VA Awards $5.3M Medical Gas Construction Project to MGI, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $5,296,326 ($5.3M)

Contractor: MGI, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-04

End Date: 2026-11-19

Contract Duration: 533 days

Daily Burn Rate: $9.9K/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: 521-21-106 | MEDICAL GAS PROJECT CONSTRUCTION | BIRMINGHAM, AL VAMC

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.3 million to MGI, INC. for work described as: 521-21-106 | MEDICAL GAS PROJECT CONSTRUCTION | BIRMINGHAM, AL VAMC Key points: 1. The Department of Veterans Affairs awarded a $5.3 million contract for medical gas project construction. 2. The contract was awarded to MGI, Inc. following full and open competition after exclusion of sources. 3. The project is located in Birmingham, AL, and is scheduled for completion by November 2026. 4. The contract type is Firm Fixed Price, indicating a defined cost for the project. 5. This award falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The $5.3 million award appears reasonable for a medical gas construction project of this scope and duration. Benchmarking against similar VA or institutional construction projects would provide a more precise assessment, but the price seems within expected ranges for specialized construction services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process was initiated, but specific sources were initially excluded before a broader competition was opened. This method aims for competitive pricing while potentially addressing specific project needs.

Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this essential healthcare infrastructure project.

Public Impact

Improved medical gas infrastructure at the Birmingham, AL VAMC will enhance patient care and safety. The project supports the VA's commitment to modernizing healthcare facilities for veterans. Construction activities may cause temporary disruptions at the VAMC, impacting patient flow and staff operations. The successful completion of this project contributes to the overall operational readiness of the medical center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of project delays impacting facility readiness.
Ensuring MGI, Inc. meets all quality and safety standards for medical gas systems.

Positive Signals

Awarded through a competitive process, likely securing a fair price.
Clear project scope and fixed-price contract mitigate some financial risks.
Project duration aligns with typical construction timelines for such facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to healthcare facilities. Spending in this sector can vary significantly based on project complexity, location, and the specific needs of the institution. The $5.3 million awarded is a moderate investment for specialized medical infrastructure.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as MGI, Inc. is the prime contractor. Further analysis would be needed to determine if MGI, Inc. plans to utilize small business subcontractors for any portion of the work.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to ensure timely completion, adherence to specifications, and effective use of taxpayer funds, particularly given the critical nature of medical gas systems.

Related Government Programs

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

Risk Flags

Project involves critical life-support infrastructure (medical gases).
Construction projects inherently carry risks of delays and cost overruns.
Firm Fixed Price contract requires careful scope definition to avoid disputes.
Ensuring compliance with stringent healthcare construction codes and standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.3 million to MGI, INC.. 521-21-106 | MEDICAL GAS PROJECT CONSTRUCTION | BIRMINGHAM, AL VAMC

Who is the contractor on this award?

The obligated recipient is MGI, 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 $5.3 million.

What is the period of performance?

Start: 2025-06-04. End: 2026-11-19.

What specific medical gas systems are included in this project, and what is the expected impact on patient care?

The project involves the construction or upgrade of critical medical gas systems, likely including oxygen, medical air, vacuum, and potentially specialized gases. These systems are fundamental for patient respiratory support, anesthesia, and various medical procedures. Enhancements are expected to improve reliability, safety, and capacity, directly benefiting patient care by ensuring uninterrupted access to essential medical gases and supporting advanced treatment capabilities.

What measures are in place to mitigate risks associated with construction delays or unforeseen site conditions?

The contract's fixed-price nature incentivizes the contractor to manage costs and timelines effectively. However, the VA likely has clauses addressing unforeseen conditions and delays, potentially including change order procedures and liquidated damages for significant non-performance. Proactive project management, regular site inspections, and clear communication channels between the VA and MGI, Inc. are essential for early identification and resolution of potential issues.

How does the competitive process ensure the best value for taxpayer dollars in this specialized construction project?

The 'Full and Open Competition After Exclusion of Sources' method, while nuanced, aims to solicit bids from a wide range of qualified contractors. This competition drives down prices and encourages innovation. By evaluating bids based on technical qualifications, past performance, and price, the VA can select the offer that provides the best overall value, ensuring that taxpayer funds are used efficiently for a critical healthcare infrastructure upgrade.

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: 36C24725R0020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MGI Inc.

Address: 3557 E OVERLAND RD, MERIDIAN, ID, 83642

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

Financial Breakdown

Contract Ceiling: $5,296,326

Exercised Options: $5,296,326

Current Obligation: $5,296,326

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline