VA Awards $8.89M Contract for Inpatient Unit Renovation to DAX/GBAB JV LLC
Contract Overview
Contract Amount: $8,887,244 ($8.9M)
Contractor: Dax/Gbab JV LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-09-30
End Date: 2026-07-20
Contract Duration: 1,024 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 636A8-21-002 RENOVATE 9E INPATIENT UNIT - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS.
Place of Performance
Location: IOWA CITY, JOHNSON County, IOWA, 52246
State: Iowa Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $8.9 million to DAX/GBAB JV LLC for work described as: 636A8-21-002 RENOVATE 9E INPATIENT UNIT - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS. Key points: 1. The contract focuses on renovating an inpatient unit, a critical healthcare infrastructure need. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The project's fixed-price nature helps mitigate cost overrun risks for taxpayers. 4. This falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $8.89M for a 1024-day duration appears reasonable for a significant renovation project. Benchmarking against similar large-scale healthcare construction projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after excluding sources, indicating a robust process to solicit bids. This method generally promotes competitive pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and potentially driving down costs.
Public Impact
Improved healthcare facilities for veterans. Potential for job creation in the construction sector. Modernized infrastructure supporting patient care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in renovation projects.
- Dependence on specific contractor expertise.
Positive Signals
- Clear project scope defined in contract documents.
- Fixed-price contract limits financial risk.
- Awarded to a joint venture, potentially bringing diverse expertise.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending in this area is often driven by modernization needs and facility upgrades.
Small Business Impact
The contract was awarded to DAX/GBAB JV LLC, a joint venture. Analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The contract's fixed-price nature and defined scope should aid accountability, but monitoring progress and quality is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for unforeseen conditions during renovation.
- Coordination challenges between construction and hospital operations.
- Ensuring compliance with healthcare facility regulations.
- Timely completion to minimize disruption.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, ia, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $8.9 million to DAX/GBAB JV LLC. 636A8-21-002 RENOVATE 9E INPATIENT UNIT - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS.
Who is the contractor on this award?
The obligated recipient is DAX/GBAB JV 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 $8.9 million.
What is the period of performance?
Start: 2023-09-30. End: 2026-07-20.
What is the estimated cost per square foot for this renovation, and how does it compare to industry benchmarks for similar healthcare facility upgrades?
The provided data does not include square footage, making a direct cost-per-square-foot calculation impossible. To assess value, a detailed breakdown of renovation scope and size is required. Comparing this to publicly available data for similar VA or hospital renovations would reveal if the $8.89M is competitive on a per-unit basis.
What specific risks are associated with renovating an active inpatient unit, and what mitigation strategies are in place?
Renovating an active inpatient unit carries risks such as patient safety disruptions, infection control breaches, noise disturbances, and potential impacts on ongoing medical operations. Mitigation strategies typically include phased construction, strict infection control protocols, designated work hours, and clear communication channels between the construction team and hospital staff.
How effectively will the completed renovation improve patient care and operational efficiency within the 9E Inpatient Unit?
The effectiveness hinges on the specific scope of work outlined in the contract documents. If the renovation addresses critical needs like outdated equipment, inefficient layouts, or insufficient capacity, it should significantly improve patient care and operational efficiency. Post-completion assessment and user feedback will be key to measuring actual effectiveness.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3219 NE 153RD TER, SMITHVILLE, MO, 64089
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: $8,887,244
Exercised Options: $8,887,244
Current Obligation: $8,887,244
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C26320D0024
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2026-07-20
Potential End Date: 2026-07-20 00:00:00
Last Modified: 2026-02-27
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