VA Awards $18.3M Contract to Richard Group LLC for Tucson Clinic Expansion
Contract Overview
Contract Amount: $18,321,630 ($18.3M)
Contractor: Richard Group LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-03
End Date: 2026-06-09
Contract Duration: 614 days
Daily Burn Rate: $29.8K/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: EXPAND/RENOVATE CLINICS BUILDING 80, TUCSON, ARIZONA
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85723
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $18.3 million to RICHARD GROUP LLC for work described as: EXPAND/RENOVATE CLINICS BUILDING 80, TUCSON, ARIZONA Key points: 1. Contract awarded for clinic renovation in Tucson, Arizona. 2. Richard Group LLC secured the $18.3 million contract. 3. The project aims to expand and renovate Building 80. 4. This falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $18.3 million appears reasonable for a significant clinic renovation project. Benchmarking against similar construction contracts of this scale would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition approach. This method might impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure improvements to healthcare facilities, aiming for long-term service enhancement.
Public Impact
Improved healthcare access for veterans in the Tucson area. Potential for job creation during the construction phase. Modernized facilities to enhance patient care and operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have reduced cost savings.
- Potential for construction delays impacting service delivery.
- Scope creep could increase final costs.
Positive Signals
- Addresses critical need for facility upgrades.
- Supports veteran healthcare infrastructure.
- Fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is vital for public infrastructure. Spending in this sector can fluctuate based on government needs and economic conditions.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the awardee is Richard Group LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to ensure timely completion, adherence to quality standards, and effective use of taxpayer funds.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns.
- Risk of project delays.
- Limited competition may impact final price.
- Dependence on contractor performance.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $18.3 million to RICHARD GROUP LLC. EXPAND/RENOVATE CLINICS BUILDING 80, TUCSON, ARIZONA
Who is the contractor on this award?
The obligated recipient is RICHARD GROUP 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 $18.3 million.
What is the period of performance?
Start: 2024-10-03. End: 2026-06-09.
What is the estimated impact of the clinic expansion on veteran wait times and service capacity?
The expansion and renovation of Building 80 are expected to significantly increase the capacity of the Tucson clinics. This should lead to reduced wait times for appointments and a broader range of services available to veterans. The project aims to modernize facilities, improving the overall patient experience and allowing for more efficient healthcare delivery.
What are the primary risks associated with this construction project, and how are they being mitigated?
Key risks include potential construction delays due to unforeseen site conditions or supply chain issues, and cost overruns if the fixed-price contract doesn't account for all contingencies. Mitigation strategies likely involve detailed project planning, regular site inspections, and clear communication channels between the VA and Richard Group LLC to address issues proactively.
How does this investment align with the VA's broader strategy for improving healthcare infrastructure nationwide?
This investment aligns with the VA's strategic goal of modernizing and expanding its healthcare infrastructure to meet the growing needs of veterans. By upgrading facilities like the Tucson clinics, the VA enhances its ability to provide timely, high-quality care, ensuring veterans have access to state-of-the-art medical services.
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: 36C77624R0025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 566 W LAKE STREET, CHICAGO, IL, 60661
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: $18,321,630
Exercised Options: $18,321,630
Current Obligation: $18,321,630
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-03
Current End Date: 2026-06-09
Potential End Date: 2026-06-09 00:00:00
Last Modified: 2026-01-27
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