VA Awards $9.66M Contract for Sterile Processing Service Renovation to Hernandez Consulting Inc
Contract Overview
Contract Amount: $9,661,324 ($9.7M)
Contractor: Hernandez Consulting Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-02-01
End Date: 2026-04-11
Contract Duration: 1,895 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: MN CONSTRUCTION MATOC, RENOVATE BLDG 4 FOR STERILE PROCESSING SERVICE (SPS)
Place of Performance
Location: SAINT CLOUD, STEARNS County, MINNESOTA, 56303
Plain-Language Summary
Department of Veterans Affairs obligated $9.7 million to HERNANDEZ CONSULTING INC. for work described as: MN CONSTRUCTION MATOC, RENOVATE BLDG 4 FOR STERILE PROCESSING SERVICE (SPS) Key points: 1. The contract focuses on renovating Building 4 for Sterile Processing Services (SPS). 2. Hernandez Consulting Inc. secured this contract. 3. The Department of Veterans Affairs is the awarding agency. 4. This is a Firm Fixed Price contract. 5. The contract duration is 1895 days.
Value Assessment
Rating: good
The contract value of $9.66 million for a renovation project of this scope appears reasonable. Benchmarking against similar large-scale institutional building renovations would provide a more precise assessment, but the price seems within expected ranges for complex construction.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests a competitive process, but the exclusion of certain sources might limit the full breadth of competition and potentially impact price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential facility upgrades within the VA system, aiming to improve healthcare infrastructure.
Public Impact
Improved healthcare infrastructure at the VA facility. Potential for enhanced sterile processing capabilities. Supports construction industry jobs. Ensures compliance with healthcare facility standards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Long contract duration may introduce cost escalation risks.
Positive Signals
- Addresses critical healthcare infrastructure needs.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for government facilities is often driven by infrastructure upgrades, modernization, and specialized needs like healthcare services.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Accountability will be measured by the successful completion of the renovation within budget and schedule, and adherence to quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Limited competition may have impacted price.
- Lack of small business participation.
- Dependence on a single contractor for a lengthy period.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, mn, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $9.7 million to HERNANDEZ CONSULTING INC.. MN CONSTRUCTION MATOC, RENOVATE BLDG 4 FOR STERILE PROCESSING SERVICE (SPS)
Who is the contractor on this award?
The obligated recipient is HERNANDEZ CONSULTING 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 $9.7 million.
What is the period of performance?
Start: 2021-02-01. End: 2026-04-11.
What is the specific justification for excluding certain sources in the competition?
The justification for excluding sources is not provided in the data. Understanding this exclusion is crucial for assessing the true level of competition and whether it led to optimal pricing. Further investigation into the contract's procurement history would be necessary to determine the rationale behind this decision.
What are the key performance indicators for this renovation project?
Key performance indicators would likely include adherence to the project schedule, completion within the $9.66 million budget, and meeting all specifications for the Sterile Processing Service (SPS) area. Quality control during construction and final inspection reports will also be critical measures of success.
How does the long contract duration impact potential cost overruns?
A duration of 1895 days (over 5 years) for a construction project introduces significant risk for cost overruns due to inflation, material price fluctuations, and potential changes in labor costs. While the contract is Firm Fixed Price, unforeseen circumstances or change orders could still impact the final expenditure.
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3221 TULANE AVE, NEW ORLEANS, LA, 70119
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, 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: $9,661,324
Exercised Options: $9,661,324
Current Obligation: $9,661,324
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C26319D0092
IDV Type: IDC
Timeline
Start Date: 2021-02-01
Current End Date: 2026-04-11
Potential End Date: 2026-04-11 00:00:00
Last Modified: 2026-04-07
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