VA Awards $9.98M Contract for Iowa City Women's Health Facility Relocation to Covenant Construction Services
Contract Overview
Contract Amount: $9,977,851 ($10.0M)
Contractor: Covenant Construction Services LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-07-01
End Date: 2026-07-02
Contract Duration: 731 days
Daily Burn Rate: $13.7K/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: PROJECT 636-804 RELOCATE WOMEN'S HEALTH IOWA CITY VA HEALTH CARE SYSTEM
Place of Performance
Location: IOWA CITY, JOHNSON County, IOWA, 52246
State: Iowa Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $10.0 million to COVENANT CONSTRUCTION SERVICES LLC for work described as: PROJECT 636-804 RELOCATE WOMEN'S HEALTH IOWA CITY VA HEALTH CARE SYSTEM Key points: 1. The contract value of $9.98 million is for a significant facility relocation project. 2. Competition was full and open after exclusion of sources, indicating a structured procurement process. 3. The project involves construction, a sector with potential for cost overruns and schedule delays. 4. The Department of Veterans Affairs is the awarding agency, focusing on healthcare infrastructure.
Value Assessment
Rating: good
The contract value appears reasonable for a healthcare facility relocation of this scale. Benchmarking against similar construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while initial sources may have been limited, the final award was based on open competition, which generally promotes competitive pricing.
Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for necessary infrastructure improvements.
Public Impact
Improved healthcare access and services for women veterans in the Iowa City area. Potential for job creation during the construction phase. Modernization of VA healthcare facilities to better serve veteran needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting service delivery.
- Scope creep could lead to cost increases.
- Reliance on a single contractor for a complex project.
Positive Signals
- Addresses a critical need for women's health services.
- Utilizes a competitive bidding process.
- Clear contract duration and fixed-price structure.
Sector Analysis
The construction sector is prone to fluctuations in material costs and labor availability. This project falls within commercial and institutional building construction, requiring specialized expertise for healthcare facilities.
Small Business Impact
The data indicates the prime contractor is Covenant Construction Services LLC. There is no explicit information on small business subcontracting participation in this award notice.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to manage the project's timeline, budget, and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Construction project risks (delays, cost overruns)
- Potential for scope creep
- Dependence on contractor performance
- Ensuring specialized healthcare facility requirements are met
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, ia, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $10.0 million to COVENANT CONSTRUCTION SERVICES LLC. PROJECT 636-804 RELOCATE WOMEN'S HEALTH IOWA CITY VA HEALTH CARE SYSTEM
Who is the contractor on this award?
The obligated recipient is COVENANT CONSTRUCTION SERVICES 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 $10.0 million.
What is the period of performance?
Start: 2024-07-01. End: 2026-07-02.
What specific factors led to the exclusion of certain sources before the full and open competition phase?
The exclusion of sources prior to full and open competition typically occurs when specific qualifications, past performance, or unique capabilities are required for a specialized project. This ensures that only capable contractors participate, potentially streamlining the evaluation process while still allowing broad competition among eligible firms.
How will the VA ensure the construction quality meets the specific needs of a women's health facility?
The VA will likely implement stringent quality assurance measures, including regular site inspections, adherence to detailed architectural and engineering plans, and potentially involving healthcare facility specialists in the oversight process. Compliance with relevant healthcare building codes and standards will be paramount.
What is the contingency plan if unforeseen site conditions arise during construction that impact the budget or schedule?
A well-defined contingency plan would typically involve a pre-negotiated process for change orders, a dedicated contingency fund within the budget, and clear communication protocols between the contractor and the VA. The contract's fixed-price nature suggests that the contractor bears more risk for cost overruns, but significant unforeseen issues may require contract modification.
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: 36C77623R0138
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2635 BERKSHIRE PKWY STE 202, CLIVE, IA, 50325
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $9,977,851
Exercised Options: $9,977,851
Current Obligation: $9,977,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-01
Current End Date: 2026-07-02
Potential End Date: 2026-07-02 00:00:00
Last Modified: 2026-03-06
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