VA Awards $212M Long-Term Spinal Cord Injury Facility Construction to Walsh Construction in Texas

Contract Overview

Contract Amount: $212,090,189 ($212.1M)

Contractor: Walsh Construction Company II, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-22

End Date: 2027-01-12

Contract Duration: 1,208 days

Daily Burn Rate: $175.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION LONG TERM SPINAL CORD INJURY VAMC NORTH DALLAS, TX

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $212.1 million to WALSH CONSTRUCTION COMPANY II, LLC for work described as: CONSTRUCTION LONG TERM SPINAL CORD INJURY VAMC NORTH DALLAS, TX Key points: 1. Significant investment in veteran healthcare infrastructure. 2. Large contract value indicates substantial project scope. 3. Full and open competition suggests potential for competitive pricing. 4. Long duration (1208 days) requires careful project management and oversight.

Value Assessment

Rating: good

The contract value of $212,009,018 is substantial for a healthcare construction project. Benchmarking against similar large-scale institutional building construction contracts would be necessary to fully assess pricing, but the firm-fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The significant investment aims to improve long-term care for veterans with spinal cord injuries, representing a substantial allocation of taxpayer funds towards critical healthcare needs.

Public Impact

Improved healthcare facilities for veterans with spinal cord injuries. Potential for job creation in the North Texas region during construction. Long-term commitment to veteran care infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration increases risk of cost overruns or delays.
Complexity of specialized healthcare facility construction.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for a healthcare facility. Large-scale construction projects of this nature often involve significant capital investment and require specialized expertise.

Small Business Impact

The data indicates this large contract was awarded to Walsh Construction Company II, LLC, and does not specify any small business participation. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of Veterans Affairs to ensure project milestones are met, quality standards are maintained, and funds are managed effectively.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long project duration (over 3 years).
Potential for scope creep in large construction projects.
Reliance on a single prime contractor for a complex facility.
Inflationary pressures on construction materials and labor over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $212.1 million to WALSH CONSTRUCTION COMPANY II, LLC. CONSTRUCTION LONG TERM SPINAL CORD INJURY VAMC NORTH DALLAS, TX

Who is the contractor on this award?

The obligated recipient is WALSH CONSTRUCTION COMPANY II, 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 $212.1 million.

What is the period of performance?

Start: 2023-09-22. End: 2027-01-12.

What is the estimated cost per square foot for this facility, and how does it compare to similar VAMC construction projects?

The provided data does not include square footage, making a per-square-foot cost analysis impossible. To assess value, a comparison with similar VAMC construction projects, considering regional cost variations and specific facility requirements, would be necessary. This would help determine if the $212 million award is competitive for the scope and quality of the intended spinal cord injury facility.

What are the key performance indicators (KPIs) and risk mitigation strategies in place for this long-term construction project?

Specific KPIs and risk mitigation strategies are not detailed in the provided data. Given the 1208-day duration, effective project management likely includes phased delivery, regular progress reviews, contingency planning for material or labor shortages, and strict quality control protocols. The VA's oversight team would be crucial in monitoring these aspects to prevent delays and cost overruns.

How will the successful completion of this facility impact the quality of care and patient outcomes for veterans with spinal cord injuries?

The construction of a dedicated, long-term spinal cord injury facility at the VAMC North Dallas is expected to significantly enhance the quality of care by providing specialized, state-of-the-art resources and a supportive environment. This can lead to improved patient outcomes, better rehabilitation services, and increased patient satisfaction for veterans requiring long-term care.

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: 36C10F22R0045

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $212,090,189

Exercised Options: $212,090,189

Current Obligation: $212,090,189

Actual Outlays: $133,946,983

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline