VA Awards $10M Basement MRI Renovation to Hawk Contracting Group LLC

Contract Overview

Contract Amount: $10,084,874 ($10.1M)

Contractor: Hawk Contracting Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-07-01

End Date: 2026-04-01

Contract Duration: 1,370 days

Daily Burn Rate: $7.4K/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: BASEMENT MRI RENOVATION AWARD

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.1 million to HAWK CONTRACTING GROUP LLC for work described as: BASEMENT MRI RENOVATION AWARD Key points: 1. The VA awarded a $10.08 million contract for a basement MRI renovation. 2. Hawk Contracting Group LLC secured the contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project duration is 1370 days, ending April 1, 2026. 5. This falls under Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $10.08 million for a basement MRI renovation appears within a reasonable range for such specialized construction projects. However, without specific details on the scope of work and comparable project costs, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method might impact price discovery by potentially reducing the number of bidding entities compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this renovation. The limited competition raises questions about whether the most cost-effective solution was secured for taxpayers.

Public Impact

Improved medical imaging capabilities for veterans through updated MRI facilities. Potential for enhanced diagnostic accuracy and patient care at the VA facility. Supports the construction sector and local employment through the awarded contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price.
Long project duration (1370 days) could indicate potential for delays or scope creep.

Positive Signals

Addresses a critical healthcare infrastructure need.
Awarded to a single entity, potentially streamlining project management.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects. For specialized renovations like MRI facilities, costs can vary significantly based on equipment integration, shielding requirements, and facility modifications. Benchmarks are difficult without specific project details.

Small Business Impact

The data indicates the award was not made to a small business (sb: false). This suggests larger, established contractors were likely involved, potentially limiting opportunities for small businesses on this specific project.

Oversight & Accountability

The award was a Delivery Order, implying it's part of a larger contract vehicle. Oversight would involve monitoring the execution of this order against the parent contract's terms and ensuring compliance with construction standards and timelines.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Long project duration
Potential for unforeseen construction issues
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.1 million to HAWK CONTRACTING GROUP LLC. BASEMENT MRI RENOVATION AWARD

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 $10.1 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-04-01.

What specific factors led to the exclusion of other sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are identified that only a limited number of contractors can meet. This can reduce the competitive pool, potentially leading to higher prices than if a broader competition were held. Further investigation into the justification for source exclusion is needed to assess the price impact.

Given the 50% score, what are the primary risks associated with this contract, and how can they be mitigated?

The primary risks include potential cost overruns due to the long project duration and the possibility of unforeseen construction challenges in a basement environment. Mitigation strategies involve robust project management, strict adherence to the fixed-price contract terms, regular progress reviews, and contingency planning for unexpected issues.

How effectively will this MRI renovation contribute to the VA's overall mission of providing healthcare to veterans, considering the investment?

The renovation is expected to significantly enhance the VA's diagnostic capabilities, leading to improved patient care and potentially reducing the need for veterans to seek external imaging services. The effectiveness hinges on the successful completion of the project on time and within budget, and the subsequent utilization of the new MRI facility.

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: 36C26122R0030

Offers Received: 2

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: $18,889,775

Exercised Options: $10,084,874

Current Obligation: $10,084,874

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