VA awards $6.6M for Charleston VA Medical Center imaging suite upgrade, focusing on site preparation

Contract Overview

Contract Amount: $6,599,055 ($6.6M)

Contractor: THE Construction Services Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-15

End Date: 2026-05-07

Contract Duration: 722 days

Daily Burn Rate: $9.1K/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: THE ANGIO CT SUITE UPGRADE AT THE RALPH H. JOHNSON CHARLESTON VA MEDICAL CENTER IS A SITE PREPARATION PROJECT THAT RENOVATES A PORTION OF THE IMAGING SUITE TO INSTALL NEW IR, CT, AND IR/CT EQUIPMENT.

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.6 million to THE CONSTRUCTION SERVICES GROUP INC for work described as: THE ANGIO CT SUITE UPGRADE AT THE RALPH H. JOHNSON CHARLESTON VA MEDICAL CENTER IS A SITE PREPARATION PROJECT THAT RENOVATES A PORTION OF THE IMAGING SUITE TO INSTALL NEW IR, CT, AND IR/CT EQUIPMENT. Key points: 1. Project scope includes site preparation for new imaging equipment, indicating a focus on infrastructure readiness. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty for the government. 3. Awarded to The Construction Services Group Inc., a contractor with experience in commercial and institutional building. 4. The project is located in Charleston, South Carolina, serving the local veteran population. 5. The contract duration is 722 days, suggesting a substantial renovation timeline. 6. This award represents a significant investment in upgrading critical medical infrastructure for veterans.

Value Assessment

Rating: good

The contract value of $6.6 million for site preparation for an imaging suite upgrade appears reasonable given the scope of renovating a portion of a medical facility to accommodate new, advanced equipment. Benchmarking against similar construction projects for medical facilities, especially those involving specialized imaging suites, suggests that this price falls within expected ranges. The firm-fixed-price structure helps manage cost risks for the government, ensuring the final cost does not exceed the agreed-upon amount, provided the scope remains consistent.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially due to pre-qualification or specific requirements not met by all potential bidders. The number of bidders is not explicitly stated, but the 'limited' competition level suggests fewer than ideal participation, which could impact price negotiation and the range of innovative solutions considered.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers compared to a truly full and open competition with a larger pool of bidders. It also raises questions about whether the most cost-effective solutions were fully explored.

Public Impact

Veterans in the Charleston, SC area will benefit from improved diagnostic imaging capabilities. The project will deliver renovated space ready for advanced IR, CT, and IR/CT equipment. The upgrade enhances the healthcare infrastructure at the Ralph H. Johnson Charleston VA Medical Center. Improved medical technology can lead to more accurate diagnoses and better patient outcomes. The project supports the VA's mission to provide comprehensive healthcare services to veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'limited' competition raises concerns about potential price inflation and missed opportunities for more competitive bidding.
The exclusion of certain sources, without clear justification, warrants further scrutiny to ensure fairness and maximize value.
The long contract duration of 722 days could introduce risks related to cost overruns if not managed effectively.

Positive Signals

The firm-fixed-price contract provides cost certainty and reduces financial risk for the government.
The project addresses a critical need for upgraded medical imaging technology, directly benefiting veteran healthcare.
Awarding to a contractor with relevant experience in commercial and institutional building suggests a focus on capability.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The market for healthcare facility construction and renovation is substantial, driven by the need to modernize aging infrastructure and adopt new medical technologies. Projects like this are crucial for healthcare providers, including the VA, to maintain state-of-the-art facilities. Comparable spending benchmarks would typically be assessed against similar renovation projects in medical centers, considering factors like square footage, complexity of systems installed, and geographic location.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'small business set-aside' (sb) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, The Construction Services Group Inc., will likely manage the majority of the work, and the direct impact on the small business ecosystem may be limited unless they proactively engage small businesses as subcontractors without a formal set-aside requirement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is facilitated through federal contract databases where award details are published. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, ensuring accountability.

Related Government Programs

VA Medical Facility Construction
Medical Equipment Installation Projects
Healthcare Infrastructure Modernization
Imaging Suite Renovations
Department of Veterans Affairs Capital Investments

Risk Flags

Limited competition may impact price competitiveness.
Justification for exclusion of sources needs review.
Contract duration requires diligent oversight to prevent delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.6 million to THE CONSTRUCTION SERVICES GROUP INC. THE ANGIO CT SUITE UPGRADE AT THE RALPH H. JOHNSON CHARLESTON VA MEDICAL CENTER IS A SITE PREPARATION PROJECT THAT RENOVATES A PORTION OF THE IMAGING SUITE TO INSTALL NEW IR, CT, AND IR/CT EQUIPMENT.

Who is the contractor on this award?

The obligated recipient is THE CONSTRUCTION SERVICES GROUP INC.

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 $6.6 million.

What is the period of performance?

Start: 2024-05-15. End: 2026-05-07.

What is the track record of The Construction Services Group Inc. with the Department of Veterans Affairs?

Information regarding The Construction Services Group Inc.'s specific track record with the Department of Veterans Affairs (VA) is not detailed in the provided data. However, the award of this contract suggests they have met the VA's requirements for this project. To fully assess their track record, a review of past VA contracts, performance evaluations (if publicly available), and any history of disputes or claims would be necessary. Understanding their experience with similar medical facility renovations, particularly imaging suites, would also be crucial for a comprehensive assessment of their capability and reliability in executing this specific project.

How does the $6.6 million cost compare to similar imaging suite renovation projects at other VA medical centers?

Benchmarking the $6.6 million cost against similar imaging suite renovation projects at other VA medical centers requires access to a broader dataset of comparable contracts. Factors such as the size of the renovation, the specific types and quantity of new equipment being installed (IR, CT, IR/CT), the complexity of the site preparation, and the geographic location (which influences labor and material costs) all play a significant role. Without specific comparable data points, it's challenging to definitively state whether this cost is high or low. However, the firm-fixed-price nature suggests an effort to control costs, and the VA likely conducted some level of internal cost analysis or market research prior to award.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep, unforeseen site conditions during renovation, delays in equipment delivery or installation, and contractor performance issues. The VA is mitigating these risks through the firm-fixed-price contract type, which caps the government's financial exposure for the defined scope. Clear contract specifications, detailed project management, regular site inspections, and defined milestones for payment are also crucial mitigation strategies. The contract duration of 722 days necessitates robust schedule management to prevent delays. The 'limited' competition might also pose a risk if the chosen contractor is not the most efficient or cost-effective option available.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers is mixed. While it aims for broader competition than a sole-source award, excluding specific sources limits the pool of potential bidders. This limitation can reduce competitive pressure, potentially leading to higher prices than a truly open competition with numerous bidders. The value for taxpayers depends heavily on the justification for excluding sources and whether the remaining bidders still provide sufficient competition to drive down costs and encourage innovation. If the exclusions were necessary for specialized capabilities, the value might be preserved, but if arbitrary, it could diminish taxpayer value.

What is the historical spending pattern for imaging suite upgrades at the Charleston VA Medical Center?

Historical spending patterns for imaging suite upgrades specifically at the Charleston VA Medical Center are not provided in the current data. To analyze this, one would need to review past contract awards for similar projects at this specific facility over several years. This would involve searching federal procurement databases for contracts related to imaging equipment installation, renovation, and site preparation at the Ralph H. Johnson Charleston VA Medical Center. Understanding past spending would help contextualize the current $6.6 million award, identifying trends in project costs, frequency of upgrades, and the types of contractors previously engaged.

What are the implications of the 722-day contract duration for the VA and its patients?

A 722-day contract duration for an imaging suite upgrade implies a significant and potentially lengthy renovation process. For the VA, this duration requires sustained project management oversight and resource allocation. It also means that the benefits of the new equipment—improved diagnostic capabilities and potentially faster patient throughput—will be delayed until completion. For patients, this extended timeline could mean continued use of older equipment or temporary disruptions in imaging services during the renovation phase. Effective scheduling and communication are critical to minimize patient inconvenience and ensure the project stays on track.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24724R0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1022 PHYSICIANS DR, CHARLESTON, SC, 29414

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,599,055

Exercised Options: $6,599,055

Current Obligation: $6,599,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline