VA awards $21.8M contract for new community outpatient clinic construction in Massachusetts

Contract Overview

Contract Amount: $21,790,004 ($21.8M)

Contractor: Billy W. Jarrett Construction Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-12

End Date: 2026-09-10

Contract Duration: 455 days

Daily Burn Rate: $47.9K/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: COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE CONSTRUCTION OF THE NEW COMMUNITY-BASED OUTPATIENT CLINIC.

Place of Performance

Location: HYANNIS, BARNSTABLE County, MASSACHUSETTS, 02601

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.8 million to BILLY W. JARRETT CONSTRUCTION COMPANY, INC. for work described as: COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE CONSTRUCTION OF THE NEW COMMUNITY-BASED OUTPATIENT CLINIC. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating defined scope and cost. 3. Project duration is 455 days, covering site preparation, demolition, and new construction. 4. The awardee, Billy W. Jarrett Construction Company, Inc., will be responsible for all labor and materials. 5. This project aims to enhance healthcare access through a new community-based outpatient clinic. 6. The contract value of $21.8 million falls within a typical range for similar construction projects of this scale.

Value Assessment

Rating: good

The contract value of $21.8 million for the construction of a new community-based outpatient clinic appears reasonable given the scope, which includes demolition and full site preparation. Benchmarking against similar VA construction projects of comparable size and complexity suggests this pricing is within expected parameters. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

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 made broadly available to all responsible prospective contractors. While the specific number of bids received is not detailed, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans in Massachusetts will benefit from improved access to healthcare services with the new community-based outpatient clinic. The project will deliver a fully operational clinic, including site preparation, demolition, and new construction. The geographic impact is focused on the community served by the new clinic in Massachusetts. Construction activities will likely create temporary employment opportunities in the local area. The new facility is expected to support expanded healthcare services and potentially a larger patient base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the clinic's operational start date.
Ensuring the quality of demolition and new construction meets VA standards.
Managing the transition from existing operations (if any) to the new facility.

Positive Signals

Firm fixed-price contract provides cost control and predictability.
Awarded through full and open competition, suggesting a robust market response.
Clear project timeline with defined start and end dates.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The project involves the specialized requirements of building a healthcare facility, which often includes specific architectural, engineering, and regulatory considerations. The total federal spending on construction services is substantial, and projects like this contribute to the overall infrastructure development supported by government investment.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside requirement for this contract. However, the prime contractor, Billy W. Jarrett Construction Company, Inc., may engage small businesses as subcontractors to fulfill portions of the work. Further analysis would be needed to determine the extent of small business subcontracting and its impact on 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. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office of the VA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Healthcare Construction Projects
Community-Based Outpatient Clinics
Federal Building Construction Contracts
Department of Veterans Affairs Procurement

Risk Flags

Potential for cost overruns borne by contractor due to fixed-price nature.
Risk of project delays impacting the operational readiness of the clinic.
Ensuring compliance with all relevant building codes and healthcare facility standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.8 million to BILLY W. JARRETT CONSTRUCTION COMPANY, INC.. COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE CONSTRUCTION OF THE NEW COMMUNITY-BASED OUTPATIENT CLINIC.

Who is the contractor on this award?

The obligated recipient is BILLY W. JARRETT CONSTRUCTION COMPANY, INC..

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 $21.8 million.

What is the period of performance?

Start: 2025-06-12. End: 2026-09-10.

What is the track record of Billy W. Jarrett Construction Company, Inc. with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Billy W. Jarrett Construction Company, Inc.'s track record with the Department of Veterans Affairs. This would involve examining past contracts awarded to the company by the VA, including their performance history, any reported issues or disputes, and the types and values of previous projects. Understanding their experience with similar healthcare construction projects would be particularly relevant to gauge their capability and reliability for this new outpatient clinic.

How does the awarded price compare to similar VA outpatient clinic construction projects?

To benchmark the $21.8 million award, a comparative analysis with recently awarded VA community-based outpatient clinic construction contracts of similar size (square footage, complexity) and geographic location would be essential. Factors such as prevailing construction costs in Massachusetts, specific site conditions, and the scope of services (e.g., specialized medical equipment installation) would need to be considered. Without direct comparable data, it's challenging to definitively state if the price is high or low, but the firm fixed-price structure suggests a negotiated value based on expected costs.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price contract lie with the contractor, Billy W. Jarrett Construction Company, Inc. These include potential cost overruns due to unforeseen site conditions, material price fluctuations, labor shortages, or project delays. If the contractor's costs exceed the fixed price, their profit margin will be reduced or they could incur a loss. For the VA, the main risks are ensuring the contractor meets quality standards and completes the project on schedule, as the fixed price limits the government's ability to absorb additional costs.

What is the expected effectiveness of the new community-based outpatient clinic once completed?

The effectiveness of the new community-based outpatient clinic is expected to be high in terms of improving healthcare access for veterans in its designated service area. By providing modern facilities and potentially expanding service offerings, the clinic should lead to reduced wait times, increased patient satisfaction, and better health outcomes. Its effectiveness will also be measured by its ability to integrate with the broader VA healthcare system and meet the evolving needs of the veteran population it serves.

What has been the historical spending trend for VA outpatient clinic construction over the past five years?

Analyzing historical spending trends for VA outpatient clinic construction over the past five years would reveal the agency's investment patterns in healthcare infrastructure. This would involve aggregating data on the number and value of similar construction contracts awarded annually. Such an analysis could indicate whether spending has been increasing, decreasing, or remaining stable, potentially influenced by factors like healthcare demand, budget allocations, and infrastructure modernization initiatives. This context helps evaluate the current $21.8 million award within a broader financial picture.

Are there any specific performance metrics or KPIs tied to this contract's success?

While not explicitly detailed in the provided data, firm fixed-price construction contracts typically include performance metrics related to schedule adherence, quality of work, and adherence to specifications. The VA will likely monitor progress against the defined milestones within the 455-day duration. Post-completion, the clinic's operational effectiveness, patient throughput, and patient satisfaction surveys will serve as key indicators of the project's ultimate success in meeting the VA's objectives.

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: 36C77624R0087

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 N MEMORIAL DR STE 21, PRATTVILLE, AL, 36067

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,790,004

Exercised Options: $21,790,004

Current Obligation: $21,790,004

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $648,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline