VA awards $4.77M for EHRM training space support, with limited competition

Contract Overview

Contract Amount: $4,774,978 ($4.8M)

Contractor: Talion Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-18

End Date: 2026-02-28

Contract Duration: 894 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EHRM TRAINING AND ADMIN SPACE SUPPORT AT THE SEPULVEDA AMBULATORY CARE CENTER

Place of Performance

Location: NORTH HILLS, LOS ANGELES County, CALIFORNIA, 91343

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to TALION CONSTRUCTION, LLC for work described as: EHRM TRAINING AND ADMIN SPACE SUPPORT AT THE SEPULVEDA AMBULATORY CARE CENTER Key points: 1. Contract awarded for essential EHRM training and administrative space support. 2. Limited competition may impact price discovery and potentially increase costs. 3. Contract duration extends over two years, indicating a significant operational need. 4. The award is a definitive contract, suggesting a clear scope of work. 5. Fixed-price contract type aims to control costs, but initial pricing needs scrutiny. 6. Geographic focus on Sepulveda Ambulatory Care Center highlights specific facility needs.

Value Assessment

Rating: fair

The contract value of $4.77 million for EHRM training and administrative space support appears to be within a reasonable range for specialized facility services. However, without direct comparable contracts for similar EHRM training space build-outs or renovations, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides cost certainty, but the absence of a competitive bidding process raises questions about whether the government secured the most advantageous pricing. Benchmarking against general commercial construction costs for similar square footage in California could offer some context, but the specialized nature of the requirements likely commands a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition, meaning not all potential bidders were solicited. The specific reasons for this limitation are not detailed in the provided data, but it suggests that the Department of Veterans Affairs may have had specific criteria or pre-existing relationships that narrowed the field. With only one awardee, TALION CONSTRUCTION, LLC, it is impossible to gauge the breadth of market interest or the range of pricing that might have been available through a full and open competition. This limited competition structure can sometimes lead to higher prices than would be achieved in a more open market.

Taxpayer Impact: Limited competition can mean taxpayers may not benefit from the most competitive pricing, potentially leading to higher overall expenditure for this service.

Public Impact

Veterans and VA staff at the Sepulveda Ambulatory Care Center will benefit from improved training and administrative facilities. The contract supports the critical implementation and ongoing use of the Electronic Health Record Modernization (EHRM) system. Services are geographically focused within California, specifically at the Sepulveda facility. The contract may indirectly support local employment in the construction and facility management sectors in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
Lack of detailed justification for limited competition raises transparency concerns.
The fixed-price contract type, while offering cost certainty, does not inherently guarantee optimal value without competitive pressure.

Positive Signals

The contract addresses a critical need for EHRM training and administrative space, essential for healthcare modernization.
The fixed-price contract type helps to control and predict project costs.
The award is to a specific contractor, TALION CONSTRUCTION, LLC, indicating a selection based on some criteria.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting facility modifications and support services for a healthcare setting. The market for such specialized construction and facility support services is significant, driven by ongoing infrastructure needs and modernization efforts within federal agencies, particularly healthcare providers like the VA. While specific benchmarks for EHRM training space construction are not readily available, general construction costs for commercial buildings in California provide a broad comparison point. The total award of $4.77 million is moderate for a multi-year facility support contract.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The prime contractor, TALION CONSTRUCTION, LLC, is likely a small business itself given the contract value, but the award mechanism did not prioritize small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for the Sepulveda Ambulatory Care Center and the EHRM initiative. Accountability measures are embedded within the definitive contract terms, likely including performance standards, delivery schedules, and payment milestones. Transparency is somewhat limited due to the nature of the limited competition award; however, contract award data is publicly available through federal procurement databases. The Inspector General for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Electronic Health Record Modernization (EHRM)
VA Healthcare Infrastructure Projects
Federal Building Construction and Renovation
Ambulatory Care Center Operations Support

Risk Flags

Limited Competition Justification
Potential for Price Inflation
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to TALION CONSTRUCTION, LLC. EHRM TRAINING AND ADMIN SPACE SUPPORT AT THE SEPULVEDA AMBULATORY CARE CENTER

Who is the contractor on this award?

The obligated recipient is TALION 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 $4.8 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-02-28.

What is the specific scope of 'EHRM Training and Admin Space Support' and what are the key deliverables expected from TALION CONSTRUCTION, LLC?

The term 'EHRM Training and Admin Space Support' likely encompasses a range of activities related to preparing and maintaining physical spaces dedicated to the training of personnel on the new Electronic Health Record Modernization (EHRM) system, as well as providing administrative support within these or related areas. Key deliverables could include construction or renovation of training rooms, installation of necessary IT infrastructure (e.g., workstations, network drops, projectors), furniture procurement and setup, ensuring adequate lighting and climate control, and potentially ongoing maintenance or janitorial services for these spaces. Administrative support might involve scheduling assistance, managing access to training facilities, or providing logistical support for training events. The definitive contract's statement of work would detail these specific requirements and expected outcomes.

How does the $4.77 million contract value compare to similar EHRM-related facility support contracts awarded by the VA or other agencies?

Direct comparisons for 'EHRM Training and Admin Space Support' contracts are difficult without more specific data on the scope of work and location. However, the $4.77 million award for a period of approximately 2.5 years (September 2023 to February 2028) suggests a significant investment in facility preparation for EHRM. Larger EHRM implementation contracts, which include IT systems, software, and broader rollout efforts, can run into billions of dollars. Smaller, localized facility support contracts for specific training needs or administrative spaces might range from tens of thousands to several million dollars, depending on the extent of construction, renovation, and technology integration required. This $4.77 million figure appears substantial for space support alone, underscoring the importance the VA places on effective EHRM training infrastructure.

What are the potential risks associated with awarding this contract under limited competition, and how might they be mitigated?

The primary risk of limited competition is the potential for inflated pricing due to the lack of a competitive bidding process. Without multiple offers, the government may not achieve the best possible value for its expenditure. Another risk is that a less capable contractor might be selected if the pool of potential bidders was not adequately assessed or if the justification for limitation was flawed. Mitigation strategies could include robust negotiation by the contracting officer to ensure fair and reasonable pricing, thorough due diligence on the selected contractor's capabilities and past performance, and potentially incorporating performance-based metrics and incentives into the contract to drive efficiency. Furthermore, documenting the justification for limited competition clearly and ensuring it aligns with federal acquisition regulations is crucial for oversight.

What is TALION CONSTRUCTION, LLC's track record with the Department of Veterans Affairs and for similar types of construction or facility support contracts?

Information regarding TALION CONSTRUCTION, LLC's specific track record with the Department of Veterans Affairs for EHRM training and admin space support is not detailed in the provided data snippet. However, as a recipient of this definitive contract, it implies they possess the necessary qualifications, past performance, and potentially existing relationships or prior contract vehicles with the VA. To fully assess their track record, one would need to examine their contract history within the VA and other federal agencies, looking at performance ratings, types of projects completed (especially those involving healthcare facilities or IT-related infrastructure support), and any history of disputes or contract modifications. A review of federal procurement databases like SAM.gov or FPDS would be necessary for a comprehensive analysis.

How does the spending on EHRM training space support fit into the broader context of the VA's overall EHRM program budget and implementation timeline?

The VA's Electronic Health Record Modernization (EHRM) program is a massive, multi-year initiative with a budget spanning billions of dollars. This $4.77 million contract for training and administrative space support represents a relatively small, albeit critical, component of the overall program. Effective training is paramount to the successful adoption and utilization of the new EHRM system, which aims to standardize patient records across the VA. Spending on dedicated training facilities and administrative support ensures that healthcare providers can be adequately trained, minimizing disruptions to patient care during the transition. This expenditure aligns with the program's timeline, likely occurring in phases as the EHRM system is rolled out to different facilities, such as the Sepulveda Ambulatory Care Center.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26223R0082

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30850 WEALTH STREET, MURRIETA, CA, 92563

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,774,978

Exercised Options: $4,774,978

Current Obligation: $4,774,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline