VA awards $1.98M cath lab construction contract to 2H&V Construction Services in Florida

Contract Overview

Contract Amount: $1,981,984 ($2.0M)

Contractor: 2H&V Construction Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-06

End Date: 2026-05-16

Contract Duration: 1,075 days

Daily Burn Rate: $1.8K/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: REPLACE CATH LAB 1 CONSTRUCTION PROJECT.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to 2H&V CONSTRUCTION SERVICES, LLC for work described as: REPLACE CATH LAB 1 CONSTRUCTION PROJECT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 3. Project duration of 1075 days suggests a significant construction undertaking. 4. The awardee, 2H&V Construction Services, LLC, is a new entity in federal contracting. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract is not set aside for small businesses, implying larger firms were likely involved.

Value Assessment

Rating: fair

The contract value of $1.98 million for a cath lab construction project appears to be within a reasonable range for specialized medical facility construction. However, without specific details on the scope of work, square footage, or included equipment, a precise value-for-money assessment is challenging. Benchmarking against similar VA or other federal medical construction projects would provide better context. The firm fixed-price nature of the contract helps manage cost risks for the government.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 5 bids indicates a moderate level of competition for this project. This suggests that the government likely received a range of pricing and technical proposals, allowing for selection of the best value.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by encouraging contractors to offer their most competitive rates to win the award.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs and the veterans who will utilize the new or improved cath lab facilities. The contract will deliver construction services for a specialized medical facility, enhancing healthcare capabilities. The geographic impact is localized to Florida, where the construction will take place. The project will likely create or sustain jobs in the construction sector within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The awardee, 2H&V Construction Services, LLC, appears to be a relatively new entity in federal contracting, which could present potential performance risks.
The specific scope of work for the cath lab construction is not detailed, making it difficult to fully assess potential risks related to project complexity or unforeseen challenges.
The contract type is definitive, which, while offering price certainty, requires careful management to ensure adherence to scope and quality.

Positive Signals

The contract was awarded through full and open competition, indicating a robust selection process.
The firm fixed-price contract type provides cost predictability for the government.
The project duration is clearly defined, allowing for structured project management and oversight.

Sector Analysis

The construction sector is a significant component of federal spending, encompassing a wide range of projects from infrastructure to specialized facilities. This contract falls under commercial and institutional building construction, a segment that includes healthcare facilities. The market for medical construction is specialized, requiring contractors with specific expertise and adherence to stringent regulations. Federal spending in this area is often driven by the need to modernize aging facilities or expand healthcare services for specific populations, such as veterans.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a firm that may not be classified as a small business, or that the competition was open to all business sizes without specific set-aside provisions. The absence of explicit small business subcontracting goals means there may be limited direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a definitive contract with a firm fixed price, oversight will likely focus on project milestones, quality of construction, adherence to the defined scope, and timely completion. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Commercial Building Construction Contracts
Federal Construction Awards

Risk Flags

Awardee Experience
Scope Definition Clarity
Project Timeline Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to 2H&V CONSTRUCTION SERVICES, LLC. REPLACE CATH LAB 1 CONSTRUCTION PROJECT.

Who is the contractor on this award?

The obligated recipient is 2H&V CONSTRUCTION SERVICES, 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 $2.0 million.

What is the period of performance?

Start: 2023-06-06. End: 2026-05-16.

What is the track record of 2H&V Construction Services, LLC with federal contracts?

Based on the provided data, 2H&V Construction Services, LLC appears to be a new entrant or has a limited history of federal contracting. The award of this definitive contract is a significant undertaking for a potentially less experienced federal contractor. Further investigation into their past performance on similar projects, especially within the healthcare construction domain, would be crucial for assessing their capability and reliability. A lack of extensive federal contract history might necessitate closer monitoring and more rigorous oversight during the project's execution to mitigate potential performance risks and ensure successful delivery.

How does the $1.98 million contract value compare to similar cath lab construction projects?

A direct comparison of the $1.98 million contract value for this cath lab construction project is difficult without detailed project specifications. Cath lab construction costs can vary significantly based on factors such as the size of the facility, the complexity of the required medical equipment installation, the extent of renovations versus new construction, and regional labor and material costs. Generally, specialized medical facilities like cath labs can range from hundreds of thousands to several million dollars. To provide a more accurate benchmark, one would need to compare this contract against projects with similar scope, size, and location, ideally within the Department of Veterans Affairs or other federal healthcare agencies.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues from the awardee, 2H&V Construction Services, LLC, given its apparent limited federal contracting history. There's also a risk related to the scope of work not being fully detailed, which could lead to change orders or delays if unforeseen complexities arise during construction. Furthermore, as with any large construction project, risks such as material cost fluctuations, labor availability, and adherence to strict healthcare construction standards and timelines must be managed effectively by both the contractor and the contracting agency.

How effective is full and open competition in ensuring value for this type of construction contract?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including for construction projects. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In this case, with 5 bids received, the competition likely drove down prices and encouraged offerors to present their best technical and cost proposals. This process helps the Department of Veterans Affairs secure a fair and reasonable price for the cath lab construction, aligning with taxpayer interests.

What is the historical spending pattern for cath lab construction by the Department of Veterans Affairs?

Historical spending data for cath lab construction by the Department of Veterans Affairs would reveal trends in contract awards, average project values, and the types of contractors utilized. Analyzing this data could indicate whether this $1.98 million contract is typical, high, or low compared to past projects of similar scope. It could also highlight any shifts in VA's strategy for procuring such specialized medical facilities, such as increased reliance on specific competition types or a focus on particular geographic regions. Without access to historical VA spending databases, a precise analysis of spending patterns is not possible from the given information.

What are the implications of the 'definitive contract' award type for project oversight?

A definitive contract, in this context, is a contract that is complete and binding. For a construction project like this cath lab, it implies that the terms, conditions, scope, and price are established. This award type provides a clear framework for project oversight. The Department of Veterans Affairs can focus on monitoring progress against the defined schedule and budget, ensuring quality control, and verifying that the completed work meets all specifications. The firm fixed-price nature further simplifies oversight by establishing a ceiling cost, although managing scope creep remains critical to prevent cost overruns.

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: 36C24822R0173

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 811 S DEPOT STE, BONIFAY, FL, 32425

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,981,984

Exercised Options: $1,981,984

Current Obligation: $1,981,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline