VA awards $5.16M contract for Phoenix Medical Construction's cardio cath lab site prep

Contract Overview

Contract Amount: $5,160,444 ($5.2M)

Contractor: Phoenix Medical Construction CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-25

End Date: 2026-03-30

Contract Duration: 2,012 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SITE PREP - CARDIO CATH LAB

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.2 million to PHOENIX MEDICAL CONSTRUCTION CO INC for work described as: SITE PREP - CARDIO CATH LAB Key points: 1. Contract value appears reasonable for specialized medical facility construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over 5 years may indicate complex project phasing. 4. Fixed-price contract shifts risk to the contractor. 5. Project location in New York is noted. 6. Contract awarded to Phoenix Medical Construction Co Inc.

Value Assessment

Rating: good

The contract value of $5.16 million for site preparation of a cardio cath lab is within a typical range for such specialized medical construction projects. Benchmarking against similar projects would require more detailed scope information, but the amount does not immediately suggest overpricing. The firm fixed-price nature of the contract indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor's bid was competitive.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages competitive pricing by allowing multiple companies to vie for the work.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it is likely to result in a more cost-effective outcome compared to sole-source or limited competition scenarios.

Public Impact

Veterans in the New York region will benefit from improved access to advanced cardiac care facilities. The project will involve site preparation, a crucial first step in constructing a modern cardio catheterization laboratory. The geographic impact is focused on New York, serving the local veteran population. The construction activities will likely create temporary employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competition intensity.
Project duration of over 5 years could introduce risks related to material cost fluctuations or scope creep if not managed tightly.
Details on the specific site preparation tasks are not provided, making a granular risk assessment difficult.

Positive Signals

Firm fixed-price contract structure transfers cost overrun risk to the contractor.
Full and open competition generally leads to better pricing and value.
The contract is for a critical healthcare infrastructure upgrade, addressing a vital need.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. The market for medical construction is substantial, driven by the need for updated and specialized healthcare infrastructure. This project represents a specific investment in upgrading diagnostic and treatment capabilities for cardiovascular conditions, fitting within the broader trend of healthcare facility modernization.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the primary contractor, Phoenix Medical Construction Co Inc., would need to be evaluated to determine its size status and potential for engaging small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA). The VA has established procurement regulations and contract management processes to ensure compliance and performance. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Construction
Cardiology Services Infrastructure
Healthcare Construction Projects
Definitive Contracts
Fixed-Price Construction Contracts

Risk Flags

Potential for cost escalation over the long contract duration.
Need for robust oversight to manage scope and prevent delays.
Limited transparency on the number of bidders in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.2 million to PHOENIX MEDICAL CONSTRUCTION CO INC. SITE PREP - CARDIO CATH LAB

Who is the contractor on this award?

The obligated recipient is PHOENIX MEDICAL CONSTRUCTION CO 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 $5.2 million.

What is the period of performance?

Start: 2020-09-25. End: 2026-03-30.

What is the track record of Phoenix Medical Construction Co Inc. with VA contracts?

A review of Phoenix Medical Construction Co Inc.'s contract history with the VA would be necessary to assess their performance. This would involve examining past contract awards, completion records, any instances of contract modifications, disputes, or performance issues. Understanding their experience with similar medical construction projects, particularly those involving specialized facilities like cath labs, would provide valuable insight into their capability and reliability for this current project. Without specific historical data, it's difficult to definitively assess their track record.

How does the $5.16 million cost compare to similar cardio cath lab site prep projects?

Benchmarking the $5.16 million cost requires comparing it to similar projects in terms of scope, size, location, and complexity. Cardio cath lab site preparation can vary significantly based on existing building conditions, required structural modifications, and the extent of specialized infrastructure (e.g., shielding, HVAC, plumbing) needed. A direct comparison would ideally involve analyzing data from other VA or public healthcare construction projects of comparable scale and type. Factors like prevailing labor rates and material costs in the New York region would also influence the benchmark. Generally, specialized medical construction is more expensive than standard commercial building.

What are the primary risks associated with a definitive contract of this duration?

A definitive contract, especially one spanning over 2012 days (approximately 5.5 years), carries inherent risks. For a construction project, these include potential escalation of material and labor costs over the extended period, which could impact the contractor's profitability if not adequately accounted for in the fixed price. There's also a risk of project delays due to unforeseen site conditions, regulatory changes, or contractor performance issues. Furthermore, the long duration might increase the likelihood of scope creep if project requirements evolve, necessitating careful change order management to protect the fixed-price agreement and taxpayer funds.

How effective is 'Full and Open Competition After Exclusion of Sources' in ensuring value for money?

This competition type is generally effective in ensuring value for money. By allowing all responsible sources to compete after an initial exclusion (often for specific reasons like national security or unique capabilities), it maximizes the pool of potential bidders. This broad competition drives down prices as contractors vie for the award. The 'exclusion of sources' aspect needs careful justification to ensure it doesn't unduly limit competition. When properly executed, it balances the need for broad participation with specific project requirements, leading to competitive pricing and a higher likelihood of selecting the best-value offer.

What are the implications of a Firm Fixed Price (FFP) contract for this project?

A Firm Fixed Price (FFP) contract places the primary responsibility for cost overruns on the contractor. This is generally advantageous for the government (taxpayer) as it provides cost certainty. For this $5.16 million project, the VA knows the maximum cost, assuming no change orders. The contractor, Phoenix Medical Construction Co Inc., must accurately estimate all costs, including labor, materials, and overhead, and build in a contingency. If their estimates are too low or unforeseen issues arise, their profit margin will be reduced, or they could incur a loss. Conversely, if they manage the project efficiently and costs are lower than anticipated, their profit will be higher.

What is the typical spending pattern for VA medical facility construction in New York?

Analyzing historical VA spending patterns for medical facility construction in New York would provide context for this $5.16 million contract. This would involve examining the frequency and value of similar contracts awarded by the VA within the state over recent years. Understanding the average cost per square foot or per specialized unit (like a cath lab) for VA projects in the region would help determine if this contract is aligned with historical norms. Significant deviations from established patterns might warrant further investigation into the specific project requirements or market conditions.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24220R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 681 CHESTNUT ST, UNION, NJ, 07083

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

Financial Breakdown

Contract Ceiling: $5,160,444

Exercised Options: $5,160,444

Current Obligation: $5,160,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline