VA awards $13.8M for Orlando VA Medical Center expansion, focusing on primary care construction

Contract Overview

Contract Amount: $13,782,301 ($13.8M)

Contractor: Cdeem CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2026-10-05

Contract Duration: 735 days

Daily Burn Rate: $18.8K/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 PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF PROJECT 675-100 EXPAND PRIMARY CARE CONSTRUCTION ORLANDO VA MEDICAL CENTER - LAKE NONA.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.8 million to CDEEM CO for work described as: CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF PROJECT 675-100 EXPAND PRIMARY CARE CONSTRUCTION ORLANDO VA MEDICAL CENTER - LAKE NONA. Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition suggests a potentially competitive bidding process. 3. Project duration of 735 days indicates a significant undertaking. 4. Fixed-price contract type shifts risk to the contractor. 5. Location in Florida is noted for construction activity. 6. The project aims to enhance primary care facilities at a major medical center.

Value Assessment

Rating: good

The contract value of $13.8 million for the expansion of primary care facilities at the Orlando VA Medical Center is within a typical range for major healthcare construction projects. Benchmarking against similar VA medical center construction or expansion projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor has a strong incentive to manage costs effectively, which can be beneficial for the government.

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 the solicitation was broadly advertised and multiple bids were likely considered. The presence of 3 bidders suggests a moderate level of competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and better value for the government.

Taxpayer Impact: The full and open competition, with multiple bidders, is favorable for taxpayers as it increases the likelihood of securing the best possible price and quality for the construction services.

Public Impact

Veterans in the Orlando area will benefit from expanded and improved primary care services. The project will result in the construction of new or renovated primary care facilities. Geographic impact is concentrated in Orlando, Florida. The construction project will likely create jobs for skilled trades and construction workers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Ensuring timely completion within the 735-day duration is critical to avoid service disruptions.
Quality of construction must meet stringent VA healthcare facility standards.

Positive Signals

Firm fixed-price contract aligns contractor incentives with project completion and cost control.
Full and open competition suggests a robust process for selecting the most capable bidder.
The project addresses a clear need for enhanced primary care capacity at a busy VA facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. The market for healthcare construction is substantial, driven by the need for modern, specialized medical spaces. The Orlando VA Medical Center expansion is a significant project within this sector, requiring specialized knowledge of healthcare construction codes and requirements. Comparable spending benchmarks would involve analyzing other large-scale hospital or clinic construction contracts awarded by federal agencies or large healthcare systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary awardee is likely a larger construction firm. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this project and if the prime contractor has a history of engaging small businesses.

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 accountability for the contractor to deliver the project within the agreed-upon scope and cost. Transparency can be assessed through public contract databases and reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Projects
Federal Construction Contracts
Primary Care Facility Development

Risk Flags

Potential for schedule delays
Risk of unforeseen construction issues
Ensuring compliance with healthcare facility standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.8 million to CDEEM CO. CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF PROJECT 675-100 EXPAND PRIMARY CARE CONSTRUCTION ORLANDO VA MEDICAL CENTER - LAKE NONA.

Who is the contractor on this award?

The obligated recipient is CDEEM CO.

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 $13.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-10-05.

What is the contractor's track record with similar VA construction projects?

Information regarding the contractor, CDEEM CO, and their specific track record with the Department of Veterans Affairs on similar primary care construction projects is not detailed in the provided data. A thorough review would involve examining past performance evaluations, contract history, and any reported issues or successes on previous VA or federal construction contracts. Understanding their experience with healthcare facilities, project scale, and adherence to timelines and budgets would be crucial for assessing their capability to successfully execute this $13.8 million expansion.

How does the awarded price compare to similar VA primary care construction projects?

The awarded price of $13.8 million for the Orlando VA Medical Center primary care expansion needs to be benchmarked against comparable projects to assess value for money. Without specific data on similar projects (e.g., square footage, scope of work, location, year of award), a direct comparison is difficult. However, for a significant expansion of primary care facilities at a major medical center, $13.8 million is a plausible figure. A detailed analysis would involve identifying projects with similar characteristics and comparing cost per square foot, complexity of medical equipment integration, and duration.

What are the primary risks associated with this construction contract?

Key risks for this firm fixed-price construction contract include potential cost overruns due to unforeseen site conditions or material price fluctuations, delays in project completion impacting service delivery, and ensuring the final construction meets the stringent quality and safety standards required for healthcare facilities. The contractor bears the primary financial risk, but the VA faces risks related to schedule adherence and the ultimate usability and quality of the expanded facilities. Effective project management, clear communication, and robust oversight are critical to mitigating these risks.

How effective is the firm fixed-price contract type in ensuring project success for the VA?

The firm fixed-price (FFP) contract type is generally effective in ensuring project success for the VA when the scope of work is well-defined and risks are understood. It incentivizes the contractor to control costs and complete the project efficiently, as any overruns are their responsibility. For a construction project like the Orlando VA Medical Center expansion, where the physical requirements are tangible, FFP can provide cost certainty for the government. However, it requires meticulous upfront planning and specification to avoid change orders that can inflate costs and delay the project.

What is the historical spending pattern for primary care construction at the Orlando VA Medical Center?

The provided data does not include historical spending patterns for primary care construction specifically at the Orlando VA Medical Center. To analyze this, one would need to access historical contract databases and search for previous construction or renovation projects at this specific facility, focusing on primary care services. Understanding past investments would help contextualize the current $13.8 million award, revealing trends in spending, the frequency of such projects, and potentially identifying any significant increases or decreases in investment over time.

What are the implications of 'full and open competition after exclusion of sources' for this contract?

The 'full and open competition after exclusion of sources' designation means that the solicitation was broadly advertised to all eligible sources, but specific exclusions might have been applied based on pre-qualification criteria or other factors, though the primary intent is broad competition. This approach aims to maximize the pool of potential bidders, fostering robust competition. For taxpayers, this typically translates to better pricing and a wider selection of qualified contractors. The fact that 3 bids were received suggests a reasonable, though not exceptionally high, level of market interest for this project.

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: 36C77624B0016

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 651 DANVILLE DR, ORLANDO, FL, 32825

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority 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: $13,782,301

Exercised Options: $13,782,301

Current Obligation: $13,782,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline