VA's $109M Bay Pines facility construction contract awarded to Archer Western-Demaria JV, completed in 2017

Contract Overview

Contract Amount: $109,327,964 ($109.3M)

Contractor: Archer Western-Demaria JV 11

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-03-31

End Date: 2017-02-02

Contract Duration: 2,135 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF BAY PINES INPATIENT OUTPATIENT IMPROVEMENTS, MENTAL HEALTH ADDITION AT BAY PINE, VAMC, PROJECT NO. 516-005 OBLI# CO 516X10518

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $109.3 million to ARCHER WESTERN-DEMARIA JV 11 for work described as: CONSTRUCTION OF BAY PINES INPATIENT OUTPATIENT IMPROVEMENTS, MENTAL HEALTH ADDITION AT BAY PINE, VAMC, PROJECT NO. 516-005 OBLI# CO 516X10518 Key points: 1. The contract aimed to improve inpatient and outpatient facilities, including a mental health addition. 2. Awarded under full and open competition, suggesting a broad market search. 3. The project duration was substantial, spanning over 2000 days. 4. The final cost represents a significant investment in healthcare infrastructure for veterans. 5. The firm-fixed-price contract type likely aimed to control costs, though final expenditure is key. 6. The project's completion indicates a successful delivery of physical infrastructure improvements.

Value Assessment

Rating: fair

Benchmarking the value of this construction contract is challenging without detailed cost breakdowns and comparisons to similar healthcare facility projects. The total obligation of $109 million is substantial, reflecting the scale and complexity of building and improving inpatient and outpatient facilities, including a mental health addition. The firm-fixed-price structure suggests an attempt to cap costs, but the final expenditure needs to be assessed against initial estimates and the scope of work delivered. Without specific cost-per-square-foot data or comparisons to regional construction costs for similar facilities, a precise value-for-money assessment 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 the Department of Veterans Affairs sought bids from all responsible sources. The presence of 10 bidders suggests a competitive environment, which typically benefits price discovery and can lead to more favorable pricing for the government. The level of competition is a positive sign for ensuring that the selected contractor offered a competitive price and demonstrated the capability to perform the required construction services.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive bidding process that drives down costs and encourages innovation.

Public Impact

Veterans in Florida will benefit from improved inpatient and outpatient healthcare services, including enhanced mental health facilities. The project delivered critical infrastructure upgrades to the Bay Pines VA Medical Center. The geographic impact is localized to the Bay Pines area in Florida, serving the veteran population in that region. Construction activities likely supported local jobs and businesses within the Florida economy during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2135 days) could indicate potential for cost overruns or delays if not managed effectively.
Firm-fixed-price contracts can sometimes lead to change orders if the scope is not perfectly defined upfront, increasing final costs.
The specific nature of healthcare construction can involve complex requirements and potential for unforeseen issues.
Reliance on a single joint venture for a large-scale project warrants scrutiny of their past performance and capacity.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The project was completed, indicating successful delivery of the required infrastructure.
The firm-fixed-price contract type provides cost certainty if scope is well-managed.
The investment addresses critical healthcare needs for veterans, aligning with VA's mission.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for healthcare construction is particularly robust, driven by the need for modern, specialized facilities. The Department of Veterans Affairs is a major client in this space, consistently investing in upgrading and expanding its network of medical centers. Comparable spending benchmarks would involve analyzing other large-scale healthcare construction projects, both within the VA and for other healthcare providers, considering factors like square footage, complexity, and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project awarded under full and open competition, it is likely that the prime contractor, Archer Western-Demaria JV, is a large business. There is no explicit information on subcontracting plans or performance in the provided data. However, large construction projects often involve significant subcontracting opportunities for specialized trades, which could potentially benefit small businesses if included in the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Veterans Affairs, likely through its contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for delays or deficiencies. Transparency is typically facilitated through contract award notices and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Mental Health Facility Construction
General Building Construction

Risk Flags

Long project duration
Potential for scope creep in fixed-price contracts
Complexity of healthcare construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $109.3 million to ARCHER WESTERN-DEMARIA JV 11. CONSTRUCTION OF BAY PINES INPATIENT OUTPATIENT IMPROVEMENTS, MENTAL HEALTH ADDITION AT BAY PINE, VAMC, PROJECT NO. 516-005 OBLI# CO 516X10518

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN-DEMARIA JV 11.

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 $109.3 million.

What is the period of performance?

Start: 2011-03-31. End: 2017-02-02.

What was the contractor's track record with the VA prior to this award?

The provided data does not include specific details on Archer Western-Demaria JV's prior contract history with the Department of Veterans Affairs. To assess their track record, one would need to examine historical contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes on prior VA projects. A strong history of timely delivery, quality work, and adherence to budget on similar VA projects would be a positive indicator. Conversely, a history of disputes, delays, or performance issues could raise concerns about their suitability for a large-scale project like the Bay Pines improvements.

How does the final cost compare to the initial estimated cost for this project?

The provided data shows the total obligated amount (a) as $109,327,964. However, it does not specify the initial estimated cost or the baseline cost against which the final expenditure should be compared. To perform this comparison, one would need access to the original contract solicitation documents, including the government's cost estimate, and any subsequent modifications or change orders that may have altered the contract's value. A significant variance between the initial estimate and the final obligated amount could indicate issues with scope definition, unforeseen site conditions, or contractor performance, warranting further investigation into the reasons for the difference.

What were the primary risks identified during the solicitation and award process?

While the provided data does not explicitly list identified risks, typical risks for a large-scale healthcare construction project like this include: 1) unforeseen site conditions (e.g., environmental hazards, subsurface issues), 2) complexity of healthcare facility requirements (e.g., specialized equipment integration, infection control), 3) potential for scope creep or changes during construction, 4) contractor performance and schedule adherence, and 5) availability of skilled labor and materials. The firm-fixed-price contract type suggests an effort to mitigate cost risks, while full and open competition aims to mitigate risks associated with contractor selection. A thorough review of the pre-award documentation would reveal specific risk assessments.

How effective were the improvements in meeting the VA's stated objectives for the Bay Pines facility?

The provided data confirms the contract's objective was the 'CONSTRUCTION OF BAY PINES INPATIENT OUTPATIENT IMPROVEMENTS, MENTAL HEALTH ADDITION'. However, it does not contain information on the post-construction effectiveness or performance metrics related to these improvements. Assessing effectiveness would require post-occupancy evaluations, user feedback from medical staff and patients, and data on patient outcomes, wait times, or service capacity changes attributable to the new facilities. Without such post-completion assessments, the effectiveness remains an assumption based on the successful completion of the construction itself.

What is the historical spending trend for similar construction projects at the Bay Pines VAMC?

The provided data is specific to a single contract (Project No. 516-005). To understand historical spending trends for similar construction projects at the Bay Pines VAMC, one would need to query federal contract databases for all construction and renovation contracts awarded to this specific facility over a relevant period (e.g., the last 5-10 years). Analyzing these contracts would reveal the frequency, size, and types of construction projects undertaken, as well as the average cost per project and the agencies or contractors most frequently involved. This broader view would help contextualize the $109 million obligation for Project No. 516-005 within the facility's overall capital investment strategy.

Were there any significant cost variances or delays during the contract performance period?

The provided data indicates a contract duration (dur) of 2135 days, which translates to approximately 5.8 years, from the stated start date (sd) of 2011-03-31 to the end date (ed) of 2017-02-02. While this duration is substantial, the data does not explicitly state whether there were significant cost variances beyond the obligated amount or documented delays. A firm-fixed-price contract aims to control costs, but delays can occur due to various factors (weather, unforeseen conditions, design changes). To determine cost variances and delays, one would need to review contract modification history, progress reports, and any formal documentation of change orders or claims filed during the contract's performance.

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-101-11-RP-0016

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

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

Financial Breakdown

Contract Ceiling: $109,327,964

Exercised Options: $109,327,964

Current Obligation: $109,327,964

Subaward Activity

Number of Subawards: 1546

Total Subaward Amount: $2,201,295,335

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline