VA awards $9.8M construction contract for sleep disorder clinic to Patriot Contracting Group

Contract Overview

Contract Amount: $9,796,000 ($9.8M)

Contractor: Patriot Contracting Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-11

End Date: 2027-05-14

Contract Duration: 610 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR SHALL FURNISH ALL LABOR, MATERIALS, SUPERVISION AND PERFORM ALL WORK NECESSARY TO COMPLETE THE CONSTRUCT SLEEP DISORDER AND SPECIALTY CLINIC (MINOR) CONSTRUCTION PROJECT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS.

Place of Performance

Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37129

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.8 million to PATRIOT CONTRACTING GROUP, LLC for work described as: CONTRACTOR SHALL FURNISH ALL LABOR, MATERIALS, SUPERVISION AND PERFORM ALL WORK NECESSARY TO COMPLETE THE CONSTRUCT SLEEP DISORDER AND SPECIALTY CLINIC (MINOR) CONSTRUCTION PROJECT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The project involves construction of a sleep disorder and specialty clinic, indicating a focus on healthcare infrastructure. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. The duration of the contract is approximately 610 days, suggesting a medium-term project. 5. The award value of $9.8 million falls within a typical range for specialized healthcare construction projects of this scope. 6. The project is located in Tennessee, potentially benefiting the local construction workforce and economy.

Value Assessment

Rating: good

The contract value of $9.8 million for the construction of a sleep disorder and specialty clinic appears reasonable given the scope of work. While direct comparisons are difficult without more specific project details, similar healthcare facility construction projects of this size typically range from $5 million to $15 million. The firm-fixed-price structure indicates that the contractor has assumed the primary cost risk, which is generally favorable for the government in managing budget certainty. Benchmarking against other VA construction projects of similar complexity would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This typically means that all responsible sources were permitted to submit a bid, and the contract was awarded to the lowest-priced, technically acceptable offer. The fact that it was competed openly suggests a healthy level of competition, which is expected to drive down prices and ensure fair market value. The number of bidders (9) indicates significant interest in the project.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by securing the best possible price for the construction services.

Public Impact

Veterans in Tennessee will benefit from improved access to specialized sleep disorder and healthcare services. The project will deliver a new or renovated clinic facility designed to meet specific medical needs. The construction work will likely create jobs for skilled tradespeople and construction workers in the Tennessee region. The completion of this clinic is expected to enhance the quality of care provided by the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Delays in project completion could impact the timely delivery of services to veterans.
Ensuring the quality of construction meets the specific requirements for a medical facility.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Competitive bidding process likely resulted in a favorable price.
Contractor has a track record, implying some level of experience.
Project duration is defined, allowing for planning and resource allocation.

Sector Analysis

The construction sector, particularly for specialized facilities like healthcare clinics, is a significant area of federal spending. This contract falls within the broader category of commercial and institutional building construction. The market for such projects is often characterized by a mix of large general contractors and specialized subcontractors. Federal agencies like the VA frequently engage in construction projects to maintain and upgrade their infrastructure, representing a consistent demand for these services. Benchmarks for similar projects can vary widely based on location, complexity, and specific requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of subcontracting plans for small businesses, federal regulations often encourage or require prime contractors to seek out small business participation in their subcontracting efforts. The absence of a specific small business set-aside means that larger firms were likely the primary bidders, but opportunities may still exist for small businesses to participate as subcontractors to Patriot Contracting Group.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs. The firm-fixed-price nature of the contract shifts much of the cost risk to the contractor, but the VA will still be responsible for monitoring progress, ensuring compliance with specifications, and approving payments. Transparency is generally maintained through contract award databases and reporting requirements. The VA's Office of Inspector General may conduct audits or investigations if any concerns regarding performance or financial impropriety arise.

Related Government Programs

VA Healthcare Construction Projects
Federal Building and Infrastructure Projects
Department of Veterans Affairs Medical Facility Modernization

Risk Flags

Potential for scope creep if project requirements are not clearly defined.
Risk of delays due to weather, material availability, or labor shortages.
Ensuring compliance with all relevant building codes and healthcare facility standards.
Adequate oversight is needed to ensure quality of construction and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.8 million to PATRIOT CONTRACTING GROUP, LLC. CONTRACTOR SHALL FURNISH ALL LABOR, MATERIALS, SUPERVISION AND PERFORM ALL WORK NECESSARY TO COMPLETE THE CONSTRUCT SLEEP DISORDER AND SPECIALTY CLINIC (MINOR) CONSTRUCTION PROJECT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS.

Who is the contractor on this award?

The obligated recipient is PATRIOT CONTRACTING GROUP, 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 $9.8 million.

What is the period of performance?

Start: 2025-09-11. End: 2027-05-14.

What is Patriot Contracting Group's track record with the Department of Veterans Affairs and similar construction projects?

Assessing Patriot Contracting Group's track record is crucial for understanding their capability to deliver this project successfully. A review of past performance with the VA and other federal agencies, as well as private sector projects of similar scale and complexity, would reveal their history of on-time completion, adherence to budget, quality of work, and safety record. Information on any past disputes, claims, or contract terminations would also be important indicators. While the provided data shows they were awarded this contract, further investigation into their specific project history, client references, and any available performance evaluations would offer a more comprehensive picture of their reliability and expertise in healthcare construction.

How does the $9.8 million award compare to the estimated cost or budget for this specific clinic construction?

The $9.8 million award represents the final negotiated price for the construction of the sleep disorder and specialty clinic. To assess value for money, this figure should be compared against the government's initial cost estimates or budget allocation for the project. If the award is significantly lower than the estimate, it suggests successful competition and potentially good value. Conversely, if it's higher, it might indicate unforeseen complexities or a less competitive bidding environment than anticipated. Understanding the variance, if any, between the award and the initial budget is key to evaluating the financial prudence of this contract.

What are the primary risks associated with the construction of a specialized medical clinic, and how are they mitigated in this contract?

Constructing a specialized medical clinic presents several risks, including adherence to stringent healthcare building codes and regulations, potential for unforeseen site conditions (e.g., hazardous materials, complex utilities), integration of specialized medical equipment, and ensuring infection control during construction. This contract, being firm-fixed-price, shifts the primary financial risk of cost overruns to Patriot Contracting Group. However, the VA retains oversight to ensure quality and compliance. Mitigation strategies likely include detailed specifications, rigorous site investigations prior to award, phased construction schedules, and clear communication protocols between the contractor and the VA's project managers to address any emerging issues promptly and effectively.

What is the expected impact of this new clinic on the delivery of healthcare services to veterans in Tennessee?

The construction of this sleep disorder and specialty clinic is expected to significantly enhance the delivery of healthcare services to veterans in Tennessee. By providing a dedicated facility, it aims to improve access to specialized care, potentially reduce wait times for appointments, and offer a higher standard of treatment for sleep-related disorders and other specialties. This could lead to better health outcomes for veterans, improved patient satisfaction, and a more efficient allocation of VA healthcare resources within the region. The new clinic may also facilitate the adoption of advanced diagnostic and treatment technologies.

How does the $9.8 million contract value compare to historical VA spending on similar construction projects?

Comparing the $9.8 million award to historical VA spending on similar construction projects provides a benchmark for assessing value and cost-effectiveness. While specific comparable projects are not detailed here, the VA consistently invests in healthcare infrastructure. Analyzing past contracts for constructing or renovating medical clinics, specialty centers, or hospital wings of comparable size and scope would reveal trends in pricing, contractor performance, and project durations. If this contract's value falls within or below the historical range for similar undertakings, it suggests reasonable cost management. Significant deviations, either higher or lower, would warrant further investigation into the specific project requirements and market conditions.

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

The 'full and open competition after exclusion of sources' award method signifies that the VA actively sought bids from all responsible contractors but may have excluded certain types of sources based on specific criteria (though in this case, it likely means standard full and open competition). This approach is designed to maximize competition and ensure the government receives the best value. The fact that nine bids were received indicates a robust competitive environment, which typically leads to more favorable pricing for the government and a wider selection of qualified contractors. This method is generally preferred for its transparency and effectiveness in achieving competitive outcomes.

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: 36C77625B0035

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2763 HIGHWAY 25, VINA, AL, 35593

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, 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: $9,796,000

Exercised Options: $9,796,000

Current Obligation: $9,796,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline