VA awards $3.36M for Long Beach mental health facility activation, with 7 bidders competing

Contract Overview

Contract Amount: $3,359,269 ($3.4M)

Contractor: Concourse Federal Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-06

End Date: 2025-12-31

Contract Duration: 1,212 days

Daily Burn Rate: $2.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ACTIVATION SERVICES FOR NEW THE NEW LONG BEACH INPATIENT AND OUTPATIENT MENTAL HEALTH FACILITY AND THE COMMUNITY LIVING CENTER.

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to CONCOURSE FEDERAL GROUP LLC for work described as: ACTIVATION SERVICES FOR NEW THE NEW LONG BEACH INPATIENT AND OUTPATIENT MENTAL HEALTH FACILITY AND THE COMMUNITY LIVING CENTER. Key points: 1. Contract awarded to Concourse Federal Group LLC for activation services. 2. Competition involved 7 bidders, suggesting a moderately competitive environment. 3. The contract is a Firm Fixed Price type, indicating price certainty. 4. Services are for the new Long Beach inpatient and outpatient mental health facility. 5. The contract duration is 1212 days, spanning over three years. 6. This award falls under professional services, specifically logistics consulting. 7. The contract was competed under Simplified Acquisition Procedures (SAP).

Value Assessment

Rating: good

The contract value of $3.36 million for facility activation services appears reasonable given the scope. Benchmarking against similar facility activation contracts is challenging without more specific service details. However, the number of bidders (7) suggests that the pricing was likely competitive. The Firm Fixed Price (FFP) structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for smaller dollar value contracts. The presence of 7 bidders indicates a healthy level of interest and competition for this requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competition among 7 bidders suggests that taxpayer dollars were likely used efficiently, as multiple firms vied to offer their services at a competitive rate.

Public Impact

Veterans in the Long Beach area will benefit from enhanced mental health services. The contract supports the activation and operational readiness of a new mental health facility. Services delivered include logistics and process consulting crucial for facility setup. The geographic impact is focused on Southern California, specifically Long Beach. The contract may indirectly support local employment through the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if activation requirements are not clearly defined.
Reliance on a single contractor for critical activation phases.
Ensuring timely delivery of services to meet facility opening deadlines.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Multiple bidders indicate market interest and potential for competitive pricing.
Contract awarded to a known entity (Concourse Federal Group LLC) may imply prior performance knowledge.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on logistics and process consulting. The market for facility activation services is diverse, encompassing project management, logistics, and operational planning. The Department of Veterans Affairs is a significant purchaser of such services to ensure the efficient establishment and operation of healthcare facilities. Comparable spending benchmarks would depend on the specific scale and complexity of the facility, but contracts for large facility outfitting and activation can range from hundreds of thousands to millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Concourse Federal Group LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Further review of the contract documentation would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Veterans Affairs contracting officer and program managers. As a Firm Fixed Price contract, performance monitoring is key to ensuring deliverables are met. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Healthcare Facility Construction
Federal Government Facility Management Services
Logistics Consulting Services
Mental Health Services Infrastructure

Risk Flags

Potential for schedule delays impacting service delivery.
Risk of scope creep if activation requirements are not tightly managed.
Contractor performance variability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to CONCOURSE FEDERAL GROUP LLC. ACTIVATION SERVICES FOR NEW THE NEW LONG BEACH INPATIENT AND OUTPATIENT MENTAL HEALTH FACILITY AND THE COMMUNITY LIVING CENTER.

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 $3.4 million.

What is the period of performance?

Start: 2022-09-06. End: 2025-12-31.

What is the specific nature of the 'activation services' being provided for the Long Beach mental health facility?

The provided data classifies the North American Industry Classification System (NAICS) code as 541614, which pertains to 'Process, Physical Distribution, and Logistics Consulting Services.' Therefore, the 'activation services' likely encompass a range of activities related to the logistical setup and operational readiness of the new facility. This could include planning and executing the move of equipment and supplies, establishing supply chain processes, optimizing workflows for staff, developing operational procedures, and ensuring all necessary physical and digital infrastructure is in place and functional prior to the facility's official opening. The contract aims to ensure a smooth transition from construction completion to full operational capacity, enabling the facility to serve veterans effectively and efficiently from day one.

How does the $3.36 million contract value compare to similar facility activation projects within the VA or other federal agencies?

Directly comparing the $3.36 million value without detailed service breakdowns is challenging. However, considering it's for a new inpatient and outpatient mental health facility and a community living center, the scope is substantial. The VA frequently undertakes large-scale facility projects. For instance, major hospital construction or renovation projects can run into hundreds of millions or even billions. Activation services for such large facilities, encompassing IT, medical equipment installation, staffing logistics, and operational planning, can easily reach several million dollars. The number of bidders (7) suggests the market perceived this as a reasonably sized and scoped opportunity within the federal contracting landscape for facility activation.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

While the specific KPIs and deliverables are not detailed in the provided summary data, typical performance indicators for facility activation contracts include the timely completion of logistical plans, successful procurement and installation of necessary equipment and supplies, establishment of operational workflows, readiness of IT systems, and adherence to budget. Deliverables often involve comprehensive activation plans, status reports, training materials for staff on new processes, and final activation reports confirming the facility's operational readiness. The Firm Fixed Price nature of the contract implies that the contractor is responsible for delivering these outcomes within the agreed-upon price, making clear definition and monitoring of deliverables crucial.

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

Information on Concourse Federal Group LLC's specific track record with VA or healthcare facility activation is not provided in the summary data. However, their selection suggests they possess relevant experience or capabilities deemed sufficient by the Department of Veterans Affairs for this particular contract. A deeper analysis would require examining their past performance records, including CPARS (Contractor Performance Assessment Reporting System) ratings on previous government contracts, particularly those involving facility management, logistics, or healthcare support services. Understanding their history with similar projects would provide insight into their reliability and ability to execute this activation successfully.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include delays in facility readiness impacting veteran services, cost overruns if the FFP contract doesn't adequately cover unforeseen issues, and contractor performance issues. Mitigation strategies likely involve robust project management by the VA, clear definition of scope and deliverables, regular progress monitoring, and potentially performance bonds. The competitive bidding process itself helps mitigate risk by selecting a contractor with a perceived ability to perform. The FFP structure incentivizes the contractor to manage costs effectively. However, the long duration (1212 days) increases the potential for external factors to impact the project, requiring ongoing vigilance.

How does this spending align with the VA's broader mission to provide comprehensive mental healthcare to veterans?

This contract directly aligns with the VA's mission by supporting the establishment and operationalization of new mental health facilities. Expanding and modernizing mental healthcare infrastructure is crucial for meeting the growing demand for services among veterans, particularly those dealing with service-related mental health conditions. By ensuring the efficient activation of the Long Beach facility, the VA can expedite the delivery of critical inpatient and outpatient mental health services to veterans in that region. This investment in physical infrastructure, supported by essential activation services, is a tangible step towards improving access to care and enhancing the quality of mental healthcare provided by the VA.

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: 36C77622Q0316

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 123 S ROYAL ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,359,269

Exercised Options: $3,359,269

Current Obligation: $3,359,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline