VA awards $12.46M contract to Greenstone Construction for patient ward renovation in Minnesota
Contract Overview
Contract Amount: $12,456,175 ($12.5M)
Contractor: Greenstone Construction, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-12-25
End Date: 2026-09-22
Contract Duration: 1,002 days
Daily Burn Rate: $12.4K/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: 618-22-102 RENOVATE FOR A PRIVATE PATIENT BED WARD (3D) - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417
Plain-Language Summary
Department of Veterans Affairs obligated $12.5 million to GREENSTONE CONSTRUCTION, INC. for work described as: 618-22-102 RENOVATE FOR A PRIVATE PATIENT BED WARD (3D) - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS. Key points: 1. The contract focuses on labor and materials for a private patient bed ward renovation. 2. Greenstone Construction, Inc. secured the award. 3. The Department of Veterans Affairs is the awarding agency. 4. The project is located in Minnesota and has a duration of 1002 days.
Value Assessment
Rating: fair
The contract value of $12.46 million for a building renovation appears within a reasonable range for a project of this scope and duration. However, without specific benchmarks for similar patient ward renovations, a precise per-unit cost comparison 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'. This suggests that while competition was sought, certain sources were excluded, potentially limiting the breadth of price discovery and the number of competitive bids received.
Taxpayer Impact: Taxpayer funds are being used for this renovation, and the effectiveness of the competition method will influence the overall value for money achieved.
Public Impact
Improved patient facilities at the VA hospital. Potential for job creation through construction activities. Impact on local economy in Minnesota. Ensuring quality and timely completion of the renovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition after exclusion of sources
- Long project duration (1002 days)
Positive Signals
- Firm fixed price contract type
- Specific project scope defined
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project size, complexity, and location. Benchmarks for similar VA facility renovations would provide better context.
Small Business Impact
The data does not indicate whether small businesses were involved as prime contractors or subcontractors in this award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Oversight will be crucial to ensure the renovation is completed on time, within budget, and to the required specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns if scope expands.
- Risk of delays due to unforeseen construction issues.
- Dependency on Greenstone Construction's performance.
- Limited competition may have impacted final price.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $12.5 million to GREENSTONE CONSTRUCTION, INC.. 618-22-102 RENOVATE FOR A PRIVATE PATIENT BED WARD (3D) - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS.
Who is the contractor on this award?
The obligated recipient is GREENSTONE CONSTRUCTION, 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 $12.5 million.
What is the period of performance?
Start: 2023-12-25. End: 2026-09-22.
What specific criteria led to the exclusion of certain sources in the competition process?
The exclusion of sources typically occurs due to specific requirements outlined in the solicitation, such as specialized capabilities, past performance, or geographic limitations. Understanding these criteria is essential to assess if the exclusion was justified and if it potentially limited competitive pricing or innovation.
How does the $12.46 million cost compare to similar patient ward renovation projects in terms of cost per square foot or per bed?
A direct comparison of the total contract value to similar projects is challenging without detailed project specifications (e.g., square footage, number of beds, scope of work). A cost-per-square-foot or cost-per-bed analysis, benchmarked against recent VA or comparable institutional construction projects, would provide a more accurate assessment of value for money.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators likely include adherence to the project schedule, quality of construction, compliance with building codes and VA standards, and effective cost management. The contract should specify metrics for these areas, with regular progress reports and inspections to ensure the renovation meets its objectives and delivers value.
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: 36C26323R0023
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Greenstone Construction Inc.
Address: 827 28TH ST S STE B, FARGO, ND, 58103
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,456,175
Exercised Options: $12,456,175
Current Obligation: $12,456,175
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-25
Current End Date: 2026-09-22
Potential End Date: 2026-09-22 00:00:00
Last Modified: 2026-01-09
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