VA Awards $3.5M Contract for Pharmacy Renovations to AFCI-CCI JV ONE LLC

Contract Overview

Contract Amount: $3,539,268 ($3.5M)

Contractor: Afci-Cci JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-12-15

End Date: 2026-06-01

Contract Duration: 1,629 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 632-19-106 RENOVATE PHARMACY SPACES

Place of Performance

Location: NORTHPORT, SUFFOLK County, NEW YORK, 11768

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to AFCI-CCI JV ONE LLC for work described as: 632-19-106 RENOVATE PHARMACY SPACES Key points: 1. Contract awarded for pharmacy space renovations at the VA. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. The contract type is a Definitive Contract with a Firm Fixed Price. 4. The project duration is 1629 days, ending in June 2026. 5. No small business participation was noted.

Value Assessment

Rating: fair

The contract value of $3.54 million for pharmacy renovations appears reasonable for a multi-year project of this scope. Benchmarking against similar construction projects would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was intended to be open, specific sources may have been excluded, potentially limiting the competitive landscape and price discovery.

Taxpayer Impact: The final price paid by taxpayers will depend on the effectiveness of the competition and the negotiation process. A limited competition could potentially lead to higher costs than a fully open one.

Public Impact

Veterans will benefit from improved pharmacy facilities, potentially leading to better healthcare services. The project supports construction jobs in New York. Transparency in the bidding process is crucial to ensure taxpayer funds are used efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method raises concerns about optimal pricing.
Lack of small business participation.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long-term project with clear end date.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. The VA's focus on facility upgrades is typical for large healthcare providers.

Small Business Impact

The contract explicitly states no small business participation. This is a missed opportunity to support small businesses and could indicate a lack of outreach or specific requirements that favored larger entities.

Oversight & Accountability

Oversight will be critical to ensure the project stays on schedule and within budget, especially given the multi-year duration and the specific competition method used. The VA's contracting office is responsible for monitoring performance.

Related Government Programs

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

Risk Flags

Limited competition may have inflated costs.
No small business participation.
Long project duration increases risk of delays and cost escalation.
Potential for unforeseen site conditions in construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to AFCI-CCI JV ONE LLC. 632-19-106 RENOVATE PHARMACY SPACES

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 $3.5 million.

What is the period of performance?

Start: 2021-12-15. End: 2026-06-01.

What was the rationale for excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The rationale for excluding sources typically relates to specific technical requirements, past performance, or security concerns. Understanding these exclusions is key to assessing if the competition was truly optimized for value. If the exclusions significantly narrowed the field of qualified bidders, it could have limited price competition and potentially resulted in a higher contract price than if a broader range of firms had been eligible.

What are the potential risks associated with a multi-year construction project like this, and what mitigation strategies are in place?

Risks include cost overruns due to unforeseen site conditions, material price fluctuations, labor shortages, and project delays. Mitigation strategies often involve robust contract management, contingency planning, regular progress reviews, and clear communication channels between the VA and the contractor to address issues proactively.

How will the effectiveness of the pharmacy renovations be measured to ensure they meet the VA's objectives for improved healthcare services?

Effectiveness can be measured through post-renovation assessments of operational efficiency, patient and staff feedback, reduced wait times, and improved workflow. The VA should establish clear performance metrics and conduct post-occupancy evaluations to determine if the renovations have achieved the desired improvements in healthcare delivery.

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: 36C24221B0048

Offers Received: 4

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: $3,539,268

Exercised Options: $3,539,268

Current Obligation: $3,539,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline