VA awards $2.3M design-build contract for PET CT site prep to Williams Building Company

Contract Overview

Contract Amount: $2,315,094 ($2.3M)

Contractor: Williams Building Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-02-29

End Date: 2026-03-27

Contract Duration: 757 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 523-23-002 SITE PREPARATION PET CT - DESIGN BUILD

Place of Performance

Location: JAMAICA PLAIN, SUFFOLK County, MASSACHUSETTS, 02130

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to WILLIAMS BUILDING COMPANY, INC. for work described as: 523-23-002 SITE PREPARATION PET CT - DESIGN BUILD Key points: 1. Contract value appears reasonable for site preparation and design-build services. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of 757 days indicates a significant project scope. 4. Fixed-price contract type shifts risk to the contractor. 5. Project aligns with VA's ongoing infrastructure modernization efforts. 6. No small business set-aside noted, potentially limiting direct participation.

Value Assessment

Rating: good

The contract value of $2.3 million for site preparation and design-build services for a PET CT facility appears to be within a reasonable range for such specialized construction projects. Benchmarking against similar VA or other federal healthcare construction projects of comparable scope and complexity would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor has assessed the risks and costs associated with the project, and the price reflects this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bids were solicited and considered. While the specific number of bidders is not detailed, this procurement method generally fosters a competitive environment, which can lead to better pricing and value for the government. The exclusion of sources might imply specific pre-qualification criteria were met by the bidders.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids and securing the best possible price for the services rendered.

Public Impact

Benefits veterans by enabling the installation of advanced medical imaging equipment. Delivers essential site preparation and design-build services for a critical healthcare facility. Geographic impact is localized to the facility where the PET CT scanner will be installed. Workforce implications include construction labor and specialized design professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if design-build elements are not tightly managed.
Reliance on a single contractor for both design and construction could present coordination challenges.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a robust bidding process.
Long contract duration allows for thorough execution and quality control.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The market for healthcare construction, particularly for specialized facilities like those housing advanced imaging equipment, is significant and driven by technological advancements and the need for upgraded medical infrastructure. This project represents a specific investment in healthcare facilities, contributing to the VA's overall capital infrastructure spending.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses. This means that larger, established construction firms were likely the primary participants in the bidding process. The absence of small business set-asides may limit direct opportunities for smaller entities to engage in this specific project, though they might participate indirectly through the supply chain.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Design-Build Contracts
Medical Equipment Installation Support

Risk Flags

Potential for cost overruns if unforeseen site conditions are encountered.
Risk of contractor performance issues impacting project timeline or quality.
Adequacy of government oversight for design-build projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to WILLIAMS BUILDING COMPANY, INC.. 523-23-002 SITE PREPARATION PET CT - DESIGN BUILD

Who is the contractor on this award?

The obligated recipient is WILLIAMS BUILDING COMPANY, INC..

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 $2.3 million.

What is the period of performance?

Start: 2024-02-29. End: 2026-03-27.

What is the track record of Williams Building Company, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Williams Building Company, Inc.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract modifications. Understanding their experience with similar design-build projects, especially within healthcare settings or for the VA, would provide crucial context for evaluating their capability to successfully execute this $2.3 million contract. Without specific performance data, it's difficult to definitively gauge their reliability and past success rates.

How does the awarded price of $2.3 million compare to similar PET CT site preparation and design-build contracts?

Benchmarking this $2.3 million contract against similar projects is essential for a comprehensive value assessment. Factors such as geographic location, specific site conditions, complexity of the design, and the scope of site preparation (e.g., excavation, utility work, structural modifications) significantly influence costs. A detailed comparison would require identifying comparable federal or large-scale commercial projects for PET CT facility construction, analyzing their contract values, durations, and the services provided. If this contract's price per square foot or per key deliverable falls within or below the typical range for such specialized construction, it suggests good value.

What are the primary risks associated with this firm fixed-price design-build contract, and how are they mitigated?

The primary risks in a firm fixed-price design-build contract include potential cost overruns for the contractor if unforeseen issues arise during design or construction, and the risk of the contractor cutting corners on quality to maintain profitability. For the government, risks include inadequate design if not properly reviewed or potential disputes if the scope is not clearly defined. Mitigation strategies involve robust initial scope definition, clear performance specifications, rigorous government oversight during design and construction phases, and thorough review of contractor submittals. The fixed-price nature itself shifts significant financial risk to the contractor, incentivizing efficient project management.

What is the expected effectiveness of this project in improving VA's diagnostic imaging capabilities?

The effectiveness of this project hinges on the successful completion of the site preparation and design-build work, enabling the installation and operation of a new PET CT scanner. A PET CT scanner is a critical diagnostic tool that allows for the visualization of metabolic processes, aiding in the early detection, diagnosis, and staging of various diseases, particularly cancer. Successful execution of this contract will directly enhance the VA's diagnostic imaging capabilities, potentially leading to improved patient outcomes through more accurate and timely diagnoses, reduced need for external referrals for this specific imaging modality, and increased capacity for diagnostic services for veterans.

How does current spending on similar construction projects compare to historical patterns for the VA?

Analyzing current spending on VA construction, particularly for specialized medical facilities like those housing PET CT scanners, against historical patterns requires access to detailed historical procurement data. Factors influencing spending include overall VA budget allocations for capital improvements, the pace of infrastructure modernization, and the specific healthcare needs of the veteran population. If spending on such projects has increased, it might reflect a strategic push to upgrade aging facilities or expand access to advanced medical technologies. Conversely, a decrease could indicate budget constraints or a shift in priorities. Understanding these trends provides context for the significance and scale of this particular $2.3 million award.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 36C24123R0121

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 259 NORTH ST STE 2A, HYANNIS, MA, 02601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,315,094

Exercised Options: $2,315,094

Current Obligation: $2,315,094

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline