VA awards $14.7M contract for patient ward modernization at Atlanta VA Medical Center

Contract Overview

Contract Amount: $14,722,198 ($14.7M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-03-30

End Date: 2012-04-18

Contract Duration: 1,115 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MODERNIZE PATIENT WARDS ON FLOORS 7,8, AND 10

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.7 million to BRASFIELD & GORRIE LLC for work described as: MODERNIZE PATIENT WARDS ON FLOORS 7,8, AND 10 Key points: 1. Contract awarded for modernization of patient wards, indicating investment in healthcare infrastructure. 2. The contract was awarded using full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price structure aims to control costs and provide predictability. 4. The project duration spans over three years, requiring sustained contractor performance. 5. The contractor, Brasfield & Gorrie LLC, has experience in large-scale construction projects. 6. The award is part of the Department of Veterans Affairs' broader efforts to upgrade medical facilities.

Value Assessment

Rating: good

The contract value of $14.7 million for modernizing three patient floors appears reasonable for a project of this scope and duration. Benchmarking against similar healthcare facility renovation projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control. However, without detailed cost breakdowns or comparisons to similar projects, a definitive assessment of exceptional value is difficult.

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 presence of 10 bids suggests a healthy level of competition for this project. A competitive bidding process generally leads to better price discovery and encourages contractors to offer their most competitive terms and pricing to win the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final award price, ensuring that federal funds are used more efficiently for the modernization of VA facilities.

Public Impact

Veterans receiving care at the Atlanta VA Medical Center will benefit from improved and modernized patient wards. The project delivers essential upgrades to healthcare infrastructure, enhancing the quality of medical services. The geographic impact is focused on the Atlanta, Georgia area, serving the veteran population in that region. The construction activities will likely involve a workforce of skilled tradespeople and construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting patient care continuity.
Ensuring adherence to strict healthcare facility construction standards and regulations.
Managing the logistical challenges of renovating occupied hospital floors.

Positive Signals

Contractor has experience in large-scale construction, suggesting capability to manage the project.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in a competitive price.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facilities. The market for healthcare construction is substantial, driven by the need to upgrade aging infrastructure and adopt new medical technologies. This project represents a typical investment by a federal agency in maintaining and improving its operational facilities, aligning with broader trends in public infrastructure spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting goals would be necessary to fully assess the impact.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight would typically involve contract administration, performance monitoring, and quality assurance to ensure the project is completed according to specifications and timelines. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Modernization Projects
Federal Healthcare Construction Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of disruption to ongoing medical services during construction.
Ensuring compliance with evolving healthcare building codes and standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.7 million to BRASFIELD & GORRIE LLC. MODERNIZE PATIENT WARDS ON FLOORS 7,8, AND 10

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE 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 $14.7 million.

What is the period of performance?

Start: 2009-03-30. End: 2012-04-18.

What is the track record of Brasfield & Gorrie LLC with the Department of Veterans Affairs?

Brasfield & Gorrie LLC has a history of working with the Department of Veterans Affairs on various construction projects. While this specific contract for patient ward modernization is a significant award, the company's broader experience in large-scale construction, including healthcare facilities, suggests a capacity to handle complex government contracts. A detailed review of their past performance with the VA, including any past performance evaluations or disputes, would provide a more comprehensive understanding of their reliability and quality of work for this specific agency.

How does the $14.7 million award compare to similar patient ward modernization projects within the VA or other federal agencies?

Benchmarking the $14.7 million award requires comparing it to similar projects in terms of scope (number of floors, square footage), complexity (type of renovations, required medical infrastructure), and geographic location. Projects involving the modernization of occupied hospital floors often incur higher costs due to logistical challenges and infection control requirements. Without specific comparable project data, it's challenging to definitively state if this award represents exceptional value. However, given the firm-fixed-price nature and competitive bidding, it suggests a reasonable market-driven price point for the described scope of work.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential construction delays due to unforeseen site conditions, adherence to stringent healthcare facility regulations, and managing the disruption to ongoing hospital operations. Mitigation strategies likely involve detailed project planning, robust quality control measures, strict infection control protocols, and close coordination between the contractor and the VA medical center staff. The firm-fixed-price contract also shifts some financial risk to the contractor, incentivizing timely and cost-effective completion.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For a project like patient ward modernization, where the requirements can be clearly specified, FFP provides cost certainty to the government and incentivizes the contractor to manage costs efficiently to maximize profit. This structure minimizes the risk of cost overruns for the government, making it a favorable choice for projects where predictability is paramount.

What is the historical spending pattern for patient ward modernization at the Atlanta VA Medical Center or similar facilities?

Analyzing historical spending patterns for patient ward modernization at the Atlanta VA Medical Center or similar facilities would require access to historical contract data. This would involve looking at previous awards for renovations, upgrades, or new construction of patient care areas within the VA system. Understanding past investments can help contextualize the current $14.7 million award, revealing trends in project scale, cost per square foot, and frequency of such upgrades. Without this specific historical data, it's difficult to assess if this award is an outlier or part of a consistent investment strategy.

What are the implications of awarding this contract under full and open competition for the VA's procurement strategy?

Awarding this contract under full and open competition signifies the VA's commitment to maximizing competition and achieving the best possible value for taxpayer dollars. This approach allows a wide range of qualified contractors to bid, fostering innovation and driving down prices. It also ensures transparency and fairness in the procurement process. For the VA, it means they are likely to receive competitive bids from capable firms, increasing the probability of selecting a contractor that offers both high quality and cost-effectiveness for critical infrastructure projects like hospital modernization.

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

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE SOUTH, BIRMINGHAM, AL, 90

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

Financial Breakdown

Contract Ceiling: $14,722,198

Exercised Options: $14,722,198

Current Obligation: $14,722,198

Contract Characteristics

Cost or Pricing Data: NO

Timeline