VA Awards $19.86M Contract for Kansas City Medical Center Bed Addition to R.E.D. Construction

Contract Overview

Contract Amount: $19,859,022 ($19.9M)

Contractor: R.E.D. Construction Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-08

End Date: 2026-03-24

Contract Duration: 593 days

Daily Burn Rate: $33.5K/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: INPATIENT MEDICAL BED ADDITION MINOR CONSTRUCTION PROJECT AT KANSAS CITY VA MEDICAL CENTER

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64128

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.9 million to R.E.D. CONSTRUCTION SERVICES, LLC for work described as: INPATIENT MEDICAL BED ADDITION MINOR CONSTRUCTION PROJECT AT KANSAS CITY VA MEDICAL CENTER Key points: 1. The contract is for a minor construction project to add inpatient medical beds. 2. R.E.D. CONSTRUCTION SERVICES, LLC was awarded the contract. 3. The project is located at the Kansas City VA Medical Center in Missouri. 4. The contract type is Firm Fixed Price, awarded under Full and Open Competition after Exclusion of Sources. 5. The estimated completion date is March 24, 2026.

Value Assessment

Rating: good

The contract value of $19.86 million appears reasonable for a minor construction project involving inpatient bed additions at a VA medical center. Benchmarking against similar VA construction projects of this scale would provide further validation.

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 a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary infrastructure improvements.

Public Impact

Improved healthcare capacity for veterans in the Kansas City area. Potential for job creation during the construction phase. Enhancement of medical facilities at a key VA medical center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in construction projects.
Delays in project completion impacting service availability.

Positive Signals

Competitive bidding process.
Firm Fixed Price contract type.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector for federal construction projects can vary significantly based on infrastructure needs and agency priorities.

Small Business Impact

The data does not indicate if small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight procedures for construction projects, including progress monitoring and quality control, should be in place.

Related Government Programs

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

Risk Flags

Project duration of 593 days.
Firm Fixed Price contract.
Full and Open Competition.
Potential for scope creep in construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.9 million to R.E.D. CONSTRUCTION SERVICES, LLC. INPATIENT MEDICAL BED ADDITION MINOR CONSTRUCTION PROJECT AT KANSAS CITY VA MEDICAL CENTER

Who is the contractor on this award?

The obligated recipient is R.E.D. 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 $19.9 million.

What is the period of performance?

Start: 2024-08-08. End: 2026-03-24.

What is the projected impact of these new beds on veteran wait times and access to care?

The addition of inpatient medical beds is intended to directly address potential capacity constraints, thereby reducing wait times and improving veterans' access to necessary medical care. The specific impact will depend on current demand, patient acuity, and the operational efficiency of the expanded facility.

Are there any identified risks associated with the chosen contractor, R.E.D. CONSTRUCTION SERVICES, LLC?

Without access to contractor performance history or specific risk assessments, it's difficult to identify risks associated with R.E.D. CONSTRUCTION SERVICES, LLC. Standard due diligence during the procurement process should have evaluated their capacity and past performance to mitigate potential issues.

How does the cost of this project compare to similar inpatient bed addition projects at other VA facilities?

A direct cost comparison requires data on similar projects, considering factors like square footage, complexity, and regional construction costs. The $19.86 million figure needs to be benchmarked against comparable VA medical center construction projects to assess its cost-effectiveness.

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: 36C77624R0063

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34911 S. BRAMBLIN ROAD, GARDEN CITY, MO, 64747

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,375,115

Exercised Options: $39,375,115

Current Obligation: $19,859,022

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline