VA's $47.4M Seattle Mental Health Facility Construction Contract Awarded to Swinerton Absher JV

Contract Overview

Contract Amount: $47,449,027 ($47.4M)

Contractor: Swinerton Absher JV

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-09-30

End Date: 2018-12-21

Contract Duration: 1,908 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 101 MENTAL HEALTH SERVICES - PHASE 1, PARKING STRUCTURE AND MAIN ENTRY DRIVE AT 1660 SOUTH COLUMBIAN WAY, SEATTLE, WA IGF::OT::IGF

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.4 million to SWINERTON ABSHER JV for work described as: BUILDING 101 MENTAL HEALTH SERVICES - PHASE 1, PARKING STRUCTURE AND MAIN ENTRY DRIVE AT 1660 SOUTH COLUMBIAN WAY, SEATTLE, WA IGF::OT::IGF Key points: 1. Contract value represents a significant investment in critical healthcare infrastructure. 2. The project was awarded through full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of approximately 5 years indicates a substantial construction undertaking. 5. The contract falls within the broader category of commercial and institutional building construction. 6. Geographic focus on Seattle, WA, highlights regional infrastructure development.

Value Assessment

Rating: fair

The contract value of $47.4 million for a mental health facility, parking structure, and main entry drive appears to be within a reasonable range for a project of this scale and complexity in a major metropolitan area like Seattle. Benchmarking against similar large-scale healthcare construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to establish a clear cost baseline, but the final cost relative to initial estimates and market conditions is key to determining true value.

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 competitive environment, which typically leads to better pricing and value for the government. The level of competition is a positive indicator for price discovery, as multiple bidders vied for the contract, potentially driving down costs through their proposals.

Taxpayer Impact: A competitive bidding process for this substantial contract is beneficial for taxpayers, as it increases the likelihood of securing the best possible price and quality for the construction services, minimizing potential cost overruns.

Public Impact

The primary beneficiaries are veterans in the Seattle area, who will gain access to improved mental health services and facilities. The project delivers essential construction services, including a parking structure and main entry drive, enhancing accessibility and functionality. The geographic impact is concentrated in Seattle, Washington, contributing to local economic activity and development. The construction phase will likely create numerous jobs for skilled trades and construction workers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or construction challenges arise, despite the firm-fixed-price structure.
Delays in construction could impact the timely delivery of critical mental health services to veterans.
Ensuring the quality of construction meets the specific needs of a mental health facility requires diligent oversight.

Positive Signals

The use of a firm-fixed-price contract helps to mitigate financial risk for the government.
Awarding through full and open competition suggests a thorough vetting of potential contractors.
The project addresses a critical need for enhanced mental health infrastructure for veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of facilities for public and private institutions, including healthcare, education, and government. The market for healthcare construction, particularly for specialized facilities like mental health centers, is driven by demographic trends, healthcare policy, and the need for modern, efficient medical infrastructure. Spending in this sector can be substantial, with large projects often requiring significant capital investment and specialized expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While the primary awardee is a joint venture, suggesting potential for large prime contractors, there is no explicit information on small business subcontracting goals or performance. The absence of a small business set-aside means that opportunities for small businesses would likely arise through subcontracting opportunities offered by the prime contractor, the impact of which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs (VA) contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to complete the work for a set price. Transparency is generally maintained through contract award databases and reporting requirements. The VA has an Office of Inspector General (OIG) that provides independent oversight and investigates fraud, waste, and abuse within the department, which could extend to major construction projects.

Related Government Programs

VA Major Medical Facility Leases
VA Healthcare Infrastructure Projects
Federal Building Construction Contracts
Department of Defense Construction Projects

Risk Flags

Potential for construction delays impacting service delivery.
Risk of cost increases due to unforeseen site conditions or scope changes.
Ensuring specialized design requirements for mental health facilities are met.
Contractor performance and quality control oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.4 million to SWINERTON ABSHER JV. BUILDING 101 MENTAL HEALTH SERVICES - PHASE 1, PARKING STRUCTURE AND MAIN ENTRY DRIVE AT 1660 SOUTH COLUMBIAN WAY, SEATTLE, WA IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SWINERTON ABSHER JV.

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 $47.4 million.

What is the period of performance?

Start: 2013-09-30. End: 2018-12-21.

What is the track record of Swinerton Absher JV in completing large-scale government construction projects, particularly healthcare facilities?

Swinerton Builders and Absher Construction are both established construction firms with extensive experience. Swinerton has a long history of large-scale commercial, institutional, and healthcare projects across the US. Absher Construction also has a significant portfolio, including government and healthcare facilities. As a joint venture (JV), Swinerton Absher JV likely leverages the combined expertise and resources of both parent companies. A detailed review of their past performance on similar VA or other federal healthcare construction contracts, including on-time completion rates, budget adherence, and client satisfaction, would be necessary for a comprehensive assessment of their track record for this specific project.

How does the awarded amount of $47.4 million compare to similar mental health facility construction projects in major metropolitan areas?

The $47.4 million contract value for a mental health facility, parking structure, and main entry drive in Seattle is substantial. To benchmark its value, comparisons should be made with projects of similar scope, size (square footage), complexity, and location. Factors such as prevailing construction labor costs, material prices, and specific design requirements for mental health facilities (e.g., security, specialized treatment spaces) significantly influence project costs. Without specific data on comparable projects, it's challenging to definitively state if this amount represents excellent or fair value. However, for a project of this magnitude in a high-cost-of-living area like Seattle, the figure is not immediately indicative of overpricing, but warrants detailed cost analysis against benchmarks.

What are the primary risks associated with this firm-fixed-price construction contract, and how are they mitigated?

The primary risks with a firm-fixed-price (FFP) contract, while designed to control costs, often revolve around potential scope creep, unforeseen site conditions, and contractor performance. If the scope of work expands beyond the original agreement without proper change order management, costs can increase. Unforeseen subsurface conditions or design issues discovered during construction can lead to delays and claims for additional compensation, even under FFP. Contractor performance risks include quality issues or schedule delays. Mitigation strategies typically involve robust contract language, detailed pre-construction site investigations, stringent quality assurance/quality control (QA/QC) processes, proactive project management, and clear procedures for managing change orders and disputes.

What is the expected impact of this facility on the delivery of mental health services to veterans in the Seattle region?

This construction project is intended to significantly enhance the delivery of mental health services to veterans in the Seattle area by providing a modern, purpose-built facility. The new infrastructure is expected to offer increased capacity, improved patient care environments, and potentially incorporate advanced treatment modalities. The inclusion of a parking structure and improved main entry drive suggests a focus on accessibility and patient experience. Ultimately, the goal is to provide more comprehensive, accessible, and effective mental healthcare, addressing the growing needs of the veteran population in the region and potentially reducing wait times and improving patient outcomes.

How has federal spending on healthcare infrastructure construction, specifically for mental health facilities, trended in recent years?

Federal spending on healthcare infrastructure, including mental health facilities, has generally seen fluctuations driven by government priorities, budget allocations, and the ongoing need to modernize aging facilities and expand capacity. The Department of Veterans Affairs (VA), in particular, has faced significant demand for improved healthcare infrastructure to serve the veteran population. Recent years have seen increased focus and investment in areas like mental healthcare due to growing awareness of its importance and the specific needs of veterans. Trends may also be influenced by public-private partnerships, healthcare reform initiatives, and the lifecycle of existing federal medical centers. Specific data on mental health facility construction spending would require detailed analysis of VA budget appropriations and contract awards over time.

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: VA101-13-R-0059A

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6890 W 52ND AVE STE 100, ARVADA, CO, 80002

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

Financial Breakdown

Contract Ceiling: $47,450,103

Exercised Options: $47,450,103

Current Obligation: $47,449,027

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline