VA awards $20.9M construction contract for Bridger National Construction LLC to expand emergency department services

Contract Overview

Contract Amount: $20,923,471 ($20.9M)

Contractor: Bridger National Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-03

End Date: 2027-06-03

Contract Duration: 730 days

Daily Burn Rate: $28.7K/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: EXPAND EMERGENCY DEPARTMENT

Place of Performance

Location: CHEYENNE, LARAMIE County, WYOMING, 82001

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.9 million to BRIDGER NATIONAL CONSTRUCTION LLC for work described as: EXPAND EMERGENCY DEPARTMENT Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing. 2. Fixed-price contract type aims to control costs, but scope creep could impact final expenditure. 3. Project duration of two years suggests a significant undertaking in facility expansion. 4. Geographic focus on Wyoming may limit broader market competition. 5. No small business set-aside indicates potential for larger firms to dominate. 6. The contract's value is substantial for a single construction project of this nature.

Value Assessment

Rating: fair

The contract value of $20.9 million for expanding an emergency department appears to be within a reasonable range for a project of this scale, though specific benchmarks for similar VA facility expansions are needed for a definitive assessment. The firm fixed-price structure suggests an attempt to manage costs upfront. However, without detailed cost breakdowns or comparisons to similar projects in the region or for other federal agencies, it's difficult to ascertain if this represents optimal value for money. The absence of detailed cost per square foot or per bed makes direct benchmarking challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while initial broad competition might have been considered, specific circumstances led to excluding certain sources. With three bidders, the competition level is moderate, but the 'exclusion of sources' aspect warrants further investigation to understand if it limited the pool of potential offerors and potentially impacted price discovery. A more robust competition typically involves a larger number of bidders.

Taxpayer Impact: The limited competition, particularly with the exclusion of sources, may have resulted in a higher price for taxpayers than could have been achieved through a truly open and unrestricted bidding process.

Public Impact

Veterans in Wyoming will benefit from improved and expanded emergency department facilities. The project will enhance the capacity and efficiency of emergency medical services provided by the VA. Construction activities will likely create temporary employment opportunities in the local Wyoming workforce. The expanded facility aims to reduce wait times and improve patient care outcomes for emergency situations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Limited competition may have led to a suboptimal price for taxpayers.
Dependence on a single contractor for a critical facility expansion poses execution risk.

Positive Signals

Firm fixed-price contract provides cost certainty if scope remains unchanged.
Award to a single entity suggests they met all technical and performance requirements.
Project aims to directly improve healthcare services for a specific veteran population.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The federal government is a significant client in this sector, awarding numerous contracts for infrastructure, healthcare facilities, and administrative buildings. The market for large-scale construction projects is competitive, with many firms capable of undertaking such work. This specific contract for a VA emergency department expansion is a typical example of federal investment in healthcare infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger firm, and opportunities for small businesses would likely be through direct subcontracting if the prime contractor chooses to engage them, rather than through a mandated set-aside program.

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 within the agreed budget. Transparency is generally maintained through federal contract databases, but detailed project progress and specific oversight activities may not be publicly available. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Construction
Emergency Department Modernization Projects
Federal Healthcare Infrastructure Contracts
Commercial Building Construction Services

Risk Flags

Limited competition may have inflated costs.
Potential for scope creep impacting final price.
Contract duration may expose project to market volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.9 million to BRIDGER NATIONAL CONSTRUCTION LLC. EXPAND EMERGENCY DEPARTMENT

Who is the contractor on this award?

The obligated recipient is BRIDGER NATIONAL CONSTRUCTION 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 $20.9 million.

What is the period of performance?

Start: 2025-06-03. End: 2027-06-03.

What is the track record of BRIDGER NATIONAL CONSTRUCTION LLC with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding BRIDGER NATIONAL CONSTRUCTION LLC's specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A thorough analysis would require examining past performance reviews, contract completion history, and any documented issues or successes on previous VA or other federal projects. This would help assess their reliability, quality of work, and ability to manage complex construction projects within budget and schedule. Without this historical data, evaluating their suitability for this significant $20.9 million contract is incomplete.

How does the awarded amount of $20.9 million compare to similar emergency department expansion projects within the VA or other federal healthcare systems?

Benchmarking the $20.9 million contract value against similar VA or federal healthcare emergency department expansion projects is crucial for assessing value for money. Without access to a database of comparable projects, including their scope, size (e.g., square footage, number of beds), location, and final cost, a direct comparison is difficult. Factors such as regional construction costs, specific technological requirements for the ED, and the complexity of the expansion (e.g., renovation of existing space vs. new construction) significantly influence project costs. A preliminary assessment suggests the amount is substantial, warranting a detailed cost-benefit analysis against peer projects.

What specific factors led to the 'exclusion of sources' in this full and open competition, and how might this have impacted the final price?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the solicitation was intended to be open, certain potential offerors were excluded for specific, documented reasons. These reasons could include failure to meet minimum qualifications, past performance issues, or specific regulatory requirements. The impact on the final price is potentially negative; excluding qualified bidders can reduce the overall competition, potentially leading to higher prices than if a wider pool of firms had competed. Understanding the exact criteria for exclusion is vital to determine if the government received the best possible value or if competition was unnecessarily stifled.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful completion of this emergency department expansion project?

The provided data does not specify the key performance indicators (KPIs) or detailed oversight mechanisms for this contract. Typically, for construction projects of this magnitude, KPIs would include adherence to schedule, budget compliance, quality of workmanship, safety standards, and meeting all specified technical requirements. Oversight would be conducted by VA contracting officers' representatives (CORs) and project managers, involving regular site inspections, progress meetings, and review of deliverables. The firm fixed-price nature implies the contractor bears more risk for cost overruns, incentivizing adherence to the agreed-upon terms. Further details would likely be found in the contract's statement of work and performance clauses.

What is the historical spending pattern for emergency department construction or renovation projects by the Department of Veterans Affairs over the last five years?

Analyzing the historical spending patterns of the Department of Veterans Affairs (VA) on emergency department construction and renovation projects over the last five years would provide valuable context for the $20.9 million award. This would involve examining the total annual expenditure, the average contract value, the number of such projects awarded, and the types of contracts used (e.g., fixed-price, cost-plus). Understanding these trends can reveal whether spending on ED infrastructure is increasing, decreasing, or remaining stable, and whether this current contract aligns with historical investment levels or represents a significant deviation. Such analysis helps in assessing the strategic importance and financial planning related to VA healthcare facilities.

What are the potential risks associated with a two-year duration for a definitive contract of this size and scope?

A two-year duration for a definitive contract valued at $20.9 million for an emergency department expansion presents several potential risks. Firstly, market conditions, including material costs and labor availability, can fluctuate significantly over two years, potentially impacting the contractor's ability to maintain profitability under a fixed-price agreement, or leading to change orders if not managed carefully. Secondly, unforeseen site conditions or complexities in integrating new facilities with existing hospital infrastructure can cause delays. Thirdly, extended project timelines increase the risk of design obsolescence or the need to incorporate new medical technologies that emerge during the construction period. Finally, prolonged engagement can sometimes lead to a decrease in contractor urgency if not actively managed.

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: 36C77624R0102

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6603 N HIAWATHA AVENUE, CHICAGO, IL, 60646

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $20,923,471

Exercised Options: $20,923,471

Current Obligation: $20,923,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline