VA Awards $16.1M Contract for Sterile Processing Upgrade at Puget Sound Healthcare System

Contract Overview

Contract Amount: $16,093,135 ($16.1M)

Contractor: Advanced Technology Construction Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-28

End Date: 2026-04-01

Contract Duration: 916 days

Daily Burn Rate: $17.6K/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: 663-20-102 UPGRADE STERILE PROCESSING SERVICE (SPS) FOR THE PUGET SOUND HEALTHCARE SYSTEM, SEATTLE, WA.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.1 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION for work described as: 663-20-102 UPGRADE STERILE PROCESSING SERVICE (SPS) FOR THE PUGET SOUND HEALTHCARE SYSTEM, SEATTLE, WA. Key points: 1. The contract focuses on upgrading sterile processing services, a critical component of healthcare delivery. 2. Advanced Technology Construction Corporation secured the award, indicating potential competition in the construction sector. 3. The firm fixed-price contract type suggests a defined scope and budget, mitigating cost overrun risks. 4. This spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The $16.1M award for a healthcare facility upgrade appears reasonable given the scope. Benchmarking against similar large-scale construction projects for healthcare systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare infrastructure upgrades, aiming for improved patient care and operational efficiency.

Public Impact

Enhances patient safety through improved sterile processing capabilities. Modernizes critical healthcare infrastructure within the Puget Sound region. Supports the operational efficiency of the VA's healthcare system. Potential for job creation in the construction sector in Washington state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open bid.
Contract duration of 916 days is substantial, requiring ongoing monitoring.
No small business participation noted, missing an opportunity for economic inclusion.

Positive Signals

Addresses a critical need for healthcare infrastructure.
Firm fixed-price contract provides cost certainty.
Awarded to a single contractor, potentially streamlining execution.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for similar healthcare facility upgrades vary widely based on size and complexity.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This represents a missed opportunity to support small business participation in federal contracting for this project.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The definitive contract type and firm fixed-price structure provide some accountability, but ongoing performance monitoring is crucial.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may inflate costs.
Lack of small business participation.
Long contract duration requires sustained oversight.
Potential for scope creep if not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.1 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION. 663-20-102 UPGRADE STERILE PROCESSING SERVICE (SPS) FOR THE PUGET SOUND HEALTHCARE SYSTEM, SEATTLE, WA.

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION.

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 $16.1 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-04-01.

What is the specific scope of the 'Sterile Processing Service (SPS) Upgrade' and how does it align with current healthcare best practices?

The specific scope involves upgrading equipment and facilities for sterile processing, which is crucial for preventing infections and ensuring patient safety. This includes ensuring compliance with current healthcare standards and regulations for sterilization and disinfection of medical instruments. A detailed review of the contract's technical specifications would clarify the exact upgrades and their alignment with best practices.

What factors led to the exclusion of other sources, and how was the pricing determined under this limited competition?

The contract notes 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implying specific justifications were made to limit the pool of bidders. The exact reasons for exclusion are not detailed here but could relate to specialized capabilities or prior performance. Pricing under limited competition is typically determined through negotiation, potentially leading to less aggressive cost reductions compared to a fully open market.

How will the effectiveness of this upgrade be measured to ensure it meets the VA's objectives for improved healthcare delivery?

Effectiveness will likely be measured through post-implementation reviews, patient safety metrics, infection control data, and operational efficiency reports from the Puget Sound Healthcare System. Key performance indicators (KPIs) related to sterilization success rates, equipment uptime, and staff feedback will be essential for evaluating the upgrade's impact on healthcare delivery.

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: 36C26023R0021

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3828 E PORTLAND AVE, TACOMA, WA, 98404

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,093,135

Exercised Options: $16,093,135

Current Obligation: $16,093,135

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline