VA Medical Center Design/Build Contract Awarded to Russell Construction for Extended Care Building in Des Moines

Contract Overview

Contract Amount: $24,754,845 ($24.8M)

Contractor: Russell Construction CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-03-15

End Date: 2011-06-09

Contract Duration: 1,547 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD AN EXTENDED CARE BUILDING AT THE VA MEDICAL CENTER, DES MOINES, IA.

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50310

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.8 million to RUSSELL CONSTRUCTION CO INC for work described as: DESIGN/BUILD AN EXTENDED CARE BUILDING AT THE VA MEDICAL CENTER, DES MOINES, IA. Key points: 1. Contract value of $24.75 million for a design/build project. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of approximately 1547 days indicates a significant construction timeline. 5. Focus on healthcare infrastructure development at a VA Medical Center. 6. Geographic focus on Iowa for this specific project.

Value Assessment

Rating: good

The contract value of $24.75 million for a design/build project at a VA Medical Center appears reasonable for a substantial construction undertaking. Benchmarking against similar large-scale healthcare facility construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator for cost control, assuming the initial scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this project. A higher number of bidders typically leads to more competitive pricing and better value for the government, but three bidders is not necessarily indicative of a lack of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

Veterans in the Des Moines, Iowa area will benefit from improved healthcare facilities. The project delivers essential infrastructure for extended care services at the VA Medical Center. The construction project will likely create jobs in the Des Moines metropolitan area and surrounding regions. Enhances the capacity and 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 the fixed-price contract scope is not meticulously managed.
Delays in construction could impact the timely delivery of enhanced veteran care services.

Positive Signals

Firm fixed-price contract structure provides cost certainty.
Awarded through full and open competition, suggesting a robust bidding process.
Focus on critical healthcare infrastructure for veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. The construction of extended care buildings is a specialized area within this sector, requiring adherence to stringent healthcare building codes and standards. The market for healthcare construction is significant, driven by the need for modernization, expansion, and specialized care facilities. This project represents a specific investment in the VA's healthcare infrastructure, contributing to the overall spending within this niche of the construction industry.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, large construction projects often involve a tiered subcontracting structure where prime contractors may engage smaller firms for specialized services, potentially creating opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically 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 cost control. Transparency would be enhanced through public contract award databases and potential reporting requirements. The Inspector General's office within the VA would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Facility Construction
Design-Build Contracts
Healthcare Infrastructure Projects
Federal Construction Contracts

Risk Flags

Potential for scope creep impacting fixed-price contract.
Construction delays affecting service delivery.
Ensuring quality standards are met under fixed-price terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.8 million to RUSSELL CONSTRUCTION CO INC. DESIGN/BUILD AN EXTENDED CARE BUILDING AT THE VA MEDICAL CENTER, DES MOINES, IA.

Who is the contractor on this award?

The obligated recipient is RUSSELL CONSTRUCTION CO 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 $24.8 million.

What is the period of performance?

Start: 2007-03-15. End: 2011-06-09.

What was the specific scope of work included in the 'DESIGN/BUILD AN EXTENDED CARE BUILDING'?

The 'DESIGN/BUILD AN EXTENDED CARE BUILDING AT THE VA MEDICAL CENTER, DES MOINES, IA' contract encompassed both the architectural design and the physical construction of a new extended care facility. This typically includes site preparation, foundation work, structural framing, interior finishing, installation of mechanical, electrical, and plumbing systems, as well as any necessary landscaping and exterior work. The 'extended care' designation suggests the building is intended for long-term patient stays, rehabilitation, or specialized medical services beyond acute care, requiring specific design considerations for patient comfort, accessibility, and medical equipment integration.

How does the $24.75 million contract value compare to similar VA extended care building projects?

Benchmarking the $24.75 million contract value requires comparison with similar-sized extended care facilities or medical building projects undertaken by the VA or other federal agencies in comparable geographic regions and timeframes. Factors such as square footage, complexity of medical services to be housed, and local construction costs significantly influence project pricing. Without specific data on comparable projects' cost per square foot or total value, a definitive comparison is challenging. However, for a substantial facility, this figure suggests a significant investment in healthcare infrastructure.

What are the potential risks associated with a firm fixed-price contract for a design-build project of this magnitude?

The primary risk with a firm fixed-price contract, especially for a design-build project, is the potential for cost overruns if the initial scope of work is not precisely defined or if unforeseen issues arise during design or construction. The contractor bears the risk of increased costs, but if the government requests significant changes or additions outside the original scope, change orders can substantially increase the contract price. Another risk is that the contractor might cut corners on quality to maintain profitability, necessitating robust government oversight to ensure standards are met. Delays can also be a risk, impacting the VA's ability to provide services.

What does the number of bidders (3) suggest about the competition for this specific contract?

Having three bidders for this contract indicates a moderate level of competition. While more bidders generally lead to more competitive pricing and potentially better value, three bidders suggest that the opportunity was attractive enough to draw multiple interested parties. This number implies that the market for such specialized construction services in the Des Moines area is not overly concentrated, and the VA likely received a range of proposals. It's a reasonable number that suggests the contract was not awarded under a severely limited competition scenario.

What is the historical spending pattern for VA construction projects of this type?

Historical spending patterns for VA construction projects, particularly for medical facilities and extended care buildings, show a consistent and significant investment in infrastructure. The VA regularly procures design-build services for new construction, renovations, and expansions to meet the healthcare needs of veterans. Spending in this category can fluctuate based on congressional appropriations, infrastructure modernization initiatives, and the specific healthcare demands of the veteran population. Projects like this are part of a larger, ongoing effort by the VA to maintain and upgrade its extensive network of medical centers and clinics nationwide.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4600 E 53RD ST, DAVENPORT, IA, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,754,845

Exercised Options: $24,754,845

Current Obligation: $24,754,845

Contract Characteristics

Cost or Pricing Data: NO

Timeline