VA Awards $20.5M EHRM Infrastructure Upgrade to AC JV ONE LLC Under Full and Open Competition

Contract Overview

Contract Amount: $20,535,366 ($20.5M)

Contractor: AC JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-23

End Date: 2024-08-01

Contract Duration: 709 days

Daily Burn Rate: $29.0K/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: THE CONSTRUCTION CONTRACT IS TO PROVIDE ALL OF THE REQUIRED SERVICES TO COMPLETE THE ELECTRONIC HEALTH RECORDS MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE FARGO VA MEDICAL CENTER.

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58104

State: North Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.5 million to AC JV ONE LLC for work described as: THE CONSTRUCTION CONTRACT IS TO PROVIDE ALL OF THE REQUIRED SERVICES TO COMPLETE THE ELECTRONIC HEALTH RECORDS MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE FARGO VA MEDICAL CENTER. Key points: 1. The contract aims to modernize EHRM infrastructure at the Fargo VA Medical Center. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. This project falls under Commercial and Institutional Building Construction, a significant sector for infrastructure.

Value Assessment

Rating: good

The contract value of $20.5M for EHRM infrastructure upgrades appears reasonable given the scope of a medical center modernization. Benchmarking against similar large-scale construction projects for healthcare facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded prior to the main bidding process. This method aims for competitive pricing but the exclusion criteria warrant review.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages competitive bidding, potentially leading to lower prices and better value for government spending.

Public Impact

Improved electronic health records infrastructure will enhance patient care and data management at the Fargo VA. Modernization efforts can lead to greater operational efficiency for the medical center. The project represents a significant investment in the Fargo VA's technological capabilities. Construction activities may cause temporary disruptions for staff and patients at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise.
Risk of project delays impacting EHRM modernization timeline.
Ensuring compliance with all construction and healthcare IT regulations.

Positive Signals

Firm Fixed Price contract mitigates cost escalation risk for the VA.
Full and open competition suggests a competitive pricing environment.
Project addresses critical infrastructure needs for veteran healthcare.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is vital for public infrastructure development. Spending benchmarks for similar healthcare facility construction projects can vary widely based on size, complexity, and location.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure the project stays on schedule, within budget, and meets all quality and performance requirements.

Related Government Programs

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

Risk Flags

Potential for scope creep impacting budget and timeline.
Dependency on contractor's ability to manage complex infrastructure upgrades.
Integration challenges between new infrastructure and existing systems.
Risk of cybersecurity vulnerabilities during and after modernization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.5 million to AC JV ONE LLC. THE CONSTRUCTION CONTRACT IS TO PROVIDE ALL OF THE REQUIRED SERVICES TO COMPLETE THE ELECTRONIC HEALTH RECORDS MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE FARGO VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is AC JV ONE 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 $20.5 million.

What is the period of performance?

Start: 2022-08-23. End: 2024-08-01.

What specific criteria led to the exclusion of certain sources before the full and open competition phase?

The exclusion of sources prior to full and open competition typically occurs when specific technical capabilities, past performance, or unique qualifications are required that only a limited number of contractors possess. The VA would need to justify these exclusions based on project requirements to ensure they were necessary and did not unduly restrict competition.

How does the $20.5M cost compare to industry benchmarks for similar EHRM infrastructure upgrade projects in VA medical centers?

A direct comparison requires detailed project specifications. However, $20.5M for a comprehensive EHRM infrastructure upgrade at a medical center is substantial, reflecting the complexity of integrating modern IT systems with physical building infrastructure. Benchmarking against projects of similar scale and technological integration at other federal or large private healthcare facilities would be necessary for a precise assessment.

What mechanisms are in place to monitor and ensure the effectiveness of the EHRM modernization beyond the construction phase?

Effectiveness monitoring post-construction typically involves performance metrics related to system uptime, data accessibility, user satisfaction, and improved clinical workflows. The VA should have established KPIs and regular reviews with the contractor and system implementers to track the realization of modernization benefits and address any post-deployment issues.

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: SEALED BID

Solicitation ID: 36C77622B0030

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 837 OAKTON ST STE F UNIT 2, ELK GROVE VILLAGE, IL, 60007

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,535,366

Exercised Options: $20,535,366

Current Obligation: $20,535,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline