VA Awards $11.8M Contract for Emergency Department Renovation and Expansion

Contract Overview

Contract Amount: $11,788,755 ($11.8M)

Contractor: 5366 Logistics Leopardo MPA Sdvosb JV, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-30

End Date: 2026-01-14

Contract Duration: 1,932 days

Daily Burn Rate: $6.1K/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: RENOVATE AND EXPAND EMERGENCY DEPARTMENT

Place of Performance

Location: RICHMOND, MCHENRY County, ILLINOIS, 60071

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.8 million to 5366 LOGISTICS LEOPARDO MPA SDVOSB JV, LLC for work described as: RENOVATE AND EXPAND EMERGENCY DEPARTMENT Key points: 1. Contract awarded to a joint venture, 5366 Logistics Leopardo MPA SDVOSB JV, LLC. 2. Project aims to renovate and expand the emergency department. 3. The contract type is a definitive contract with a firm fixed price. 4. The award falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The $11.8 million contract price appears reasonable for a significant renovation and expansion of a hospital emergency department, considering the scope and complexity of such projects. Benchmarking against similar VA or large-scale hospital 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,' indicating that while initially open, certain sources were excluded before the final award. This approach might limit the pool of potential bidders and potentially impact price discovery compared to truly full and open competition.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the limited competition could lead to a higher price than if a broader range of contractors had participated.

Public Impact

Improved patient care and access through expanded emergency services. Potential for job creation during the construction phase. Modernization of critical healthcare infrastructure for veterans. Ensures compliance with modern healthcare facility standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted price.
Contract duration is substantial (1932 days).

Positive Signals

Addresses critical healthcare infrastructure needs.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Spending in this sector can vary significantly based on infrastructure needs and government priorities, with large projects like this representing substantial investments.

Small Business Impact

The awardee is a joint venture including a Service-Disabled Veteran-Owned Small Business (SDVOSB). While the JV structure is noted, further analysis would be needed to determine the specific subcontracting opportunities for other small businesses on this project.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would focus on project timelines, budget adherence, quality of construction, and ensuring the facility meets all regulatory and functional requirements upon completion.

Related Government Programs

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

Risk Flags

Potential for cost overruns despite firm fixed price.
Risk of construction delays impacting facility availability.
Ensuring quality of work meets healthcare standards.
Dependency on the performance of the specific JV.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.8 million to 5366 LOGISTICS LEOPARDO MPA SDVOSB JV, LLC. RENOVATE AND EXPAND EMERGENCY DEPARTMENT

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 $11.8 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-01-14.

What is the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how did this impact the final price?

The justification for excluding sources typically relates to specific capabilities, past performance, or unique requirements that only a subset of contractors can meet. Without detailed documentation, it's difficult to ascertain the precise reasons. However, limiting the competitive pool can reduce price pressure, potentially leading to a higher final price than if a broader range of bidders had been involved.

How does the $11.8 million cost compare to similar-sized emergency department renovation projects in other VA facilities or comparable healthcare institutions?

Benchmarking this $11.8 million cost against similar projects requires access to detailed cost data for comparable renovations. Factors like geographic location, specific scope of work (e.g., technological integration, structural changes), and prevailing construction market rates significantly influence project costs. A comprehensive comparison would necessitate analyzing project complexity, square footage, and duration against a database of similar capital expenditures in healthcare construction.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure the success of the renovation and expansion in terms of improved emergency care delivery?

Key performance indicators would likely include project completion on time and within budget, adherence to quality standards during construction, and post-completion metrics related to patient throughput, wait times, and patient satisfaction in the expanded ED. The VA will measure success by evaluating the facility's ability to handle increased patient volume, improve clinical outcomes, and enhance the overall patient and staff experience.

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: 36C24620R0017

Offers Received: 4

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: $11,788,755

Exercised Options: $11,788,755

Current Obligation: $11,788,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline