VA awards $1.9M contract for new inpatient pharmacy design to Miller-Remick, LLC

Contract Overview

Contract Amount: $1,917,719 ($1.9M)

Contractor: Miller-Remick, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-22

End Date: 2026-09-21

Contract Duration: 791 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: A/E- CONSTRUCT NEW INPATIENT PHARMACY DESIGN

Place of Performance

Location: WEST ROXBURY, SUFFOLK County, MASSACHUSETTS, 02132

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.9 million to MILLER-REMICK, LLC for work described as: A/E- CONSTRUCT NEW INPATIENT PHARMACY DESIGN Key points: 1. Contract awarded for architectural and engineering services related to a new inpatient pharmacy. 2. The contract is a firm-fixed-price definitive contract, indicating a clear scope and pricing. 3. Competition was full and open after exclusion of sources, suggesting a competitive process with specific criteria. 4. The contract duration is 791 days, spanning from July 2024 to September 2026. 5. The awardee, Miller-Remick, LLC, is a provider of engineering services. 6. The contract falls under the Engineering Services NAICS code 541330. 7. The Department of Veterans Affairs is the contracting agency.

Value Assessment

Rating: good

The contract value of $1.9 million for the design of a new inpatient pharmacy appears reasonable given the scope of architectural and engineering services required. Benchmarking against similar VA or other federal healthcare facility design projects would provide a more precise value assessment. The firm-fixed-price structure suggests that the contractor has a clear understanding of the project requirements and associated costs, which can be beneficial for cost control.

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.' This indicates that while the competition was intended to be broad, specific criteria or pre-qualifications may have been applied, potentially limiting the pool of eligible bidders. With 11 bidders, the competition level suggests a healthy interest in the opportunity, which generally supports price discovery and potentially better value for the government.

Taxpayer Impact: The competitive nature of this award, despite the exclusion of some sources, suggests that taxpayers likely benefited from a range of proposals, leading to a more competitive price than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs and the veterans it serves, who will gain access to a modernized inpatient pharmacy facility. The services delivered include architectural and engineering design for a new inpatient pharmacy. The geographic impact is likely localized to the VA facility where the new pharmacy will be constructed. Workforce implications may include employment opportunities for architects, engineers, and construction personnel during the design and subsequent construction phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design requirements are not fully defined.
Reliance on a single contractor for critical design elements could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract helps control costs and provides budget certainty.
Competitive bidding process, even with exclusions, generally leads to better pricing.
Clear contract duration provides a defined timeline for project completion.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to architectural and engineering design for healthcare facilities. The market for such services is competitive, with numerous firms capable of undertaking complex design projects. The value of this contract, at $1.9 million, is moderate for a federal design project of this nature. Comparable spending benchmarks would typically be assessed based on square footage, complexity of the facility, and specific design requirements.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a direct subcontracting requirement for small businesses mentioned. The awardee, Miller-Remick, LLC, is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine if any small business subcontracting opportunities are anticipated or required under this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which ties payment to deliverables. Transparency is generally maintained through federal contract databases like SAM.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Capital Asset Realignment for Enhanced Services (CARES) Act Projects
Federal Healthcare Facility Construction and Renovation Programs
Architectural and Engineering Services for Federal Buildings

Risk Flags

Potential for cost overruns if scope changes significantly.
Contractor performance risk if key personnel are not retained or if quality issues arise.
Dependency on the justification for 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.9 million to MILLER-REMICK, LLC. A/E- CONSTRUCT NEW INPATIENT PHARMACY DESIGN

Who is the contractor on this award?

The obligated recipient is MILLER-REMICK, 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 $1.9 million.

What is the period of performance?

Start: 2024-07-22. End: 2026-09-21.

What is the track record of Miller-Remick, LLC with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data would be necessary to fully assess Miller-Remick, LLC's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. Understanding their experience with similar healthcare facility design projects, particularly for the VA, would be crucial in evaluating their capability and reliability for this specific contract. Without access to detailed performance history, it's difficult to definitively assess their past performance.

How does the $1.9 million contract value compare to similar inpatient pharmacy design projects undertaken by the VA or other federal healthcare providers?

To benchmark the $1.9 million contract value, one would need to compare it against similar projects in terms of size, complexity, and scope of services. This would involve researching recent VA or Department of Defense healthcare construction projects that included inpatient pharmacy design. Factors such as the square footage of the planned pharmacy, the level of technological integration required, and the specific architectural challenges would influence cost. A preliminary assessment suggests the value is within a typical range for such specialized design work, but a detailed comparison with comparable projects is needed for a definitive conclusion on value for money.

What are the key risk indicators associated with this specific contract award?

Key risk indicators for this contract include the potential for design changes or scope creep after the initial award, which could lead to cost overruns despite the firm-fixed-price structure. The reliance on a single contractor for the design phase presents a risk if Miller-Remick, LLC experiences performance issues, financial instability, or key personnel departures. Furthermore, the 'Full and Open Competition After Exclusion of Sources' clause warrants scrutiny to ensure that the exclusions were justified and did not unduly limit competition, potentially impacting the best value outcome. The complexity of modern pharmacy design, including specialized equipment and regulatory compliance, also introduces inherent risks.

What is the expected effectiveness of the new inpatient pharmacy design in improving patient care and operational efficiency for the VA?

The effectiveness of the new inpatient pharmacy design will hinge on how well the architectural and engineering plans address current and future needs for medication management, dispensing, and sterile compounding. A well-designed pharmacy can lead to improved workflow for pharmacists and technicians, reduced medication errors, enhanced inventory control, and better compliance with regulatory standards. The design should also consider space for advanced technologies, such as automation, and accommodate potential increases in patient volume or service offerings. The ultimate effectiveness will be realized during the construction and operational phases, post-design.

What has been the historical spending pattern for architectural and engineering services for VA healthcare facilities over the past five years?

Analyzing historical spending patterns for A&E services for VA healthcare facilities over the past five years would reveal trends in contract values, types of services procured, and primary contracting vehicles. This data could indicate whether spending has been increasing or decreasing, and if there's a shift towards specific types of projects (e.g., new construction vs. renovation). Understanding this historical context helps in evaluating whether the current $1.9 million award is consistent with past investment levels or represents a significant deviation. It also informs budget planning and resource allocation for future healthcare infrastructure projects.

Are there any specific performance metrics or deliverables outlined in the contract that will be used to measure success?

While the provided data does not detail specific performance metrics, firm-fixed-price contracts for A&E services typically include detailed scopes of work, deliverable schedules, and quality standards. Success is usually measured by the timely submission of design documents (e.g., schematic designs, design development documents, construction documents), adherence to budget constraints for the design phase, and compliance with all applicable codes, standards, and VA requirements. Client reviews and acceptance of design milestones are critical components of performance evaluation. A thorough review of the contract's Statement of Work (SOW) would be necessary to identify all specific performance metrics and deliverables.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77624R0004

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1040 KINGS HIGHWAY NORTH, CHERRY HILL, NJ, 08034

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

Financial Breakdown

Contract Ceiling: $2,533,972

Exercised Options: $1,917,719

Current Obligation: $1,917,719

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline