VA awards $35.7M contract for Las Vegas VAMC design services, emphasizing architectural expertise

Contract Overview

Contract Amount: $35,712,089 ($35.7M)

Contractor: Arcadis Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2005-02-17

End Date: 2019-05-31

Contract Duration: 5,216 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE THE SCHEMATIC DESIGN WITH OPTIONS TO PERFORM THE DESIGN DEVELOPMENT, CONSTRUCTION DOCUMENTS AND CONSTRUCTION PERIOD SERVICES FOR THE CONSTRUCTION OF A NEW VAMC, IN LAS BEGAS, NEVADA.

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89106

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.7 million to ARCADIS INC. for work described as: PROVIDE THE SCHEMATIC DESIGN WITH OPTIONS TO PERFORM THE DESIGN DEVELOPMENT, CONSTRUCTION DOCUMENTS AND CONSTRUCTION PERIOD SERVICES FOR THE CONSTRUCTION OF A NEW VAMC, IN LAS BEGAS, NEVADA. Key points: 1. Contract awarded for comprehensive design services, including schematic design, design development, and construction documents. 2. The contract duration spans over 14 years, indicating a long-term commitment to the project. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The contract type is a definitive contract with a firm-fixed-price structure. 5. The project is located in Las Vegas, Nevada, serving the needs of veterans in the region. 6. The primary service category is architectural services, crucial for facility development.

Value Assessment

Rating: good

The contract value of $35.7 million for architectural services for a new VAMC in Las Vegas appears reasonable given the extensive scope of work and long duration. Benchmarking against similar large-scale healthcare facility design projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

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. The presence of 4 bids suggests a healthy level of interest and competition for this significant project. This competitive environment is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures that taxpayer funds are used efficiently by selecting the most cost-effective and capable bidder.

Public Impact

Veterans in the Las Vegas area will benefit from improved healthcare facilities. The project will deliver essential architectural and design services for a new VAMC. The geographic impact is concentrated in Las Vegas, Nevada. The project will likely create or sustain jobs in the architectural and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or unforeseen cost increases if not managed meticulously.
Dependence on a single contractor for all design phases over an extended period may limit flexibility.
Potential for delays in construction if design development encounters significant challenges.

Positive Signals

Awarded under full and open competition, ensuring a competitive selection process.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Clear definition of services from schematic design through construction documents provides a solid framework.

Sector Analysis

The architectural services sector is a critical component of the construction industry, providing the foundational design work for all types of infrastructure. For federal projects, particularly healthcare facilities like Veterans Affairs Medical Centers (VAMCs), the demand for specialized architectural expertise is high. This contract fits within the broader federal spending on healthcare infrastructure, which aims to modernize and expand facilities to meet the needs of service members and veterans. Comparable spending benchmarks for large-scale government building designs would typically be assessed based on the complexity, size, and specific requirements of the facility.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, the prime contractor, ARCADIS INC., may engage small businesses for subcontracting opportunities. The scale of a VAMC project often necessitates specialized expertise that larger firms can provide, but subcontracting can be a vital avenue for small businesses to participate in significant federal projects. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and project management offices. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency would be enhanced through regular progress reports and potential site visits during the design phases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Affairs Medical Center Construction
Federal Architectural and Engineering Services
Healthcare Infrastructure Projects
Design-Build Contracts

Risk Flags

Long contract duration increases risk of scope creep and obsolescence.
Potential for cost overruns if initial scope definition is inadequate for FFP.
Need for robust oversight to ensure quality and adherence to design standards over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.7 million to ARCADIS INC.. PROVIDE THE SCHEMATIC DESIGN WITH OPTIONS TO PERFORM THE DESIGN DEVELOPMENT, CONSTRUCTION DOCUMENTS AND CONSTRUCTION PERIOD SERVICES FOR THE CONSTRUCTION OF A NEW VAMC, IN LAS BEGAS, NEVADA.

Who is the contractor on this award?

The obligated recipient is ARCADIS 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 $35.7 million.

What is the period of performance?

Start: 2005-02-17. End: 2019-05-31.

What is the track record of ARCADIS INC. in delivering large-scale federal healthcare facility design projects?

ARCADIS INC. has a significant history of involvement in large-scale infrastructure and building projects, including healthcare facilities. While specific details on their track record for federal VAMC designs require deeper investigation into past performance databases and project histories, their general experience suggests a capacity to handle complex projects. A thorough review would involve examining past project timelines, budget adherence, client satisfaction feedback, and any documented performance issues or commendations. Their ability to secure this contract under full and open competition indicates they met the government's pre-qualification criteria for experience and capability in architectural services.

How does the awarded amount of $35.7 million compare to similar VAMC design contracts awarded by the VA?

Benchmarking the $35.7 million award requires comparing it to contracts for similar scope and scale of VAMC design services. Factors such as the size of the VAMC, the complexity of its intended services (e.g., specialized clinics, research facilities), and the prevailing market rates for architectural services in the Las Vegas region during the contract award period (2005) are crucial. Without access to a detailed database of comparable VA contracts from that era, a precise comparison is difficult. However, for a major medical center, this figure represents a substantial investment in the initial design phases, suggesting a comprehensive and long-term project.

What are the primary risks associated with a definitive contract of this duration (over 14 years)?

The primary risks associated with a definitive contract spanning over 14 years include potential for significant changes in project requirements, technological advancements rendering initial designs obsolete, and market fluctuations affecting material and labor costs (though mitigated by FFP). For the government, there's a risk of the contractor becoming entrenched, potentially reducing future negotiation leverage. For the contractor, the long duration increases exposure to economic downturns, regulatory changes, and the challenge of maintaining consistent project staffing and institutional knowledge. Effective contract management, including regular reviews and potential modification clauses, is essential to mitigate these long-term risks.

How effective is the firm-fixed-price (FFP) contract type in managing costs for long-term design projects like this VAMC?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for projects where the scope of work is well-defined and risks can be reasonably anticipated. For a long-term design project like this VAMC, FFP places the burden of cost overruns on the contractor, incentivizing efficiency and cost control. However, the extended duration introduces complexities. If unforeseen issues arise that significantly alter the scope or require substantial rework not initially contemplated, the FFP structure could lead to disputes or the contractor seeking contract modifications. The success of FFP in this context relies heavily on the initial thoroughness of the design scope definition and the contractor's ability to manage risks over the project's lifecycle.

What are the implications of awarding architectural services for a new VAMC under 'full and open competition' versus other methods?

Awarding architectural services for a new VAMC under 'full and open competition' implies that the Department of Veterans Affairs sought bids from all interested and qualified sources. This method is generally preferred as it maximizes the pool of potential offerors, fostering robust competition that can lead to better pricing, innovative solutions, and higher quality services. It contrasts with methods like sole-source or limited competition, which may be used when only one or a few sources are capable of meeting the requirement. For a project of this magnitude and importance, full and open competition ensures the VA obtains the best value for taxpayer dollars by allowing a wide range of firms to demonstrate their capabilities and propose their best terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 593PR2202

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arcadis N.V. (UEI: 403896368)

Address: 901 S BOND ST, BALTIMORE, MD, 21231

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,712,149

Exercised Options: $35,712,149

Current Obligation: $35,712,089

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline