VA Awards $11.9M for Primary Care Facility Construction to RB Construction Company
Contract Overview
Contract Amount: $11,928,996 ($11.9M)
Contractor: RB Construction Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-06-17
End Date: 2025-10-28
Contract Duration: 1,594 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EXPAND PRIMARY CARE PROJECT.
Place of Performance
Location: IRON MOUNTAIN, DICKINSON County, MICHIGAN, 49801
State: Michigan Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $11.9 million to RB CONSTRUCTION COMPANY for work described as: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EXPAND PRIMARY CARE PROJECT. Key points: 1. Contract awarded for construction of an expanded primary care project. 2. RB Construction Company is the sole awardee. 3. The contract is a Firm Fixed Price type. 4. Project duration is 1594 days, ending October 2025.
Value Assessment
Rating: good
The contract value of $11.9M appears reasonable for a large-scale construction project of this nature. Benchmarking against similar VA or other federal healthcare facility construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for the construction of essential healthcare infrastructure, aiming to improve primary care services.
Public Impact
Improved access to primary care services for veterans. Potential for job creation during the construction phase. Modernization of healthcare facilities to enhance patient care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have resulted in a higher price.
- Contract duration is lengthy, increasing risk of cost overruns or delays.
Positive Signals
- Addresses a clear need for expanded healthcare facilities.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, including healthcare facilities, and is subject to economic conditions and material costs.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure timely completion, quality construction, and adherence to budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may lead to higher costs.
- Extended contract duration increases risk of delays and cost overruns.
- Lack of explicit small business set-aside or participation noted.
- Potential for unforeseen site conditions impacting cost and schedule.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $11.9 million to RB CONSTRUCTION COMPANY. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EXPAND PRIMARY CARE PROJECT.
Who is the contractor on this award?
The obligated recipient is RB CONSTRUCTION COMPANY.
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 $11.9 million.
What is the period of performance?
Start: 2021-06-17. End: 2025-10-28.
What specific factors led to the exclusion of other sources in this 'limited' competition?
The exclusion of sources suggests that only specific contractors met the stringent requirements or that the procurement strategy intentionally narrowed the field. This could be due to specialized capabilities, prior performance on similar VA projects, or specific geographic requirements. Understanding these factors is key to assessing if the limited competition was justified and if it truly resulted in the best value for the government.
How does the $11.9M contract value compare to similar primary care facility construction projects managed by the VA or other federal agencies?
Benchmarking this contract's value against comparable projects is essential for validating its cost-effectiveness. Factors like project scope, square footage, location, and specific construction complexities influence costs. A significant deviation from established benchmarks, either higher or lower, would warrant further investigation into the pricing and the procurement process.
What mechanisms are in place to monitor and mitigate risks associated with the 1594-day project duration?
A long project duration inherently carries risks such as material price fluctuations, labor availability issues, and potential design changes. The VA should have robust project management and risk mitigation strategies, including regular progress reviews, contingency planning, and clear communication channels with RB Construction Company to address challenges proactively and keep the project on track.
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: SEALED BID
Solicitation ID: 36C77621B0005
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 249 CASS AVENUE, MOUNT CLEMENS, MI, 48043
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $11,928,996
Exercised Options: $11,928,996
Current Obligation: $11,928,996
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-06-17
Current End Date: 2025-10-28
Potential End Date: 2025-10-28 00:00:00
Last Modified: 2025-10-06
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