VA Awards $13.6M Contract to Daniels Building Co for Clinic Construction in Michigan

Contract Overview

Contract Amount: $13,566,430 ($13.6M)

Contractor: Daniels Building CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-16

End Date: 2026-07-31

Contract Duration: 683 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

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 COMPLETION OF THE CONSTRUCT PRIVATE IN-PATIENT ROOMS AND PRIMARY CLINICS CONSTRUCTION (MINOR)

Place of Performance

Location: LIVONIA, WAYNE County, MICHIGAN, 48152

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.6 million to DANIELS BUILDING CO 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 COMPLETION OF THE CONSTRUCT PRIVATE IN-PATIENT ROOMS AND PRIMARY CLINICS CONSTRUCTION (MINOR) Key points: 1. Contract awarded for minor construction of private in-patient rooms and primary clinics. 2. Daniels Building Co Inc secured the $13.6M contract. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract is Firm Fixed Price, indicating defined costs. 5. Project duration is 683 days, ending July 2026.

Value Assessment

Rating: fair

The contract value of $13.6M for minor construction of in-patient rooms and clinics appears within a reasonable range for such projects. Benchmarking against similar VA or healthcare construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competition pool, potentially impacting price discovery. While open, specific exclusions might have reduced the number of eligible bidders.

Taxpayer Impact: The use of limited competition may result in a higher price than a fully open process, potentially impacting taxpayer value.

Public Impact

Improved healthcare facilities for veterans, enhancing patient experience and care quality. Potential for job creation within the construction sector in Michigan. Ensures necessary infrastructure upgrades for VA medical centers. Supports the Department of Veterans Affairs' mission to provide healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Contract duration extends over a significant period, increasing risk of cost overruns or delays.

Positive Signals

Addresses critical infrastructure needs for veteran healthcare.
Firm Fixed Price contract provides cost certainty.
Project completion by July 2026 aligns with facility upgrade timelines.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for similar VA healthcare facility construction projects would be relevant for a detailed analysis.

Small Business Impact

The contract was awarded to Daniels Building Co Inc. Information regarding small business participation or subcontracting is not explicitly provided in the data, warranting further investigation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract type and duration necessitate monitoring to ensure timely completion and adherence to quality standards.

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.
Long contract duration increases risk of delays and cost overruns.
Potential for scope creep during the extended project timeline.
Dependence on a single contractor for a significant infrastructure project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.6 million to DANIELS BUILDING CO INC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE CONSTRUCT PRIVATE IN-PATIENT ROOMS AND PRIMARY CLINICS CONSTRUCTION (MINOR)

Who is the contractor on this award?

The obligated recipient is DANIELS BUILDING CO 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 $13.6 million.

What is the period of performance?

Start: 2024-09-16. End: 2026-07-31.

What specific criteria were used to exclude sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The exclusion criteria for sources in this competition method are not detailed in the provided data. Typically, such exclusions might be based on specific technical capabilities, past performance, or geographic limitations. Understanding these criteria is crucial to assess whether they were justified and if they inadvertently limited competition, potentially leading to a higher price than a truly open bid process might have achieved.

What are the key performance indicators (KPIs) for this construction project, and how will the VA ensure the contractor meets quality and timeline requirements?

Key performance indicators likely include adherence to construction timelines, quality of materials and workmanship, safety compliance, and meeting the specified design for in-patient rooms and clinics. The VA will likely employ project managers, conduct regular site inspections, review progress reports, and potentially utilize third-party quality assurance checks to ensure the contractor meets all contractual obligations and quality standards.

What is the projected impact of these facility upgrades on veteran patient wait times and overall healthcare outcomes?

The construction of private in-patient rooms and primary clinics is intended to modernize VA healthcare facilities, potentially leading to improved patient comfort, reduced infection rates, and more efficient service delivery. While direct impacts on wait times are not guaranteed, enhanced capacity and updated facilities can contribute to better patient flow and potentially improve overall healthcare outcomes by providing a more conducive environment for treatment.

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: 36C25024B0031

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20246 FARMINGTON RD, LIVONIA, MI, 48152

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,566,430

Exercised Options: $13,566,430

Current Obligation: $13,566,430

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline