VA awards $12M contract for patient room conversion, highlighting construction sector activity

Contract Overview

Contract Amount: $11,986,464 ($12.0M)

Contractor: Wichita Falls Tri-Tech, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-02

End Date: 2025-12-02

Contract Duration: 1,096 days

Daily Burn Rate: $10.9K/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: CONVERT PATIENT ROOMS TO PRIVATE ROOMS

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76504

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.0 million to WICHITA FALLS TRI-TECH, LLC for work described as: CONVERT PATIENT ROOMS TO PRIVATE ROOMS Key points: 1. Contract focuses on converting shared patient rooms to private, improving patient privacy and infection control. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately three years allows for phased implementation and potential adjustments. 4. The firm-fixed-price structure aims to control costs and provide predictability for the VA. 5. This project aligns with broader healthcare infrastructure modernization trends within the federal government.

Value Assessment

Rating: good

The contract value of approximately $12 million for converting patient rooms appears reasonable given the scope of infrastructure work. Benchmarking against similar hospital renovation projects would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government. The contractor, WICHITA FALLS TRI-TECH, LLC, will be assessed on performance, which will inform future value judgments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, the existing competition likely provided a reasonable basis for price discovery and ensured the government received competitive offers.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a wider range of contractors to participate, potentially leading to more cost-effective solutions and better value for public funds.

Public Impact

Veterans at the Wichita Falls facility will benefit from enhanced privacy and potentially reduced infection rates. The project will deliver modernized patient room infrastructure, improving the quality of care. The geographic impact is localized to the Wichita Falls, Texas area, directly serving the local veteran population. The contract will likely involve local construction workforce employment and support for related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen construction challenges arise.
Dependence on timely material procurement and skilled labor availability.
Ensuring compliance with all VA facility standards and healthcare regulations.

Positive Signals

Clear project objective focused on improving patient care.
Firm-fixed-price contract helps manage budget certainty.
Awarded through full and open competition, indicating a competitive process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of federal contracting. The Department of Veterans Affairs is a major investor in healthcare infrastructure, with substantial annual spending on facility upgrades and construction. This project represents a typical investment in maintaining and modernizing healthcare facilities to meet evolving patient care standards and improve operational efficiency.

Small Business Impact

The contract was awarded to WICHITA FALLS TRI-TECH, LLC and does not appear to have a specific small business set-aside. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Further review of the contract details would be needed to assess potential impacts or opportunities for small businesses in the subcontracting ecosystem.

Oversight & Accountability

Oversight will be provided by the Department of Veterans Affairs, likely through contracting officers and project managers responsible for monitoring progress, quality, and adherence to specifications. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency will depend on the VA's public reporting practices regarding contract performance and project milestones.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
General Building and Infrastructure

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Ensuring compliance with healthcare regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.0 million to WICHITA FALLS TRI-TECH, LLC. CONVERT PATIENT ROOMS TO PRIVATE ROOMS

Who is the contractor on this award?

The obligated recipient is WICHITA FALLS TRI-TECH, 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: 2022-12-02. End: 2025-12-02.

What is the track record of WICHITA FALLS TRI-TECH, LLC with the Department of Veterans Affairs?

Information regarding the specific track record of WICHITA FALLS TRI-TECH, LLC with the Department of Veterans Affairs is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous VA projects. This would help gauge their reliability, quality of work, and experience with similar healthcare construction projects. Without this historical data, it is difficult to definitively assess their suitability beyond the competitive bidding outcome.

How does the cost per room conversion compare to industry benchmarks?

The total contract value is approximately $11.99 million for an unspecified number of patient rooms. To benchmark the cost per room conversion, the number of rooms to be converted is essential. If, for example, 100 rooms were converted, the cost per room would be around $119,900. This figure would then need to be compared against industry averages for similar hospital room renovations, considering factors like the extent of the renovation (e.g., plumbing, electrical, finishes) and geographic location. Without the number of rooms, a precise per-unit cost comparison is not feasible.

What are the primary risks associated with this construction project?

Key risks for this project include potential construction delays due to unforeseen site conditions, material shortages, or labor availability issues, which could impact the schedule and potentially lead to cost escalations if not managed effectively. Ensuring strict adherence to healthcare facility regulations and infection control protocols during renovation is critical to avoid disruptions to ongoing hospital operations. Furthermore, managing the scope of work to prevent 'scope creep' beyond the initial agreement will be important for maintaining the firm-fixed-price integrity of the contract.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for construction projects like this one, as it shifts the majority of the cost risk to the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control their expenses. However, for FFP contracts to be truly effective, the scope of work must be clearly defined and stable. Significant changes or unforeseen issues could lead to change orders, potentially increasing the overall cost, though the initial price provides a strong baseline for taxpayer protection.

What is the historical spending pattern for patient room conversions at this VA facility?

The provided data does not include historical spending patterns for patient room conversions at the Wichita Falls facility or similar projects. To analyze this, one would need to examine past VA contracts related to facility upgrades and renovations at this specific location or within the region. Understanding historical spending would allow for a comparison of current contract values against previous investments, helping to identify trends, potential cost efficiencies, or significant shifts in project scope and pricing over time.

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: SEALED BID

Solicitation ID: 36C25722B0028

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wichita Falls Tri-Tech LLC

Address: 1205 WISHING TREE LN, KELLER, TX, 76248

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,986,464

Exercised Options: $11,986,464

Current Obligation: $11,986,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline