VA awards $59.25M contract for community outpatient clinic construction to Manhattan Construction

Contract Overview

Contract Amount: $59,250,565 ($59.3M)

Contractor: Manhattan Construction (florida) LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-09-29

End Date: 2013-11-16

Contract Duration: 1,509 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF COMMUNITY BASED OUTPATIENT CLINIC

Place of Performance

Location: CAPE CORAL, LEE County, FLORIDA, 33904

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $59.3 million to MANHATTAN CONSTRUCTION (FLORIDA) LLC for work described as: CONSTRUCTION OF COMMUNITY BASED OUTPATIENT CLINIC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $59.25 million falls within a typical range for large-scale construction projects. 3. The duration of 1509 days indicates a substantial and complex construction undertaking. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The project is located in Florida, potentially impacting local construction labor markets. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $59.25 million for the construction of a community-based outpatient clinic appears reasonable for a project of this scale and duration. Benchmarking against similar VA construction projects would provide a more precise value-for-money assessment. The firm fixed-price contract type generally offers good value by capping costs for the government, provided the initial scope is well-defined.

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 a bid. With 10 bidders, the competition level suggests a robust market response. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans in the region will benefit from improved access to healthcare services through the new outpatient clinic. The construction project will deliver a new healthcare facility, enhancing the VA's infrastructure. The geographic impact is primarily focused on Florida, where the clinic will be built. The project will likely create jobs for construction workers and related trades in the local Florida economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in large construction projects, which could increase costs if not managed effectively.
Delays in construction timelines can impact the availability of services for veterans.
Ensuring the quality of construction meets VA standards is crucial for long-term facility performance.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the government.
Awarding to a contractor with a demonstrated track record in construction can mitigate performance risks.
The project's focus on healthcare infrastructure directly supports the VA's mission to serve veterans.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for healthcare facility construction is significant, driven by ongoing demand for new and updated medical infrastructure. The VA is a major client in this space, frequently awarding contracts for clinics and hospitals. Comparable spending benchmarks would involve analyzing other large-scale healthcare construction projects awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor is not a small business. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation was a requirement or if opportunities were available through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports may not be publicly available.

Related Government Programs

VA Medical Facility Construction
Federal Healthcare Infrastructure Projects
Department of Veterans Affairs Capital Investments
Large-Scale Commercial Building Contracts

Risk Flags

Long contract duration may increase risk of cost escalation.
Potential for scope creep in large construction projects.
Need for robust oversight to ensure quality and timely delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $59.3 million to MANHATTAN CONSTRUCTION (FLORIDA) LLC. CONSTRUCTION OF COMMUNITY BASED OUTPATIENT CLINIC

Who is the contractor on this award?

The obligated recipient is MANHATTAN CONSTRUCTION (FLORIDA) 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 $59.3 million.

What is the period of performance?

Start: 2009-09-29. End: 2013-11-16.

What is the track record of Manhattan Construction (Florida) LLC with the Department of Veterans Affairs?

Manhattan Construction (Florida) LLC has a history of performing work for the federal government, including the Department of Veterans Affairs. Analyzing their past performance on similar VA projects, such as clinic constructions or renovations, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of past performance evaluations and any contract disputes or awards would be beneficial. Their experience with firm fixed-price contracts and large-scale projects is also a key factor in assessing their suitability for this specific award.

How does the awarded amount compare to similar VA outpatient clinic construction projects?

The $59.25 million award for this community-based outpatient clinic construction needs to be benchmarked against similar projects to assess value for money. Factors such as the size of the facility (square footage), complexity of services offered, geographic location (which impacts labor and material costs), and the specific year of award are crucial for a fair comparison. For instance, if similar-sized clinics in comparable regions were built for significantly less, it might raise questions about the pricing. Conversely, if the scope is more extensive or the location is high-cost, the award might be justified. A detailed analysis of the contract's scope of work against comparable projects is necessary.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price construction contract lie in potential cost overruns if the contractor miscalculates expenses, unforeseen site conditions, or significant changes in material costs that are not adequately accounted for in the contract's contingency. While the fixed price shifts financial risk to the contractor, the government faces risks related to potential delays if the contractor struggles to manage costs or resources, and the possibility of lower quality if the contractor attempts to cut corners to maintain profitability. Effective project management and oversight by the VA are critical to mitigating these risks.

How effective is the full and open competition process in ensuring competitive pricing for VA construction projects?

The full and open competition process is generally considered highly effective in ensuring competitive pricing for VA construction projects. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing to win the contract. The presence of 10 bidders in this specific case suggests a healthy level of competition, which typically leads to prices that reflect market rates and reduce the likelihood of excessive costs. This process also promotes transparency and fairness in federal contracting.

What are the historical spending patterns for community-based outpatient clinic construction by the VA?

Historical spending patterns for VA community-based outpatient clinic (CBOC) construction reveal a consistent and significant investment in expanding healthcare access for veterans. The VA has historically awarded numerous contracts for the construction, renovation, and expansion of CBOCs across the country. Spending in this category can fluctuate based on congressional appropriations, healthcare demand, and strategic priorities for veteran care. Analyzing past spending data would show trends in contract values, average project durations, and the geographic distribution of these investments, indicating the scale and ongoing commitment to this type of infrastructure.

What are the implications of the 1509-day contract duration on project delivery and cost?

A contract duration of 1509 days (approximately 4.1 years) for a construction project of this magnitude implies a complex undertaking with significant planning, execution, and oversight requirements. Such a long duration can increase the risk of cost escalation due to inflation in labor and material prices, especially if the contract does not have adequate escalation clauses. It also means that the benefits of the new clinic will be delayed for veterans. However, a longer duration might be necessary for large, intricate projects to ensure quality and thoroughness, and it can allow for more phased construction or integration of complex systems. Effective project management is crucial to keep such long-term projects on track.

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-101-09-RP-0181

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rooney Holdings, Inc. (UEI: 107125957)

Address: 3520 KRAFT RD, NAPLES, FL, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,260,579

Exercised Options: $59,260,488

Current Obligation: $59,250,565

Timeline