VA awards $8.8M for Manchester VAMC Women's Health Clinic Construction to Carrigg Commercial Builders

Contract Overview

Contract Amount: $8,828,100 ($8.8M)

Contractor: Carrigg Commercial Builders LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-25

End Date: 2026-04-17

Contract Duration: 935 days

Daily Burn Rate: $9.4K/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: WOMEN'S HEALTH CLINIC CONSTRUCTION PROJECT AT THE MANCHESTER VAMC

Place of Performance

Location: MANCHESTER, HILLSBOROUGH County, NEW HAMPSHIRE, 03104

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.8 million to CARRIGG COMMERCIAL BUILDERS LLC for work described as: WOMEN'S HEALTH CLINIC CONSTRUCTION PROJECT AT THE MANCHESTER VAMC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The project aims to enhance healthcare infrastructure for women veterans. 3. Fixed-price contract type may offer cost certainty but limits flexibility for scope changes. 4. The duration of 935 days indicates a significant construction undertaking. 5. Geographic focus on New Hampshire serves a specific regional veteran population.

Value Assessment

Rating: good

The contract value of $8.8 million for a clinic construction project appears within a reasonable range for a facility of this nature. Benchmarking against similar VAMC construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has a clear understanding of the project scope and associated costs, aiming for predictable expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that proposals were solicited from all eligible responsible sources. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and quality. The exclusion of sources clause might warrant further investigation to understand the rationale.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality proposals.

Public Impact

Directly benefits women veterans in New Hampshire by providing improved healthcare facilities. Enhances the capacity and quality of women's health services at the Manchester VA Medical Center. Supports local construction jobs and related industries in the New Hampshire region. Contributes to the VA's broader mission of providing comprehensive healthcare to all veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Risk of schedule delays impacting the timely delivery of critical healthcare services.
Dependence on the contractor's ability to manage complex construction logistics effectively.

Positive Signals

Clear contract type (firm fixed price) provides cost predictability for the government.
Awarded through full and open competition, suggesting a robust selection process.
Project addresses a specific need for enhanced women's health services within the VA system.

Sector Analysis

The construction sector is a significant area of federal spending, particularly for infrastructure projects like healthcare facilities. This contract falls within the commercial and institutional building construction subsector. Federal spending in this area often involves large-scale projects requiring specialized contractors and adherence to strict building codes and VA standards. Benchmarking against similar healthcare construction projects can indicate competitive pricing and efficient project execution.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Carrigg Commercial Builders LLC, is likely a larger entity or that the project scope did not lend itself to small business participation through set-asides. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this project will likely be managed by the Department of Veterans Affairs' Office of Construction and Facilities Management. Accountability measures are typically embedded in the contract through performance milestones, quality control inspections, and payment schedules tied to progress. Transparency is generally maintained through contract award databases and public reporting, though specific project-level oversight details may not be publicly detailed.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for cost overruns due to unforeseen construction issues.
Risk of project delays impacting service delivery.
Contractor's capacity and financial stability over the project duration.
Adequacy of initial project scope definition for a fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.8 million to CARRIGG COMMERCIAL BUILDERS LLC. WOMEN'S HEALTH CLINIC CONSTRUCTION PROJECT AT THE MANCHESTER VAMC

Who is the contractor on this award?

The obligated recipient is CARRIGG COMMERCIAL BUILDERS 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 $8.8 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-04-17.

What is the track record of Carrigg Commercial Builders LLC on similar government contracts, particularly within the VA system?

A review of Carrigg Commercial Builders LLC's past performance on government contracts, especially those with the Department of Veterans Affairs, is crucial for assessing their capability to execute this project successfully. Information on their experience with healthcare facility construction, project completion times, adherence to budget, and quality of work on previous projects would provide valuable insights. Analyzing past performance data, including any reported disputes or contract terminations, can help mitigate risks associated with this new award. Without specific historical data on this contractor's performance on comparable projects, it is difficult to definitively assess their suitability beyond the initial award decision.

How does the awarded amount compare to the estimated cost or budget for this specific women's health clinic construction?

The awarded amount of $8,828,100.37 represents the final contract value agreed upon after the procurement process. To assess value for money, this figure should be compared against the government's initial cost estimate or budget allocated for the Manchester VAMC Women's Health Clinic construction. If the awarded amount is significantly lower than the estimate, it could indicate successful competition and cost savings for taxpayers. Conversely, if it is close to or exceeds the estimate, further scrutiny of the estimate's accuracy and the contractor's pricing might be warranted. The firm-fixed-price nature suggests the contractor assumes most cost risks, but understanding the baseline estimate is key to evaluating the outcome.

What are the primary risk indicators associated with this firm-fixed-price construction contract?

The primary risk indicator for a firm-fixed-price (FFP) construction contract is the potential for scope creep or unforeseen issues that could lead to change orders, potentially increasing the overall cost despite the FFP structure. While the contractor bears the risk of cost overruns, significant design flaws or site conditions not identified during the bidding phase could necessitate costly modifications. Another risk is the contractor's financial stability and capacity to manage a project of this scale over its 935-day duration. Delays, even if not directly increasing cost to the government under FFP, can impact the timely delivery of essential services. Ensuring robust project management and oversight from the VA is critical to mitigating these risks.

What is the expected effectiveness of the new women's health clinic in improving healthcare access and outcomes for female veterans in the region?

The effectiveness of the new women's health clinic is expected to be high, given its purpose is to provide dedicated and potentially expanded services. By centralizing and potentially upgrading facilities, the clinic aims to improve access to specialized care, reduce wait times, and enhance the overall patient experience for women veterans. Improved facilities can lead to better adherence to treatment plans and more comprehensive care, ultimately contributing to better health outcomes. The success will also depend on staffing levels, the range of services offered, and integration with other VA healthcare services. The project's focus on women's health directly addresses a growing need within the veteran population.

How does historical spending on similar VAMC construction projects compare to this award, and what does it suggest about current market conditions?

Analyzing historical spending on similar VAMC construction projects, particularly those involving new clinic builds or major renovations, provides a benchmark for assessing the current award. If this $8.8 million contract is in line with or below historical averages for comparable projects (adjusted for inflation and scale), it suggests competitive pricing and stable market conditions. If it is significantly higher, it could indicate rising construction material costs, labor shortages, increased demand for construction services, or potentially less competitive bidding. Understanding these trends helps evaluate whether the VA is achieving good value for money and identifies potential market pressures affecting future procurements.

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: 36C77623R0050

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 454 SHEFFIELD RD, MANCHESTER, NH, 03103

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: $8,828,100

Exercised Options: $8,828,100

Current Obligation: $8,828,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline