VA awards $21.1M contract for Reno VA Medical Center upgrades, with 13 bids received

Contract Overview

Contract Amount: $21,135,849 ($21.1M)

Contractor: Skw-Psp Joint Venture

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-07-31

End Date: 2021-09-30

Contract Duration: 2,983 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF A/E DESIGN SERVICES TO UPGRADE BUILDING 1 SEISMIC, LIFE SAFETY, UTILITY CORRECTIONS AND EXPAND CLINICAL SERVICES FOR RENO VA MEDICAL CENTER, 1000 LOCUST STREET, RENO, NV PROJECT 654-083

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.1 million to SKW-PSP JOINT VENTURE for work described as: IGF::CT::IGF A/E DESIGN SERVICES TO UPGRADE BUILDING 1 SEISMIC, LIFE SAFETY, UTILITY CORRECTIONS AND EXPAND CLINICAL SERVICES FOR RENO VA MEDICAL CENTER, 1000 LOCUST STREET, RENO, NV PROJECT 654-083 Key points: 1. Contract value of $21.1M for architectural and engineering design services. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract duration of 2983 days (over 8 years) suggests a long-term project. 4. The project aims to upgrade seismic, life safety, and utility systems, and expand clinical services. 5. The contractor, SKW-PSP JOINT VENTURE, is responsible for delivering these critical facility improvements. 6. Fixed-price contract type may offer cost certainty but could limit flexibility for scope changes.

Value Assessment

Rating: good

The contract value of $21.1 million for architectural and engineering design services appears reasonable given the scope of work, which includes seismic, life safety, and utility upgrades, as well as clinical service expansion for a medical center. Benchmarking against similar large-scale VA facility renovation projects would provide a more precise value assessment. The firm fixed-price nature of the contract suggests a defined scope and budget, which can be advantageous for cost control if the scope is well-defined upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 13 bids received. This level of competition is generally positive, suggesting that multiple firms were interested and capable of performing the work. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors. The agency's ability to attract 13 bids indicates a healthy market for these types of architectural and engineering services.

Taxpayer Impact: A robust competition level like this is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the services rendered, minimizing the risk of overpayment.

Public Impact

Veterans in the Reno, Nevada area will benefit from improved and expanded clinical services at the VA Medical Center. Enhanced seismic and life safety systems will ensure a more secure and reliable healthcare environment. Upgraded utility systems will support the ongoing operational needs of the medical facility. The project supports the modernization of federal healthcare infrastructure. Local architectural and engineering firms may have been involved as bidders or subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to scope creep or cost overruns if not managed effectively.
Firm fixed-price contracts can be challenging if unforeseen issues arise during the design phase, potentially leading to change orders.
Dependence on a single joint venture for a project of this magnitude carries inherent contractor performance risk.

Positive Signals

Full and open competition with 13 bidders suggests a strong market interest and potential for competitive pricing.
The project addresses critical infrastructure needs (seismic, life safety, utilities) for a vital medical facility.
The clear objective of expanding clinical services indicates a focus on improving veteran healthcare access.

Sector Analysis

This contract falls within the Architectural and Engineering Services sector, specifically for government facilities. The market for these services is competitive, with numerous firms capable of undertaking large-scale public projects. Government contracts often represent a significant portion of revenue for specialized A&E firms. The total federal spending on architectural and engineering services is substantial, with agencies like the VA frequently issuing contracts for facility upgrades and new construction to maintain and improve their infrastructure.

Small Business Impact

While the contract was awarded to a joint venture (SKW-PSP JOINT VENTURE), the data does not indicate whether small businesses were specifically targeted for set-aside portions or if subcontracting opportunities were mandated. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or through subcontracting agreements, which is crucial for assessing the impact on the small business ecosystem.

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 financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

VA Medical Facility Construction and Renovation
Federal Architectural and Engineering Services
Seismic Retrofitting Projects
Healthcare Infrastructure Modernization

Risk Flags

Long contract duration
Potential for scope creep
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.1 million to SKW-PSP JOINT VENTURE. IGF::CT::IGF A/E DESIGN SERVICES TO UPGRADE BUILDING 1 SEISMIC, LIFE SAFETY, UTILITY CORRECTIONS AND EXPAND CLINICAL SERVICES FOR RENO VA MEDICAL CENTER, 1000 LOCUST STREET, RENO, NV PROJECT 654-083

Who is the contractor on this award?

The obligated recipient is SKW-PSP JOINT VENTURE.

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 $21.1 million.

What is the period of performance?

Start: 2013-07-31. End: 2021-09-30.

What is the track record of SKW-PSP JOINT VENTURE on similar VA projects?

Information regarding the specific track record of SKW-PSP JOINT VENTURE on similar VA projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts, particularly those involving large-scale medical facility design and upgrades. Understanding their experience with seismic retrofitting, life safety systems, and clinical expansion would be key to evaluating their capability for this specific project.

How does the awarded amount compare to the estimated cost for similar VA facility upgrade projects?

Without access to the agency's independent cost estimate or data on comparable VA facility upgrade projects, it is difficult to definitively benchmark the $21.1 million award. However, the number of bidders (13) suggests a competitive environment, which typically drives awards closer to estimated costs. Projects involving seismic, life safety, and expansion for medical centers are complex and costly. A detailed comparison would involve analyzing the scope, size, and specific upgrades of other VA projects awarded over the past few years to establish a more accurate cost-per-square-foot or cost-per-system-upgrade benchmark.

What are the primary risks associated with a firm fixed-price contract for an 8-year design project?

The primary risks with a firm fixed-price contract for a long-duration design project like this (2983 days) include potential scope creep and unforeseen design challenges. If the initial scope is not meticulously defined, the contractor may incur additional costs to meet evolving requirements, which could lead to change order requests or disputes. Furthermore, market fluctuations in labor or material costs during the extended period are borne by the contractor, potentially impacting their willingness or ability to maintain quality if initial pricing was too aggressive. The agency also risks paying a premium if the contractor's initial bid was overly conservative due to the long timeframe and inherent uncertainties.

How effective are seismic and life safety upgrades in mitigating risks for VA medical facilities?

Seismic and life safety upgrades are critical for mitigating risks in VA medical facilities, especially in seismically active regions or older buildings. These upgrades are designed to ensure structural integrity during earthquakes, prevent fires, and maintain essential services (like power and water) during emergencies. Effective implementation significantly reduces the risk of facility collapse, injury or loss of life among patients and staff, and disruption of critical healthcare services. The VA's commitment to these upgrades reflects a proactive approach to ensuring operational resilience and patient safety, aligning with federal mandates for infrastructure hardening.

What is the historical spending trend for architectural and engineering services at the Reno VA Medical Center?

The provided data does not contain historical spending information specifically for the Reno VA Medical Center's architectural and engineering services. To analyze historical spending patterns, one would need to access contract databases and filter for contracts awarded to this specific facility or for projects within its geographic service area over several fiscal years. This would reveal trends in contract values, types of services procured, and the frequency of such awards, providing context for the current $21.1 million contract.

What are the potential impacts of expanding clinical services on the overall operational capacity of the Reno VA Medical Center?

Expanding clinical services at the Reno VA Medical Center has the potential to significantly increase its operational capacity, allowing it to serve more veterans and offer a broader range of medical treatments. This expansion could lead to reduced wait times for appointments, improved access to specialized care, and enhanced overall patient satisfaction. Operationally, it may require increased staffing, updated equipment, and potentially adjustments to facility layout and patient flow. The success of the expansion hinges on effective planning, design, and integration with existing services to ensure seamless delivery of care.

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: VA-101-11-RP-0103

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 622 20TH ST, SACRAMENTO, CA, 95811

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,140,371

Exercised Options: $21,140,371

Current Obligation: $21,135,849

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline