VA awards $2.7M contract for outpatient clinic renovation in Texas, emphasizing firm fixed-price terms

Contract Overview

Contract Amount: $2,741,919 ($2.7M)

Contractor: Chesapeake Planning and Consulting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-08

End Date: 2026-02-27

Contract Duration: 721 days

Daily Burn Rate: $3.8K/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: RENOVATION OF OUTPATIENT CLINIC

Place of Performance

Location: BIG SPRING, HOWARD County, TEXAS, 79720

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to CHESAPEAKE PLANNING AND CONSULTING LLC for work described as: RENOVATION OF OUTPATIENT CLINIC Key points: 1. Contract awarded using full and open competition after exclusion of sources, indicating a broad search for qualified bidders. 2. The firm fixed-price contract type suggests a defined scope and budget, transferring some risk to the contractor. 3. The contract duration of 721 days allows ample time for the renovation project. 4. The awardee, Chesapeake Planning and Consulting LLC, will undertake the renovation of an outpatient clinic. 5. The project is located in Texas, potentially benefiting the local economy and workforce. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $2.74 million for outpatient clinic renovation appears reasonable given the scope of construction services. Benchmarking against similar VA renovation projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the pricing is set, and any cost overruns would typically be borne by the contractor, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, possibly related to pre-qualification or prior performance. The number of bids received (5) indicates a moderate level of competition, which is generally sufficient to achieve fair market pricing.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely received a fair price, as multiple firms vied for the contract. However, a truly 'full and open' competition without exclusions might have yielded even more competitive bids and potentially lower costs.

Public Impact

Veterans in Texas will benefit from improved outpatient clinic facilities, enhancing their healthcare experience. The contract supports the delivery of essential healthcare infrastructure services for the Department of Veterans Affairs. The geographic impact is concentrated in Texas, potentially creating local employment opportunities in the construction sector. The project will likely involve skilled labor in commercial and institutional building construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined, leading to cost increases.
Contractor performance risk, though mitigated by fixed-price terms, could still impact project timelines.
Ensuring compliance with VA facility standards and regulations throughout the renovation process.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Defined contract duration of 721 days allows for structured project management.
Award to a single contractor streamlines communication and accountability.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. The market for healthcare facility construction and renovation is robust, driven by ongoing demand for modern and efficient medical spaces. The Department of Veterans Affairs represents a substantial client within this sector, frequently awarding contracts for facility upgrades and new builds. Comparable spending benchmarks would involve analyzing other VA clinic renovation projects or similar healthcare construction contracts awarded by federal agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Chesapeake Planning and Consulting LLC, chooses to engage them. Without specific subcontracting plans mandated in the award, the direct benefit to the small business ecosystem is uncertain and depends on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are embedded within the firm fixed-price contract terms, which incentivize the contractor to adhere to the agreed-upon scope and budget. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Limited competition due to source exclusion
Potential for unforeseen site conditions impacting cost and schedule
Contractor performance risk on fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to CHESAPEAKE PLANNING AND CONSULTING LLC. RENOVATION OF OUTPATIENT CLINIC

Who is the contractor on this award?

The obligated recipient is CHESAPEAKE PLANNING AND CONSULTING 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 $2.7 million.

What is the period of performance?

Start: 2024-03-08. End: 2026-02-27.

What is the track record of Chesapeake Planning and Consulting LLC with the Department of Veterans Affairs?

A thorough review of federal procurement data would be necessary to fully assess Chesapeake Planning and Consulting LLC's track record with the Department of Veterans Affairs. This would involve examining past contracts awarded to the company by the VA, including their performance ratings, any instances of contract modifications, disputes, or terminations. Understanding their history with similar renovation projects, particularly for healthcare facilities, would provide insight into their capabilities and reliability. Without specific historical data readily available in this summary, it's difficult to provide a detailed assessment of their past performance, but the award of this contract suggests they met the VA's requirements at the time of selection.

How does the awarded amount compare to similar outpatient clinic renovation projects by the VA?

To benchmark the $2.74 million award for this outpatient clinic renovation, a comparative analysis with similar projects is required. This would involve identifying other VA contracts for clinic renovations of comparable size, scope, and geographic location. Factors such as square footage, complexity of work (e.g., medical equipment integration, structural changes), and the specific year of award would need to be considered for a fair comparison. The firm fixed-price nature of this contract also implies a degree of cost certainty, which should be factored into any value assessment. A preliminary assessment suggests the amount is within a typical range for such projects, but detailed comparative data is needed for a definitive conclusion.

What are the primary risks associated with this firm fixed-price contract for clinic renovation?

The primary risks associated with this firm fixed-price contract for clinic renovation primarily lie in potential scope definition issues and unforeseen site conditions. While the fixed-price structure protects the government from cost overruns due to contractor inefficiency, it does not fully insulate against changes in scope or unexpected discoveries during construction (e.g., hazardous materials, structural issues not apparent during initial assessment). If the initial scope is not meticulously detailed, the contractor may seek change orders, potentially increasing the total cost. Furthermore, the contractor bears the risk of cost overruns due to poor management or material price fluctuations, which could incentivize cutting corners if not closely monitored.

How effective is the 'full and open competition after exclusion of sources' method for ensuring value?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. By excluding certain sources, the agency might be targeting contractors with specific expertise or past performance relevant to the project. This can lead to a more focused competition among qualified bidders. However, the exclusion of potential bidders inherently limits the breadth of competition. The effectiveness in ensuring value depends on whether the exclusions were justified and if the remaining pool of bidders was sufficiently competitive. Receiving 5 bids suggests a reasonable level of competition, but it's possible that excluding certain firms might have inadvertently reduced the potential for the most competitive pricing.

What is the historical spending trend for outpatient clinic renovations by the VA in Texas?

Analyzing historical spending trends for outpatient clinic renovations by the VA in Texas would require accessing and processing extensive federal procurement databases over several fiscal years. This would involve filtering contracts by agency (VA), service type (clinic renovation, construction), and geographic location (Texas). Key metrics to examine would include the total annual spending, the average contract value, the number of contracts awarded, and the predominant contract types (e.g., fixed-price vs. cost-plus). Such an analysis would reveal patterns in investment, identify peak spending periods, and potentially highlight any significant shifts in the scale or frequency of renovation projects within the state.

What are the potential workforce implications of this $2.74 million renovation contract?

This $2.74 million renovation contract is likely to have positive workforce implications, primarily within the construction sector in Texas. The project will necessitate the employment of various skilled trades, including electricians, plumbers, carpenters, masons, and general laborers. Depending on the project's scale and duration (721 days), it could support a significant number of jobs, potentially ranging from dozens to over a hundred individuals at peak employment. Furthermore, there may be indirect job creation in related industries such as material supply, equipment rental, and professional services (e.g., engineering, architecture). The specific impact will depend on the contractor's hiring practices and local sourcing strategies.

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: SEALED BID

Solicitation ID: 36C25723B0053

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6700 ALEXANDER BELL DR STE 200, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $2,741,939

Exercised Options: $2,741,939

Current Obligation: $2,741,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline