VA Puget Sound Healthcare System awards $33.7M contract for seismic retrofitting of Seattle nursing tower

Contract Overview

Contract Amount: $33,666,330 ($33.7M)

Contractor: Walsh Construction Company II, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-10-10

End Date: 2016-06-09

Contract Duration: 1,338 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION TO CORRECT SEISMIC DEFICIENCIES, BLDG. 100 NURSING TOWER AND COMMUNITY LIVING CENTER, PROJECT NO. 663-406, VA PUGET SOUND HEALTHCARE SYSTEM, SEATTLE DIVISION

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.7 million to WALSH CONSTRUCTION COMPANY II, LLC for work described as: CONSTRUCTION TO CORRECT SEISMIC DEFICIENCIES, BLDG. 100 NURSING TOWER AND COMMUNITY LIVING CENTER, PROJECT NO. 663-406, VA PUGET SOUND HEALTHCARE SYSTEM, SEATTLE DIVISION Key points: 1. Contract awarded for critical infrastructure upgrades to enhance patient safety. 2. Seismic retrofitting addresses long-term facility resilience and operational continuity. 3. Project scope includes structural reinforcements and building envelope improvements. 4. Fixed-price contract structure aims to control costs and manage budget. 5. Contract duration of over three years indicates a complex and extensive scope of work. 6. Awarded to a single contractor, suggesting a focused approach to project execution.

Value Assessment

Rating: good

The contract value of $33.7 million for seismic retrofitting of a large healthcare facility appears reasonable given the complexity of structural upgrades. While direct comparisons are difficult without specific project details, similar large-scale construction projects for institutional buildings often fall within a comparable cost range. The firm-fixed-price nature of the contract suggests that the government has a clear understanding of the scope and has negotiated a price intended to cover all costs. Benchmarking against similar VA seismic retrofitting projects would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure that the government receives the best value. The number of bidders is not specified, but the full and open nature suggests a robust selection process. The competition level is expected to drive competitive pricing and encourage efficient project execution.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential infrastructure improvements, ensuring funds are used efficiently for veteran care facilities.

Public Impact

Veterans receiving care at the VA Puget Sound Healthcare System's Seattle Division will benefit from a safer and more resilient facility. The project ensures the continued operation of the Nursing Tower and Community Living Center, providing essential healthcare services. The geographic impact is localized to Seattle, Washington, improving local veteran healthcare infrastructure. The construction activities will likely involve a local workforce, contributing to regional employment in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility readiness.
Risk of unforeseen structural issues requiring scope adjustments and cost increases.
Ensuring minimal disruption to ongoing patient care during construction activities.

Positive Signals

Addresses critical seismic safety concerns, enhancing long-term facility resilience.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition promotes competitive pricing and contractor accountability.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically focusing on specialized seismic retrofitting. The market for such specialized construction services is significant, driven by building codes, safety regulations, and the need to protect critical infrastructure. The VA Puget Sound Healthcare System's project is a substantial undertaking within this sector, comparable to other large-scale public or private facility upgrades aimed at enhancing structural integrity and safety.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Walsh Construction Company II, LLC, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities were mandated or encouraged, and their potential impact on the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs is responsible for monitoring contract performance and ensuring compliance with terms and conditions. Inspector General oversight may be involved in cases of fraud, waste, or abuse. Transparency is facilitated through public contract databases, though detailed project-specific oversight reports are not readily available.

Related Government Programs

VA Capital Asset and Business Management
VA Facilities, Engineering and Environmental Management
Seismic Retrofitting Projects
Healthcare Facility Construction

Risk Flags

Potential for cost overruns
Risk of schedule delays
Impact on ongoing operations
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.7 million to WALSH CONSTRUCTION COMPANY II, LLC. CONSTRUCTION TO CORRECT SEISMIC DEFICIENCIES, BLDG. 100 NURSING TOWER AND COMMUNITY LIVING CENTER, PROJECT NO. 663-406, VA PUGET SOUND HEALTHCARE SYSTEM, SEATTLE DIVISION

Who is the contractor on this award?

The obligated recipient is WALSH CONSTRUCTION COMPANY II, 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 $33.7 million.

What is the period of performance?

Start: 2012-10-10. End: 2016-06-09.

What is the track record of Walsh Construction Company II, LLC with the Department of Veterans Affairs?

Walsh Construction Company II, LLC has a history of performing work for the Department of Veterans Affairs. Analyzing past VA contracts awarded to this company would reveal their performance history, including on-time delivery, budget adherence, and quality of work. A review of contract close-out data and any performance evaluations would provide a comprehensive understanding of their reliability and expertise in executing VA projects, particularly those involving complex construction or renovation.

How does the awarded amount compare to similar seismic retrofitting projects for healthcare facilities?

Comparing the $33.7 million contract value requires identifying similar seismic retrofitting projects for healthcare facilities of comparable size and complexity. Factors such as the age and structural condition of the building, the specific seismic zone, and the scope of work (e.g., foundation upgrades, shear wall installation, non-structural bracing) significantly influence costs. Benchmarking against projects with similar square footage, number of stories, and the extent of required upgrades would help determine if this contract represents a fair market price and good value for the VA.

What are the primary risks associated with this seismic retrofitting project?

The primary risks associated with this seismic retrofitting project include potential cost overruns due to unforeseen site conditions or structural complexities discovered during demolition and construction. Schedule delays are also a significant risk, which could impact the availability of critical healthcare services. Furthermore, ensuring minimal disruption to ongoing patient care within the Nursing Tower and Community Living Center presents a logistical challenge. Contractor performance and quality control are also risks that need careful management to ensure the structural integrity and safety of the retrofitted building.

How effective are seismic retrofitting projects in enhancing the long-term resilience of VA healthcare facilities?

Seismic retrofitting projects are highly effective in enhancing the long-term resilience of VA healthcare facilities by significantly reducing the risk of structural damage or collapse during an earthquake. These upgrades ensure that critical healthcare infrastructure remains operational, allowing for the continued provision of essential services to veterans, especially in seismically active regions. By strengthening buildings against seismic forces, these projects protect patient safety, preserve valuable assets, and minimize costly repairs and downtime, thereby ensuring continuity of care and operational readiness.

What has been the historical spending trend for seismic retrofitting at the VA Puget Sound Healthcare System?

Analyzing historical spending trends for seismic retrofitting at the VA Puget Sound Healthcare System would involve reviewing past contract awards for similar projects within their facilities. This would help identify patterns in investment, the frequency of such projects, and the average contract values. Understanding these trends can provide context for the current $33.7 million award, indicating whether it represents a significant increase or a continuation of established investment in facility safety and resilience.

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

Solicitation ID: VA101-12-R-0053

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Construction Group LLC (UEI: 963849760)

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

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

Financial Breakdown

Contract Ceiling: $33,666,330

Exercised Options: $33,666,330

Current Obligation: $33,666,330

Subaward Activity

Number of Subawards: 262

Total Subaward Amount: $120,132,077

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline