VA Awards $58.2M for Long Beach VAMC Seismic Corrections and Chiller Replacement Design

Contract Overview

Contract Amount: $58,212,895 ($58.2M)

Contractor: Hellmuth, Obata & Kassabaum, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-07-31

End Date: 2028-12-09

Contract Duration: 7,071 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AE CONTRACT, SEISMIC CORRECTIONS, MENTAL HEALTH, CLC AND CHILLER REPLACEMENT, PHASE 1 DESIGN, VAMC LONG BEACH, CA

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.2 million to HELLMUTH, OBATA & KASSABAUM, INC. for work described as: AE CONTRACT, SEISMIC CORRECTIONS, MENTAL HEALTH, CLC AND CHILLER REPLACEMENT, PHASE 1 DESIGN, VAMC LONG BEACH, CA Key points: 1. Contract awarded to Hellmuth, Obata & Kassabaum, Inc. for architectural services. 2. Project aims to address seismic corrections and replace chiller systems at VAMC Long Beach. 3. The contract has a long duration, spanning from 2009 to 2028. 4. This is a firm-fixed-price contract, indicating a defined scope and cost. 5. The award value is substantial at over $58 million.

Value Assessment

Rating: good

The contract value of $58.2M for architectural services appears reasonable given the project's scope, which includes seismic corrections and major system replacements. Benchmarking against similar large-scale healthcare facility design projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified firms can bid.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers, as it encourages competitive bidding and potentially lower costs for the government.

Public Impact

Improved patient safety and facility resilience through seismic upgrades. Modernized infrastructure with new chiller systems, enhancing operational efficiency. Long-term investment in a critical healthcare facility for veterans. Potential for job creation in architectural and engineering sectors during the design phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (2009-2028) may indicate potential for scope creep or cost overruns if not managed effectively.
  • Firm Fixed Price contract for a long-term design project could be risky if unforeseen complexities arise.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Addresses critical infrastructure needs for veteran healthcare.
  • Long-term planning for facility modernization.

Sector Analysis

This contract falls within the Architectural Services sector, specifically for large-scale government facilities. Spending benchmarks for similar healthcare facility design projects would typically be assessed based on square footage and complexity of renovations.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of Veterans Affairs to ensure timely completion, adherence to design specifications, and cost control throughout the project lifecycle.

Related Government Programs

  • Architectural Services
  • Department of Veterans Affairs Contracting
  • Department of Veterans Affairs Programs

Risk Flags

  • Long contract duration
  • Potential for design obsolescence
  • Firm Fixed Price for a long-term design project
  • No indication of small business subcontracting

Tags

architectural-services, department-of-veterans-affairs, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.2 million to HELLMUTH, OBATA & KASSABAUM, INC.. AE CONTRACT, SEISMIC CORRECTIONS, MENTAL HEALTH, CLC AND CHILLER REPLACEMENT, PHASE 1 DESIGN, VAMC LONG BEACH, CA

Who is the contractor on this award?

The obligated recipient is HELLMUTH, OBATA & KASSABAUM, 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 $58.2 million.

What is the period of performance?

Start: 2009-07-31. End: 2028-12-09.

What is the estimated total cost of the construction phase following this design contract?

The provided data focuses solely on the design contract awarded to Hellmuth, Obata & Kassabaum, Inc. It does not include information about the subsequent construction phase or its estimated costs. Further investigation into VA project pipelines or related solicitations would be required to ascertain the total project cost.

How will the long contract duration impact the relevance of the design by 2028?

A contract spanning from 2009 to 2028 for design services presents a risk of design obsolescence or the need for significant revisions due to evolving building codes, technological advancements, or changes in healthcare delivery models. Effective contract management and phased design reviews are crucial to mitigate this risk.

What specific seismic risks is the VAMC Long Beach facing that necessitate this investment?

The contract specifies 'seismic corrections,' indicating the facility is located in an area with seismic activity and requires upgrades to meet current earthquake safety standards. The exact nature of the risks would be detailed in the project's statement of work and risk assessments conducted by the VA.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesArchitectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: VA-101-09-RP-0026

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9530 JEFFERSON BLVD, CULVER CITY, CA, 90232

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

Financial Breakdown

Contract Ceiling: $61,873,457

Exercised Options: $59,411,447

Current Obligation: $58,212,895

Actual Outlays: $1,489,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2009-07-31

Current End Date: 2028-12-09

Potential End Date: 2028-12-09 00:00:00

Last Modified: 2026-03-09

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