VA Awards $15.3M Contract for SCI Ward Renovation and New Construction

Contract Overview

Contract Amount: $15,355,347 ($15.4M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-26

End Date: 2027-03-30

Contract Duration: 550 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF APPROXIMATELY 25,000 SQ FT OF EXISTING SCI WARD IN BUILDING 137C AND APPROXIMATELY 3,200 SQ FT OF NEW CONSTRUCTION ATTACHED TO EXISTING BUILDINGS. ONCE COMPLETED AREA WILL CONTAIN BEDROOMS AND CONNECT PATIENT ROOMS WITH DINING AREA.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23667

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.4 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: RENOVATION OF APPROXIMATELY 25,000 SQ FT OF EXISTING SCI WARD IN BUILDING 137C AND APPROXIMATELY 3,200 SQ FT OF NEW CONSTRUCTION ATTACHED TO EXISTING BUILDINGS. ONCE COMPLETED AREA WILL CONTAIN BEDROOMS AND CONNECT PATIENT ROOMS WITH DINING AREA. Key points: 1. Contract awarded to Birmingham Industrial Construction, LLC for significant facility upgrades. 2. Project aims to improve patient care by renovating existing wards and adding new construction. 3. The contract value of $15.3M represents a substantial investment in healthcare infrastructure. 4. Focus on patient room connectivity and dining areas suggests a patient-centric design approach.

Value Assessment

Rating: fair

The contract value of $15.3M for 28,200 sq ft of renovation and new construction appears to be within a reasonable range for healthcare facility upgrades, though specific benchmarks for SCI ward renovations are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method might impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential upgrades to veteran healthcare facilities, aiming for improved patient outcomes and infrastructure modernization.

Public Impact

Enhances healthcare services for veterans requiring specialized SCI ward care. Modernizes aging VA infrastructure, potentially improving patient comfort and safety. Supports local construction jobs and economic activity in Virginia. Addresses critical needs for patient room connectivity and improved dining facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price.
Potential for cost overruns in complex renovation and new construction projects.
Project duration of 550 days could be subject to delays.

Positive Signals

Addresses critical need for improved veteran healthcare facilities.
Investment in modernizing healthcare infrastructure.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Spending in this sector is driven by infrastructure needs, modernization efforts, and healthcare demand.

Small Business Impact

The contract was awarded to Birmingham Industrial Construction, LLC. Information regarding their small business status or subcontracting plans is not provided in the data, making it difficult to assess small business impact.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The firm fixed price structure provides some level of cost control, but ongoing monitoring will be crucial for schedule adherence and quality.

Related Government Programs

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

Risk Flags

Limited competition.
Potential for unforeseen conditions in renovation.
Project duration and potential for delays.
Integration of new construction with existing facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.4 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. RENOVATION OF APPROXIMATELY 25,000 SQ FT OF EXISTING SCI WARD IN BUILDING 137C AND APPROXIMATELY 3,200 SQ FT OF NEW CONSTRUCTION ATTACHED TO EXISTING BUILDINGS. ONCE COMPLETED AREA WILL CONTAIN BEDROOMS AND CONNECT PATIENT ROOMS WITH DINING AREA.

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL 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 $15.4 million.

What is the period of performance?

Start: 2025-09-26. End: 2027-03-30.

What is the specific cost per square foot for the renovation and new construction, and how does it compare to industry benchmarks for similar healthcare facilities?

The total contract value is $15,355,347 for approximately 28,200 square feet (25,000 sq ft renovation + 3,200 sq ft new construction). This yields a blended cost of roughly $544 per square foot. Benchmarks for healthcare construction vary widely based on complexity, location, and specific requirements, but this figure appears to be within a plausible range for specialized medical facility work.

What are the primary risks associated with renovating existing SCI wards and adding new construction, and what mitigation strategies are in place?

Key risks include unforeseen structural issues during renovation, potential disruption to ongoing hospital operations, and integration challenges between new and existing structures. Mitigation strategies likely involve thorough site assessments, phased construction schedules to minimize operational impact, and robust project management oversight to address integration complexities and ensure compliance with healthcare standards.

How will the completed facility improvements directly impact patient care and the effectiveness of SCI ward services?

The renovation and new construction are designed to create a more functional and patient-centered environment. Improved layouts, better connectivity between patient rooms and common areas like dining, and potentially updated medical infrastructure are expected to enhance patient comfort, safety, and the overall effectiveness of care delivery for individuals with SCI, facilitating better rehabilitation and quality of life.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77625B0046

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, 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: $15,355,347

Exercised Options: $15,355,347

Current Obligation: $15,355,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline