VA Awards $19.4M Clinic Expansion Contract to RHI LLC in Wisconsin

Contract Overview

Contract Amount: $19,377,286 ($19.4M)

Contractor: RHI LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-24

End Date: 2026-03-18

Contract Duration: 632 days

Daily Burn Rate: $30.7K/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: CONSTRUCTION CONTRACT FOR B404 EXPAND OUTPATIENT CLINIC, TOMAH, WI. CONTRACTOR TO PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, IAW WITH SPECIFICATIONS & DRAWINGS

Place of Performance

Location: TOMAH, MONROE County, WISCONSIN, 54660

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.4 million to RHI LLC for work described as: CONSTRUCTION CONTRACT FOR B404 EXPAND OUTPATIENT CLINIC, TOMAH, WI. CONTRACTOR TO PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, IAW WITH SPECIFICATIONS & DRAWINGS Key points: 1. Contract awarded for outpatient clinic expansion in Tomah, WI. 2. RHI LLC secured the $19.4 million firm-fixed-price contract. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Project duration is 632 days, with an estimated completion in March 2026. 5. The contract falls under Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The contract value of $19.4 million appears reasonable for a significant clinic expansion project. Benchmarking against similar VA construction projects would provide a more precise assessment, but the scope suggests a competitive bid process likely yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was intended to be broad, certain restrictions or specific requirements may have limited the pool of eligible bidders. This could potentially impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare infrastructure improvements. The firm-fixed-price structure provides cost certainty, but the effectiveness of the competition method in securing the best value is a key consideration for taxpayer impact.

Public Impact

Improved healthcare access for veterans in the Tomah, WI region. Potential for job creation during the construction phase. Modernization of VA healthcare facilities to enhance patient care. Economic activity in Wisconsin due to the construction project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition pool due to exclusion of sources.
Potential for cost overruns if unforeseen issues arise in construction.
Contract duration may impact immediate availability of expanded services.

Positive Signals

Addresses critical need for outpatient clinic expansion.
Firm-fixed-price contract offers budget predictability.
Project completion by March 2026 ensures timely service enhancement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Spending in this sector is driven by infrastructure needs, modernization efforts, and healthcare demand. Benchmarks for similar VA clinic expansions would typically consider project size, complexity, and location.

Small Business Impact

The contract was not awarded to a small business (sb: false). There is no indication of specific provisions or set-asides for small businesses in this award, which could represent a missed opportunity for small business participation in federal contracting.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to ensure RHI LLC adheres to specifications, manages costs effectively, and completes the project on time, safeguarding taxpayer investment.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost escalation due to construction complexities.
Risk of delays impacting veteran access to services.
Limited competition may have resulted in a suboptimal price.
Ensuring quality of construction meets VA standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.4 million to RHI LLC. CONSTRUCTION CONTRACT FOR B404 EXPAND OUTPATIENT CLINIC, TOMAH, WI. CONTRACTOR TO PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, IAW WITH SPECIFICATIONS & DRAWINGS

Who is the contractor on this award?

The obligated recipient is RHI 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 $19.4 million.

What is the period of performance?

Start: 2024-06-24. End: 2026-03-18.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The specific criteria for excluding sources are not detailed in the provided data. Typically, such exclusions might be based on specialized capabilities, past performance, or specific security requirements. Understanding these criteria is vital to assess if the exclusion was justified and if it potentially limited competitive pricing, thereby impacting the value for taxpayers.

What are the key performance indicators (KPIs) being used to monitor RHI LLC's progress and ensure the quality of the clinic expansion, and what are the penalties for non-compliance?

Key performance indicators likely include adherence to project timelines, budget management, quality of materials and workmanship, and compliance with all safety and environmental regulations. The contract likely specifies remedies for non-compliance, which could range from financial penalties to termination, ensuring accountability and protecting the government's interests.

How will the expanded outpatient clinic capacity be measured, and what is the projected impact on veteran wait times and access to care?

The impact will be measured by the increase in available treatment rooms, specialized service areas, and overall patient throughput capacity. The VA will likely track metrics such as reduced appointment wait times, increased number of veterans served, and improved patient satisfaction surveys to quantify the effectiveness of the expansion.

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: 36C77623B0050

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 668 N 2075 W, MARRIOT-SLATERVILLE, UT, 84404

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: $19,377,286

Exercised Options: $19,377,286

Current Obligation: $19,377,286

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline