VA Awards $24.1M Endoscopy Suite Construction to Floyd Construction Corp

Contract Overview

Contract Amount: $24,111,777 ($24.1M)

Contractor: Floyd Construction Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-16

End Date: 2027-02-14

Contract Duration: 608 days

Daily Burn Rate: $39.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE ENDOSCOPY SUITE (MINOR) CONSTRUCTION PROJECT.

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67218

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.1 million to FLOYD CONSTRUCTION CORP for work described as: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE ENDOSCOPY SUITE (MINOR) CONSTRUCTION PROJECT. Key points: 1. Contract value of $24.1 million for a minor construction project. 2. Competition method: Full and open after exclusion of sources. 3. Risk: Construction projects carry inherent risks of delays and cost overruns. 4. Sector: Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The contract value of $24.1 million appears reasonable for a specialized construction project like an endoscopy suite. Benchmarking against similar VA or healthcare facility construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for limiting the pool of bidders. This method might impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare infrastructure. The chosen competition method aims for a balance between broad access and specific project requirements.

Public Impact

Enhances healthcare infrastructure at a VA facility. Supports specialized medical procedures for veterans. Potential for job creation in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the lowest possible price.
Construction projects are susceptible to unforeseen issues and delays.
Project duration of 608 days is substantial.

Positive Signals

Addresses a critical need for upgraded medical facilities.
Firm Fixed Price contract provides cost certainty.
Awarded by the Department of Veterans Affairs, indicating a focus on veteran care.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, including healthcare facilities. Benchmarks for similar projects vary widely based on scope and location.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Future contracts of this nature should explore opportunities for small business involvement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of a definitive contract and firm fixed price suggests a structured approach to managing this project and its costs.

Related Government Programs

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

Risk Flags

Limited competition may not yield optimal pricing.
Construction projects inherently carry risks of delays and cost overruns.
Potential for scope creep if project requirements are not clearly defined.
Long project duration increases exposure to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.1 million to FLOYD CONSTRUCTION CORP. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE ENDOSCOPY SUITE (MINOR) CONSTRUCTION PROJECT.

Who is the contractor on this award?

The obligated recipient is FLOYD CONSTRUCTION CORP.

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 $24.1 million.

What is the period of performance?

Start: 2025-06-16. End: 2027-02-14.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or unique requirements are necessary for project success. While this can ensure a qualified contractor, it may limit the competitive landscape, potentially leading to a higher price than if a broader range of bidders were considered. A detailed review of the solicitation documents would clarify the exact exclusion criteria and their justification.

What are the primary risks associated with the construction of an endoscopy suite, and what mitigation strategies are in place?

Key risks include unforeseen site conditions (e.g., hazardous materials, utility conflicts), supply chain disruptions for specialized equipment, labor shortages, and design changes. Mitigation strategies often involve thorough site investigations, contingency planning, robust contract management, and close collaboration between the contractor and the VA to address issues promptly.

How does the firm-fixed-price contract structure benefit the VA in managing the budget for this construction project?

A firm-fixed-price (FFP) contract provides the greatest cost certainty for the VA. The contractor assumes most of the risk for cost overruns, meaning the VA pays the agreed-upon price regardless of the contractor's actual costs. This structure simplifies budgeting and financial management, although it may require a higher initial price to account for the contractor's risk.

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: 36C77625B0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12000 E 53RD ST N, WICHITA, KS, 67226

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $24,111,777

Exercised Options: $24,111,777

Current Obligation: $24,111,777

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline