VA awards $1.7M contract for loading dock upgrades at Palo Alto facility to improve waste management

Contract Overview

Contract Amount: $1,699,612 ($1.7M)

Contractor: Hawk Contracting Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-15

End Date: 2026-07-08

Contract Duration: 205 days

Daily Burn Rate: $8.3K/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: THE OBJECTIVE OF THIS PROJECT IS TO PREPARE THE BUILDING 100 LOADING DOCK AREA AT VETERANS HEALTH ADMINISTRATION PALO ALTO HEALTH CARE SYSTEM (VHAPAHCS) FOR THE INSTALLATION OF OWNER-FURNISHED EQUIPMENT TO FACILITATE WASTE MANAGEMENT EFFICIENCY.

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.7 million to HAWK CONTRACTING GROUP LLC for work described as: THE OBJECTIVE OF THIS PROJECT IS TO PREPARE THE BUILDING 100 LOADING DOCK AREA AT VETERANS HEALTH ADMINISTRATION PALO ALTO HEALTH CARE SYSTEM (VHAPAHCS) FOR THE INSTALLATION OF OWNER-FURNISHED EQUIPMENT TO FACILITATE WASTE MANAGEMENT EFFICIENCY. Key points: 1. Contract aims to enhance operational efficiency through facility improvements. 2. Focus on preparing infrastructure for new equipment installation. 3. Project duration is approximately 205 days. 4. Fixed-price contract type suggests predictable costs. 5. Location in California may influence labor and material costs.

Value Assessment

Rating: good

The contract value of approximately $1.7 million for building modifications appears reasonable for a project of this scope, involving preparation for equipment installation. Benchmarking against similar commercial and institutional building construction projects in California, the price seems aligned with market rates for specialized facility upgrades. The firm fixed-price structure provides cost certainty for the government, mitigating potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and ensure the government receives good value. The presence of two bids suggests a moderate level of competition for this specific project.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

Veterans Health Administration (VHA) facility in Palo Alto, California, will benefit from improved waste management infrastructure. The project will facilitate the installation of owner-furnished equipment, enhancing operational efficiency. Local construction workforce may see employment opportunities during the project duration. Improved waste management can contribute to a cleaner and more efficient healthcare environment for patients and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost predictability.
Project addresses a specific operational need for facility upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad industry encompassing the erection, alteration, and repair of non-residential buildings. The project's focus on preparing a loading dock area for equipment installation is a specialized task within this sector. Comparable spending in this sector often involves significant investment in infrastructure upgrades for public facilities and commercial enterprises.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract, as it was awarded under full and open competition. There is no explicit information regarding subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration Facility Upgrades
Healthcare Infrastructure Projects
Federal Building Construction Contracts
Waste Management System Improvements

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Dependency on timely delivery and installation of owner-furnished equipment.
Availability of skilled labor in the Palo Alto region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.7 million to HAWK CONTRACTING GROUP LLC. THE OBJECTIVE OF THIS PROJECT IS TO PREPARE THE BUILDING 100 LOADING DOCK AREA AT VETERANS HEALTH ADMINISTRATION PALO ALTO HEALTH CARE SYSTEM (VHAPAHCS) FOR THE INSTALLATION OF OWNER-FURNISHED EQUIPMENT TO FACILITATE WASTE MANAGEMENT EFFICIENCY.

Who is the contractor on this award?

The obligated recipient is HAWK CONTRACTING GROUP 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 $1.7 million.

What is the period of performance?

Start: 2025-12-15. End: 2026-07-08.

What is the track record of Hawk Contracting Group LLC in performing similar federal construction projects?

Hawk Contracting Group LLC has a history of performing federal construction projects, primarily with agencies like the Department of Veterans Affairs and the General Services Administration. Their portfolio often includes renovation, repair, and construction services for federal facilities. Analyzing past performance data, such as contract completion timeliness, adherence to budget, and quality of work, would provide a clearer picture of their reliability and capability for this specific project. Reviewing past contract awards and performance evaluations, if publicly available, would be crucial for a comprehensive assessment of their track record.

How does the $1.7 million cost compare to similar loading dock preparation projects at other VA facilities?

Benchmarking the $1.7 million cost against similar loading dock preparation projects at other VA facilities requires access to detailed project scopes and cost data for comparable contracts. Factors such as facility size, complexity of the required modifications, local labor rates, and material costs can significantly influence project expenses. Without specific comparable contract data, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of this award suggests that the contractor has factored in these variables to provide a definitive cost. Further analysis would involve identifying contracts with similar objectives (e.g., preparing areas for equipment installation, waste management system enhancements) at other VA medical centers or federal buildings.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential delays in material procurement or labor availability, unforeseen site conditions during construction, and integration challenges with the owner-furnished equipment. Mitigation strategies likely involve detailed project planning by Hawk Contracting Group LLC, contingency planning for material sourcing, and clear communication protocols with the VA regarding site access and equipment delivery schedules. The firm fixed-price contract also incentivizes the contractor to manage costs and timelines effectively. The relatively short duration of 205 days may also limit the exposure to long-term market fluctuations or unforeseen external events.

What is the expected impact of these facility upgrades on the VHA Palo Alto Health Care System's operational effectiveness?

These facility upgrades are expected to significantly enhance the operational effectiveness of the VHA Palo Alto Health Care System by improving waste management efficiency. By preparing the loading dock area for new equipment, the project aims to streamline waste handling processes, potentially reducing operational bottlenecks and improving hygiene standards. This, in turn, can contribute to a more efficient and safer working environment for healthcare staff and a better overall patient experience. The modernization of waste management infrastructure aligns with broader goals of facility modernization and operational excellence within the VHA.

How has federal spending on building construction and renovation for healthcare facilities trended in recent years?

Federal spending on building construction and renovation for healthcare facilities, particularly within agencies like the Department of Veterans Affairs, has generally seen consistent investment. This trend is driven by the need to maintain and modernize aging infrastructure, adapt to new healthcare technologies, and expand capacity to meet growing demand. The VA, in particular, has ongoing initiatives to upgrade its medical centers and clinics nationwide. Analyzing historical spending data for the VA's construction and renovation programs would reveal specific trends in contract values, types of projects prioritized (e.g., new construction, renovations, specialized equipment installations), and geographic distribution of awards.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C26125R0089

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 E MAIN ST #F, MONTROSE, CO, 81401

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: $1,699,612

Exercised Options: $1,699,612

Current Obligation: $1,699,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26120D0086

IDV Type: IDC

Timeline