VA awards $45.4M contract for Indianapolis VAMC infrastructure upgrades to ESA South, Inc

Contract Overview

Contract Amount: $45,358,261 ($45.4M)

Contractor: ESA South, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-15

End Date: 2026-07-30

Contract Duration: 988 days

Daily Burn Rate: $45.9K/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: INDIANAPOLIS VAMC EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46201

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $45.4 million to ESA SOUTH, INC. for work described as: INDIANAPOLIS VAMC EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION Key points: 1. Contract focuses on critical infrastructure upgrades for a major VA medical center. 2. ESA South, Inc. is the sole awardee under a full and open competition. 3. The contract is a firm-fixed-price definitive contract, indicating clear scope and pricing. 4. Project duration spans nearly three years, suggesting a substantial scope of work. 5. The award value is significant for a single construction project of this nature. 6. This contract falls within the commercial and institutional building construction NAICS code.

Value Assessment

Rating: good

The contract value of $45.4 million for infrastructure upgrades at a VAMC appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects within the federal sector, particularly for healthcare facilities, would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

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 sources. While the specific reasons for excluding certain sources are not detailed, the 'full and open' designation suggests a competitive process. The number of bidders is not specified, but the competitive nature of the award is intended to drive price discovery and ensure the government receives competitive offers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are veterans receiving care at the Indianapolis VAMC, who will experience improved facility infrastructure. The contract will deliver essential construction services to modernize and upgrade the medical center's facilities. The geographic impact is localized to Indianapolis, Indiana, where the VAMC is situated. The project is expected to create or sustain jobs within the construction sector in the Indianapolis area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope is not precisely managed.
Dependence on a single contractor for a critical infrastructure project.
Risk of delays impacting the modernization timeline for the VAMC.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Award to a single entity can streamline project management and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as hospitals, government facilities, and commercial buildings. Federal spending in this area is crucial for maintaining and upgrading government infrastructure, including healthcare facilities like VA medical centers. The market for large-scale government construction projects is competitive, with numerous firms capable of undertaking such work. Benchmarks for similar VAMC construction or renovation projects would provide context for the $45.4 million award.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to ESA South, Inc., a presumably larger entity, means that opportunities for small business participation would likely depend on ESA South's own subcontracting plans, which are not detailed here. This contract does not appear to directly support the small business ecosystem through a set-aside mechanism.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs, potentially through its Office of Construction & Facilities Management. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally facilitated through federal contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Commercial and Institutional Construction Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of project delays impacting facility modernization timeline.
Dependence on a single contractor for critical infrastructure work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45.4 million to ESA SOUTH, INC.. INDIANAPOLIS VAMC EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is ESA SOUTH, 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 $45.4 million.

What is the period of performance?

Start: 2023-11-15. End: 2026-07-30.

What is the track record of ESA South, Inc. in performing similar large-scale federal construction projects, particularly for healthcare facilities?

A review of ESA South, Inc.'s contract history within federal databases would be necessary to assess their track record. Specifically, one would look for past performance on projects of similar size, complexity, and type (e.g., hospital construction, major renovations). Key indicators would include on-time and on-budget completion rates, quality of work reviews, and any history of contract disputes or terminations. Understanding their experience with VA-specific requirements and regulations would also be crucial for evaluating their capability to successfully execute this Indianapolis VAMC infrastructure upgrade project.

How does the awarded value of $45.4 million compare to similar VAMC infrastructure upgrade projects awarded in the last three to five years?

To benchmark the $45.4 million award, one would compare it to similar firm-fixed-price contracts for infrastructure upgrades or construction at other VA Medical Centers. Factors to consider in the comparison include the size and scope of the facility, the specific types of infrastructure being upgraded (e.g., HVAC, electrical, plumbing, structural), the duration of the project, and the geographic location, as construction costs can vary regionally. Analyzing the cost per square foot or cost per bed for similar projects would provide a more granular comparison. Without access to a detailed breakdown of what the $45.4 million covers, a precise comparison is difficult, but it represents a significant investment for a single facility's infrastructure modernization.

What are the primary risks associated with this firm-fixed-price contract for infrastructure upgrades, and what mitigation strategies are in place?

The primary risks with a firm-fixed-price contract for complex infrastructure upgrades often revolve around scope creep and unforeseen site conditions. If the scope of work is not meticulously defined and managed, the contractor may incur additional costs, potentially leading to change orders that increase the total contract value. Unforeseen conditions (e.g., hazardous materials, unexpected structural issues) can also necessitate costly deviations from the original plan. Mitigation strategies typically include robust contract management, detailed site investigations prior to award, clear definition of 'differing site conditions' clauses, and a well-defined change order process. The VA's project management team would be responsible for actively monitoring progress and managing any deviations.

What is the expected impact of these infrastructure upgrades on the operational efficiency and patient care capacity of the Indianapolis VAMC?

The expected impact of these infrastructure upgrades on the Indianapolis VAMC's operational efficiency and patient care capacity is likely to be positive, assuming successful execution. Modernized infrastructure, such as upgraded HVAC systems, electrical grids, and plumbing, can lead to more reliable facility operations, reducing downtime and maintenance issues. Improved building systems can also contribute to a safer and more comfortable environment for patients and staff. Depending on the specific upgrades, there might be implications for expanding or reconfiguring clinical spaces, potentially increasing patient throughput or allowing for the introduction of new services. The project's success hinges on minimizing disruption to ongoing medical operations during construction.

How has federal spending on construction and infrastructure upgrades for VA medical facilities trended over the past five fiscal years?

Federal spending on construction and infrastructure upgrades for VA medical facilities has generally trended upwards over the past five fiscal years, reflecting a growing need to modernize aging healthcare infrastructure and expand capacity to meet veteran demand. This trend is driven by legislative initiatives aimed at improving healthcare services for veterans and addressing deferred maintenance backlogs. Specific appropriations for major construction projects and infrastructure modernization have seen significant increases. Analyzing budget requests, enacted appropriations, and contract award data from the VA and other federal sources would provide a detailed picture of this spending trend, highlighting areas of increased investment and potential shifts in priorities.

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: SEALED BID

Solicitation ID: 36C77623B0056

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1681 SUCCESS DR, CANTONMENT, FL, 32533

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,358,261

Exercised Options: $45,358,261

Current Obligation: $45,358,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline