VA Awards $16.3M Hospice Expansion Contract to 5366 Logistics Leopardo JV in Maryland

Contract Overview

Contract Amount: $16,284,742 ($16.3M)

Contractor: 5366 Logistics Leopardo MPA Sdvosb JV, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-15

End Date: 2026-07-31

Contract Duration: 2,115 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MINOR PROJECT 512-532 EXPAND LOCH RAVEN HOSPICE

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21218

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.3 million to 5366 LOGISTICS LEOPARDO MPA SDVOSB JV, LLC for work described as: MINOR PROJECT 512-532 EXPAND LOCH RAVEN HOSPICE Key points: 1. The contract is for expanding the Loch Raven Hospice facility. 2. The awardee is a joint venture, 5366 Logistics Leopardo MPA SDVOSB JV, LLC. 3. The contract type is Firm Fixed Price, indicating predictable costs for the VA. 4. The project duration is 2115 days, spanning over 5 years.

Value Assessment

Rating: good

The contract value of $16.3M for a 5-year hospice expansion project appears reasonable given the scope and duration. Benchmarking against similar healthcare construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial limited competition that was later opened, potentially impacting price discovery and the number of bidders.

Taxpayer Impact: The firm fixed price contract provides cost certainty for taxpayers, but the limited competition aspect warrants scrutiny to ensure value for money.

Public Impact

Improved healthcare facilities for veterans at Loch Raven Hospice. Potential for job creation during the construction phase. Long-term investment in veteran healthcare infrastructure. Impact on local community through facility expansion.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method could lead to higher costs.
Long project duration increases risk of cost overruns or scope creep.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Award to a joint venture may leverage specialized expertise.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Healthcare construction projects, especially for government facilities, often involve complex requirements and significant investment, with benchmarks varying widely based on project scale and location.

Small Business Impact

The awardee is a joint venture that includes an SDVOSB (Service-Disabled Veteran-Owned Small Business). Further analysis is needed to determine the extent of small business participation beyond the JV partner.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The long duration of the contract necessitates robust project management and regular performance reviews to ensure accountability and adherence to timelines and budget.

Related Government Programs

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

Risk Flags

Potential for cost escalation due to long duration.
Limited competition may not have yielded the best price.
Complexity of healthcare construction requires specialized oversight.
Dependence on a single joint venture for project execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.3 million to 5366 LOGISTICS LEOPARDO MPA SDVOSB JV, LLC. MINOR PROJECT 512-532 EXPAND LOCH RAVEN HOSPICE

Who is the contractor on this award?

The obligated recipient is 5366 LOGISTICS LEOPARDO MPA SDVOSB JV, 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 $16.3 million.

What is the period of performance?

Start: 2020-10-15. End: 2026-07-31.

What was the rationale for excluding sources initially before opening to full and open competition?

The rationale for excluding sources before opening to full and open competition is not detailed in the provided data. Typically, such exclusions might be due to specific technical requirements, prior performance, or unique capabilities needed for the project. Understanding this initial exclusion is crucial for assessing the fairness and competitiveness of the procurement process.

How does the awarded price compare to the original estimated cost or benchmark for similar hospice expansions?

The provided data does not include the original estimated cost or specific benchmarks for similar hospice expansions. A comprehensive value assessment would require comparing the $16.3M award against industry standards, historical VA project costs, and the specific scope of work to determine if it represents a fair and reasonable price.

What are the key performance indicators (KPIs) for this contract to ensure successful project completion and taxpayer value?

Key performance indicators for this contract should focus on timely completion within budget, adherence to quality standards for healthcare facilities, and minimal disruption to ongoing hospice operations. The VA should establish clear milestones and regular progress reports, with mechanisms for addressing delays or quality issues promptly to safeguard taxpayer investment.

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: 36C24520B0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4501 US HIGHWAY 12, RICHMOND, IL, 60071

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

Financial Breakdown

Contract Ceiling: $16,284,742

Exercised Options: $16,284,742

Current Obligation: $16,284,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline