VA awards $20.17M for Spinal Cord Injury Center Construction to Walsh Construction
Contract Overview
Contract Amount: $20,174,525 ($20.2M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2006-09-29
End Date: 2008-12-27
Contract Duration: 820 days
Daily Burn Rate: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF SPINAL CORD INJURY AND DISORDER CENTER
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55401
Plain-Language Summary
Department of Veterans Affairs obligated $20.2 million to WALSH CONSTRUCTION COMPANY for work described as: CONSTRUCTION OF SPINAL CORD INJURY AND DISORDER CENTER Key points: 1. Contract awarded for a significant construction project focused on specialized medical facilities. 2. Full and open competition was utilized, suggesting a broad market approach. 3. The project duration was 820 days, indicating a substantial undertaking. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor.
Value Assessment
Rating: good
The award amount of $20.17 million for a specialized medical center appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for healthcare facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value through a wide range of proposals.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing the value of taxpayer dollars spent on this critical facility.
Public Impact
Enhances healthcare infrastructure for veterans with spinal cord injuries. Supports specialized medical research and treatment capabilities. Creates jobs during the construction phase. Potential for long-term economic benefits in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Fixed price contract may limit flexibility for unforeseen issues.
Positive Signals
- Full and open competition.
- Clear project scope for specialized medical facility.
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. The $20.17 million award is a significant investment, typical for specialized healthcare infrastructure projects.
Small Business Impact
The data indicates that small businesses were not specifically targeted or did not win this contract, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of Veterans Affairs managed this procurement. Oversight would typically involve monitoring construction progress, adherence to specifications, and financial management to ensure project completion and taxpayer value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- No small business participation.
- Potential for contractor disputes due to fixed-price nature.
- Complexity of specialized medical facility construction.
- Long project duration increases exposure to market fluctuations.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, mn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $20.2 million to WALSH CONSTRUCTION COMPANY. CONSTRUCTION OF SPINAL CORD INJURY AND DISORDER CENTER
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 $20.2 million.
What is the period of performance?
Start: 2006-09-29. End: 2008-12-27.
What was the benchmark cost per square foot for similar specialized medical facility construction projects at the time of award?
Determining the benchmark cost per square foot would require access to detailed project specifications and comparable market data from 2006. Factors like specialized equipment, unique structural requirements, and regional labor costs significantly influence per-square-foot pricing in healthcare construction, making direct comparisons challenging without granular data.
What were the primary risks associated with the firm fixed-price contract for this project?
The primary risk with a firm fixed-price contract for a project of this scale is that the contractor bears the brunt of any cost overruns due to unforeseen issues, material price increases, or labor shortages. While this protects the government from budget escalation, it could lead to contractor disputes or quality compromises if the initial bid was too aggressive or if significant unexpected challenges arise during construction.
How effectively did the full and open competition process ensure value for money for this specialized facility?
Full and open competition is designed to maximize value by encouraging multiple bids, which typically drives down prices and improves quality. For this specialized facility, the effectiveness hinges on whether a sufficient number of qualified contractors participated and if the evaluation criteria adequately assessed technical capability alongside price. A robust competition likely secured a competitive price, but the ultimate value depends on the successful and timely completion of the facility to the required standards.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 101-06-0006
Offers Received: 3
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
Financial Breakdown
Contract Ceiling: $20,174,525
Exercised Options: $20,174,525
Current Obligation: $20,174,525
Timeline
Start Date: 2006-09-29
Current End Date: 2008-12-27
Potential End Date: 2008-12-27 00:00:00
Last Modified: 2008-10-29
More Contracts from Walsh Construction Company
- Construct Mental Health Inpatient Bldg 1 — $161.8M (Department of Defense)
- Recoveryproject#::5014::rp# Construction of the Noaa PRC AT Ford Island, Pearl Harbor, HI. the Work to BE Performed Provides for and Involves Adaptive Reuse of Historic Hangars and NEW Construction on an Historic Landmark Site. the Diverse Program Includes Marine Biology Laboratories, National Data Cneter, Dive Center, International Tsunami Information Center, Pacific Tsunami Warning Center, National Weather Service and Administrative Functions. Project Includes Site Work, Hazardous Material Abatement Work and Incidental Related Work — $158.2M (Department of Defense)
- Replace Family Housing Wafb — $137.4M (Department of Defense)
- 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 — $89.9M (Department of Veterans Affairs)
- General Construction of a NEW BED Tower Building for the VA Westside Medical Center and the Renovation of Building 1 — $86.4M (Department of Veterans Affairs)
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)