VA Awards $52.9M Battle Creek Infrastructure Upgrade to Richard Group LLC
Contract Overview
Contract Amount: $52,901,449 ($52.9M)
Contractor: Richard Group LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-09-29
End Date: 2025-09-09
Contract Duration: 711 days
Daily Burn Rate: $74.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ERHM BATTLE CREEK INFRASTRUCTURE UPGRADES CONSTRUCTION
Place of Performance
Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037
State: Michigan Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $52.9 million to RICHARD GROUP LLC for work described as: ERHM BATTLE CREEK INFRASTRUCTURE UPGRADES CONSTRUCTION Key points: 1. Contract awarded for significant infrastructure upgrades at VA's Battle Creek facility. 2. Richard Group LLC secured the contract, indicating potential market concentration. 3. The project carries risks associated with large-scale construction and infrastructure development. 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The award amount of $52.9M for infrastructure upgrades appears reasonable given the scope. Benchmarking against similar VA or large-scale construction projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition approach. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential facility upgrades, aiming for long-term operational efficiency and improved services.
Public Impact
Improved facilities at the Battle Creek VA campus will enhance services for veterans. The construction project will create local jobs and stimulate economic activity in Michigan. Long-term maintenance costs may be reduced through modern, efficient infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Construction projects are susceptible to delays and cost overruns.
- Potential for unforeseen site conditions impacting budget.
Positive Signals
- Addresses critical infrastructure needs.
- Supports veteran services through facility modernization.
- Potential for positive economic impact in the local area.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for similar VA facility upgrades would provide further context on cost-effectiveness.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to ensure project completion on time, within budget, and to specified quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns due to construction complexity.
- Risk of project delays impacting facility operations.
- Dependence on a single contractor for critical upgrades.
- Unforeseen environmental or site conditions.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $52.9 million to RICHARD GROUP LLC. ERHM BATTLE CREEK INFRASTRUCTURE UPGRADES CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is RICHARD 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 $52.9 million.
What is the period of performance?
Start: 2023-09-29. End: 2025-09-09.
What is the projected return on investment for these infrastructure upgrades in terms of operational efficiency and service delivery?
The ROI is expected to manifest through reduced long-term maintenance costs, improved energy efficiency, and enhanced reliability of critical systems. Quantifying this precisely requires detailed operational data pre- and post-upgrade, focusing on metrics like utility consumption, repair frequency, and system downtime. The primary goal is to ensure the facility can effectively support veteran services for decades to come.
What specific risks were identified during the 'exclusion of sources' phase, and how are they being mitigated?
The exclusion of sources likely stemmed from specific technical requirements or prior performance evaluations. Mitigation strategies would involve detailed technical specifications, rigorous contractor vetting, and performance-based contract clauses. The VA would need to document the rationale for exclusion and ensure the chosen contractor possesses the unique qualifications to meet project demands, thereby minimizing risks related to specialized expertise or security.
How will the effectiveness of the completed infrastructure upgrades be measured and validated post-completion?
Effectiveness will be measured through post-occupancy evaluations, focusing on key performance indicators such as energy savings, system uptime, reduced maintenance calls, and user satisfaction surveys from facility staff and beneficiaries. Performance data will be compared against baseline metrics established before the upgrades. Independent verification and validation processes will ensure the upgrades meet all specified functional and performance requirements.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C77623R0101
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 566 W LAKE STREET, CHICAGO, IL, 60661
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $52,901,449
Exercised Options: $52,901,449
Current Obligation: $52,901,449
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-29
Current End Date: 2025-09-09
Potential End Date: 2025-09-09 00:00:00
Last Modified: 2026-01-19
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