VA awards $5.28M contract for Wilmington mental health facility construction, emphasizing firm fixed price

Contract Overview

Contract Amount: $5,276,722 ($5.3M)

Contractor: Fdcd II Joint Venture, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-06

End Date: 2026-04-24

Contract Duration: 442 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MENTAL HEALTH ADDITION, WILMINGTON, DE

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19805

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.3 million to FDCD II JOINT VENTURE, LLC for work described as: MENTAL HEALTH ADDITION, WILMINGTON, DE Key points: 1. Contract awarded to FDCD II JOINT VENTURE, LLC for construction services. 2. Project aims to enhance mental health and addiction services in Wilmington, DE. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Competition was open after exclusion of sources, indicating a specific procurement approach. 5. Contract duration of 442 days aligns with typical construction project timelines. 6. The award falls under the Commercial and Institutional Building Construction NAICS code. 7. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $5.28 million for a mental health and addiction facility in Wilmington, DE, appears reasonable given the scope of construction. While direct comparisons are difficult without detailed project specifications, the firm fixed price structure provides cost certainty. Benchmarking against similar institutional construction projects in the region would offer further insight into value for money, but the award to a joint venture suggests capability for a project of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. This could be due to specific technical requirements or past performance considerations. With 6 bidders, the competition level appears moderate, potentially leading to a competitive price but not as robust as a purely full and open competition.

Taxpayer Impact: The moderate level of competition suggests that while taxpayers likely benefited from multiple bids, the exclusion of certain sources might have limited the potential for even greater price reductions.

Public Impact

Veterans in the Wilmington, Delaware area will benefit from improved access to mental health and addiction services. The contract will result in the construction of a dedicated facility for specialized care. Geographic impact is focused on Wilmington, Delaware, serving the local veteran population. The project will likely create jobs in the construction sector within Delaware. Enhanced mental health services can lead to better health outcomes and quality of life for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise, despite the fixed-price nature.
Dependence on the performance and timely completion by the joint venture.
Risk of scope creep if project requirements are not strictly managed.
Ensuring the facility meets all specialized requirements for mental health and addiction treatment.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Award to a joint venture suggests a combination of expertise and resources.
Moderate number of bidders indicates some level of market interest and competition.
Contract duration is defined, allowing for project planning and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for healthcare and specialized facility construction is robust, driven by ongoing needs for updated infrastructure and specialized services. The award to FDCD II JOINT VENTURE, LLC, a joint venture, is common in this sector for projects requiring diverse expertise. Comparable spending benchmarks for similar VA facilities or community health centers would provide a more precise comparison.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses mandated within the award details provided. The primary contractor is a joint venture, which may itself involve small businesses, but the direct impact on the broader small business construction ecosystem is not explicitly defined by this award alone. Further analysis of the joint venture's structure and any subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs (VA) contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon cost and timeline. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports or IG involvement would depend on performance issues or audits.

Related Government Programs

VA Major Medical Facility Lease Program
VA Capital Asset Realignment for Enhanced Services (CARES) Act Projects
Department of Defense Construction Contracts
General Services Administration (GSA) Public Buildings Service

Risk Flags

Contractor Performance Risk
Schedule Delay Risk
Cost Overrun Risk (despite FFP)
Scope Creep Risk
Quality Control Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.3 million to FDCD II JOINT VENTURE, LLC. MENTAL HEALTH ADDITION, WILMINGTON, DE

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 $5.3 million.

What is the period of performance?

Start: 2025-02-06. End: 2026-04-24.

What is the track record of FDCD II JOINT VENTURE, LLC in completing similar government construction projects, particularly for healthcare facilities?

Information regarding the specific track record of FDCD II JOINT VENTURE, LLC in completing similar government construction projects, especially for healthcare facilities, is not detailed in the provided data. As a joint venture, its performance history would be a composite of its member companies' experiences or its own established project history. A thorough review would require accessing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and project portfolios for the joint venture and its constituent entities. This is crucial for assessing their capability to deliver the Wilmington mental health facility successfully and on time, mitigating risks associated with contractor performance.

How does the $5.28 million contract value compare to similar mental health facility construction projects awarded by the VA or other federal agencies?

Benchmarking the $5.28 million contract value against similar projects requires detailed project specifications, including square footage, complexity of services, and geographic location. However, for a specialized facility like a mental health and addiction center, this value appears within a reasonable range for construction costs. Factors such as local labor rates, material costs, and specific design requirements significantly influence project costs. Without comparable data on projects of identical scope and complexity, a precise value-for-money assessment is challenging. The firm fixed-price nature suggests the VA has established a clear budget expectation.

What are the primary risks associated with this firm fixed-price construction contract, and what mitigation strategies are in place?

The primary risks associated with this firm fixed-price construction contract include potential cost overruns if unforeseen site conditions or design issues arise, contractor delays impacting the schedule, and quality control issues. Mitigation strategies typically involve robust pre-award due diligence on the contractor's capabilities, detailed contract specifications, clear performance milestones, and regular site inspections. The fixed-price nature shifts much of the cost risk to the contractor, incentivizing efficiency. However, the government must ensure the scope is well-defined to prevent disputes and maintain quality standards through diligent oversight.

What is the expected impact of this new facility on the delivery of mental health and addiction services to veterans in the Wilmington, DE area?

The construction of this new facility is expected to significantly enhance the delivery of mental health and addiction services to veterans in the Wilmington, DE area by providing a dedicated, modern, and potentially expanded capacity. This could lead to reduced wait times, improved access to specialized care, and a more therapeutic environment for treatment. The project aligns with the VA's broader mission to provide comprehensive healthcare, addressing critical needs within the veteran community and potentially improving health outcomes and overall well-being for those seeking support.

How has federal spending on healthcare facility construction, specifically for mental health services, trended over the past five years?

Federal spending on healthcare facility construction, including for mental health services, has generally seen consistent investment, driven by the need to modernize aging infrastructure and expand capacity to meet growing demand. Agencies like the VA and the Department of Health and Human Services (HHS) are key players. While specific figures for mental health construction alone can be difficult to isolate from broader healthcare facility spending, overall trends indicate sustained or increasing allocations to improve healthcare infrastructure. Factors such as legislative initiatives, public health crises (like the opioid epidemic), and the ongoing focus on veteran care contribute to this spending.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply about the selection process and potential cost savings?

The 'Full and Open Competition After Exclusion of Sources' method implies that the solicitation was initially intended for broad competition, but certain potential bidders were excluded before the final solicitation phase. This exclusion is typically based on specific, justifiable criteria such as unique capabilities, past performance, or security requirements. While it aims for competition among the remaining eligible sources (6 bidders in this case), it may limit the overall number of proposals received compared to a purely 'full and open' competition. This could potentially impact the degree of price competition and the ultimate cost savings realized by the government, though it ensures the selected contractor meets specific prerequisites.

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: 36C77624R0086

Offers Received: 6

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: $5,276,722

Exercised Options: $5,276,722

Current Obligation: $5,276,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline