VA Awards $24.5M for Temporary Surgical Facilities in Connecticut, Boosting Healthcare Infrastructure
Contract Overview
Contract Amount: $24,557,000 ($24.6M)
Contractor: P & S Construction Inc.
Awarding Agency: Department of Defense
Start Date: 2025-08-08
End Date: 2031-03-10
Contract Duration: 2,040 days
Daily Burn Rate: $12.0K/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: TEMPORARY FACILITIES TO SUPPORT NEW SURGICAL AND CLINICAL SPACE TOWER FOR THE DEPARTMENT OF VETERANS AFFAIRS CONNECTICUT HEALTHCARE SYSTEM (VACHS) IN WEST HAVEN, CONNECTICUT
Place of Performance
Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516
Plain-Language Summary
Department of Defense obligated $24.6 million to P & S CONSTRUCTION INC. for work described as: TEMPORARY FACILITIES TO SUPPORT NEW SURGICAL AND CLINICAL SPACE TOWER FOR THE DEPARTMENT OF VETERANS AFFAIRS CONNECTICUT HEALTHCARE SYSTEM (VACHS) IN WEST HAVEN, CONNECTICUT Key points: 1. Significant investment in healthcare infrastructure to support expanded surgical and clinical services. 2. Competition method suggests potential for competitive pricing, but details on source exclusion are key. 3. Long contract duration (2040) raises questions about flexibility and potential for cost overruns. 4. Focus on temporary facilities indicates a need for immediate capacity, potentially masking underlying permanent infrastructure issues.
Value Assessment
Rating: fair
The contract value of $24.5 million for temporary facilities appears substantial. Benchmarking against similar temporary construction projects for healthcare systems is needed to assess if this price is competitive, especially considering the long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This limited competition method, while allowing for some bidding, may restrict the pool of qualified contractors and potentially impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for temporary facilities, which may not be the most cost-effective long-term solution. The efficiency of this approach versus permanent construction needs careful evaluation.
Public Impact
Veterans in Connecticut will benefit from expanded surgical and clinical space, improving access to care. The project supports the Department of Veterans Affairs' commitment to modernizing healthcare facilities. Local economy may see a boost through construction jobs and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2040) may lead to cost inefficiencies.
- Limited competition could result in higher prices than fully open competition.
- Reliance on temporary facilities might indicate a lack of long-term strategic planning for permanent infrastructure.
Positive Signals
- Addresses critical need for increased surgical and clinical capacity.
- Supports modernization of VA healthcare services.
- Provides immediate solutions for patient care demands.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for temporary healthcare facility construction are not readily available, but the scale of this award suggests a significant project.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as P & S CONSTRUCTION INC. is the prime contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of Defense, acting on behalf of the VA, managed this award. Oversight will be crucial to ensure the temporary facilities meet VA standards and that costs remain controlled throughout the contract's extended duration.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to long contract duration.
- Limited competition may not yield the best value.
- Reliance on temporary solutions might be less cost-effective long-term.
- Lack of transparency regarding source exclusion.
Tags
commercial-and-institutional-building-co, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to P & S CONSTRUCTION INC.. TEMPORARY FACILITIES TO SUPPORT NEW SURGICAL AND CLINICAL SPACE TOWER FOR THE DEPARTMENT OF VETERANS AFFAIRS CONNECTICUT HEALTHCARE SYSTEM (VACHS) IN WEST HAVEN, CONNECTICUT
Who is the contractor on this award?
The obligated recipient is P & S CONSTRUCTION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2025-08-08. End: 2031-03-10.
What is the justification for excluding certain sources from the full and open competition, and how does this impact the final price?
The justification for excluding sources is not provided in the data. However, limiting the pool of potential bidders can reduce competition, potentially leading to higher prices than if all qualified contractors were allowed to compete. A thorough review of the exclusion rationale and its financial implications is warranted to ensure fair pricing and optimal use of taxpayer funds.
What are the long-term cost implications of utilizing temporary facilities for an extended period until 2040?
Utilizing temporary facilities until 2040 presents significant long-term cost risks. While avoiding immediate capital expenditure on permanent structures, the cumulative cost of maintenance, potential upgrades, and eventual decommissioning of temporary structures could exceed the cost of permanent construction. This strategy may also represent a missed opportunity for more sustainable and cost-effective long-term infrastructure solutions.
How will the effectiveness of these temporary facilities in meeting the evolving needs of surgical and clinical space be monitored over the contract's lifespan?
Monitoring the effectiveness of temporary facilities requires a robust plan. This should include regular assessments of functionality, patient and staff feedback, and adaptability to changing medical technologies and procedures. The VA must establish clear performance metrics and a system for regular review and potential modification of the facilities to ensure they continue to meet the dynamic demands of healthcare delivery throughout the contract's extensive duration.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11 SCHOOL ST STE 1, NORTH CHELMSFORD, MA, 01863
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,314,100
Exercised Options: $24,557,000
Current Obligation: $24,557,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912WJ20D0006
IDV Type: IDC
Timeline
Start Date: 2025-08-08
Current End Date: 2031-03-10
Potential End Date: 2031-03-10 00:00:00
Last Modified: 2025-09-15
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