VA awards $4.4M contract for patient privacy deficiencies to ACRO CONSTRUCTION, LLC

Contract Overview

Contract Amount: $4,399,234 ($4.4M)

Contractor: Acro Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-15

End Date: 2026-06-30

Contract Duration: 1,719 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CORRECT PATIENT PRIVACY DEFICIENCIES

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32608

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.4 million to ACRO CONSTRUCTION, LLC for work described as: CORRECT PATIENT PRIVACY DEFICIENCIES Key points: 1. The contract addresses critical patient privacy deficiencies, highlighting a significant need for remediation. 2. ACRO CONSTRUCTION, LLC, a relatively unknown entity in federal contracting, secured this award. 3. The contract's duration and fixed-price nature suggest a defined scope, but potential for cost overruns exists. 4. The sector is commercial building construction, with a focus on facilities requiring high security and compliance.

Value Assessment

Rating: fair

The contract value of $4.4M for construction services appears within a reasonable range for addressing significant building deficiencies. However, without specific benchmarks for patient privacy remediation in healthcare facilities, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of qualified bidders, potentially impacting price discovery and overall value.

Taxpayer Impact: Taxpayers may bear a higher cost due to limited competition, as fewer bids could lead to less aggressive pricing from the awarded contractor.

Public Impact

Improved patient privacy compliance at VA facilities, enhancing trust and security for veterans' sensitive information. Potential for improved facility infrastructure and operational efficiency resulting from the construction work. Ensuring the Department of Veterans Affairs meets federal mandates for patient data protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to inflated costs.
Contractor's limited federal contracting history raises performance risk.
Potential for scope creep or unforeseen issues in addressing privacy deficiencies.

Positive Signals

Addresses a critical compliance and patient safety issue.
Fixed-price contract provides cost certainty if scope is well-defined.
Contract awarded to a small business (though not explicitly stated, often a consideration in limited competition).

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for government facilities is often driven by infrastructure upgrades, repairs, and compliance requirements, such as patient privacy.

Small Business Impact

While the data does not explicitly state if ACRO CONSTRUCTION, LLC is a small business, the contract's limited competition and the nature of the award could suggest an effort to engage smaller or specialized contractors. Further analysis would be needed to confirm small business status and its impact.

Oversight & Accountability

Oversight will be crucial to ensure ACRO CONSTRUCTION, LLC meets the specific requirements for patient privacy remediation within the defined timeline and budget. The VA's contracting office will be responsible for monitoring performance 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

Limited competition may result in higher costs.
Contractor's track record in federal contracting is not readily apparent.
Potential for unforeseen complexities in addressing patient privacy deficiencies.
Risk of scope creep impacting budget and timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.4 million to ACRO CONSTRUCTION, LLC. CORRECT PATIENT PRIVACY DEFICIENCIES

Who is the contractor on this award?

The obligated recipient is ACRO CONSTRUCTION, 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 $4.4 million.

What is the period of performance?

Start: 2021-10-15. End: 2026-06-30.

What specific patient privacy deficiencies are being addressed, and what is the expected impact of this construction work on improving compliance?

The contract aims to rectify unspecified patient privacy deficiencies within VA facilities. The construction work likely involves physical security upgrades, IT infrastructure enhancements, or modifications to data handling areas to prevent unauthorized access or breaches of sensitive veteran health information, thereby bolstering compliance with HIPAA and other privacy regulations.

Given the limited competition, how can the VA ensure this contract provides good value for taxpayer money and mitigates potential cost overruns?

The VA can mitigate risks by implementing rigorous project management, detailed progress monitoring, and clear change order protocols. Regular performance reviews and independent cost assessments can help ensure the contractor remains within budget and delivers the required improvements effectively. Strong oversight is key to validating the value received.

What are the potential long-term implications for VA facility security and patient trust if these privacy deficiencies are not adequately resolved by this contract?

Failure to adequately resolve these privacy deficiencies could lead to significant data breaches, compromising veteran trust and potentially resulting in substantial fines and legal liabilities for the VA. It could also damage the VA's reputation, impacting veterans' willingness to seek care and share sensitive information, thereby undermining the core mission of providing healthcare.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24821R0139

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 W 11TH STREET, PANAMA CITY, FL, 32401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,399,236

Exercised Options: $4,399,236

Current Obligation: $4,399,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline