VA Awards $13.9M for Reno EHRM Infrastructure Upgrades to Talion Construction

Contract Overview

Contract Amount: $13,908,664 ($13.9M)

Contractor: Talion Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-25

End Date: 2026-03-10

Contract Duration: 1,597 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR IS TO PROVIDE DESIGN AND CONSTRUCTION SERVICES TO COMPLETE THE RENO EHRM INFRASTRUCTURE UPGRADES PROJECT IN ACCORDANCE WITH THE RFP TO DB, SPECIFICATIONS, AND ALL APPLICABLE ATTACHMENTS.

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.9 million to TALION CONSTRUCTION, LLC for work described as: THE CONTRACTOR IS TO PROVIDE DESIGN AND CONSTRUCTION SERVICES TO COMPLETE THE RENO EHRM INFRASTRUCTURE UPGRADES PROJECT IN ACCORDANCE WITH THE RFP TO DB, SPECIFICATIONS, AND ALL APPLICABLE ATTACHMENTS. Key points: 1. Contract awarded for design and construction services for EHRM infrastructure upgrades. 2. Project aims to enhance electronic health record system infrastructure. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Firm Fixed Price, indicating defined scope and cost. 5. The award is for a significant duration, spanning over 1500 days.

Value Assessment

Rating: fair

The contract value of $13.9 million for design and construction services appears to be within a reasonable range for a project of this nature, though specific benchmarks for EHRM infrastructure upgrades are not readily available. Further analysis would require comparison to similar VA or other federal agency projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method suggests that while the competition was intended to be broad, certain sources were excluded, potentially impacting the full range of competitive pricing and innovation.

Taxpayer Impact: The use of a limited competition method may result in a higher cost to taxpayers compared to a fully open and unrestricted competition, as it restricts the pool of potential bidders.

Public Impact

Improved healthcare infrastructure for veterans through EHRM upgrades. Potential for enhanced efficiency and data security in healthcare delivery. Supports the modernization of the VA's healthcare IT systems. Job creation in the construction and related sectors in Nevada.

Waste & Efficiency Indicators

Waste Risk Score: 87 / 10

Warning Flags

Limited competition may not yield the best price.
Long contract duration increases exposure to cost overruns or scope creep.
Fixed-price contract can be risky if unforeseen issues arise in construction.

Positive Signals

Clear project objective: EHRM infrastructure upgrades.
Defined contract type (FFP) provides cost certainty if scope is well-managed.
Awarded by a major agency (VA) suggesting a significant need.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector is substantial across federal agencies, particularly for infrastructure and facility upgrades. Benchmarks for similar projects would be needed for a precise comparison.

Small Business Impact

The data indicates that neither Talion Construction, LLC nor the contract itself are marked as small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and larger firms were likely the primary participants.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard federal procurement regulations and contract management practices should be in place to ensure accountability and proper execution of the design and construction services.

Related Government Programs

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

Risk Flags

Limited competition.
Long contract duration.
Potential for unforeseen construction issues.
Reliance on contractor's design and construction expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.9 million to TALION CONSTRUCTION, LLC. THE CONTRACTOR IS TO PROVIDE DESIGN AND CONSTRUCTION SERVICES TO COMPLETE THE RENO EHRM INFRASTRUCTURE UPGRADES PROJECT IN ACCORDANCE WITH THE RFP TO DB, SPECIFICATIONS, AND ALL APPLICABLE ATTACHMENTS.

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 $13.9 million.

What is the period of performance?

Start: 2021-10-25. End: 2026-03-10.

What specific criteria were used to exclude sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The criteria for excluding sources in this type of competition are typically based on specific qualifications, past performance, or technical capabilities outlined in the solicitation. While intended to ensure capable contractors, excluding potential bidders can limit price competition. Without access to the RFP and exclusion justifications, it's difficult to quantify the precise price impact, but it generally suggests a less competitive environment than a truly unrestricted bid.

What are the key performance indicators (KPIs) for the Reno EHRM Infrastructure Upgrades project, and how will their achievement be measured to ensure effectiveness?

Key performance indicators for such a project would likely include adherence to the construction schedule, quality of work meeting specified standards, successful integration of new infrastructure with existing EHRM systems, and minimal disruption to ongoing healthcare operations. Effectiveness will be measured through regular site inspections, milestone reviews, user acceptance testing, and post-implementation performance monitoring of the upgraded infrastructure.

Given the firm fixed-price nature and long duration, what risk mitigation strategies are in place to manage potential cost overruns or scope creep?

Mitigation strategies for a long-duration FFP contract typically involve robust contract management, including detailed scope definition, change control processes, and regular progress reviews. The VA likely has mechanisms for managing unforeseen conditions or necessary scope adjustments, potentially through contract modifications with clear justification and pricing. Proactive risk identification and contingency planning by both the contractor and the agency are crucial.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77621R0117

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 43397 BUSINESS PARK DR, SUITE D9, TEMECULA, CA, 92590

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: $13,908,664

Exercised Options: $13,908,664

Current Obligation: $13,908,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline