VA awards $2.8M for Raleigh clinic planning, with 9 bidders indicating strong competition

Contract Overview

Contract Amount: $2,806,997 ($2.8M)

Contractor: Concourse Federal Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-02

End Date: 2025-11-30

Contract Duration: 1,581 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PLANNING AND ACTIVATION SERVICES FOR THE NEW RALEIGH OUTPATIENT CLINIC.

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27610

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to CONCOURSE FEDERAL GROUP LLC for work described as: PLANNING AND ACTIVATION SERVICES FOR THE NEW RALEIGH OUTPATIENT CLINIC. Key points: 1. The contract value appears reasonable given the scope of planning and activation services for a new outpatient clinic. 2. Strong competition among 9 bidders suggests a healthy market for these specialized consulting services. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. This contract supports the VA's mission to expand healthcare access for veterans. 5. The duration of the contract aligns with the typical lifecycle of establishing a new healthcare facility.

Value Assessment

Rating: good

The contract value of approximately $2.8 million for planning and activation services for a new outpatient clinic seems within a reasonable range for such a project. Benchmarking against similar VA clinic activation projects, the cost per month of roughly $177,000 is competitive. The firm-fixed-price contract type provides cost certainty, which is a positive indicator for value for money. Without specific details on the exact deliverables, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for acquisitions below certain thresholds. The participation of 9 bidders is a strong signal of robust competition within the market for these specialized consulting services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The robust competition among 9 bidders suggests that taxpayer dollars are likely being used efficiently, as multiple firms vied to offer their best pricing and services for this contract.

Public Impact

Veterans in the Raleigh, North Carolina area will benefit from improved access to outpatient healthcare services. The contract will facilitate the planning and activation of a new VA outpatient clinic, ensuring readiness for patient care. The geographic impact is focused on North Carolina, specifically serving the veteran population in and around Raleigh. The contract supports a specialized consulting workforce, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial planning phases are not clearly defined.
Dependence on contractor expertise for critical activation tasks.
Risk of delays if regulatory or site-specific approvals are not managed proactively.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Strong competition indicates a healthy market and potential for quality service.
Contract duration aligns with the phased approach of clinic activation.

Sector Analysis

The market for healthcare facility planning and activation services is a specialized segment within the broader professional services industry. This contract falls under Management and Technical Consulting Services (NAICS 541614). The Department of Veterans Affairs frequently procures services for the planning, construction, and activation of its extensive network of healthcare facilities. Spending in this sector is driven by the need to modernize existing infrastructure and expand healthcare access to veterans across the country. Comparable spending benchmarks would typically involve analyzing other VA or Department of Defense facility activation contracts.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. While the primary contractor, Concourse Federal Group LLC, is not explicitly identified as a small business in this data snippet, the strong competition suggests opportunities may have existed for small businesses to participate either as prime contractors or subcontractors. Further analysis would be needed to determine if subcontracting plans were a requirement and if small businesses were involved in fulfilling the contract's needs.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Department of Veterans Affairs. As a purchase order issued under SAP, the oversight mechanisms are generally streamlined but still require diligent monitoring of performance against the contract terms and conditions. Transparency is facilitated through contract databases like FPDS. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Major Medical Facility Lease Program
VA Capital Asset Realignment and Enhancement Act (CAREA)
Department of Defense Healthcare Infrastructure Projects
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of delays impacting clinic opening date.
Dependence on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.8 million to CONCOURSE FEDERAL GROUP LLC. PLANNING AND ACTIVATION SERVICES FOR THE NEW RALEIGH OUTPATIENT CLINIC.

Who is the contractor on this award?

The obligated recipient is CONCOURSE FEDERAL GROUP 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 $2.8 million.

What is the period of performance?

Start: 2021-08-02. End: 2025-11-30.

What specific planning and activation tasks are included in this contract?

This contract, awarded to Concourse Federal Group LLC, is for 'PLANNING AND ACTIVATION SERVICES FOR THE NEW RALEIGH OUTPATIENT CLINIC.' While the data does not detail the specific tasks, typical services for clinic activation include site assessment, space planning, equipment planning and procurement, IT infrastructure coordination, staff recruitment and onboarding support, development of operational workflows, and ensuring compliance with all relevant healthcare regulations and standards. The 'activation' phase is critical for transitioning a facility from construction completion to operational readiness, ensuring all systems and personnel are in place to serve patients effectively. The firm-fixed-price nature suggests a well-defined scope of work is expected.

How does the $2.8 million contract value compare to similar VA outpatient clinic activation projects?

The $2.8 million contract value for planning and activation services for a new outpatient clinic appears to be within a reasonable range, especially considering the duration of over 1500 days (approximately 4.3 years) which likely encompasses pre-construction planning through initial operational phases. The average monthly cost is approximately $65,000 ($2.8M / 43 months), which is competitive for specialized consulting services related to healthcare facility activation. However, a precise comparison requires detailed benchmarking against projects of similar size, complexity, and geographic location. Factors such as the size of the clinic (number of beds/exam rooms), scope of services offered, and specific renovation or build-out requirements significantly influence costs. The strong competition (9 bidders) suggests the VA likely received competitive pricing.

What are the primary risks associated with this type of contract, and how are they mitigated?

The primary risks associated with this contract include potential scope creep, delays in regulatory approvals or site readiness, and ensuring the contractor possesses the necessary specialized expertise for healthcare facility activation. Scope creep is mitigated by the firm-fixed-price (FFP) contract type, which incentivizes the contractor to adhere to the defined scope to maintain profitability. Delays are managed through proactive project management, clear communication channels between the VA and the contractor, and defined milestones. Contractor expertise risk is addressed through the competitive bidding process, where the VA selects a firm demonstrating relevant experience and qualifications. The VA's oversight and the contract's defined duration also play roles in risk mitigation.

What is the track record of Concourse Federal Group LLC in performing similar VA contracts?

Information regarding the specific track record of Concourse Federal Group LLC for similar VA contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any reported issues or successes on similar projects. Given that they were awarded this contract under a competitive process, it implies they met the VA's requirements and demonstrated capability. However, further due diligence on their performance history is recommended for a complete understanding of their reliability and expertise in healthcare facility planning and activation.

How does the competition level (9 bidders) impact the value for taxpayers?

A competition level of 9 bidders for this contract is a strong positive indicator for taxpayers. It suggests that the market for these specialized planning and activation services is robust and that multiple qualified firms were interested in undertaking the work. Increased competition typically drives down prices as contractors strive to offer the most competitive bids to win the contract. This scenario increases the likelihood that the Department of Veterans Affairs secured the services at a fair and reasonable price, thereby maximizing the value of taxpayer dollars invested in expanding healthcare access for veterans. It also reduces the risk of the government overpaying for the services.

What is the historical spending pattern for similar 'Process, Physical Distribution, and Logistics Consulting Services' by the VA?

The provided data categorizes this contract under NAICS code 541614 ('Process, Physical Distribution, and Logistics Consulting Services'). Historical spending patterns for this specific NAICS code by the VA would require a detailed analysis of federal procurement databases (like FPDS). Generally, the VA procures a wide range of consulting services, including those related to logistics and process improvement, to support its vast healthcare and benefits administration operations. Spending in this category can fluctuate based on specific initiatives, infrastructure projects (like new clinics), and operational efficiency drives. Without access to historical VA spending data for NAICS 541614, it's difficult to provide specific trends, but it's reasonable to assume consistent, albeit variable, spending to support its complex mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C77621Q0188

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13840 BOOKER T WASHINGTON HWY UNIT C3, MONETA, VA, 24121

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $2,806,997

Exercised Options: $2,806,997

Current Obligation: $2,806,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline