VA awards $12.9M contract for mental health outpatient building construction to Triumph Builders Southwest

Contract Overview

Contract Amount: $12,908,789 ($12.9M)

Contractor: Triumph Builders Southwest, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2006-09-28

End Date: 2008-01-21

Contract Duration: 480 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION - MENTAL HEALTH OUTPATIENT BUILDING

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.9 million to TRIUMPH BUILDERS SOUTHWEST, LLC for work described as: CONSTRUCTION - MENTAL HEALTH OUTPATIENT BUILDING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $12.9 million falls within a typical range for specialized healthcare construction projects. 3. Fixed-price contract type may limit cost overruns for the government, but requires careful initial scope definition. 4. The project duration of 480 days indicates a significant construction timeline. 5. Awarded by the Department of Veterans Affairs, aligning with the agency's mission to support veterans' healthcare needs. 6. The contract was awarded in 2006, providing historical context for current construction costs and contractor performance.

Value Assessment

Rating: good

The contract value of $12.9 million for a mental health outpatient building appears reasonable given the scope of commercial and institutional construction. Benchmarking against similar VA or other federal healthcare facility projects would provide more precise value assessment. The firm fixed-price structure suggests the government sought cost certainty, which is generally a positive indicator for value if the scope was well-defined. Without specific per-unit cost data or detailed project specifications, a definitive value-for-money assessment is challenging, but the award to a single entity via open competition implies a considered selection process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This method is generally preferred as it maximizes the pool of potential offerors and fosters price competition. The presence of two bids suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, two bids still provide a basis for price comparison and selection.

Taxpayer Impact: Full and open competition, even with two bidders, is beneficial for taxpayers as it increases the likelihood of receiving a competitive price and encourages contractors to offer their best terms to secure the award.

Public Impact

Veterans will benefit from improved access to mental health outpatient services through a new, dedicated facility. The construction project will deliver a specialized building designed to meet the unique needs of mental healthcare. The project's geographic impact is focused on Arizona, specifically the area served by the VA facility. The construction phase will likely create temporary jobs in the local Arizona workforce for skilled trades and laborers. The completed facility will support ongoing employment for healthcare professionals and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in fixed-price contracts if initial requirements are not precisely defined.
Contractor's performance history on similar large-scale construction projects warrants review.
The limited number of bidders (2) might indicate specific market conditions or barriers to entry.
Ensuring timely completion within the 480-day duration is crucial to avoid impacting veteran services.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The project directly addresses a critical need for veteran mental healthcare infrastructure.
The Department of Veterans Affairs is the awarding agency, indicating alignment with a core mission.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for healthcare facility construction is substantial, driven by ongoing demand for new facilities, upgrades, and specialized spaces like mental health clinics. Federal construction projects, particularly for agencies like the VA, represent a significant portion of this market. Benchmarking this $12.9 million project against similar-sized healthcare construction contracts would reveal its relative cost-effectiveness.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications related to small business set-asides for this specific award. Analysis of the prime contractor's subcontracting plan, if applicable, would be necessary to understand potential opportunities for small businesses on this project.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the Department of Veterans Affairs' contracting officers and project managers. They are responsible for monitoring progress, ensuring compliance with contract terms, and approving payments. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract, ensuring accountability and transparency throughout the project lifecycle.

Related Government Programs

VA Medical Facility Construction
Federal Building Construction
Mental Health Services Infrastructure
Department of Veterans Affairs Procurement
Commercial Building Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined in FFP contract.
Contractor performance history on similar projects needs verification.
Limited competition (2 bidders) may impact price discovery.
Ensuring timely completion is critical for service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.9 million to TRIUMPH BUILDERS SOUTHWEST, LLC. CONSTRUCTION - MENTAL HEALTH OUTPATIENT BUILDING

Who is the contractor on this award?

The obligated recipient is TRIUMPH BUILDERS SOUTHWEST, 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 $12.9 million.

What is the period of performance?

Start: 2006-09-28. End: 2008-01-21.

What was the specific scope of work for the mental health outpatient building, and how did it compare to industry standards for similar facilities?

The provided data identifies the contract as 'CONSTRUCTION - MENTAL HEALTH OUTPATIENT BUILDING' and specifies the North American Industry Classification System (NAICS) code 236220 for Commercial and Institutional Building Construction. However, detailed scope of work documents are not included. To assess industry standards, one would need to compare the project's square footage, number of patient rooms/offices, specialized equipment requirements (e.g., therapy rooms, secure areas), and amenity provisions against publicly available blueprints or project descriptions for comparable mental health outpatient facilities constructed around 2006-2008. Factors like LEED certification requirements or specific technological integrations would also be key comparison points.

How did Triumph Builders Southwest, LLC perform on this contract, and what is their track record on similar federal projects?

Performance data for this specific contract (Award ID: DCA, Award Date: 2006-09-28, End Date: 2008-01-21) is not detailed in the provided summary. To assess Triumph Builders Southwest's performance, one would need to consult the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for past performance reviews. CPARS reports, in particular, offer detailed assessments from government agencies on contractor timeliness, quality of work, cost control, and overall management. Examining their history on other VA or federal construction projects, especially those involving healthcare facilities, would provide a broader understanding of their capabilities and reliability.

Was the $12.9 million contract value competitive compared to other bids received and similar construction projects at the time?

The contract was awarded under 'Full and Open Competition' with two bids received. While the exact bid amounts are not provided, the fact that two bids were submitted suggests some level of price competition. To determine competitiveness, the $12.9 million award price should be benchmarked against the other bid received (if available) and against data for similar commercial and institutional building construction projects, particularly healthcare facilities, completed in Arizona or comparable regions between 2006 and 2008. Construction cost indices and databases specializing in commercial real estate could provide relevant market comparables for assessing if the price was fair and reasonable.

What are the potential risks associated with a firm fixed-price contract for a construction project of this nature?

Firm Fixed Price (FFP) contracts aim to provide cost certainty for the buyer. However, for construction projects, risks can arise if the initial scope of work is not meticulously defined or if unforeseen conditions are encountered during construction (e.g., subsurface issues, material price volatility, labor shortages). In an FFP scenario, the contractor bears the risk of cost overruns. This can incentivize contractors to cut corners on quality or safety to maintain profitability, or conversely, lead to disputes and change orders if the contractor believes the scope has expanded beyond the original agreement. For the government, the risk is paying a premium upfront to ensure cost certainty, potentially overpaying if the contractor's initial bid was excessively high due to perceived risks.

How does this $12.9 million contract fit into the broader historical spending patterns of the VA for healthcare infrastructure?

This $12.9 million contract represents a specific investment in outpatient mental health infrastructure by the VA. To understand its place in historical spending, one would need to analyze the VA's total budget allocation and actual expenditures for construction and facilities over several fiscal years, particularly those surrounding 2006-2008. Comparing this contract's value to the VA's overall capital investment in healthcare facilities, and specifically to expenditures on mental health-related construction, would reveal whether this project was a significant or typical investment. Trends in VA spending on mental health services and infrastructure over time would provide crucial context.

What was the duration of the contract (480 days), and how does this compare to typical timelines for similar construction projects?

A contract duration of 480 days (approximately 16 months) for a $12.9 million mental health outpatient building construction project is a significant timeframe. Typical construction project durations vary widely based on size, complexity, location, and specific building type. For a commercial or institutional building of this value, 16 months is within a reasonable range, allowing for detailed planning, foundation work, structural erection, interior finishing, and systems installation. However, comparing it to specific benchmarks for healthcare facilities of similar scale and complexity, accounting for factors like site preparation and potential weather delays in Arizona, would provide a more precise assessment of whether the timeline was ambitious, standard, or protracted.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 101-06-0018

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3450 S BROADMONT DR STE 110, TUCSON, AZ, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,908,789

Exercised Options: $12,908,789

Current Obligation: $12,908,789

Timeline