VA awards $14.9M contract for women's clinic and radiology addition to Greenstone Construction

Contract Overview

Contract Amount: $14,892,412 ($14.9M)

Contractor: Greenstone Construction, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-19

End Date: 2026-05-28

Contract Duration: 678 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF WOMEN'S CLINIC AND RADIOLOGY ADDITION

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.9 million to GREENSTONE CONSTRUCTION, INC. for work described as: CONSTRUCTION OF WOMEN'S CLINIC AND RADIOLOGY ADDITION Key points: 1. Contract awarded to Greenstone Construction, Inc. for a significant healthcare facility expansion. 2. The project involves the construction of a women's clinic and radiology addition, indicating a focus on specialized medical services. 3. The contract type is a firm-fixed-price definitive contract, providing cost certainty for the government. 4. The duration of the contract is 678 days, suggesting a substantial construction timeline. 5. The award was made under full and open competition after exclusion of sources, implying a competitive bidding process. 6. The project is located in Minnesota, potentially benefiting the local economy and workforce.

Value Assessment

Rating: good

The contract value of $14.9 million for a women's clinic and radiology addition appears reasonable for a project of this scope and complexity within the healthcare construction sector. Benchmarking against similar VA or other federal healthcare construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government. Further analysis would involve comparing the per-square-foot cost and specific construction elements to industry standards and recent comparable federal awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, but specific sources may have been excluded based on pre-qualification criteria. The presence of 4 bidders suggests a moderate level of competition. While not a completely unrestricted open competition, this method generally allows for a good range of potential contractors to participate, which should contribute to competitive pricing and a fair market assessment.

Taxpayer Impact: The competitive nature of this award, with multiple bidders, is beneficial for taxpayers as it likely drove down the final contract price compared to a sole-source or limited competition scenario. This process helps ensure that the government is receiving a fair market price for the construction services.

Public Impact

Veterans in Minnesota will benefit from enhanced healthcare services with the new women's clinic and radiology addition. The project will deliver critical infrastructure improvements to a VA facility, supporting specialized medical care. The construction activities will likely create jobs and stimulate economic activity within the local Minnesota region. The improved facilities are expected to enhance the quality and accessibility of healthcare for female veterans and those requiring radiology services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting service delivery timelines.
Ensuring adherence to specialized healthcare construction codes and standards.
Managing the integration of new facilities with existing hospital operations.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through a competitive process, suggesting fair pricing.
Focus on specialized healthcare infrastructure addresses specific veteran needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facilities. The market for healthcare construction is substantial, driven by the need for modern, specialized medical spaces. The VA is a significant client in this sector, frequently awarding contracts for new construction, renovations, and expansions of its medical centers and clinics nationwide. This project aligns with the VA's ongoing efforts to modernize its infrastructure and expand services, particularly for specialized care areas like women's health and radiology.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Further investigation into the contract's clauses would be needed to determine if any subcontracting opportunities for small businesses are mandated or encouraged, which could impact the broader small business ecosystem.

Oversight & Accountability

Oversight for this construction contract will likely be managed by the Department of Veterans Affairs' contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within the agreed-upon cost. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Women's Health Services
Radiology Department Upgrades
Commercial Building Construction

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of construction delays impacting veteran access to services.
Ensuring contractor meets specialized healthcare construction quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.9 million to GREENSTONE CONSTRUCTION, INC.. CONSTRUCTION OF WOMEN'S CLINIC AND RADIOLOGY ADDITION

Who is the contractor on this award?

The obligated recipient is GREENSTONE CONSTRUCTION, 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 $14.9 million.

What is the period of performance?

Start: 2024-07-19. End: 2026-05-28.

What is the track record of Greenstone Construction, Inc. with the Department of Veterans Affairs?

A review of Greenstone Construction, Inc.'s contract history with the Department of Veterans Affairs (VA) is crucial for assessing their reliability and performance. While the provided data confirms they were awarded this $14.9 million contract, it does not detail their past performance on other VA projects. A deeper analysis would involve examining previous VA contracts awarded to Greenstone, including their value, duration, scope, and any reported performance issues, awards, or disputes. Understanding their history with the VA can provide insights into their capacity to manage complex healthcare construction projects and their adherence to quality and schedule requirements, thereby informing future risk assessments for similar awards.

How does the $14.9 million cost compare to similar VA clinic construction projects?

To benchmark the $14.9 million cost, it's essential to compare it against recently awarded VA contracts for similar-sized women's clinics or radiology additions. Factors such as square footage, complexity of medical equipment installation, geographic location (which affects labor and material costs), and the specific scope of work (e.g., new build vs. renovation) must be considered. For instance, if comparable projects in similar regions with similar scopes have ranged from $12 million to $18 million, this award would appear to be within a reasonable market range. Conversely, if similar projects were significantly less expensive, it might warrant further scrutiny into the pricing structure and potential value-for-money concerns.

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

The primary risks associated with this firm-fixed-price (FFP) construction contract, while generally favorable for cost control, revolve around potential scope creep and unforeseen site conditions. If the project scope is not meticulously defined, or if unforeseen issues arise during construction (e.g., hazardous materials, unexpected soil conditions), the contractor may seek change orders, potentially increasing the total cost. Another risk is the contractor's ability to maintain quality under a fixed price, potentially leading to shortcuts if not adequately overseen. The government's risk is primarily in ensuring the contractor has accurately estimated all costs and contingencies, and that robust quality assurance measures are in place.

How effective is the 'full and open competition after exclusion of sources' method for healthcare construction?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with the need for qualified contractors, particularly in specialized fields like healthcare construction. By excluding sources, the VA likely pre-qualified firms based on specific criteria such as experience with healthcare facilities, financial stability, or past performance. This can reduce the number of bidders but ensures those competing have a higher likelihood of meeting the project's demanding requirements. While it may limit the absolute number of potential bidders compared to unrestricted competition, it can lead to more efficient evaluations and potentially higher quality bids from experienced firms, ultimately serving taxpayer interests by ensuring competent execution.

What is the historical spending trend for VA healthcare construction projects in Minnesota?

Analyzing historical spending trends for VA healthcare construction projects in Minnesota would provide context for this $14.9 million award. This involves examining the VA's budget allocations and actual expenditures on construction and renovation projects within the state over the past several fiscal years. Understanding whether spending in this category has been increasing, decreasing, or remaining stable can indicate the VA's investment priorities and the overall market activity for such projects in Minnesota. Significant fluctuations might suggest shifts in healthcare needs, infrastructure modernization efforts, or funding availability, helping to contextualize the current contract's scale and timing.

What are the implications of the 678-day duration for service delivery and cost?

A duration of 678 days (approximately 22 months) for the construction of a women's clinic and radiology addition implies a significant undertaking. For service delivery, it means that the enhanced healthcare services will not be available for nearly two years, potentially impacting veterans who require these specialized services sooner. From a cost perspective, a longer duration can increase indirect costs for both the contractor (e.g., site supervision, equipment rental) and potentially the government (e.g., extended need for temporary facilities or services). However, it also allows for a more thorough and potentially higher-quality construction process, mitigating risks associated with rushed timelines.

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: 36C77623R0193

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Greenstone Construction Inc.

Address: 2631 12TH AVE S STE B, FARGO, ND, 58103

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,892,412

Exercised Options: $14,892,412

Current Obligation: $14,892,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline