VA awards $11M contract for Wilkes-Barre mental health clinic expansion to FDCD II JOINT VENTURE, LLC

Contract Overview

Contract Amount: $11,041,243 ($11.0M)

Contractor: Fdcd II Joint Venture, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-10

End Date: 2026-06-30

Contract Duration: 658 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MINOR CONSTRUCT EXPAND MENTAL HEALTH CLINIC WILKES-BARRE

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18711

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.0 million to FDCD II JOINT VENTURE, LLC for work described as: MINOR CONSTRUCT EXPAND MENTAL HEALTH CLINIC WILKES-BARRE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract with a firm fixed price, indicating defined scope and cost. 3. The project duration is approximately 658 days, aligning with typical construction timelines. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The awardee, FDCD II JOINT VENTURE, LLC, will be responsible for expanding a mental health clinic. 6. The contract is managed by the Department of Veterans Affairs, highlighting a focus on veteran services. 7. The contract is located in Wilkes-Barre, Pennsylvania, indicating a specific geographic impact.

Value Assessment

Rating: good

The contract value of $11.04 million for expanding a mental health clinic appears reasonable for a project of this scope and duration. Benchmarking against similar VA construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the final value will depend on the execution and any potential change orders. Without specific cost breakdowns or comparisons to similar projects, a definitive assessment of exceptional value is difficult, but it falls within expected ranges for institutional construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of 5 bids (no: 5) suggests a moderate level of competition for this specific project. While 'full and open' is the preferred method, the 'after exclusion of sources' phrasing might warrant further investigation to understand if any specific types of contractors were initially excluded before the final bidding round. However, the fact that multiple bids were received indicates that the market was responsive.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by encouraging contractors to offer their most competitive rates to win the contract.

Public Impact

Veterans in the Wilkes-Barre, Pennsylvania area will benefit from expanded mental health services. The project will deliver enhanced facilities for mental healthcare delivery. The geographic impact is localized to Wilkes-Barre, PA, and surrounding communities served by the VA clinic. The construction project is likely to create temporary employment opportunities for skilled trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price structure.
Dependence on the contractor's ability to meet the project timeline and quality standards.
The 'after exclusion of sources' clause in the competition type could indicate specific requirements that limited the initial pool of potential bidders.

Positive Signals

Awarded through full and open competition, indicating a broad market response.
Firm fixed-price contract type provides cost certainty for the government.
The Department of Veterans Affairs is a reliable agency for managing healthcare infrastructure projects.
The project directly addresses the need for expanded mental health services for veterans.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction (NAICS 236220). The market for federal construction contracts is substantial, with agencies like the Department of Veterans Affairs consistently investing in healthcare facilities. The value of this contract is modest within the broader federal construction landscape, but significant for the specific clinic's expansion. Comparable spending benchmarks would involve analyzing other VA clinic construction or renovation projects of similar size and complexity.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. Consequently, the prime contract was awarded to a larger entity. There is no information provided regarding subcontracting plans or goals, so the direct impact on the small business ecosystem is unclear, though larger prime contractors often utilize small businesses for specialized construction services.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for construction projects, including regular site inspections, progress reporting, and quality assurance reviews. Accountability is typically managed through contract performance clauses and the potential for penalties or withholding of payment for non-compliance. Transparency is facilitated through public contract databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

VA Healthcare Construction Projects
Federal Building and Facilities Modernization
Mental Health Service Infrastructure
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for schedule delays
Risk of cost overruns
Contractor performance issues
Unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.0 million to FDCD II JOINT VENTURE, LLC. MINOR CONSTRUCT EXPAND MENTAL HEALTH CLINIC WILKES-BARRE

Who is the contractor on this award?

The obligated recipient is FDCD II JOINT VENTURE, 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 $11.0 million.

What is the period of performance?

Start: 2024-09-10. End: 2026-06-30.

What is the track record of FDCD II JOINT VENTURE, LLC with the Department of Veterans Affairs?

Information regarding the specific track record of FDCD II JOINT VENTURE, LLC with the Department of Veterans Affairs is not detailed in the provided data. To assess their track record, one would typically review past performance evaluations, any history of contract disputes or terminations, and the successful completion of previous VA projects. A deeper dive into contract databases and performance assessment reports would be necessary to understand their reliability and experience specifically with the VA. Without this, we assume they met the qualifications for this competitive bid.

How does the $11.04 million cost compare to similar VA mental health clinic expansion projects?

Direct comparison of the $11.04 million cost requires access to a database of similar VA mental health clinic expansion projects, including their scope, size, location, and completion dates. However, for a definitive construction project of this nature, involving expansion and likely upgrades to facilities, this figure appears within a plausible range for institutional building. Factors such as prevailing labor costs in Pennsylvania, material prices, and the specific complexity of the expansion (e.g., structural changes, specialized equipment installation) would influence the final cost. A benchmark analysis would be needed for a precise value assessment.

What are the primary risks associated with this firm fixed-price contract?

The primary risks associated with this firm fixed-price contract, despite its cost control benefits, include potential scope creep if requirements are not clearly defined and managed, and the risk of contractor default or poor performance. If unforeseen issues arise during construction (e.g., subsurface conditions, material shortages), the contractor may seek change orders, potentially increasing the total cost, although the firm fixed-price nature aims to limit this. The government also bears the risk if the contractor's bid was unrealistically low, leading to quality compromises or project delays. Effective government oversight is crucial to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad market access with specific project needs. While 'full and open' generally promotes competition and thus better pricing, the 'exclusion of sources' element implies that certain types of potential bidders were initially disqualified based on predefined criteria. If these exclusions were justified (e.g., based on specialized capabilities or security requirements), the method can ensure that only qualified contractors compete, potentially leading to a higher quality outcome. However, if the exclusions were overly restrictive, it could limit competition and potentially lead to higher costs for taxpayers than a truly unrestricted full and open process.

What is the historical spending pattern for mental health facility construction by the VA?

Historical spending patterns for mental health facility construction by the VA are generally characterized by consistent investment in upgrading and expanding healthcare infrastructure to meet the needs of veterans. The VA budget allocates significant funds towards capital projects, including clinics and hospitals, with a notable emphasis on mental healthcare services in recent years due to increased awareness and demand. Specific spending figures fluctuate annually based on budget appropriations, identified needs, and the lifecycle of existing facilities. Analyzing multi-year VA budget reports and capital investment plans would reveal trends in spending on mental health infrastructure.

What are the implications of the contract duration (658 days) on service delivery?

A contract duration of 658 days (approximately 22 months) for the expansion of a mental health clinic indicates a substantial construction project. This duration implies that the full benefits of the expanded services will not be realized until the project's completion. During this period, existing facilities may experience increased patient loads or temporary disruptions. However, the extended timeline also allows for thorough construction and integration of new capabilities, potentially leading to a more robust and well-equipped facility upon completion, ultimately improving long-term service delivery capacity for veterans.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77624R0079

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 408 EAST 4TH STREET, BRIDGEPORT, PA, 19405

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,041,243

Exercised Options: $11,041,243

Current Obligation: $11,041,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline