VA Awards $14.75M for Emergency Department Renovation and Expansion in New York

Contract Overview

Contract Amount: $14,750,085 ($14.8M)

Contractor: Afci-Cci JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-29

End Date: 2026-09-19

Contract Duration: 1,816 days

Daily Burn Rate: $8.1K/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: 632-353 RENOVATE AND EXPAND EMERGENCY DEPARTMENT

Place of Performance

Location: NORTHPORT, SUFFOLK County, NEW YORK, 11768

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.8 million to AFCI-CCI JV ONE LLC for work described as: 632-353 RENOVATE AND EXPAND EMERGENCY DEPARTMENT Key points: 1. Significant investment in healthcare infrastructure to improve emergency services. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 4. Project duration of 1816 days indicates a complex and lengthy undertaking.

Value Assessment

Rating: fair

The contract value of $14.75M for renovating and expanding an emergency department appears within a reasonable range for such a project, though specific benchmarks for similar VA facilities are needed for a definitive assessment. The firm fixed price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method can impact price discovery by limiting the pool of potential bidders.

Taxpayer Impact: Taxpayer funds are being used for a critical healthcare infrastructure upgrade. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Improved patient care and access through upgraded emergency facilities. Potential for job creation during the construction phase. Long-term benefit to the community by enhancing local healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Long project duration
Potential for cost overruns if scope changes

Positive Signals

Addresses critical healthcare infrastructure need
Firm Fixed Price contract for cost control

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for healthcare facilities can vary significantly based on project scope, location, and specific medical equipment requirements. Benchmarks are difficult without more granular data.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were adequately pursued or mandated.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight will be crucial to ensure the project stays on schedule, within budget, and meets the intended quality standards for the emergency department.

Related Government Programs

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

Risk Flags

Limited competition
Long project duration
Potential for scope creep
Dependency on specific contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.8 million to AFCI-CCI JV ONE LLC. 632-353 RENOVATE AND EXPAND EMERGENCY DEPARTMENT

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 $14.8 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-19.

What was the rationale for excluding specific sources in the competition process, and did this exclusion lead to a higher price than if full and open competition had been utilized?

The rationale for excluding sources is not detailed in the provided data. However, excluding potential bidders typically narrows the competitive field, which can sometimes result in higher prices compared to a scenario with broader participation. A thorough review of the solicitation documents and justification for source exclusion would be necessary to assess the impact on pricing and overall value.

Given the 1816-day duration, what are the primary risks associated with project delays and potential cost escalations?

The primary risks associated with a long project duration include unforeseen site conditions, changes in regulatory requirements, material price fluctuations, and potential labor shortages. These factors can lead to significant delays and cost escalations, especially under a firm fixed price contract if not managed proactively through robust change order processes and contingency planning.

How will the effectiveness of the renovated emergency department be measured post-completion to ensure it meets the VA's objectives for improved patient care?

Effectiveness will likely be measured through key performance indicators (KPIs) such as reduced patient wait times, increased patient throughput, improved patient satisfaction scores, and the successful integration of new medical technologies. The VA should establish baseline metrics before construction and track these KPIs post-completion to quantify the impact of the renovation.

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: SEALED BID

Solicitation ID: 36C24220B0063

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: $14,750,085

Exercised Options: $14,750,085

Current Obligation: $14,750,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline