VA Outpatient Clinic Construction Project in Ohio Awarded for $89.8 Million

Contract Overview

Contract Amount: $89,853,719 ($89.9M)

Contractor: Walsh Construction Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2005-07-28

End Date: 2010-05-31

Contract Duration: 1,768 days

Daily Burn Rate: $50.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE NEW OUTPATIENT CLINIC WILL REPLACE THE EXISTING CHALMERS P. WYLIE VA OUTPATIENT CLINIC. THE NEW OPC IS TO BE A NEW 295,000 SQ. FT. OUTPATIENT CLINIC LOCATED ON 20 ACRES OF THE DEFENSE SUPPLY CENTER IN COLUMBUS, OHIO. THE NEW CLINIC WILL INCLUDE SERVICES FOR HUMAN RESOURCES, NURSING ADMINISTRATION, RADIOLOGY, ENGINEERING, OUTPATIENT PHARMACY, OUTPATIENT SURGERY, PHARMACY, EEG, PATHOLOGY AND LABORATORY, PHYSICAL MEDICINE, REHABILITATION, PROSTHETICS AND MEDICAL ADMINISTRATION SERVICES. THE PROJECT WILL ALSO INCLUDE SURFACE PARKING, NECESSARY UTILITIES, SITE WORK AND LANDSCAPING.

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43219

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $89.9 million to WALSH CONSTRUCTION COMPANY for work described as: THE NEW OUTPATIENT CLINIC WILL REPLACE THE EXISTING CHALMERS P. WYLIE VA OUTPATIENT CLINIC. THE NEW OPC IS TO BE A NEW 295,000 SQ. FT. OUTPATIENT CLINIC LOCATED ON 20 ACRES OF THE DEFENSE SUPPLY CENTER IN COLUMBUS, OHIO. THE NEW CLINIC WILL INCLUDE SERVICES FOR HUMAN RESOURCES,… Key points: 1. The project involves constructing a new 295,000 sq. ft. outpatient clinic to replace an existing facility. 2. Walsh Construction Company was awarded the contract under full and open competition. 3. The project is categorized under Commercial and Institutional Building Construction. 4. The contract type is Firm Fixed Price, indicating a defined cost for the government. 5. The project duration is 1768 days, spanning from July 2005 to May 2010.

Value Assessment

Rating: good

The contract value of $89.8 million for a 295,000 sq. ft. facility appears reasonable for a large-scale construction project of this nature. Benchmarking against similar government or private sector healthcare construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. This method typically leads to better price discovery and value for the government.

Taxpayer Impact: The use of full and open competition is expected to have resulted in a fair market price, maximizing the value of taxpayer funds allocated to this essential healthcare infrastructure.

Public Impact

Improved healthcare access for veterans in the Columbus, Ohio area. Modernization of VA medical facilities to enhance service delivery. Potential for job creation during the construction phase. Replacement of an aging outpatient clinic with a new, larger facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration significantly exceeds typical construction timelines.
No indication of small business participation.
Lack of specific cost breakdowns for different project components.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.
Project addresses a clear need for improved veteran healthcare services.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Construction costs can vary widely based on location, size, complexity, and materials. The awarded amount of $89.8 million for a 295,000 sq. ft. clinic suggests a cost of approximately $304 per square foot.

Small Business Impact

The provided data does not indicate any specific provisions or awards made to small businesses for this project. Further investigation would be needed to determine if small business goals were set or met.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this project. The firm fixed price contract type offers a degree of cost control, but ongoing oversight is crucial to ensure quality, schedule adherence, and budget management.

Related Government Programs

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

Risk Flags

Extended project duration.
Lack of small business participation noted.
Potential for cost overruns if not managed tightly.
Complexity of constructing a large medical facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $89.9 million to WALSH CONSTRUCTION COMPANY. THE NEW OUTPATIENT CLINIC WILL REPLACE THE EXISTING CHALMERS P. WYLIE VA OUTPATIENT CLINIC. THE NEW OPC IS TO BE A NEW 295,000 SQ. FT. OUTPATIENT CLINIC LOCATED ON 20 ACRES OF THE DEFENSE SUPPLY CENTER IN COLUMBUS, OHIO. THE NEW CLINIC WILL INCLUDE SERVICES FOR HUMAN RESOURCES, NURSING ADMINISTRATION, RADIOLOGY, ENGINEERING, OUTPATIENT PHARMACY, OUTPATIENT SURGERY, PHARMACY, EEG, PATHOLOGY AND LABORATORY, PHYSICAL MEDICINE, REHABILITATION, PROSTHETICS AND MEDICAL ADMINISTRATION SERVICES. THE

Who is the contractor on this award?

The obligated recipient is WALSH CONSTRUCTION COMPANY.

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 $89.9 million.

What is the period of performance?

Start: 2005-07-28. End: 2010-05-31.

What was the rationale for the extended project duration of 1768 days?

The extended duration of 1768 days (approximately 4.8 years) for the outpatient clinic construction is significantly longer than typical large-scale building projects. Potential reasons could include phased construction, complex site preparation, extensive utility work, unforeseen environmental challenges, or specific VA operational requirements that dictated a prolonged timeline. Without further details, it is difficult to ascertain the precise justification for this extended schedule.

Were there any specific risk mitigation strategies employed given the project's scale and duration?

While the data indicates a firm fixed price contract, which shifts some cost risk to the contractor, the extended duration presents inherent risks such as material cost escalation, labor availability fluctuations, and potential design changes. It is crucial that the VA implemented robust project management and oversight to monitor progress, manage scope, and address any emerging issues promptly to mitigate these risks effectively.

How does the final cost compare to initial estimates for the outpatient clinic?

The provided data only includes the awarded contract value of $89.8 million. To assess the value for money, a comparison with the initial cost estimates, budget allocations, and potentially bids from other competitors would be necessary. Understanding the variance, if any, between estimates and the final award price is key to evaluating the effectiveness of the procurement process.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 502-AE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 929W W ADAMS ST, CHICAGO, IL, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,905,267

Exercised Options: $89,905,267

Current Obligation: $89,853,719

Timeline