VA awards $2.08M contract for sterile processing services, highlighting construction sector engagement

Contract Overview

Contract Amount: $2,080,031 ($2.1M)

Contractor: Advanced Technology Construction Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-10-22

Contract Duration: 387 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 668-22-104, TITLE: STERILE PROCESSING SERVICE DEPARTMENT CORRECTIONS.

Place of Performance

Location: SPOKANE, SPOKANE County, WASHINGTON, 99205

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION for work described as: PROJECT 668-22-104, TITLE: STERILE PROCESSING SERVICE DEPARTMENT CORRECTIONS. Key points: 1. Contract value appears reasonable for a multi-year construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed-price definitive contract, indicating price certainty. 4. Project duration spans over a year, requiring sustained contractor performance. 5. The contractor, Advanced Technology Construction Corporation, is involved in commercial and institutional building. 6. The award is a single-award contract, with no indication of multiple awardees. 7. The project is located in Washington, D.C., impacting local construction resources.

Value Assessment

Rating: good

The contract value of $2.08 million for sterile processing services, which involves construction, appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar construction projects for healthcare or institutional facilities would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps manage cost risks for the government. Without specific cost breakdowns or comparisons to industry standards for sterile processing facility construction, a definitive assessment of pricing efficiency is limited, but the overall value seems fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible sources were permitted to submit a bid. The specific details on the number of bidders are not provided, but the designation suggests a robust competitive environment. This approach is generally expected to yield competitive pricing and ensure the government receives the best value by considering a wide range of qualified contractors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it fosters a competitive marketplace, driving down prices and encouraging innovation among contractors vying for the work.

Public Impact

The Department of Veterans Affairs (VA) will benefit from improved sterile processing capabilities, directly impacting patient care and safety. The contract will result in the construction or renovation of facilities dedicated to sterile processing. The geographic impact is concentrated in Washington, D.C., potentially utilizing local labor and materials. The project will likely involve skilled construction labor, contributing to employment in the Washington, D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of project delays impacting the operational readiness of sterile processing services.
Dependence on a single contractor for a critical facility function.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty.
Full and open competition suggests a competitive selection process.
Clear contract end dates provide a defined project timeline.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by the building of non-residential structures such as hospitals, government facilities, and commercial properties. The project's focus on sterile processing suggests a specialized construction requirement within a healthcare-adjacent facility. Comparable spending benchmarks would typically be found in construction projects for medical facilities or specialized infrastructure, where adherence to strict health and safety standards is paramount.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was competed fully and openly, there is no explicit requirement for subcontracting to small businesses mentioned. The impact on the small business ecosystem would depend on whether Advanced Technology Construction Corporation voluntarily engages small businesses as subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Government Building Contracts
Commercial Construction Services

Risk Flags

Potential for construction-related delays.
Ensuring compliance with stringent healthcare facility standards.
Integration of specialized sterile processing equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION. PROJECT 668-22-104, TITLE: STERILE PROCESSING SERVICE DEPARTMENT CORRECTIONS.

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 $2.1 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-10-22.

What is the track record of Advanced Technology Construction Corporation with the Department of Veterans Affairs or similar federal agencies?

A review of federal procurement data would be necessary to fully assess Advanced Technology Construction Corporation's track record. Specifically, examining past contracts awarded to this entity by the VA and other agencies would reveal their performance history, including on-time delivery, adherence to budget, and quality of work. Information on past performance evaluations, any disputes or claims filed, and the types of projects they have successfully completed would provide crucial context for evaluating their suitability and reliability for this sterile processing service project. Without this specific data, it is difficult to definitively assess their past performance.

How does the awarded amount compare to the estimated cost or budget for this sterile processing facility project?

The provided data does not include the estimated cost or budget for this sterile processing service project, making a direct comparison impossible. The awarded amount of $2.08 million represents the government's commitment to the contractor. To assess value for money, this figure would need to be compared against the government's independent cost estimate, bids received from other competitors, and industry benchmarks for similar construction projects. A significant difference between the awarded amount and the estimate, or a lack of competitive bids, could indicate potential issues with pricing or the bidding process.

What are the specific risks associated with constructing or renovating a sterile processing facility, and how are they mitigated in this contract?

Constructing or renovating a sterile processing facility carries inherent risks related to specialized equipment installation, adherence to stringent health and safety regulations (e.g., HVAC, air quality), potential for contamination during construction, and integration with existing hospital infrastructure. The firm fixed-price contract type helps mitigate financial risks by capping the government's expenditure. However, detailed mitigation strategies would be outlined in the contract's statement of work, performance specifications, and any appended technical requirements. These would likely include detailed inspection protocols, phased construction to minimize disruption, and specific performance standards for the completed facility.

What is the expected impact of this contract on the VA's ability to provide sterile processing services?

This contract is expected to enhance or establish the VA's capability to provide essential sterile processing services. By awarding funds for the construction or renovation of dedicated facilities, the VA aims to improve the efficiency, capacity, and compliance of its sterile processing operations. This directly supports the delivery of safe and effective medical care by ensuring that surgical instruments and other medical equipment are properly sterilized. The successful completion of this project should lead to more reliable and potentially higher quality sterile processing, reducing risks associated with infection control.

What has been the historical spending by the VA on sterile processing infrastructure or related construction projects?

Historical spending data for the VA specifically on sterile processing infrastructure construction is not provided in the current data extract. However, the VA, as a large healthcare provider, consistently invests in facility upgrades and new construction to maintain and improve its medical centers. Spending in this area would fall under broader categories like 'Medical Facility Construction,' 'Healthcare Infrastructure,' or 'Building and Facilities Maintenance.' Analyzing aggregate spending trends in these categories over several fiscal years would provide context for the significance of this $2.08 million award within the VA's overall capital investment strategy.

Are there any specific performance metrics or key performance indicators (KPIs) tied to the successful completion of this construction project?

The provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for this construction contract. However, standard construction contracts typically include metrics related to project completion timelines, adherence to design specifications and building codes, quality of workmanship, and safety compliance. For a sterile processing facility, additional KPIs might relate to the functionality of specialized systems (e.g., HVAC, sterilization equipment integration) and successful commissioning and validation of the facility to meet regulatory standards. These would be detailed within the contract's statement of work and performance requirements.

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: 36C26025R0067

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $2,080,031

Exercised Options: $2,080,031

Current Obligation: $2,080,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline