VA Awards $10M Patient Ward Renovation to AFCI-CCI JV ONE LLC

Contract Overview

Contract Amount: $10,023,703 ($10.0M)

Contractor: Afci-Cci JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-07-30

End Date: 2026-07-21

Contract Duration: 1,817 days

Daily Burn Rate: $5.5K/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: RENOVATE PATIENT WARD 4W

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 $10.0 million to AFCI-CCI JV ONE LLC for work described as: RENOVATE PATIENT WARD 4W Key points: 1. Contract awarded for patient ward renovation, a critical healthcare infrastructure need. 2. Competition method indicates a potentially competitive process, but details are limited. 3. Risk factors include project duration and potential for cost overruns. 4. Spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The award amount of $10,023,703.33 for a patient ward renovation appears to be within a reasonable range for such projects, though specific benchmarks for this type of facility upgrade are not readily available. Further analysis of the scope of work against similar projects would be needed for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method might impact price discovery, potentially leading to higher costs than a truly open competition. The specific reasons for excluding sources would need further investigation.

Taxpayer Impact: Taxpayer impact is moderate, reflecting the cost of essential healthcare facility upgrades. The effectiveness of the competition method in securing the best value for taxpayer funds warrants scrutiny.

Public Impact

Improved patient care environment through facility upgrades. Potential for job creation within the construction sector. Ensures continued operation and modernization of VA healthcare facilities.

Waste & Efficiency Indicators

Waste Risk Score: 55 / 10

Warning Flags

Long project duration (1817 days).
Limited competition details.
Potential for scope creep in renovations.

Positive Signals

Addresses critical healthcare infrastructure needs.
Firm fixed price contract type can limit cost escalation.
Awarded by a major federal agency (VA).

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects. This renovation falls under healthcare facilities, which often have specialized requirements and associated costs. Benchmarks for similar VA ward renovations would provide better context.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The long duration of the project necessitates robust oversight to ensure timely completion and adherence to quality standards. Accountability for performance rests with the contracting agency and the awarded contractor.

Related Government Programs

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

Risk Flags

Extended contract duration.
Limited competition method.
Potential for cost overruns.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.0 million to AFCI-CCI JV ONE LLC. RENOVATE PATIENT WARD 4W

Who is the contractor on this award?

The obligated recipient is AFCI-CCI JV ONE 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 $10.0 million.

What is the period of performance?

Start: 2021-07-30. End: 2026-07-21.

What specific factors led to the exclusion of sources in the full and open competition, and how did this impact the final price?

The exclusion of sources in a 'full and open competition after exclusion of sources' typically occurs when specific capabilities or past performance are required that only a limited number of contractors can meet. This can reduce the pool of bidders, potentially leading to less competitive pricing. Understanding the justification for exclusion is key to assessing if the price achieved reflects fair market value or if a broader competition could have yielded better results for taxpayers.

Given the 1817-day duration, what are the primary risks associated with project delays and potential cost overruns?

The extended duration of 1817 days for the patient ward renovation presents significant risks. Primary among these are potential delays due to unforeseen site conditions, supply chain disruptions, or labor shortages, all of which can escalate costs. Furthermore, a prolonged project timeline increases the risk of scope creep as requirements may evolve, and it ties up significant capital for an extended period, impacting the VA's ability to utilize the renovated space.

How effectively does this contract leverage competition to ensure the best value for taxpayer funds in healthcare facility construction?

The contract's 'limited' competition, stemming from the exclusion of sources, raises questions about its effectiveness in securing the best value. While a firm fixed price can offer cost certainty, a reduced bidder pool may not drive the most aggressive pricing. The VA's justification for excluding sources and the subsequent pricing analysis are crucial to determining if taxpayer funds were optimally utilized compared to a broader competitive scenario.

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: SEALED BID

Solicitation ID: 36C24221B0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 837 OAKTON STREET SUITE F UNIT 2, ELK GROVE VILLAGE, IL, 60007

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,023,703

Exercised Options: $10,023,703

Current Obligation: $10,023,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline