VA awards $12.3M for urgent primary care facility expansion, highlighting construction needs

Contract Overview

Contract Amount: $12,294,910 ($12.3M)

Contractor: Afci-Cci JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-20

End Date: 2026-03-31

Contract Duration: 1,653 days

Daily Burn Rate: $7.4K/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 COMPLETION OF THE EXPAND AND RENOVATE B400 FOR URGENT AND PRIMARY CARE (MINOR) CONSTRUCTION PROJECT

Place of Performance

Location: TOMAH, MONROE County, WISCONSIN, 54660

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.3 million to AFCI-CCI JV ONE LLC 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 COMPLETION OF THE EXPAND AND RENOVATE B400 FOR URGENT AND PRIMARY CARE (MINOR) CONSTRUCTION PROJECT Key points: 1. The contract addresses critical infrastructure needs for urgent and primary care services. 2. Construction project scope includes expansion and renovation, indicating a focus on facility modernization. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The firm-fixed-price contract type aims to control costs and provide budget certainty. 5. The project duration of over 1600 days points to a significant, long-term construction undertaking. 6. The contractor, AFCI-CCI JV ONE LLC, is tasked with providing all necessary resources for completion.

Value Assessment

Rating: good

The contract value of $12.3 million for expanding and renovating a primary care facility appears reasonable given the scope of work. Benchmarking against similar VA construction projects would provide a more precise value assessment. The firm-fixed-price structure suggests an effort to manage costs effectively, but the final cost will depend on the contractor's efficiency and any unforeseen site conditions.

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,' indicating that multiple bidders were likely considered. The presence of four bids suggests a healthy level of competition for this construction project. This competitive environment generally benefits the government by driving down prices and encouraging better quality proposals.

Taxpayer Impact: The competitive bidding process for this construction contract is beneficial for taxpayers as it likely resulted in a more cost-effective award compared to a sole-source or limited competition scenario.

Public Impact

Veterans in Wisconsin will benefit from improved and expanded urgent and primary care facilities. The project will enhance the capacity and quality of healthcare services provided by the VA. The construction work will likely create temporary jobs in the local Wisconsin area. Modernized facilities can lead to better patient experiences and potentially improved health outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Delays in project completion could impact the timely delivery of enhanced healthcare services.
Ensuring the quality of construction meets VA standards is crucial for long-term facility performance.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for value.
The project addresses a clear need for improved healthcare infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The federal government is a significant consumer of construction services, particularly for infrastructure projects like healthcare facilities. Spending in this sector is influenced by infrastructure needs, economic conditions, and agency priorities. Comparable spending benchmarks would involve analyzing other VA facility construction or renovation contracts.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. While this contract itself may not directly benefit small businesses through a set-aside, the prime contractor may engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting plans and opportunities created during the project's execution.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract, requiring the contractor to deliver the specified construction outcomes. Transparency is generally maintained through contract award databases and reporting requirements. The VA's Office of Inspector General may provide oversight if any issues of fraud, waste, or abuse arise.

Related Government Programs

VA Medical Facility Construction
Urgent Care Facility Projects
Healthcare Infrastructure Modernization
Commercial Building Renovation Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns if scope changes significantly
Ensuring adherence to healthcare facility construction standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.3 million to AFCI-CCI JV ONE LLC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EXPAND AND RENOVATE B400 FOR URGENT AND PRIMARY CARE (MINOR) CONSTRUCTION PROJECT

Who is the contractor on this award?

The obligated recipient is AFCI-CCI JV ONE 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 $12.3 million.

What is the period of performance?

Start: 2021-09-20. End: 2026-03-31.

What is the track record of AFCI-CCI JV ONE LLC in completing similar VA construction projects on time and within budget?

Assessing the track record of AFCI-CCI JV ONE LLC requires a review of their past performance on federal contracts, particularly those with the Department of Veterans Affairs. This would involve examining contract databases for project history, completion dates, final costs versus initial awards, and any documented performance issues or awards. Without specific historical data on this joint venture's prior VA projects, it's difficult to definitively state their reliability. However, the fact that they were awarded this significant contract suggests they met the VA's pre-qualification and evaluation criteria, which often include past performance assessments.

How does the awarded amount of $12.3 million compare to the estimated cost or market rates for similar urgent care facility expansion and renovation projects?

The awarded amount of $12.3 million for the expansion and renovation of an urgent and primary care facility needs to be benchmarked against similar projects to assess its value. Factors influencing cost include the size of the expansion, the complexity of renovations, prevailing labor and material costs in Wisconsin, and the specific requirements of the VA. A comparison with other VA facility construction contracts of similar scope and location, or with private sector projects of comparable scale, would be necessary. The firm-fixed-price nature of the contract suggests the government sought a defined cost, but the initial estimate and the competitive bidding process are key to determining if this represents good value for money.

What are the primary risk indicators associated with this specific construction contract, and how are they being mitigated?

Key risk indicators for this construction contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the project's timeline and final cost. Another risk is ensuring the quality of work meets the VA's stringent healthcare facility standards. Mitigation strategies likely include detailed site assessments prior to construction, robust project management by the VA, clear contract specifications, and the firm-fixed-price structure which incentivizes the contractor to manage costs. The contractor's experience and the competitive bidding process also serve as risk mitigation factors, suggesting a capable and reasonably priced selection.

How effective is the firm-fixed-price contract type in ensuring the successful and cost-efficient completion of this healthcare facility construction project?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for construction projects like this VA facility expansion. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently and complete the project within the agreed-upon price. For the VA, this provides budget certainty. However, the effectiveness hinges on the accuracy of the initial scope definition and cost estimation. If the scope is poorly defined or unforeseen issues arise that are not adequately covered by contingency clauses, disputes can occur, potentially impacting schedule and overall value. The FFP structure is well-suited here to manage the known scope of expansion and renovation.

What is the historical spending pattern of the Department of Veterans Affairs on similar construction and renovation projects for healthcare facilities?

The Department of Veterans Affairs has a significant and consistent history of spending on the construction and renovation of healthcare facilities across the United States. This spending is driven by the need to maintain and modernize its extensive network of hospitals, clinics, and medical centers to serve the veteran population. Historical data would show substantial annual outlays in the billions for capital construction projects, including new builds, expansions, and major renovations. Spending patterns are influenced by congressional appropriations, infrastructure assessments, and national healthcare priorities. Analyzing this historical spending provides context for the $12.3 million award, indicating it is part of a larger, ongoing federal investment in healthcare infrastructure.

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: 36C77621B0009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 837 OAKTON STREET SUITE F UNIT 2, ELK GROVE VILLAGE, IL, 60007

Business Categories: Category Business, Limited Liability Corporation, 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: $24,589,820

Exercised Options: $24,589,820

Current Obligation: $12,294,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline