VA Awards $19.97M Contract for North Dakota Mental Health Outpatient Building Construction

Contract Overview

Contract Amount: $19,972,785 ($20.0M)

Contractor: Greenstone Construction, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-15

End Date: 2026-11-10

Contract Duration: 848 days

Daily Burn Rate: $23.6K/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: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE MENTAL HEALTH OUTPATIENT BLDG. 52 (MINOR) CONSTRUCTION PROJECT.

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58102

State: North Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.0 million to GREENSTONE CONSTRUCTION, INC. for work described as: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE MENTAL HEALTH OUTPATIENT BLDG. 52 (MINOR) CONSTRUCTION PROJECT. Key points: 1. Contract focuses on construction of a mental health outpatient building in North Dakota. 2. Greenstone Construction, Inc. is the awarded contractor. 3. The contract is a Firm Fixed Price type, indicating defined costs. 4. This project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $19.97 million for a significant construction project appears reasonable within the industry. Benchmarking against similar government or private sector building projects of this scale would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process but with specific limitations. This method aims for competition while potentially excluding certain types of bidders, which could impact price discovery.

Taxpayer Impact: The use of a competitive process, even with exclusions, aims to secure value for taxpayers. The final price will be evaluated against market rates for similar construction projects.

Public Impact

Improved mental health services for veterans in North Dakota. Potential job creation during the construction phase. Development of critical infrastructure for healthcare delivery. Economic stimulus for the local North Dakota economy. Ensures a dedicated facility for outpatient mental health care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for cost overruns in fixed-price contracts if scope changes.
Dependence on contractor performance for project timeline.

Positive Signals

Addresses a critical need for mental health facilities.
Firm Fixed Price contract provides cost certainty.
Awarded to a single contractor for streamlined execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is vital for public infrastructure development. Spending in this sector can vary significantly based on economic conditions and government priorities for facility upgrades and new builds.

Small Business Impact

The data indicates the contractor, Greenstone Construction, Inc., is not a small business (ss: false). There is no specific mention of small business set-asides or subcontracting goals within the provided data, suggesting limited direct impact on small businesses for this prime contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard government oversight mechanisms, including contract performance monitoring and financial audits, should be in place to ensure accountability and proper use of funds.

Related Government Programs

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

Risk Flags

Limited competition may result in higher costs.
Potential for scope creep in construction projects.
Contract duration of 848 days presents schedule risks.
Reliance on a single contractor for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.0 million to GREENSTONE CONSTRUCTION, INC.. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE MENTAL HEALTH OUTPATIENT BLDG. 52 (MINOR) CONSTRUCTION PROJECT.

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 $20.0 million.

What is the period of performance?

Start: 2024-07-15. End: 2026-11-10.

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 bid price?

The exclusion of sources typically occurs when specific technical capabilities, past performance requirements, or unique certifications are mandated for the project. These exclusions can limit the pool of potential bidders, potentially leading to less aggressive pricing than a truly open competition. A detailed review of the solicitation documents would clarify the exact exclusion criteria and their potential influence on the awarded price.

What are the key performance indicators (KPIs) for this construction project, and what are the penalties for non-performance or delays?

Key performance indicators for construction projects usually include adherence to schedule, quality of workmanship, safety compliance, and budget management. The contract likely specifies milestones and completion dates. Penalties for non-performance or delays can range from liquidated damages to contract termination, depending on the severity and cause of the issues. These details are typically outlined in the contract's terms and conditions.

How does the construction of this mental health facility align with the VA's broader strategic goals for veteran healthcare access and capacity in the region?

The construction of this facility directly supports the VA's strategic goal of expanding access to mental healthcare for veterans. By providing a dedicated outpatient building, the VA aims to increase capacity, improve the quality of care, and ensure veterans receive timely and appropriate mental health services, thereby enhancing overall veteran well-being and reducing healthcare disparities.

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: 36C77623B0075

Offers Received: 1

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: $19,972,785

Exercised Options: $19,972,785

Current Obligation: $19,972,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline