VA awards $2.8M for facility upgrades at Northern Arizona VA Health Care System

Contract Overview

Contract Amount: $2,809,431 ($2.8M)

Contractor: THE Povolny Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-26

End Date: 2026-11-22

Contract Duration: 879 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 34

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 649-22-136 SEED PROJECT COMPLETE SPACE BUILD-OUTS, PASSENGER ELEVATORS, EXTERIOR WORK, EMERGENCY GENERATOR FOR BUILDINGS 162 AND 164 AT THE DEPARTMENT OF VETERANS AFFAIRS NORTHERN ARIZONA VA HEALTH CARE SYSTEM, PRESCOTT AZ.

Place of Performance

Location: PRESCOTT, YAVAPAI County, ARIZONA, 86313

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to THE POVOLNY GROUP INC for work described as: 649-22-136 SEED PROJECT COMPLETE SPACE BUILD-OUTS, PASSENGER ELEVATORS, EXTERIOR WORK, EMERGENCY GENERATOR FOR BUILDINGS 162 AND 164 AT THE DEPARTMENT OF VETERANS AFFAIRS NORTHERN ARIZONA VA HEALTH CARE SYSTEM, PRESCOTT AZ. Key points: 1. Contract focuses on essential building infrastructure including elevators and emergency generators. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The project duration of 879 days indicates a significant, multi-phase construction effort. 4. The fixed-price contract type aims to control costs and manage budget predictability. 5. This spending supports the operational readiness and patient care environment of a key VA facility.

Value Assessment

Rating: good

The contract value of $2.8 million for building construction, including elevators and emergency generators, appears reasonable for the scope and duration. Benchmarking against similar VA facility upgrade projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests the contractor bears cost overruns, which is a positive indicator for the government.

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,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. While the exact number of bidders is not provided, this procurement method generally fosters competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives a fair market rate for the construction services.

Public Impact

Veterans receiving care at the Northern Arizona VA Health Care System will benefit from improved facility infrastructure. Services delivered include construction of passenger elevators, exterior work, and installation of emergency generators. The geographic impact is localized to Prescott, Arizona, serving the healthcare needs of regional veterans. The project will likely involve local construction workforce, supporting employment in the Prescott area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Risk of unforeseen site conditions requiring change orders and increased costs.

Positive Signals

Focus on critical infrastructure like emergency generators enhances operational resilience.
Firm fixed-price contract limits the government's exposure to cost overruns.
Awarding under full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable spending benchmarks for similar VA facility upgrades would typically range from hundreds of thousands to several million dollars, depending on the complexity and scale of the project.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are expected to participate in the subcontracting chain.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of cost control. Transparency regarding project progress and any significant issues would typically be available through VA procurement data and reporting mechanisms.

Related Government Programs

VA Healthcare Construction Projects
Federal Building Modernization Programs
Emergency Power Systems Procurement
Elevator Installation Contracts

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Ensuring quality of critical infrastructure installation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.8 million to THE POVOLNY GROUP INC. 649-22-136 SEED PROJECT COMPLETE SPACE BUILD-OUTS, PASSENGER ELEVATORS, EXTERIOR WORK, EMERGENCY GENERATOR FOR BUILDINGS 162 AND 164 AT THE DEPARTMENT OF VETERANS AFFAIRS NORTHERN ARIZONA VA HEALTH CARE SYSTEM, PRESCOTT AZ.

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 $2.8 million.

What is the period of performance?

Start: 2024-06-26. End: 2026-11-22.

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

A review of federal procurement data indicates that The Povolny Group Inc. has received multiple contracts from the Department of Veterans Affairs. These contracts span various construction and facility maintenance services. While specific performance details for each contract are not publicly detailed in this summary, the continued award of contracts suggests a satisfactory performance history. Further investigation into past performance evaluations and any reported issues would be necessary for a comprehensive assessment of their track record with the VA.

How does the $2.8 million cost compare to similar VA facility upgrade projects?

The $2.8 million award for building upgrades, including elevators and emergency generators at the Northern Arizona VA Health Care System, is within a typical range for such projects. Similar VA facility modernization efforts, especially those involving critical infrastructure like power and vertical transportation, can often cost several million dollars. Factors influencing cost include the size and condition of the existing buildings, the complexity of the required upgrades, and local labor and material costs. Without specific details on the scope of 'exterior work' and the exact specifications for the elevators and generators, a precise benchmark is difficult, but the amount appears proportionate for a project of this nature and duration (879 days).

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the project's timeline and potentially lead to cost increases if not managed effectively. Another risk is the possibility of scope creep, where additional requirements emerge during construction, necessitating change orders that could increase the overall cost. Ensuring the quality of work, particularly for critical systems like emergency generators, is also a consideration. The firm fixed-price contract mitigates some financial risk for the government, but delays can still impact facility operations and veteran services.

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

The 'full and open competition' method is generally considered highly effective in ensuring value for construction contracts like this one. By allowing all responsible sources to submit bids, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive pricing. This method encourages contractors to offer their best terms and pricing to win the contract. The Department of Veterans Affairs likely benefited from multiple proposals, allowing them to compare technical approaches and costs to select the offer that provides the best overall value, balancing price with performance and capability.

What is the historical spending pattern for facility upgrades at the Northern Arizona VA Health Care System?

Analyzing historical spending patterns for facility upgrades at the Northern Arizona VA Health Care System requires access to detailed historical contract data. This specific contract for $2.8 million represents a significant investment in essential infrastructure. Without prior data, it's difficult to establish a trend. However, federal agencies like the VA typically have ongoing needs for facility maintenance and modernization, often funded through annual appropriations and specific project-based awards. The frequency and value of such contracts can fluctuate based on budget allocations, identified infrastructure needs, and the age of the facilities.

What are the implications of the 879-day duration for project management and oversight?

The 879-day duration (approximately 2.4 years) for this construction project signifies a substantial undertaking that requires robust project management and sustained oversight. This extended timeline necessitates careful planning, regular progress monitoring, and proactive risk management to ensure milestones are met and the project stays on track. The Department of Veterans Affairs will need to dedicate consistent resources to oversee the contractor's performance, manage any potential issues that arise, and ensure compliance with contract terms and quality standards throughout the project lifecycle. The long duration also implies a phased approach to construction, potentially minimizing disruption to ongoing healthcare services.

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: 34

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: $2,809,431

Exercised Options: $2,809,431

Current Obligation: $2,809,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26224D0077

IDV Type: IDC

Timeline