VA Awards $7.46M Contract for Iowa City VAHCS Remodel to Covenant Construction Services LLC

Contract Overview

Contract Amount: $7,457,875 ($7.5M)

Contractor: Covenant Construction Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-15

End Date: 2026-05-25

Contract Duration: 1,167 days

Daily Burn Rate: $6.4K/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: PN: 636A8-21-001 REMODEL 2W FOR IR-CATH-EP AT THE IOWA CITY VAHCS.

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.5 million to COVENANT CONSTRUCTION SERVICES LLC for work described as: PN: 636A8-21-001 REMODEL 2W FOR IR-CATH-EP AT THE IOWA CITY VAHCS. Key points: 1. Contract awarded for building construction services at the Iowa City VA Health Care System. 2. Covenant Construction Services LLC secured the contract. 3. The contract is a firm-fixed-price definitive contract. 4. The project duration is 1167 days, ending in May 2026. 5. This award represents a significant investment in healthcare infrastructure.

Value Assessment

Rating: good

The contract value of $7.46 million appears reasonable for a significant building remodel project of this duration. Benchmarking against similar VA construction contracts would provide a more precise assessment.

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 may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding a necessary upgrade to healthcare facilities, aiming for improved patient care and operational efficiency.

Public Impact

Improved medical facilities for veterans at the Iowa City VAHCS. Potential for job creation in the construction sector in Iowa. Ensures the facility can support advanced medical procedures like IR-CATH-EP. Long-term investment in healthcare infrastructure for the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price.
Contract duration is substantial, increasing risk of cost overruns or delays.

Positive Signals

Addresses critical infrastructure needs for veteran healthcare.
Firm-fixed-price contract provides cost certainty for the base scope.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining and upgrading public facilities, including healthcare centers. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the contract was awarded to Covenant Construction Services LLC, and 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. Robust oversight will be critical to ensure the project stays on schedule, within budget, and meets quality standards, especially given the long duration.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Long contract duration increases risk of delays and cost overruns.
Potential for scope creep over the extended project timeline.
Dependence on a single contractor for a significant duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.5 million to COVENANT CONSTRUCTION SERVICES LLC. PN: 636A8-21-001 REMODEL 2W FOR IR-CATH-EP AT THE IOWA CITY VAHCS.

Who is the contractor on this award?

The obligated recipient is COVENANT CONSTRUCTION SERVICES 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 $7.5 million.

What is the period of performance?

Start: 2023-03-15. End: 2026-05-25.

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

The exclusion of sources suggests specific requirements or justifications were cited, potentially related to specialized capabilities, past performance, or unique project needs. This limited competition might have reduced the number of bidders, potentially leading to less aggressive pricing than a truly unrestricted full and open competition. A detailed review of the solicitation and award documents would clarify the rationale and its price implications.

What are the key performance indicators (KPIs) and risk mitigation strategies in place to manage the 1167-day duration and ensure successful project completion?

Effective management of a project spanning over three years requires clearly defined KPIs for schedule adherence, quality control, and budget management. Risk mitigation strategies should include detailed project phasing, regular progress reviews, contingency planning for unforeseen issues (like material shortages or labor disputes), and strong communication channels between the VA and Covenant Construction Services LLC.

How does the investment in this remodel align with the VA's long-term strategic goals for healthcare delivery and facility modernization?

This remodel directly supports the VA's goal of providing modern, efficient healthcare services by upgrading critical infrastructure. Enhancing capabilities like IR-CATH-EP procedures ensures veterans have access to advanced medical treatments. Aligning such investments with strategic facility modernization plans demonstrates a commitment to improving veteran care and optimizing the use of taxpayer resources for healthcare infrastructure.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26323R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2635 BERKSHIRE PARKWAY SUITE 202, CLIVE, IA, 50325

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: $7,457,875

Exercised Options: $7,457,875

Current Obligation: $7,457,875

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $4,887,030

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline