VA Healthcare System Friendship House Replacement Contract Awarded for $8.8M to Venergy Group LLC

Contract Overview

Contract Amount: $8,826,372 ($8.8M)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-18

End Date: 2027-06-18

Contract Duration: 547 days

Daily Burn Rate: $16.1K/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: OKLAHOMA CITY VA HEALTHCARE SYSTEM FRIENDSHIP HOUSE REPLACEMENT

Place of Performance

Location: FORT PIERCE, SAINT LUCIE County, FLORIDA, 34951

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.8 million to VENERGY GROUP LLC for work described as: OKLAHOMA CITY VA HEALTHCARE SYSTEM FRIENDSHIP HOUSE REPLACEMENT Key points: 1. Contract awarded for a significant healthcare infrastructure project. 2. Competition method indicates a move towards broader market engagement. 3. Fixed-price contract type aims to control costs. 4. Construction sector spending is a key area of focus.

Value Assessment

Rating: good

The contract value of $8.8M for a healthcare facility replacement appears reasonable given the scope. Benchmarking against similar VA construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting an initial limited approach that was later opened. This method can impact price discovery by potentially excluding some bidders initially.

Taxpayer Impact: The firm fixed-price structure is designed to protect taxpayers from cost overruns, ensuring the $8.8M award is the ceiling for this project.

Public Impact

Improved healthcare facilities for veterans in Oklahoma City. Potential for job creation during the construction phase. Modernized infrastructure to support veteran health services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method initially used.
Potential for scope creep in construction projects.
Dependence on a single contractor for project completion.

Positive Signals

Firm fixed-price contract for cost certainty.
Clear end date for project completion.
Awarded to a specific entity for a defined project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for infrastructure development and can be benchmarked against national averages for similar project types and scales.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability will be measured by the timely and successful completion of the Friendship House replacement within the awarded budget.

Related Government Programs

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

Risk Flags

Limited competition method.
Potential for construction delays.
Contract duration extends into 2027.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.8 million to VENERGY GROUP LLC. OKLAHOMA CITY VA HEALTHCARE SYSTEM FRIENDSHIP HOUSE REPLACEMENT

Who is the contractor on this award?

The obligated recipient is VENERGY GROUP 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 $8.8 million.

What is the period of performance?

Start: 2025-12-18. End: 2027-06-18.

What was the rationale for initially excluding sources before opening to full and open competition?

The rationale for initially excluding sources before opening to full and open competition is not explicitly stated in the provided data. Typically, such a decision might stem from specific technical requirements, prior relationships, or a phased approach to market research. Understanding this would clarify the procurement strategy and its potential impact on competition and pricing.

What are the key performance indicators for this construction project to ensure effectiveness?

Key performance indicators for this construction project would likely include adherence to the project schedule (547 days duration), meeting quality standards for the replacement facility, staying within the $8.8M firm fixed price, and ensuring the final structure meets all functional and safety requirements for healthcare operations. Post-occupancy evaluations would also gauge long-term effectiveness.

How does the $8.8M cost compare to similar VA healthcare facility replacement projects?

Without specific data on comparable VA healthcare facility replacement projects, a direct cost comparison is difficult. However, $8.8M for a replacement facility suggests a project of moderate scale. A thorough benchmark analysis against projects of similar size, complexity, and geographic location would be necessary to determine if this represents excellent, good, fair, or questionable value.

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: 36C77625B0042

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3130 SEMINOLE RD, FORT PIERCE, FL, 34951

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

Financial Breakdown

Contract Ceiling: $8,826,372

Exercised Options: $8,826,372

Current Obligation: $8,826,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline