VA Palo Alto patient safety upgrades awarded to Hawk Contracting Group for $4.9M, completed over 3 years

Contract Overview

Contract Amount: $4,915,186 ($4.9M)

Contractor: Hawk Contracting Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-26

End Date: 2025-07-31

Contract Duration: 1,435 days

Daily Burn Rate: $3.4K/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: VA PALO ALTO BUILDING 7 PATIENT SAFETY UPGRADES (640-18-101)

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.9 million to HAWK CONTRACTING GROUP LLC for work described as: VA PALO ALTO BUILDING 7 PATIENT SAFETY UPGRADES (640-18-101) Key points: 1. Contract value appears reasonable for specialized building upgrades within a healthcare facility. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type shifts risk to the contractor, potentially impacting cost certainty. 4. Project duration aligns with typical construction timelines for facility improvements. 5. The project is situated within the healthcare construction sector, a critical area for VA facilities. 6. The contract is a delivery order under a larger contract vehicle, indicating potential for future task orders.

Value Assessment

Rating: good

The contract value of approximately $4.9 million for patient safety upgrades at the VA Palo Alto facility seems within a reasonable range for specialized construction work. Benchmarking against similar projects for healthcare facility renovations would provide a more precise value-for-money assessment. The firm-fixed-price structure indicates that the contractor bears the primary responsibility for cost overruns, which can be a positive indicator of controlled spending if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for similar scope and complexity, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while initial solicitations might have excluded certain sources, the final award was made through a broad competitive process. The presence of multiple bidders, though not explicitly stated, is implied by the nature of full and open competition. This level of competition is generally expected to drive down prices and ensure fair market value is obtained for the government.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by leveraging market forces to secure the best possible price.

Public Impact

Patients at the VA Palo Alto facility will benefit from enhanced safety features and improved infrastructure. The project delivers critical upgrades to building 7, directly impacting the quality of care and operational efficiency. The geographic impact is localized to Palo Alto, California, serving the veteran population in that region. The construction work will likely involve local skilled labor, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Risk of delays due to unforeseen site conditions or material availability, common in construction.
Dependence on the contractor's ability to meet stringent healthcare construction safety and quality standards.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Project addresses critical patient safety needs within a VA facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facility upgrades. The market for healthcare construction is substantial, driven by the need for modernization, expansion, and compliance with evolving regulations. The VA's ongoing investment in its facilities represents a significant portion of federal spending in this niche, requiring specialized expertise in areas like patient safety and infection control. Comparable spending benchmarks would involve analyzing other VA or public healthcare construction projects of similar scale and scope.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a delivery order under a larger contract vehicle, subcontracting opportunities for small businesses may exist, depending on the prime contractor's strategy and the terms of the master contract. Further analysis would be needed to determine the extent of small business participation in this specific project.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General's office within the VA may conduct audits or investigations if any irregularities or performance issues arise.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Federal Building Safety Upgrades
Construction Services for Government Agencies

Risk Flags

Potential for cost overruns under firm-fixed-price if unforeseen issues arise.
Risk of delays due to construction complexities or external factors.
Need for stringent quality control to ensure patient safety standards are met.
Contract awarded under 'Full and Open Competition After Exclusion of Sources' requires careful review of the exclusion justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.9 million to HAWK CONTRACTING GROUP LLC. VA PALO ALTO BUILDING 7 PATIENT SAFETY UPGRADES (640-18-101)

Who is the contractor on this award?

The obligated recipient is HAWK CONTRACTING 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 $4.9 million.

What is the period of performance?

Start: 2021-08-26. End: 2025-07-31.

What is the track record of Hawk Contracting Group LLC with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Hawk Contracting Group LLC's track record. This would involve examining past performance on similar VA contracts, including on-time delivery, adherence to budget, and quality of work. Understanding their history with firm-fixed-price contracts and their performance in the healthcare construction sector would provide valuable context. Any past performance issues, such as contract disputes or terminations, would be significant risk indicators. Conversely, a history of successful project completion and positive past performance reviews would bolster confidence in their ability to execute this current project effectively.

How does the awarded price of $4.9 million compare to similar patient safety upgrade projects in VA facilities?

Benchmarking this $4.9 million contract against similar patient safety upgrade projects within VA facilities requires access to detailed cost data for comparable projects. Factors such as project scope, square footage, specific safety features implemented (e.g., advanced monitoring systems, specialized room modifications), and geographic location significantly influence costs. Without specific comparable project data, it's challenging to definitively state if this price represents excellent, good, or fair value. However, given the specialized nature of healthcare construction and the focus on patient safety, costs can be higher than standard commercial construction. A detailed cost-per-square-foot analysis or cost-per-feature analysis against similar VA projects would be the most effective way to benchmark value.

What are the primary risks associated with this firm-fixed-price contract for patient safety upgrades?

The primary risks associated with this firm-fixed-price contract revolve around potential cost overruns for the contractor and the possibility of scope creep. While the fixed price shifts financial risk to Hawk Contracting Group LLC, if unforeseen issues arise during construction (e.g., hazardous material discovery, structural problems, complex system integration challenges), the contractor might seek change orders, potentially increasing the overall cost to the government. Another risk is that the contractor might cut corners on quality or safety to maintain profitability, although rigorous oversight should mitigate this. Ensuring the initial scope is meticulously defined and change management processes are robust is crucial for managing these risks and ensuring the project's success within the allocated budget.

How effective are the oversight mechanisms for ensuring the successful completion of patient safety upgrades in VA facilities?

Oversight for VA construction projects typically involves a multi-layered approach to ensure successful completion and adherence to standards. This includes the Contracting Officer's Representative (COR) who monitors day-to-day progress, quality control inspections, and adherence to the contract specifications. The VA often employs its own construction engineers and architects to review plans and progress. Furthermore, the VA Office of Inspector General (OIG) provides an independent layer of oversight, investigating fraud, waste, and abuse. The effectiveness of these mechanisms relies on adequate staffing, clear communication channels, and the diligent execution of inspection and reporting protocols. Robust oversight is critical for ensuring patient safety is not compromised during construction.

What is the historical spending pattern for patient safety upgrades or similar construction projects at the VA Palo Alto facility?

Analyzing historical spending patterns for patient safety upgrades or similar construction projects at the VA Palo Alto facility would require accessing historical contract databases and financial records. This would involve identifying previous contracts awarded for renovations, upgrades, or new construction at this specific facility, noting their scope, value, and duration. Understanding the frequency and magnitude of such investments can reveal trends in facility maintenance and modernization efforts. It could also highlight whether this $4.9 million contract represents a significant increase or decrease in spending compared to previous periods, providing context for the current investment's scale and urgency.

What are the implications of this contract being a 'Delivery Order' under a larger contract vehicle?

This contract being a 'Delivery Order' signifies that it was issued under a pre-existing, larger contract vehicle, such as an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a General Services Administration (GSA) schedule. This approach allows agencies to streamline the procurement process for specific types of goods or services. For the VA, it means they likely had a framework contract in place for construction services, allowing them to quickly task Hawk Contracting Group LLC for this specific project without initiating a full, new procurement from scratch. This can lead to faster project initiation and potentially more efficient use of resources. It also implies that the terms and conditions, including pricing structures and performance standards, were established at the master contract level.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C26121R0041

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 E MAIN ST #F, MONTROSE, CO, 81401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,915,186

Exercised Options: $4,915,186

Current Obligation: $4,915,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26120D0086

IDV Type: IDC

Timeline