VA Awards $40.6M Contract for San Juan Medical Center Administration Building to Walsh Construction
Contract Overview
Contract Amount: $40,586,841 ($40.6M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2009-09-24
End Date: 2014-11-18
Contract Duration: 1,881 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCT NEW 143,046 GSF 6-STORY ADMINISTRATION BUILDING ADJACENT TO THE WEST SIDE OF THE EXISTING VA MEDICAL CENTER, SAN JUAN, PR
Place of Performance
Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00936
Plain-Language Summary
Department of Veterans Affairs obligated $40.6 million to WALSH CONSTRUCTION COMPANY for work described as: CONSTRUCT NEW 143,046 GSF 6-STORY ADMINISTRATION BUILDING ADJACENT TO THE WEST SIDE OF THE EXISTING VA MEDICAL CENTER, SAN JUAN, PR Key points: 1. The contract awarded to Walsh Construction Company for $40.6 million covers the construction of a new administration building. 2. The project is located in San Juan, Puerto Rico, adjacent to an existing VA Medical Center. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The building is specified as 143,046 GSF and 6 stories high, indicating a significant infrastructure investment.
Value Assessment
Rating: good
The final award amount of $40.6 million appears reasonable for a 143,046 GSF, 6-story administration building in Puerto Rico. Benchmarking against similar government construction projects of this scale and type would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest possible range of bidders and promotes competitive pricing. This method likely resulted in a fair market price discovery for the construction services.
Taxpayer Impact: Taxpayer funds are being used for this project, with the expectation of receiving value for money through the competitive procurement process.
Public Impact
Improved administrative facilities for the VA Medical Center in San Juan. Potential job creation during the construction phase in Puerto Rico. Enhanced operational capacity for the VA's services in the region. Long-term infrastructure development for federal government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in construction projects.
- Delays in project completion impacting operational readiness.
- Weather-related risks specific to Puerto Rico.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can limit cost uncertainty.
- Experienced contractor (Walsh Construction Company) likely involved.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this sector is substantial, driven by the need for new facilities and upgrades to existing infrastructure across various agencies.
Small Business Impact
The data indicates that Walsh Construction Company, a large firm, was awarded the contract. There is no explicit information on small business participation or subcontracting in the provided data, which warrants further investigation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this project. Standard government oversight mechanisms for construction projects, including site inspections and progress reporting, would be in place to ensure compliance and quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for construction delays.
- Cost overruns beyond the fixed price (if scope changes).
- Weather-related risks in Puerto Rico.
- Supply chain disruptions impacting material availability.
- Ensuring adequate small business subcontracting.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, pr, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $40.6 million to WALSH CONSTRUCTION COMPANY. CONSTRUCT NEW 143,046 GSF 6-STORY ADMINISTRATION BUILDING ADJACENT TO THE WEST SIDE OF THE EXISTING VA MEDICAL CENTER, SAN JUAN, PR
Who is the contractor on this award?
The obligated recipient is WALSH CONSTRUCTION COMPANY.
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 $40.6 million.
What is the period of performance?
Start: 2009-09-24. End: 2014-11-18.
What was the initial estimated cost versus the final awarded cost, and what factors contributed to any difference?
The provided data does not include the initial estimated cost. Analyzing the difference between the estimate and the final award of $40.6 million would reveal potential efficiencies or unforeseen challenges during the bidding process. Understanding these factors is crucial for assessing the agency's cost estimation accuracy and the effectiveness of the procurement strategy.
What are the specific risks associated with constructing a large building in Puerto Rico, and how were they mitigated?
Construction in Puerto Rico can face risks such as hurricanes, seismic activity, and supply chain disruptions. Mitigation strategies might include robust building codes, specialized insurance, and contingency planning for materials and labor. The contract's duration and firm fixed price suggest these risks were considered and factored into the pricing.
How does the final cost per square foot compare to similar federal building construction projects in similar geographic regions?
Without specific cost-per-square-foot data and comparable project benchmarks, a precise assessment is difficult. However, $40.6 million for 143,046 GSF equates to approximately $284 per square foot. This figure needs to be compared against regional construction costs and federal building standards to determine its value.
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-0180
Offers Received: 17
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929 W ADAMS ST, CHICAGO, IL, 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: $40,586,841
Exercised Options: $40,586,841
Current Obligation: $40,586,841
Timeline
Start Date: 2009-09-24
Current End Date: 2014-11-18
Potential End Date: 2014-11-18 00:00:00
Last Modified: 2013-12-12
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