VA awards $13.2M contract for outpatient rehab facility construction to Tri-Tech, LLC

Contract Overview

Contract Amount: $13,227,226 ($13.2M)

Contractor: Wichita Falls Tri-Tech, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2027-04-09

Contract Duration: 556 days

Daily Burn Rate: $23.8K/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: 674-21-101 NRM RECONFIGURE OUTPATIENT REHAB MEDICINE

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76504

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.2 million to WICHITA FALLS TRI-TECH, LLC for work described as: 674-21-101 NRM RECONFIGURE OUTPATIENT REHAB MEDICINE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for construction services, indicating a need for physical infrastructure development. 3. Fixed-price contract type suggests cost certainty for the government. 4. The duration of 556 days points to a significant construction project timeline. 5. Awarded by the Department of Veterans Affairs, likely to support veteran healthcare services. 6. The contract value is substantial, reflecting the scale of the construction undertaking.

Value Assessment

Rating: good

The contract value of $13.2 million for a definitive contract of 556 days appears reasonable for a commercial and institutional building construction project. Benchmarking against similar VA construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost overruns, but the final cost will depend on the execution and any change orders.

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 indicates that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. While the 'exclusion of sources' phrasing might suggest specific criteria were applied, the overall intent is competitive procurement. The presence of two bids suggests a moderate level of competition for this specific project.

Taxpayer Impact: A competitive process generally leads to better pricing for taxpayers by encouraging bidders to offer their most favorable terms. This approach helps ensure that the government is not overpaying for the services rendered.

Public Impact

Veterans in the Wichita Falls, Texas area will benefit from improved outpatient rehabilitation medicine facilities. The contract will deliver new or reconfigured outpatient rehabilitation medicine spaces. The geographic impact is localized to Wichita Falls, Texas, and surrounding areas. The construction project will likely create temporary jobs in the construction sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting service availability for veterans.
Risk of cost increases if unforeseen site conditions arise, despite fixed-price contract.
Ensuring the quality of construction meets VA standards for healthcare facilities.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract provides cost predictability.
Project aims to enhance healthcare infrastructure for veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The Department of Veterans Affairs is a major federal entity that frequently procures construction services to maintain and expand its healthcare facilities. Spending in this sector is influenced by infrastructure needs, healthcare demand, and federal budget allocations. Comparable spending benchmarks would involve analyzing other VA construction projects or similar healthcare facility builds by other federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified construction within the agreed-upon price. Transparency is facilitated by the federal procurement data system, where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Healthcare Construction
Federal Building and Facilities Construction
Outpatient Clinic Construction
Medical Facility Renovation

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Ensuring construction quality meets healthcare standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.2 million to WICHITA FALLS TRI-TECH, LLC. 674-21-101 NRM RECONFIGURE OUTPATIENT REHAB MEDICINE

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 $13.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-04-09.

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

A review of federal procurement data indicates that WICHITA FALLS TRI-TECH, LLC has received multiple contracts from the Department of Veterans Affairs in the past, primarily for construction and renovation services. The value and scope of these previous contracts would need to be analyzed to fully assess their track record. Examining past performance evaluations, if publicly available, would provide further insight into their reliability, quality of work, and adherence to schedules and budgets on previous VA projects. Understanding their history with the VA is crucial for evaluating their capability to successfully execute this new $13.2 million contract.

How does the awarded price compare to similar VA outpatient rehabilitation facility construction projects?

Direct comparison of the $13.2 million award for this 556-day project to similar VA outpatient rehabilitation facility construction projects requires access to a database of comparable contracts. Factors such as project size (square footage), complexity of medical equipment installation, geographic location (which affects labor and material costs), and specific renovation versus new construction needs would influence pricing. Without specific benchmarks for similar projects completed recently by the VA, it is difficult to definitively state whether this price represents excellent, good, or fair value. However, the firm fixed-price nature and competitive bidding process suggest an effort to secure value.

What are the primary risks associated with this construction contract for the VA?

The primary risks associated with this construction contract for the VA include potential construction delays that could impact the timely delivery of services to veterans, cost overruns if unforeseen site conditions or scope changes occur (though mitigated by the fixed-price structure), and ensuring the quality of the final construction meets stringent healthcare facility standards. There's also a risk related to the contractor's capacity and performance, especially given the project's duration. Effective project management, clear communication, and robust oversight by the VA are critical to mitigating these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction contracts?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. By excluding certain sources, the VA might be targeting contractors with specialized capabilities or past performance relevant to healthcare construction. While this can narrow the field, the 'full and open' aspect means that any qualified contractor meeting the criteria can bid. This approach can be effective in ensuring competitive pricing if the exclusion criteria are well-defined and do not unduly restrict the number of potential bidders. The fact that two bids were received suggests a degree of competition was achieved, but a higher number of bidders typically correlates with stronger price discovery.

What is the historical spending pattern of the VA on outpatient rehabilitation facility construction?

The Department of Veterans Affairs has a consistent and significant historical spending pattern on the construction and renovation of healthcare facilities, including outpatient clinics and specialized rehabilitation centers. This spending is driven by the need to modernize aging infrastructure, expand capacity to meet growing veteran populations, and incorporate new medical technologies. Analyzing historical VA budget allocations and contract awards for similar projects over the past 5-10 years would reveal trends in spending, average project costs, and the types of construction services most frequently procured. This contract represents a continuation of that established pattern of investment in veteran healthcare infrastructure.

What are the implications of the 556-day duration on the project's overall cost and risk?

A duration of 556 days (approximately 18.5 months) for a construction project of this magnitude ($13.2 million) is substantial and carries several implications. Longer durations increase the exposure to market fluctuations in material costs and labor rates, although the firm fixed-price contract aims to absorb some of this risk. It also extends the period during which unforeseen issues, such as weather delays, permitting challenges, or design modifications, can arise and potentially impact the schedule and final cost. For the VA, a longer duration means a delayed availability of the improved facility, potentially impacting the delivery of rehabilitation services. Conversely, a well-managed long-term project can allow for thorough execution and quality control.

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: 36C25725R0052

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: $13,277,266

Exercised Options: $13,277,266

Current Obligation: $13,227,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline