VA Awards $11.9M Contract to DELCO LLC for Medical Unit Renovation in Arkansas
Contract Overview
Contract Amount: $11,951,682 ($12.0M)
Contractor: Delco LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-07-19
End Date: 2026-09-23
Contract Duration: 796 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 564-17-140 RENOVATE MED & SURG UNIT 2B.
Place of Performance
Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72703
State: Arkansas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $12.0 million to DELCO LLC for work described as: 564-17-140 RENOVATE MED & SURG UNIT 2B. Key points: 1. Contract awarded to DELCO LLC for $11.9 million. 2. Project involves renovation of a Medical & Surgical Unit. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract is a Firm Fixed Price type. 5. Duration of the contract is 796 days.
Value Assessment
Rating: fair
The contract value of $11.9 million for renovating a medical unit appears within a reasonable range for such projects, though specific benchmarks for this type of specialized construction are not readily available. The fixed-price nature provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competition, potentially impacting price discovery. While open, the exclusion of certain sources might have restricted the pool of bidders.
Taxpayer Impact: Taxpayer funds are being used for this renovation, with the final cost influenced by the competitive process employed.
Public Impact
Improved healthcare facilities for veterans. Potential for job creation during the construction phase. Impact on patient care and medical services during renovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Potential for cost overruns if unforeseen issues arise in renovation.
Positive Signals
- Addresses critical healthcare infrastructure needs.
- Fixed-price contract provides budget predictability.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on project scope, location, and material costs. Benchmarks are difficult without specific project details.
Small Business Impact
The contract data indicates that small business participation was not a stated factor (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
Oversight will be crucial to ensure the renovation meets quality standards, stays within budget, and is completed on schedule, especially given the limited competition aspect.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition.
- Potential for unforeseen renovation challenges.
- Impact on ongoing medical operations.
- Ensuring infection control during construction.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, ar, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $12.0 million to DELCO LLC. 564-17-140 RENOVATE MED & SURG UNIT 2B.
Who is the contractor on this award?
The obligated recipient is DELCO 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 $12.0 million.
What is the period of performance?
Start: 2024-07-19. End: 2026-09-23.
What specific factors led to the exclusion of certain sources in the competition?
The exclusion of sources in the competition likely stemmed from specific technical requirements, security clearances, or pre-qualification criteria deemed necessary for the sensitive nature of renovating a medical and surgical unit. This aims to ensure only capable and vetted contractors participate, though it narrows the competitive field.
What are the potential risks associated with renovating an active medical unit?
Renovating an active medical unit poses risks such as disruption to patient care, infection control challenges, noise and vibration impacts, and the need for phased construction to maintain operational continuity. These factors can increase complexity and potentially lead to schedule delays or cost overruns if not meticulously managed.
How will the effectiveness of this renovation be measured post-completion?
Effectiveness will be measured by assessing the unit's improved functionality, patient and staff satisfaction, adherence to updated healthcare codes and standards, reduction in maintenance issues, and overall enhancement of medical service delivery. Performance metrics related to infection rates and operational efficiency will also be key indicators.
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: 36C25624R0024
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 409 N EUFAULA AVE, COWETA, OK, 74429
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, 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: $11,951,682
Exercised Options: $11,951,682
Current Obligation: $11,951,682
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-19
Current End Date: 2026-09-23
Potential End Date: 2026-09-23 00:00:00
Last Modified: 2026-03-12
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)