VA Awards $127.5M Contract for Palo Alto Healthcare System Construction

Contract Overview

Contract Amount: $127,518,496 ($127.5M)

Contractor: S. J. Amoroso Construction CO., LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-02-25

End Date: 2021-12-31

Contract Duration: 2,866 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF AWARD FOR THE CONSTRUCTION OF THE VA PALO ALTO HEALTHCARE SYSTEM RADIOLOGY CONSOLIDATION, PARKING STRUCTURE 2, MAJOR ROADS AND UTILITIES, PROJECT 640-424D.

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $127.5 million to S. J. AMOROSO CONSTRUCTION CO., LLC for work described as: IGF::CT::IGF AWARD FOR THE CONSTRUCTION OF THE VA PALO ALTO HEALTHCARE SYSTEM RADIOLOGY CONSOLIDATION, PARKING STRUCTURE 2, MAJOR ROADS AND UTILITIES, PROJECT 640-424D. Key points: 1. The contract is for a significant construction project at the VA Palo Alto Healthcare System. 2. S. J. Amoroso Construction Co., LLC was awarded the contract. 3. The project involves radiology consolidation, a parking structure, and major roads/utilities. 4. This represents substantial investment in healthcare infrastructure for veterans.

Value Assessment

Rating: good

The contract value of $127.5 million appears to be a significant investment for the scope of work. Benchmarking against similar large-scale healthcare construction projects would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds allocated to critical infrastructure.

Public Impact

Improved healthcare facilities for veterans at the Palo Alto site. Potential for job creation during the construction phase. Modernization of essential infrastructure supporting medical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (2866 days).
Potential for cost overruns in large construction projects.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can limit cost increases.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for federal projects can fluctuate based on infrastructure needs and budget allocations, with large healthcare facilities representing a significant portion of investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to S. J. Amoroso Construction Co., LLC, a larger entity. There is no specific information provided regarding small business subcontracting opportunities.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects would apply, including monitoring progress, quality, and adherence to contract terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration.
Potential for construction cost overruns.
Complexity of integrating new structures with existing facilities.
Dependence on timely completion for operational improvements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $127.5 million to S. J. AMOROSO CONSTRUCTION CO., LLC. IGF::CT::IGF AWARD FOR THE CONSTRUCTION OF THE VA PALO ALTO HEALTHCARE SYSTEM RADIOLOGY CONSOLIDATION, PARKING STRUCTURE 2, MAJOR ROADS AND UTILITIES, PROJECT 640-424D.

Who is the contractor on this award?

The obligated recipient is S. J. AMOROSO CONSTRUCTION CO., 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 $127.5 million.

What is the period of performance?

Start: 2014-02-25. End: 2021-12-31.

What is the projected impact of the radiology consolidation on patient wait times and service efficiency?

The radiology consolidation aims to improve efficiency by centralizing services, potentially reducing patient wait times and streamlining diagnostic processes. This modernization is expected to enhance the overall patient experience and allow for more advanced imaging capabilities, contributing to better healthcare outcomes for veterans.

What are the key risk mitigation strategies in place for a project of this scale and duration?

For a project of this magnitude and duration, key risk mitigation strategies likely include robust project management, detailed scheduling, contingency planning for unforeseen site conditions or material price fluctuations, and strong quality control measures. Regular progress reviews and clear communication channels between the VA and the contractor are also crucial.

How does this investment align with the VA's long-term strategic goals for healthcare delivery in the region?

This investment aligns with the VA's strategic goals by modernizing critical infrastructure, enhancing the capacity and quality of healthcare services offered at the Palo Alto facility. It supports the delivery of advanced medical care and ensures facilities are equipped to meet the evolving needs of veteran patients, contributing to the VA's mission.

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-0140

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 390 BRIDGE PKWY, REDWOOD CITY, CA, 94065

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

Financial Breakdown

Contract Ceiling: $127,518,496

Exercised Options: $127,518,496

Current Obligation: $127,518,496

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline