VA awards $55.1M for San Diego VAMC seismic retrofitting to Clark Construction Group LLC

Contract Overview

Contract Amount: $55,120,587 ($55.1M)

Contractor: Clark Construction Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2005-09-29

End Date: 2008-04-07

Contract Duration: 921 days

Daily Burn Rate: $59.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE SEISMIC CORRECTION WORK ON THE 855,000 GSF MAIN HOSPITAL THAT INCLUDES GENERAL CONSTRUCTION AND ALTERATIONS FOR AN EXTRIOR SEISMIC RETROFIT INCLUDING NEW STAIR TOWERS AND EXTERIOR FINISHES AT THE VAMC, SAN DIEGO, CALIFORNIA.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $55.1 million to CLARK CONSTRUCTION GROUP LLC for work described as: CONSTRUCTION OF THE SEISMIC CORRECTION WORK ON THE 855,000 GSF MAIN HOSPITAL THAT INCLUDES GENERAL CONSTRUCTION AND ALTERATIONS FOR AN EXTRIOR SEISMIC RETROFIT INCLUDING NEW STAIR TOWERS AND EXTERIOR FINISHES AT THE VAMC, SAN DIEGO, CALIFORNIA. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The project involves significant structural upgrades to a large hospital facility. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of 921 days indicates a substantial construction timeline. 5. The award represents a significant investment in healthcare infrastructure resilience.

Value Assessment

Rating: good

The contract value of $55.1 million for seismic correction work on a 855,000 GSF hospital appears to be within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar large hospital renovation or new construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing cost certainty for defined scopes of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The VA sought proposals from a wide range of qualified construction firms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and better value by maximizing the pool of potential bidders and encouraging robust bidding.

Public Impact

Beneficiaries include veterans receiving care at the San Diego VAMC, ensuring their safety during seismic events. Services delivered include critical structural retrofitting and exterior alterations to enhance building safety. Geographic impact is concentrated in San Diego, California, improving local healthcare facility resilience. Workforce implications include employment opportunities for construction workers, engineers, and project managers in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting hospital operations.
Risk of cost overruns if unforeseen structural issues arise, despite fixed-price contract.
Ensuring compliance with all seismic safety standards and building codes.

Positive Signals

Enhances patient safety and continuity of care during seismic events.
Modernizes critical healthcare infrastructure for long-term reliability.
Award to a known entity like Clark Construction Group LLC may indicate a level of confidence in their capabilities.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale healthcare facility construction and renovation is substantial, driven by the need to maintain and upgrade aging infrastructure and meet evolving healthcare demands. Comparable spending benchmarks would involve analyzing other major hospital construction or seismic retrofit projects across federal and state agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. While Clark Construction Group LLC is a large entity, the subcontracting opportunities generated by this project could potentially benefit small businesses in the construction supply chain and specialized trades, depending on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring adherence to scope, schedule, and quality standards. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports from an Inspector General would depend on any identified issues or audits.

Related Government Programs

VA Capital Asset and Business Management
Federal Buildings and Facilities Construction
Healthcare Infrastructure Modernization Programs
Seismic Retrofitting Projects

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Ensuring minimal disruption to hospital operations during construction.
Compliance with stringent seismic building codes and VA facility standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $55.1 million to CLARK CONSTRUCTION GROUP LLC. CONSTRUCTION OF THE SEISMIC CORRECTION WORK ON THE 855,000 GSF MAIN HOSPITAL THAT INCLUDES GENERAL CONSTRUCTION AND ALTERATIONS FOR AN EXTRIOR SEISMIC RETROFIT INCLUDING NEW STAIR TOWERS AND EXTERIOR FINISHES AT THE VAMC, SAN DIEGO, CALIFORNIA.

Who is the contractor on this award?

The obligated recipient is CLARK CONSTRUCTION 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 $55.1 million.

What is the period of performance?

Start: 2005-09-29. End: 2008-04-07.

What is the track record of Clark Construction Group LLC on similar VA projects?

Clark Construction Group LLC has a significant track record in large-scale construction, including healthcare facilities. While specific VA project history requires deeper database analysis, their general experience with complex projects suggests a capacity to handle the scope of the San Diego VAMC seismic retrofitting. Reviewing past performance evaluations and any past performance issues on federal contracts would provide a clearer picture of their reliability and quality of work for the VA. Their portfolio often includes major hospital expansions, renovations, and infrastructure upgrades, indicating familiarity with the stringent requirements of healthcare construction.

How does the awarded amount compare to the initial estimated cost or budget for this project?

The provided data does not include the initial estimated cost or budget for this project, making a direct comparison impossible. The awarded amount of $55.1 million is the final contract value. To assess value for money, this figure would need to be compared against pre-solicitation estimates, bids received from other competitors, and potentially industry benchmarks for similar seismic retrofitting projects on large institutional buildings. Without this comparative data, it's difficult to definitively state if the award was significantly over or under budget.

What are the primary risks associated with this seismic retrofitting project?

The primary risks associated with this seismic retrofitting project include unforeseen structural complexities discovered during demolition or construction, potential delays due to weather or supply chain issues, and the inherent challenges of performing major construction on an operational hospital facility. Maintaining patient safety and minimizing disruption to ongoing medical services are critical risk mitigation factors. Furthermore, ensuring the retrofitting meets or exceeds current seismic codes and standards is paramount. The firm-fixed-price contract helps mitigate cost overrun risks for the government, but scope creep or significant unforeseen conditions could still pose challenges.

How effective are firm-fixed-price contracts in managing costs for large construction projects like this?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs in large construction projects when the scope of work is well-defined and risks are understood. They provide cost certainty for the buyer (the government) by establishing a ceiling price. The contractor assumes most of the risk for cost overruns. However, for complex projects like seismic retrofitting, where unforeseen conditions can arise, FFP contracts can sometimes lead contractors to build in higher contingencies, potentially increasing the initial price. Careful scope definition and robust change order management are crucial for FFP success in construction.

What is the historical spending trend for seismic retrofitting at VA facilities?

Historical spending trends for seismic retrofitting at VA facilities would require a detailed analysis of past VA capital improvement budgets and specific project awards over several fiscal years. The VA has a large portfolio of aging facilities, many located in seismically active zones, necessitating ongoing investment in structural upgrades. Spending in this area can fluctuate based on congressional appropriations, identified facility needs, and prioritization of projects. A comprehensive review would likely show a consistent, albeit potentially variable, allocation of funds towards ensuring the safety and resilience of its healthcare infrastructure against seismic threats.

What is the significance of the project's location in San Diego, California, regarding seismic risk?

San Diego, California, is located in a region with significant seismic risk due to its proximity to active fault lines, including the San Diego Trough fault and the Rose Canyon fault. The area experiences frequent seismic activity, making seismic retrofitting of critical infrastructure like hospitals a high priority. The construction of the seismic correction work at the VAMC is therefore a crucial measure to ensure the facility can withstand potential earthquakes and continue providing essential healthcare services to veterans in the event of a major seismic event. The investment reflects the recognized geological hazards of the region.

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: 506-AE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Enterprises, Inc. (UEI: 064862345)

Address: 7500 OLD GEORGETOWN RD, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,120,587

Exercised Options: $55,120,587

Current Obligation: $55,120,587

Timeline