and delivers value.

Are there any potential risks associated with the 589-day duration of this construction project, such as cost overruns due to inflation or delays?

A duration of 589 days (approximately 1.6 years) for a construction project carries inherent risks. Inflation could impact material and labor costs, potentially affecting the fixed price if not adequately accounted for. Delays due to unforeseen site conditions, weather, or supply chain disruptions are also risks. The contract's terms regarding escalation and delay clauses would determine the allocation of these risks between the government and the contractor.

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: 36C26024R0044

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2158 SPRING COVE RD, SUNRISE BEACH, MO, 65079

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: $3,054,616

Exercised Options: $3,054,616

Current Obligation: $3,054,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline