VA awards $18.4M for Lake Nona Cardiovascular Center construction to Blue Cord Design and Construction, LLC

Contract Overview

Contract Amount: $18,360,634 ($18.4M)

Contractor: Blue Cord Design and Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-03

End Date: 2027-03-04

Contract Duration: 547 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONTRACTOR SHALL PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION, REMOVAL OF EXISTING STRUCTURES, FURNISH LABOR AND MATERIALS, AND PERFORM WORK FOR 675-103 CREATE CARDIOVASCULAR CENTER LAKE NONA PROJECT AS REQUIRED BY DRAWINGS AND SPECS.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.4 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC for work described as: CONTRACTOR SHALL PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION, REMOVAL OF EXISTING STRUCTURES, FURNISH LABOR AND MATERIALS, AND PERFORM WORK FOR 675-103 CREATE CARDIOVASCULAR CENTER LAKE NONA PROJECT AS REQUIRED BY DRAWINGS AND SPECS. Key points: 1. Contract value appears reasonable for a large-scale healthcare construction project of this nature. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of approximately 1.5 years aligns with typical timelines for complex medical facility construction. 4. The contract is a firm-fixed-price type, transferring most cost risk to the contractor. 5. This project supports the VA's mission to expand healthcare access for veterans. 6. The contractor, Blue Cord Design and Construction, LLC, will be responsible for site preparation, demolition, and construction.

Value Assessment

Rating: good

The contract value of $18.4 million for the construction of a cardiovascular center is within a typical range for such specialized medical facilities. Benchmarking against similar VA or other federal healthcare construction projects of comparable size and complexity would provide further insight into value for money. The firm-fixed-price contract structure indicates that the contractor bears the primary risk for cost overruns, which is generally favorable for the government.

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,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this significant project. A higher number of bidders would typically indicate stronger price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite having 3 bidders, suggests that taxpayers likely benefited from a competitive bidding process, leading to a fair market price for the construction services.

Public Impact

Veterans in the Lake Nona, Florida area will benefit from expanded cardiovascular care services. The project will deliver a new cardiovascular center, enhancing the VA's healthcare infrastructure. The geographic impact is concentrated in Florida, specifically the Lake Nona region. Construction activities will likely create temporary jobs in the local construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility opening and veteran access to care.
Risk of unforeseen site conditions requiring change orders and increasing project cost.
Ensuring compliance with all VA healthcare facility construction standards and regulations.

Positive Signals

Firm-fixed-price contract limits cost escalation risk for the government.
Full and open competition suggests a robust bidding process.
Experienced contractor selected for a specialized healthcare construction project.

Sector Analysis

The healthcare construction sector is a significant segment of the broader construction industry, characterized by specialized requirements for medical facilities. Projects like this cardiovascular center are crucial for expanding healthcare capacity. Comparable spending benchmarks for similar medical facility constructions can vary widely based on size, complexity, and location, but this $18.4 million award falls within a reasonable range for a specialized center.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs project management team, ensuring adherence to contract specifications, timelines, and quality standards. Accountability measures are embedded in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is facilitated through the federal contract award process, with public availability of contract details.

Related Government Programs

VA Major Medical Facility Construction
Healthcare Infrastructure Projects
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays impacting veteran access to care.
Ensuring compliance with stringent healthcare construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.4 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC. CONTRACTOR SHALL PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION, REMOVAL OF EXISTING STRUCTURES, FURNISH LABOR AND MATERIALS, AND PERFORM WORK FOR 675-103 CREATE CARDIOVASCULAR CENTER LAKE NONA PROJECT AS REQUIRED BY DRAWINGS AND SPECS.

Who is the contractor on this award?

The obligated recipient is BLUE CORD DESIGN AND CONSTRUCTION, 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 $18.4 million.

What is the period of performance?

Start: 2025-09-03. End: 2027-03-04.

What is the track record of Blue Cord Design and Construction, LLC with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal contract databases would be necessary to fully assess Blue Cord Design and Construction, LLC's track record. This would involve examining past performance on similar federal projects, including their history with the Department of Veterans Affairs. Key metrics to analyze would include on-time delivery, adherence to budget, quality of work, and any history of disputes or contract modifications. Understanding their experience with healthcare facilities specifically would be crucial given the nature of this award.

How does the $18.4 million contract value compare to similar cardiovascular center construction projects awarded by the VA or other federal agencies?

To benchmark the $18.4 million contract value, a comparative analysis with similar federal healthcare construction projects is required. This would involve identifying contracts for cardiovascular centers or comparable medical facilities awarded by the VA or other agencies (e.g., Department of Defense, GSA) within the last few years. Factors such as square footage, complexity of services offered (e.g., surgical suites, imaging), and geographic location would need to be considered to ensure a fair comparison. Without this comparative data, it is difficult to definitively assess if the price represents excellent value for money.

What are the primary risks associated with this specific construction project, and how are they being mitigated?

Primary risks for this project include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions. Given it's a medical facility, ensuring strict adherence to specialized building codes and healthcare regulations is critical. The firm-fixed-price contract mitigates financial risk for the VA by capping costs, but the contractor bears the risk of cost overruns. Mitigation strategies likely involve robust project management, contingency planning, regular site inspections, and clear communication protocols between the VA and the contractor.

What is the expected effectiveness of the new cardiovascular center in improving healthcare access and outcomes for veterans in the Lake Nona region?

The effectiveness of the new cardiovascular center will be measured by its ability to increase the availability and quality of cardiac care services for veterans in the Lake Nona area. Expected outcomes include reduced wait times for appointments and procedures, improved patient satisfaction, and potentially better health outcomes due to access to specialized, state-of-the-art facilities. The VA's strategic goals for expanding healthcare access in underserved regions will be a key indicator of success. Post-construction evaluation and patient outcome data will be essential to quantify effectiveness.

How has VA spending on healthcare facility construction trended over the past five years, and does this contract align with those trends?

Analyzing VA spending on healthcare facility construction over the past five years would reveal trends in investment priorities and overall budget allocation. This data would help determine if the $18.4 million award for the Lake Nona cardiovascular center is consistent with the VA's historical spending patterns for similar projects. Factors such as an increase or decrease in overall construction budgets, focus on specific types of facilities (e.g., mental health, primary care, specialized centers), and geographic distribution of investments would be relevant. This contract appears to align with the VA's ongoing efforts to modernize and expand its healthcare infrastructure.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type for taxpayer value?

The 'Full and Open Competition After Exclusion of Sources' award type signifies that the contract was competed broadly, allowing all eligible responsible sources to submit proposals. While 'full and open competition' typically implies no restrictions, the 'after exclusion of sources' phrasing might suggest that certain categories of contractors or specific technologies were initially excluded based on predefined criteria, but the remaining pool was still competed openly. This approach aims to ensure a competitive environment, which generally leads to better pricing and value for taxpayers compared to sole-source or limited competition awards. The presence of 3 bidders indicates a moderate level of competition within this framework.

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: 36C77625B0030

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 835 BENNETT RD STE 100, ORLANDO, FL, 32803

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

Financial Breakdown

Contract Ceiling: $18,360,634

Exercised Options: $18,360,634

Current Obligation: $18,360,634

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline