VA Spends $399M on Nevada Healthcare Center Construction, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $398,932,679 ($398.9M)
Contractor: Clark/Hunt, a Joint Venture-Nevada
Awarding Agency: Department of Veterans Affairs
Start Date: 2008-09-23
End Date: 2018-09-30
Contract Duration: 3,659 days
Daily Burn Rate: $109.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF NEW VA SOUTHERN NEVADA HEALTHCARE SYSTEM MEDICAL CENTER PHASE IV.
Place of Performance
Location: THE LAKES, CLARK County, NEVADA, 88901
State: Nevada Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $398.9 million to CLARK/HUNT, A JOINT VENTURE-NEVADA for work described as: CONSTRUCTION OF NEW VA SOUTHERN NEVADA HEALTHCARE SYSTEM MEDICAL CENTER PHASE IV. Key points: 1. The project involved the construction of a new VA healthcare facility in Southern Nevada. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The project duration was substantial, spanning nearly 10 years from award to completion. 5. No small business participation was reported for this large-scale construction project.
Value Assessment
Rating: fair
The final cost of $398.9 million for the VA Southern Nevada Healthcare System Medical Center Phase IV appears high, especially considering the nearly 10-year duration. Benchmarking against similar large-scale healthcare construction projects would be necessary to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The significant expenditure of nearly $400 million represents a substantial investment of taxpayer funds for a critical healthcare infrastructure project.
Public Impact
Improved healthcare access for veterans in Southern Nevada. Creation of jobs during the extended construction period. Potential for long-term economic impact in the region. Ensures modern medical facilities for veteran care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended project duration (nearly 10 years).
- High total contract value.
- Lack of small business participation.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Large-scale healthcare facility construction is a significant segment, often involving complex requirements and substantial investment, with costs varying widely based on location, scope, and specialized medical equipment integration.
Small Business Impact
The data indicates no small business participation in this contract. For a project of this magnitude, it is common for prime contractors to be large firms, but subcontracting opportunities for small businesses are often sought.
Oversight & Accountability
The Department of Veterans Affairs managed this contract. Oversight would focus on ensuring construction quality, adherence to timelines (despite the long duration), and budget management throughout the project lifecycle.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Extended project duration.
- High total contract value.
- Lack of small business participation.
- Potential for cost overruns due to long timeline.
- Complexity of healthcare facility construction.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, nv, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $398.9 million to CLARK/HUNT, A JOINT VENTURE-NEVADA. CONSTRUCTION OF NEW VA SOUTHERN NEVADA HEALTHCARE SYSTEM MEDICAL CENTER PHASE IV.
Who is the contractor on this award?
The obligated recipient is CLARK/HUNT, A JOINT VENTURE-NEVADA.
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 $398.9 million.
What is the period of performance?
Start: 2008-09-23. End: 2018-09-30.
What factors contributed to the nearly 10-year duration from award to completion for this construction project?
The extended duration could be attributed to various factors including initial planning complexities, design changes, unforeseen site conditions, phased construction requirements, funding availability over multiple fiscal years, and potential contractor performance issues. A detailed project history review would be needed to pinpoint the exact causes.
How does the final cost compare to initial estimates and similar projects, considering the long timeline?
Without initial estimates or comparable project data, a direct cost comparison is difficult. However, the $399 million cost for a large medical center is substantial. The extended timeline likely increased costs due to inflation, extended labor, and potential financing charges, making a benchmark analysis crucial for value assessment.
What is the long-term operational and maintenance cost implication of this new facility for the VA?
The operational and maintenance costs will be significant, encompassing staffing, utilities, equipment upkeep, and building maintenance. While the construction cost is a one-time capital expense, the long-term financial commitment for running a modern healthcare facility needs careful budgeting and planning by the VA.
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: VA-101-08-RP-0046
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4840 W UNIVERSITY AVE STE A3, LAS VEGAS, NV, 89103
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $399,213,278
Exercised Options: $399,213,275
Current Obligation: $398,932,679
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-09-23
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-07-09
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