VA Awards $23.2M Contract for Tucson Emergency Department Expansion to CAPEX & D SQUARE

Contract Overview

Contract Amount: $23,187,771 ($23.2M)

Contractor: Capex & D Square, a Joint Venture LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-17

End Date: 2028-01-10

Contract Duration: 1,210 days

Daily Burn Rate: $19.2K/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: CONSTRUCTION 678-331 EXPAND AND RENOVATE EMERGENCY DEPT. TUCSON, AZ

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.2 million to CAPEX & D SQUARE, A JOINT VENTURE LLC for work described as: CONSTRUCTION 678-331 EXPAND AND RENOVATE EMERGENCY DEPT. TUCSON, AZ Key points: 1. The contract is for construction services to expand and renovate the Emergency Department in Tucson, AZ. 2. The awardee is CAPEX & D SQUARE, A JOINT VENTURE LLC. 3. The contract type is Firm Fixed Price, awarded under Full and Open Competition after Exclusion of Sources. 4. The estimated completion date is January 10, 2028, with a duration of 1210 days. 5. The base contract value is $23,187,771.

Value Assessment

Rating: good

The contract value of $23.2 million for a significant renovation and expansion of a hospital emergency department appears reasonable within the context of construction projects of this scale. Benchmarking against similar VA or other federal healthcare construction projects would provide a more precise assessment.

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 a competitive process was intended, though specific details on source exclusion are not provided. This method aims to ensure fair pricing through competition.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive bidding, which can lead to lower prices and better value for government projects.

Public Impact

Improved emergency care services for veterans in the Tucson area. Potential for job creation during the construction phase. Modernization of critical healthcare infrastructure. Ensures compliance with current healthcare facility standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the long duration and complexity of construction.
Risk of delays impacting the delivery of improved emergency services.
Ensuring the selected joint venture has the capacity and expertise for a project of this magnitude.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type helps control costs.
Project addresses a critical need for enhanced emergency department facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the federal government is substantial, covering a wide range of infrastructure projects. Benchmarks for similar hospital renovations can vary significantly based on location, scope, and specific requirements.

Small Business Impact

The data indicates that small business participation was not a primary factor in this award, as the awardee is a joint venture and the contract was not specifically set aside for small businesses. 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. Standard oversight mechanisms for construction projects, including site inspections, progress reports, and quality control, would be in place to ensure adherence to contract terms and specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long project duration increases risk exposure.
Potential for scope creep or change orders.
Dependence on a single joint venture for project completion.
Complexity of renovating an active emergency department.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.2 million to CAPEX & D SQUARE, A JOINT VENTURE LLC. CONSTRUCTION 678-331 EXPAND AND RENOVATE EMERGENCY DEPT. TUCSON, AZ

Who is the contractor on this award?

The obligated recipient is CAPEX & D SQUARE, A JOINT VENTURE 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 $23.2 million.

What is the period of performance?

Start: 2024-09-17. End: 2028-01-10.

What specific factors led to the exclusion of other sources in the 'Full and Open Competition after Exclusion of Sources' process, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique requirements necessitate a narrowed field of competition. Without further details on the justification for exclusion, it's difficult to definitively state its impact on the final price. However, excluding sources can sometimes limit competition, potentially leading to higher prices than a truly unrestricted full and open competition might yield.

What are the key performance indicators (KPIs) for this project, and how will the VA measure the success of the expanded emergency department post-completion?

Key performance indicators for this construction project would likely include adherence to schedule, budget, quality standards, and safety regulations. Post-completion success measurement for the emergency department itself would involve metrics such as patient wait times, patient satisfaction scores, capacity to handle patient volume, and the department's ability to meet critical care needs effectively.

Given the project's duration (over 3 years), what provisions are in place to mitigate risks associated with inflation, material availability, and potential changes in healthcare needs or technology?

Mitigation strategies for long-duration construction projects often include escalation clauses for materials and labor, contingency planning for unforeseen site conditions, and flexible contract modifications to accommodate technological advancements. The VA would likely have contract clauses addressing these risks, and regular reviews would assess the need for adjustments to ensure the project remains relevant and cost-effective.

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: 36C77623R0191

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1146 N 1190 E, AMERICAN FORK, UT, 84003

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $69,524,652

Exercised Options: $69,524,652

Current Obligation: $23,187,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline