VA Awards $4.5M Contract for Inpatient Floor Renovations to The Povolny Group Inc

Contract Overview

Contract Amount: $4,547,259 ($4.5M)

Contractor: THE Povolny Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-29

End Date: 2026-11-30

Contract Duration: 1,158 days

Daily Burn Rate: $3.9K/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: PN 636-22-210 RENOVATE FLOORS 5, 6, AND 7 FOR INPATIENT FUNCTIONS IN BUILDING 1 NTP ISSUED ON 2/5/2024

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to THE POVOLNY GROUP INC for work described as: PN 636-22-210 RENOVATE FLOORS 5, 6, AND 7 FOR INPATIENT FUNCTIONS IN BUILDING 1 NTP ISSUED ON 2/5/2024 Key points: 1. The contract focuses on renovating inpatient floors in Building 1, a critical infrastructure need for the VA. 2. Competition was full and open after exclusion of sources, suggesting a deliberate but potentially limited bidding process. 3. The firm fixed-price contract type helps manage cost certainty for the government. 4. The project duration of 1158 days indicates a significant, multi-year undertaking.

Value Assessment

Rating: good

The contract value of $4.5M for renovating three inpatient floors appears reasonable given the scope and duration. Benchmarking against similar large-scale healthcare facility renovation projects would provide a more precise assessment.

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.' This method implies that while the competition was open, specific sources may have been excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The firm fixed-price contract aims to provide cost certainty, protecting taxpayers from potential cost overruns associated with the renovation project.

Public Impact

Improved patient care facilities through renovation of inpatient areas. Potential for disruption to existing hospital operations during construction. Creation of construction jobs and economic activity in Nebraska. Long-term enhancement of VA healthcare infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the long project duration.
Risk of unforeseen conditions during renovation of older building infrastructure.
Impact of construction on ongoing hospital services.

Positive Signals

Firm fixed-price contract provides cost certainty.
Renovation addresses critical need for updated inpatient facilities.
Competition, even with exclusions, suggests some level of market engagement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for healthcare facilities is substantial, driven by the need to modernize aging infrastructure and improve patient care environments.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large construction project.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight will be crucial to ensure the project stays on schedule and within budget, given its multi-year duration and impact on hospital operations.

Related Government Programs

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

Risk Flags

Long project duration (1158 days) increases risk of delays and cost escalation.
Renovation of occupied healthcare facilities poses inherent patient safety and operational risks.
Competition method ('after exclusion of sources') may limit competitive pricing.
Potential for unforeseen conditions in older building infrastructure.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to THE POVOLNY GROUP INC. PN 636-22-210 RENOVATE FLOORS 5, 6, AND 7 FOR INPATIENT FUNCTIONS IN BUILDING 1 NTP ISSUED ON 2/5/2024

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 $4.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-11-30.

What specific criteria were used to exclude sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources suggests that the VA may have had specific requirements or pre-qualifications that certain potential bidders did not meet. This could be related to specialized experience, past performance, or specific certifications. While it aims to ensure qualified bidders, it can limit the competitive pool, potentially affecting price discovery and the final negotiated price. Understanding these criteria is key to assessing the true competitiveness of the procurement.

What are the potential risks associated with renovating occupied inpatient floors, and what mitigation strategies are in place?

Renovating occupied inpatient floors presents significant risks, including patient safety concerns, infection control breaches, noise and vibration disturbances, and disruption to critical medical services. Mitigation strategies typically involve phased construction, stringent infection control protocols, temporary relocation of services, noise abatement measures, and close coordination between construction teams and hospital staff to minimize impact on patient care and operations.

How does the $4.5M renovation cost compare to similar projects in terms of cost per square foot or per inpatient bed, and does it represent good value for taxpayer money?

Without specific details on the square footage or the number of beds being renovated, a precise cost-per-unit benchmark is difficult. However, $4.5M for three floors suggests a significant investment. To assess value, this cost should be compared to similar hospital renovation projects of comparable scope and complexity, considering regional construction costs and the specific upgrades included. A favorable comparison would indicate good value; a significantly higher cost might warrant further scrutiny.

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: 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: $4,547,259

Exercised Options: $4,547,259

Current Obligation: $4,547,259

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26320D0029

IDV Type: IDC

Timeline