VA awards $24.4M for community living center expansion, with 3 bidders competing

Contract Overview

Contract Amount: $24,375,925 ($24.4M)

Contractor: Advanced Technology Construction Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-14

End Date: 2026-07-14

Contract Duration: 852 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR EXPANDING THE EXISTING COMMUNITY LIVING CENTER.

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98404

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.4 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION for work described as: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR EXPANDING THE EXISTING COMMUNITY LIVING CENTER. Key points: 1. The contract value represents a significant investment in healthcare infrastructure for veterans. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of construction. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Project duration of 852 days indicates a substantial construction undertaking. 5. The contract is located in Washington state, potentially impacting local construction workforce. 6. The project involves site preparation, demolition, and expansion, indicating complex logistical needs.

Value Assessment

Rating: good

The contract value of $24.4 million for expanding a community living center appears within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar VA construction projects or large institutional building expansions would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the initial bid was considered competitive and that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

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 multiple potential bidders were allowed to submit proposals. With three bidders identified, the competition level appears moderate. A higher number of bidders generally leads to more competitive pricing, but three bidders can still result in a fair market price, especially for specialized construction services.

Taxpayer Impact: The moderate competition suggests that taxpayers are likely to receive a fair price, as the contractor had to be competitive to win the bid. However, further analysis of the bid spread could reveal if there was significant price differentiation among the bidders.

Public Impact

Veterans will benefit from an expanded and potentially modernized community living center, improving their quality of care and living conditions. The project will deliver construction services, including demolition and new building work, to enhance healthcare facilities. The geographic impact is concentrated in Washington state, supporting local economic activity and employment in the construction sector. The construction activities will likely create jobs for skilled tradespeople and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting veteran care timelines.
Risk of unforeseen site conditions requiring change orders and cost increases.
Ensuring quality of construction meets long-term healthcare facility standards.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Experienced contractor likely selected through a competitive bidding process.
Clear project scope for site preparation and expansion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of facilities such as hospitals, schools, government buildings, and community centers. The market for healthcare construction, particularly for veteran facilities, is substantial and driven by government funding and the need to maintain and upgrade aging infrastructure. Comparable spending benchmarks would involve analyzing other large-scale healthcare facility construction contracts awarded by federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the prime contractor is Advanced Technology Construction Corporation, and the contract was not set aside for small businesses. There is no explicit information on subcontracting plans for small businesses. Further review of the contract details would be needed to ascertain if any subcontracting goals were established and if they are being met, which could impact the small business ecosystem.

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 work within the agreed-upon price. Transparency can be assessed through public contract databases and reporting. The Inspector General's office for the VA may have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Major Medical Facility Lease Program
VA Capital Asset Realignment and Enhancement Act (CAREAM)
Department of Defense Construction Contracts
Federal Buildings Fund

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays impacting service delivery timelines.
Ensuring adequate small business subcontracting participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.4 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION. CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR EXPANDING THE EXISTING COMMUNITY LIVING CENTER.

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 $24.4 million.

What is the period of performance?

Start: 2024-03-14. End: 2026-07-14.

What is the track record of Advanced Technology Construction Corporation with the Department of Veterans Affairs?

A review of federal procurement data indicates that Advanced Technology Construction Corporation has a history of contracts with various federal agencies, including the Department of Veterans Affairs. To assess their specific track record with the VA for similar construction projects, one would need to analyze past awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. This would provide insight into their reliability, quality of work, and adherence to schedules and budgets on previous VA engagements. Without specific past performance data for this contractor on VA projects, it is difficult to definitively assess their suitability beyond the competitive bid outcome.

How does the awarded price compare to similar VA community living center expansion projects?

Benchmarking this $24.4 million contract against similar Department of Veterans Affairs community living center expansion projects requires access to a database of comparable contracts, including their scope, size, location, and award dates. Factors such as inflation, regional construction costs, and the complexity of the specific expansion (e.g., seismic retrofitting, technology integration) can significantly influence pricing. A preliminary assessment suggests the price is substantial, reflecting the scale of demolition and construction. A detailed comparison would involve identifying projects with similar square footage, number of beds/rooms, and service level requirements, then adjusting for economic factors to determine if the price is competitive or an outlier.

What are the primary risks associated with this construction project, and how are they being managed?

The primary risks associated with this construction project include potential delays due to unforeseen site conditions (e.g., hazardous materials, underground utilities), weather disruptions, labor shortages, and material price fluctuations. The firm-fixed-price contract shifts the financial risk of cost overruns to the contractor, Advanced Technology Construction Corporation. Management of these risks is typically handled through detailed project planning, contingency budgeting by the contractor, rigorous site investigations prior to award, and active oversight by the VA project managers. The contract's duration of 852 days also implies a need for robust schedule management to mitigate delays.

What is the expected impact of this expansion on the quality and capacity of veteran care in Washington?

The expansion of the community living center is expected to significantly improve the quality and capacity of veteran care in Washington by providing enhanced facilities and potentially increasing the number of available beds or improving the living environment for residents. This could lead to reduced wait times for admission, better access to medical services, and a more comfortable and modern living space for aging or infirm veterans. The specific impact on quality will depend on the design and amenities incorporated into the expansion, while the impact on capacity will be directly related to the increase in usable square footage and patient accommodations.

How has federal spending on VA construction projects trended in recent years?

Federal spending on VA construction projects has generally trended upwards in recent years, driven by a need to modernize aging facilities, expand capacity to meet growing demand, and address infrastructure backlogs. Congressional appropriations for VA construction have seen significant increases, reflecting a commitment to improving healthcare infrastructure for veterans. This particular contract for $24.4 million aligns with this broader trend of investment in VA facilities. Analyzing historical spending patterns reveals a consistent allocation of resources towards capital projects, though specific amounts can fluctuate based on budget cycles and national priorities.

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: 36C77623B0071

Offers Received: 3

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, 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: $24,375,925

Exercised Options: $24,375,925

Current Obligation: $24,375,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline