VA awards $18.9M contract for architectural services to support Omaha VAMC modernization

Contract Overview

Contract Amount: $18,971,143 ($19.0M)

Contractor: LEO a Daly/Nbbj

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-09-30

End Date: 2014-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A&E SERVICES FOR VAMC OMAHA, NE

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68114

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.0 million to LEO A DALY/NBBJ for work described as: A&E SERVICES FOR VAMC OMAHA, NE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 4 years indicates a significant, long-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The award was made by the Department of Veterans Affairs, aligning with its mission to support veterans. 5. The North American Industry Classification System (NAICS) code 541310 points to architectural services. 6. The contract value of $18.9 million represents a substantial investment in facility upgrades.

Value Assessment

Rating: good

The contract value of $18.9 million for architectural services for the Omaha VAMC appears reasonable given the scope and duration. Benchmarking against similar large-scale healthcare facility design contracts would provide further context, but the fixed-price nature suggests an effort to control costs. The number of bids received (3) indicates some level of market interest, though a higher number might suggest even greater price competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received, indicating a moderate level of competition for this significant architectural services contract. While three bidders suggest some market engagement, a higher number could potentially lead to more aggressive pricing and a wider range of innovative solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

Veterans in the Omaha, Nebraska area will benefit from improved healthcare facilities. Architectural design services will be delivered to modernize and potentially expand the VAMC. The project has a geographic impact focused on Nebraska. The contract supports the architecture and engineering sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the design phase.
Risk of schedule delays impacting the overall VAMC modernization timeline.
Ensuring the selected design fully meets the evolving needs of veteran healthcare.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The Department of Veterans Affairs has a clear mission alignment for this project.

Sector Analysis

This contract falls within the Architecture and Engineering (A&E) services sector, specifically focused on healthcare facilities. The market for A&E services supporting federal construction and renovation projects is substantial. The Department of Veterans Affairs is a significant client within this sector, consistently investing in its infrastructure to meet the needs of veterans. Comparable spending benchmarks for large-scale hospital or clinic design projects would provide further context for this $18.9 million award.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of small business subcontracting goals. Given the nature and value of architectural services for a major facility, it is possible that larger, established firms were the primary bidders. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and public reporting, though specific project oversight details may not be publicly detailed.

Related Government Programs

Veterans Health Administration Capital Asset Fund
VA Major Medical Facility Lease Program
Federal Buildings Fund

Risk Flags

Potential for scope creep impacting budget and schedule.
Contractor's ability to meet specific VA design standards and healthcare regulations.
Coordination challenges between design and future construction phases.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.0 million to LEO A DALY/NBBJ. A&E SERVICES FOR VAMC OMAHA, NE

Who is the contractor on this award?

The obligated recipient is LEO A DALY/NBBJ.

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 $19.0 million.

What is the period of performance?

Start: 2010-09-30. End: 2014-09-30.

What is the track record of LEO A DALY/NBBJ with VA contracts, particularly for healthcare facilities?

LEO A DALY and NBBJ are established architectural and engineering firms with extensive experience in designing healthcare facilities. Both firms have a history of working with the Department of Veterans Affairs on various projects, including hospital expansions, clinics, and medical center renovations. Their past performance with the VA would be a key factor in the evaluation of their proposal for the Omaha VAMC project. A review of their contract history with the VA would reveal their success rates, any past performance issues, and the types of projects they have completed. This information is crucial for assessing the contractor's capability to deliver on this specific contract and manage potential risks effectively.

How does the $18.9 million contract value compare to similar VAMC architectural service contracts awarded in recent years?

The $18.9 million contract value for architectural services for the Omaha VAMC is a significant investment. To benchmark this value, one would compare it to similar contracts awarded by the VA for the design of major medical facilities or substantial renovations of existing ones. Factors such as the size of the facility, the complexity of the required services (e.g., new construction vs. renovation, specialized medical equipment integration), and the geographic location can influence pricing. A preliminary comparison suggests this value is within the expected range for large-scale healthcare architectural projects, but a detailed analysis would require examining contracts for facilities of comparable scope and complexity awarded over the last 3-5 years to identify any outliers or trends.

What are the primary risks associated with a firm-fixed-price contract for architectural design services of this magnitude?

While firm-fixed-price (FFP) contracts offer cost certainty, they can introduce specific risks for large-scale design projects. For architectural services, the primary risk is that the contractor may underestimate the complexity or scope of work, leading to potential disputes over change orders or a desire to cut corners to maintain profitability. Conversely, if the government's requirements change significantly after the contract is awarded, extensive change orders could drive up costs beyond initial expectations. Another risk is that the contractor might prioritize cost savings over optimal design solutions if profit margins are tight. Effective project management, clear initial scope definition, and robust change control processes are critical to mitigating these risks.

What is the expected impact of this contract on the modernization and operational effectiveness of the Omaha VAMC?

This contract is expected to be pivotal in the modernization and enhanced operational effectiveness of the Omaha VAMC. The architectural services procured will lay the groundwork for facility upgrades, potentially including expanded patient care areas, improved diagnostic and treatment spaces, and updated infrastructure. Successful completion of the design phase should lead to a VAMC that can better serve the growing needs of veterans in the region, improve patient flow, enhance the working environment for staff, and potentially incorporate new healthcare technologies. The long-term effectiveness hinges on the quality of the design and its successful translation into construction.

How has VA spending on architectural and engineering services trended over the past five years, and where does this contract fit?

VA spending on architectural and engineering (A&E) services has generally trended upwards over the past five years, reflecting a sustained commitment to upgrading and expanding its healthcare infrastructure. This trend is driven by an aging veteran population, the need to modernize aging facilities, and the integration of new medical technologies. The $18.9 million contract for the Omaha VAMC fits within this broader pattern of significant investment in facility improvements. While specific annual spending figures fluctuate based on major project cycles, the VA consistently allocates substantial funds to A&E services to support its capital asset strategy. This contract represents a notable allocation within that ongoing investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8600 INDIAN HLS DR, OMAHA, NE, 68114

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

Financial Breakdown

Contract Ceiling: $36,410,017

Exercised Options: $18,971,143

Current Obligation: $18,971,143

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline