VA awards $79.3M for Denver Medical Facility Design, highlighting architectural services competition

Contract Overview

Contract Amount: $79,307,602 ($79.3M)

Contractor: H&l-Som-Cra-Sam a Joint Venture

Awarding Agency: Department of Veterans Affairs

Start Date: 2006-01-11

End Date: 2015-12-31

Contract Duration: 3,641 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROFESSIONAL SERVICES TO VERIFY AND ESTABLISH PLANNING PARAMETERS FOR THE DEVELOPMENT OF THE DESIGN SCOPE OF WORK FOR THE NEW VA DENVER MEDICAL FACILITY

Place of Performance

Location: ARVADA, JEFFERSON County, COLORADO, 80001

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $79.3 million to H&L-SOM-CRA-SAM A JOINT VENTURE for work described as: PROFESSIONAL SERVICES TO VERIFY AND ESTABLISH PLANNING PARAMETERS FOR THE DEVELOPMENT OF THE DESIGN SCOPE OF WORK FOR THE NEW VA DENVER MEDICAL FACILITY Key points: 1. Contract value of $79.3M for architectural services indicates significant investment in facility planning. 2. Full and open competition suggests a robust market for these specialized services. 3. Long contract duration of over 10 years may imply complex project phasing or evolving requirements. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The contract's focus on planning parameters and design scope underscores its foundational role in the project lifecycle. 6. The award to a joint venture suggests a need for combined expertise to meet project demands.

Value Assessment

Rating: good

The contract value of $79.3 million for architectural services is substantial, reflecting the complexity of planning for a new medical facility. Benchmarking against similar large-scale healthcare design projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract provides a degree of cost control. The long performance period suggests that the pricing reflects a multi-year commitment, potentially with escalation clauses or phased payments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple firms were eligible to bid. The presence of 10 bids suggests a healthy level of interest and competition within the architectural services market for large federal projects. This competitive environment is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality proposals.

Public Impact

Veterans in the Denver area will ultimately benefit from the development of a new, modern medical facility. The contract delivers essential architectural and planning services crucial for the successful execution of the facility. The geographic impact is concentrated in Denver, Colorado, addressing local healthcare infrastructure needs. The contract supports a workforce of architects, engineers, and related professionals involved in the design and planning phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) could lead to scope creep or cost overruns if not managed effectively.
Potential for changes in design requirements over an extended period, impacting initial cost estimates.
Reliance on a joint venture might introduce coordination challenges between partners.

Positive Signals

Firm Fixed Price contract type offers budget predictability.
Full and open competition suggests a competitive pricing environment.
The contract is for foundational planning and design, crucial for project success.

Sector Analysis

This contract falls within the Architectural Services sector (NAICS 541310), a critical component of the broader Construction and Engineering industry. The market for large-scale federal facility design is often characterized by specialized firms capable of handling complex requirements and extensive regulatory compliance. Spending in this area is driven by the need for infrastructure upgrades and new facility development across various government agencies. Comparable spending benchmarks would typically involve analyzing other major medical facility design contracts awarded by agencies like the VA, DoD, or GSA.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is a joint venture, it is unclear if small businesses are involved as subcontractors. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms and performance requirements. Transparency is generally facilitated through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA New Construction Projects
Federal Healthcare Facility Design
Architectural and Engineering Services
Major Medical Facility Planning

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Complexity of medical facility design requires specialized expertise.
Potential for changes in healthcare needs or technology over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79.3 million to H&L-SOM-CRA-SAM A JOINT VENTURE. PROFESSIONAL SERVICES TO VERIFY AND ESTABLISH PLANNING PARAMETERS FOR THE DEVELOPMENT OF THE DESIGN SCOPE OF WORK FOR THE NEW VA DENVER MEDICAL FACILITY

Who is the contractor on this award?

The obligated recipient is H&L-SOM-CRA-SAM A JOINT VENTURE.

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 $79.3 million.

What is the period of performance?

Start: 2006-01-11. End: 2015-12-31.

What is the track record of H&L-SOM-CRA-SAM A JOINT VENTURE on similar federal contracts?

Information regarding the specific track record of the joint venture 'H&L-SOM-CRA-SAM A JOINT VENTURE' on similar federal contracts is not directly available in the provided data. To assess their performance, one would typically need to consult contract databases (like FPDS-NG) to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. The joint venture structure itself suggests a collaboration, so understanding the individual track records of its constituent members (H&L, SOM, CRA, SAM) would also be crucial. Their experience with large-scale medical facility design and planning would be a key indicator of their capability for this specific VA project.

How does the $79.3M contract value compare to similar VA medical facility design projects?

The $79.3 million contract value for architectural services for the new VA Denver Medical Facility is substantial, reflecting the scale and complexity of planning for a major healthcare infrastructure project. To benchmark this value, one would compare it against the total contract values for architectural and engineering (A&E) design services for other large VA medical centers or similar healthcare facilities constructed or planned in recent years. Factors such as facility size (square footage), scope of services (e.g., preliminary design, full construction documents, specialized medical equipment planning), and geographic location (which can influence labor and material costs) would need to be considered for a fair comparison. Without specific data on comparable projects, it's difficult to definitively state if this represents excellent, fair, or questionable value, but the amount suggests a significant investment.

What are the primary risks associated with a firm fixed-price contract for a project spanning over 10 years?

The primary risks associated with a firm fixed-price (FFP) contract for a project spanning over 10 years, such as the VA Denver Medical Facility design, revolve around potential changes in scope, unforeseen market fluctuations, and the contractor's ability to maintain performance over an extended period. For the government, the risk is that the fixed price may become uncompetitive if market conditions change significantly or if the initial scope is underestimated. For the contractor, the risk is bearing the brunt of cost increases (labor, materials, inflation) or encountering unforeseen technical challenges without corresponding price adjustments. Effective risk mitigation requires robust contract management, clear change order procedures, and potentially incorporating economic price adjustment clauses if allowed by regulation for such long durations.

How effective is full and open competition in ensuring cost-effectiveness for specialized architectural services?

Full and open competition is generally considered the most effective method for ensuring cost-effectiveness when procuring specialized architectural services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing. This process encourages firms to propose their best value solutions to win the contract. In the case of the VA Denver Medical Facility design, the 10 bids received indicate a robust competitive environment, which should theoretically drive down costs and encourage innovation. However, the effectiveness also depends on the clarity of the solicitation requirements and the government's ability to accurately evaluate the technical and cost proposals.

What are the historical spending patterns for architectural services by the Department of Veterans Affairs?

Historical spending patterns for architectural services by the Department of Veterans Affairs (VA) typically show significant investment in facility design and upgrades to meet the healthcare needs of veterans. The VA consistently ranks among the top federal agencies for construction and related professional services spending. Annual outlays for architectural and engineering (A&E) services can fluctuate based on the agency's capital investment plans, the backlog of facility maintenance and modernization needs, and the initiation of new major construction projects, like the Denver Medical Facility. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract types, competition levels, and average contract values for VA architectural services over time.

What are the implications of the 'DEFINITIVE CONTRACT' award type for this project?

A 'Definitive Contract' is a standard, fully funded contract with a fixed price and delivery schedule, as opposed to an 'Indefinite-Delivery/Indefinite-Quantity' (IDIQ) contract. For this project, awarding a definitive contract means the full scope of work, estimated cost ($79.3M), and completion date (Dec 31, 2015) were established at the time of award. This provides a clear commitment from the government and the contractor. It implies that the requirements were well-defined and stable enough to be priced and scheduled upfront. This contrasts with IDIQ contracts, which are used when the exact quantity or timing of services is uncertain and allow for task orders to be issued over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1621 18TH ST STE 110, DENVER, CO, 80202

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $101,068,206

Exercised Options: $101,068,206

Current Obligation: $79,307,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline