VA awards $19.8M for Los Angeles medical center seismic upgrade, completed 2018

Contract Overview

Contract Amount: $19,787,441 ($19.8M)

Contractor: Westport Construction, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-12-04

End Date: 2018-06-20

Contract Duration: 2,024 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF, OTHER FUNCTIONS, BUILDING 209 SEISMIC UPGRADE AND RENOVATIONS, VA GREATER LOS ANGELES HEALTHCARE SYSTEM, WEST LOS ANGELES MEDICAL CENTER, LOS ANGELES CA 90073

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.8 million to WESTPORT CONSTRUCTION, INC. for work described as: IGF::OT::IGF, OTHER FUNCTIONS, BUILDING 209 SEISMIC UPGRADE AND RENOVATIONS, VA GREATER LOS ANGELES HEALTHCARE SYSTEM, WEST LOS ANGELES MEDICAL CENTER, LOS ANGELES CA 90073 Key points: 1. Contract value represents a significant investment in facility modernization and safety. 2. Completion date suggests a multi-year project duration, typical for large construction. 3. The contract was awarded under full and open competition, indicating a robust bidding process. 4. The fixed-price nature of the contract shifts cost overrun risk to the contractor. 5. The project addresses critical infrastructure needs at a major healthcare facility. 6. The scale of the project implies substantial workforce and material utilization.

Value Assessment

Rating: good

The contract value of $19.8 million for a seismic upgrade and renovation project appears reasonable given the scope of work at a large healthcare system. Benchmarking against similar large-scale construction projects for federal facilities, particularly those involving seismic retrofitting in California, would provide a more precise value assessment. The firm fixed-price contract structure suggests that the initial pricing was determined to be competitive and acceptable, with the contractor bearing the risk of cost increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had some exclusions, the final award was made after a broad competitive process. The presence of two bidders suggests a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Patients and staff at the VA Greater Los Angeles Healthcare System benefit from improved facility safety and resilience. The project ensures continued operation of critical healthcare services during and after seismic events. The geographic impact is localized to the West Los Angeles Medical Center. The construction project likely supported local jobs and businesses in the Los Angeles area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions were encountered, though mitigated by fixed-price contract.
Delays in project completion could impact facility operations and service delivery.
Ensuring compliance with stringent seismic building codes and VA standards requires careful oversight.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a fair market price was likely achieved.
Completion of a critical infrastructure upgrade enhances long-term facility reliability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. Federal spending in this sector often focuses on maintaining and upgrading government facilities, including critical infrastructure like healthcare systems. The $19.8 million award is substantial, reflecting the complexity and scale of seismic retrofitting in a high-cost area like Los Angeles. Comparable projects might include other large-scale renovations or new construction at federal medical centers or other government buildings.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the large dollar value and specialized nature of seismic retrofitting, it is possible that the prime contractor is a large firm, and subcontracting opportunities for smaller firms may have been present but are not detailed in this summary. Further analysis would be needed to determine the extent of small business participation.

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 implies that the contractor is responsible for managing costs and schedule, with oversight focused on ensuring adherence to contract specifications, quality standards, and timely completion. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

VA Capital Asset and Business Management
Federal Building and Fire Safety Program
Seismic Retrofitting Projects
Healthcare Facility Construction and Renovation

Risk Flags

Potential for schedule delays impacting facility operations.
Risk of unforeseen site conditions requiring change orders.
Ensuring quality control in complex seismic retrofitting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.8 million to WESTPORT CONSTRUCTION, INC.. IGF::OT::IGF, OTHER FUNCTIONS, BUILDING 209 SEISMIC UPGRADE AND RENOVATIONS, VA GREATER LOS ANGELES HEALTHCARE SYSTEM, WEST LOS ANGELES MEDICAL CENTER, LOS ANGELES CA 90073

Who is the contractor on this award?

The obligated recipient is WESTPORT CONSTRUCTION, 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 $19.8 million.

What is the period of performance?

Start: 2012-12-04. End: 2018-06-20.

What was the specific scope of work for the seismic upgrade and renovations?

The provided data indicates the contract was for 'OTHER FUNCTIONS, BUILDING 209 SEISMIC UPGRADE AND RENOVATIONS' at the VA Greater Los Angeles Healthcare System. While the exact technical specifications are not detailed, seismic upgrades typically involve reinforcing the building's structure to withstand earthquake forces. This can include strengthening foundations, walls, and roof systems, as well as installing or upgrading seismic bracing for mechanical and electrical equipment. Renovations often accompany such upgrades to repair any necessary demolition and restore or improve interior spaces. The project's duration of approximately 5.5 years (December 2012 to June 2018) suggests a comprehensive undertaking.

How does the $19.8 million cost compare to similar VA seismic upgrade projects?

Benchmarking the $19.8 million cost requires comparing it to similar seismic upgrade projects at VA facilities, ideally in comparable geographic locations with similar building types and sizes. Seismic retrofitting is inherently complex and costly, especially in regions with high seismic activity like California. Without specific data on comparable projects' costs per square foot or per building system upgraded, a precise comparison is difficult. However, given the scale implied by a multi-year project at a major medical center, the investment appears substantial and aligned with the critical nature of ensuring facility safety and operational continuity.

What were the primary risks associated with this contract, and how were they managed?

The primary risks for a large construction project like this include unforeseen site conditions (e.g., hazardous materials, unexpected structural issues), potential cost overruns, and schedule delays. The contract type, Firm Fixed Price (FFP), is designed to mitigate cost overrun risk for the government by placing that responsibility on the contractor. However, FFP contracts can sometimes lead to contractors cutting corners on quality if not rigorously overseen. Schedule delays are also a risk, potentially impacting facility operations. Oversight by the VA would focus on monitoring progress, ensuring quality control, and managing any change orders or unforeseen issues that could impact cost or schedule.

What is the track record of Westport Construction, Inc. with VA contracts?

The provided data identifies Westport Construction, Inc. as the contractor for this $19.8 million VA project. To assess their track record, one would need to examine their history of performance on other VA contracts, including contract values, types, timeliness of completion, and any reported issues or awards. A comprehensive review would involve searching contract databases for past performance evaluations, any disputes, or contract modifications. Without access to this broader historical data, it's difficult to provide a detailed assessment of their specific track record with the VA beyond this single project.

How did the 'Full and Open Competition After Exclusion of Sources' process impact the final price?

The 'Full and Open Competition After Exclusion of Sources' (FOUC AES) contract type suggests that while the initial solicitation might have had specific criteria that excluded certain potential bidders, the final award was made through a competitive process among the remaining eligible sources. This approach aims to balance the need for specialized capabilities or specific compliance with the benefits of competition. The presence of two bidders indicates that competition did occur, which generally helps in achieving a fair market price. However, the price might have been higher than if a broader 'Full and Open Competition' without exclusions had yielded more bidders.

What is the significance of the contract being a 'Definitive Contract'?

A 'Definitive Contract' is a standard contract type used for a wide range of government procurements, unlike basic ordering agreements or other more flexible arrangements. It signifies a firm commitment by the government to purchase specific goods or services under defined terms and conditions, including price, quantity, and delivery schedule. In this case, it means the $19.8 million award represented a finalized agreement for the seismic upgrade and renovation, with all terms and conditions established upfront, providing clarity and commitment for both the VA and Westport Construction, Inc.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA-101-12-R-0153

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4333 E LIVE OAK AVE, ARCADIA, CA, 91006

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

Financial Breakdown

Contract Ceiling: $19,787,441

Exercised Options: $19,787,441

Current Obligation: $19,787,441

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline