VA Awards $21.7M Contract to Group III Management for Surgical Access Construction

Contract Overview

Contract Amount: $21,745,851 ($21.7M)

Contractor: Group III Management Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-24

End Date: 2026-11-22

Contract Duration: 424 days

Daily Burn Rate: $51.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT IMPROVE SURGICAL ACCESS

Place of Performance

Location: KINSTON, JONES County, NORTH CAROLINA, 28504

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.7 million to GROUP III MANAGEMENT INC for work described as: CONSTRUCT IMPROVE SURGICAL ACCESS Key points: 1. Contract awarded to Group III Management Inc. for construction services. 2. The contract falls under the Commercial and Institutional Building Construction sector. 3. Full and open competition was utilized after excluding sources, indicating a structured procurement process. 4. The contract value is $21,745,851 with a duration of 424 days.

Value Assessment

Rating: good

The contract value of $21.7M appears reasonable for a construction project of this scope. Benchmarking against similar VA construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests an initial limited pool of bidders, potentially impacting price discovery. However, the 'full and open' aspect implies broader participation was sought.

Taxpayer Impact: The contract value of $21.7M represents taxpayer investment in improving surgical access facilities for veterans.

Public Impact

Enhances surgical access, potentially improving healthcare delivery for veterans. Supports the construction industry and creates jobs. The project's success relies on timely and quality execution by Group III Management Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in construction projects.
Dependence on a single contractor for project completion.

Positive Signals

Aims to improve critical healthcare infrastructure.
Utilizes a competitive bidding process to secure services.

Sector Analysis

This contract is within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar projects would typically consider square footage, complexity, and location.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or prime contractors in this award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely completion and adherence to specifications. Performance metrics and regular reporting are key oversight mechanisms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for scope creep leading to cost increases.
Risk of delays impacting the availability of improved surgical facilities.
Contractor performance risk: ensuring quality and adherence to schedule.
Dependency on specific materials or supply chains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.7 million to GROUP III MANAGEMENT INC. CONSTRUCT IMPROVE SURGICAL ACCESS

Who is the contractor on this award?

The obligated recipient is GROUP III MANAGEMENT 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 $21.7 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-11-22.

What specific improvements to surgical access does this contract entail, and how will they impact patient care?

The contract details are limited, but 'Surgical Access' implies improvements to facilities or infrastructure directly supporting surgical procedures. This could include upgrades to operating rooms, recovery areas, or related support spaces. The impact on patient care would likely involve reduced wait times, enhanced safety, and improved patient comfort during and after surgical interventions.

What were the reasons for excluding certain sources prior to the full and open competition, and did this exclusion affect the final contract price?

The exclusion of sources prior to full and open competition suggests a pre-qualification or specific requirement that narrowed the initial bidder pool. The rationale for this exclusion is not provided but could relate to specialized capabilities, past performance, or specific security requirements. Without further information, it's difficult to definitively state its impact on the final price, though such exclusions can sometimes limit competition and potentially increase costs.

How does the $21.7M contract value compare to industry benchmarks for similar construction projects of this scale and complexity?

A precise benchmark requires detailed project specifications (e.g., square footage, specific upgrades, location). However, for a significant institutional construction project, $21.7M is a substantial investment. Industry benchmarks would typically analyze cost per square foot or cost per procedure room, considering factors like labor costs, material prices, and regulatory compliance in North Carolina.

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: 36C77625R0061

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2715 W VERNON AVE, KINSTON, NC, 28504

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

Financial Breakdown

Contract Ceiling: $21,745,851

Exercised Options: $21,745,851

Current Obligation: $21,745,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline