VA awards $33.8M contract to Richard Group LLC for EHRM infrastructure upgrades in Wisconsin

Contract Overview

Contract Amount: $33,862,432 ($33.9M)

Contractor: Richard Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-25

End Date: 2024-10-10

Contract Duration: 777 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EHRM INFRASTRUCTURE UPGRADES PROJECT.

Place of Performance

Location: TOMAH, MONROE County, WISCONSIN, 54660

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.9 million to RICHARD GROUP LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EHRM INFRASTRUCTURE UPGRADES PROJECT. Key points: 1. Contract focuses on construction services for critical healthcare infrastructure. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm-fixed-price contract type aims to control costs for the government. 4. Project duration of 777 days indicates a significant, multi-year undertaking. 5. The contract is categorized under Commercial and Institutional Building Construction. 6. The base award amount is $33.86 million, with potential for adjustments.

Value Assessment

Rating: good

The base award of $33.86 million for the EHRM Infrastructure Upgrades Project appears reasonable given the scope of construction services required. Benchmarking against similar large-scale institutional building projects managed by the VA or other federal agencies would provide a more precise value assessment. The firm-fixed-price structure is a positive indicator for cost control, assuming the initial scope is well-defined and change orders are managed effectively. The contract's duration suggests a substantial project, and the final cost will depend on the successful execution of all phases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that all responsible sources were permitted to submit a bid. The specific exclusion of sources might relate to pre-qualification criteria or specific technological requirements. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive environment that should lead to fair market pricing.

Taxpayer Impact: A competitive bidding process for infrastructure projects like this helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans in Wisconsin will benefit from improved Electronic Health Record Management (EHRM) infrastructure, potentially leading to better healthcare delivery. The contract will facilitate the construction and upgrade of essential healthcare facilities. The geographic impact is concentrated in Wisconsin, where the construction activities will take place. The project is expected to create jobs in the construction sector within Wisconsin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands significantly beyond the initial firm-fixed-price agreement.
Delays in construction could impact the planned EHRM system rollout and associated benefits.
Ensuring the quality of construction meets the stringent requirements for healthcare facilities is crucial.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust bidding process that can lead to competitive pricing.
The project addresses critical infrastructure needs for the VA's EHRM system, supporting a key government initiative.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports critical infrastructure for government agencies, including healthcare facilities. The market size for such specialized construction is substantial, with numerous firms capable of undertaking large-scale projects. This contract represents a specific investment in upgrading healthcare IT infrastructure, aligning with broader trends in digital transformation within the public sector.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While Richard Group LLC may engage small businesses as subcontractors, there is no explicit requirement for a small business set-aside in the primary contract. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem within the construction industry.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures will be tied to the firm-fixed-price agreement, with performance milestones and quality standards to be met. Transparency is generally facilitated through federal contract databases, though specific project-level oversight details may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization
Federal Building and Construction Projects
Healthcare Infrastructure Modernization
Electronic Health Record (EHR) Systems

Risk Flags

Potential for scope creep impacting fixed-price contract.
Construction delays affecting project timelines.
Ensuring compliance with healthcare facility construction standards.
Integration challenges with existing EHR systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.9 million to RICHARD GROUP LLC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EHRM INFRASTRUCTURE UPGRADES PROJECT.

Who is the contractor on this award?

The obligated recipient is RICHARD GROUP 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 $33.9 million.

What is the period of performance?

Start: 2022-08-25. End: 2024-10-10.

What is the track record of Richard Group LLC in performing similar large-scale federal construction projects, particularly within the healthcare sector?

A review of federal contract databases and past performance information would be necessary to assess Richard Group LLC's track record. Specifically, one would look for prior awards for similar construction projects, their value, duration, and client agency. Performance evaluations from previous contracts, if available, would provide insights into their ability to meet deadlines, manage budgets, and deliver quality work. Experience with healthcare facility construction is particularly relevant given the nature of this EHRM infrastructure upgrade project, as it often involves specialized requirements related to medical equipment, patient safety, and infection control.

How does the awarded amount of $33.86 million compare to similar EHRM infrastructure upgrade projects undertaken by the VA or other federal agencies?

Benchmarking this contract against similar projects requires identifying comparable federal construction contracts for healthcare IT infrastructure. Factors to consider include the size and complexity of the facility, the specific upgrades being performed (e.g., network, data center, physical plant), and the geographic location, which can influence labor and material costs. A preliminary comparison suggests that $33.86 million is a substantial but not necessarily excessive amount for a multi-year, large-scale infrastructure project within the federal healthcare system. Detailed cost breakdowns and scope comparisons would be needed for a definitive assessment of value for money.

What are the primary risks associated with the firm-fixed-price contract type for this project, and how are they being mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may incur cost overruns if the project's scope expands or unforeseen issues arise, potentially leading to requests for change orders or a reduction in quality to maintain profitability. For this EHRM infrastructure upgrade, risks could include unexpected site conditions, delays in material delivery, or integration challenges with existing systems. Mitigation strategies typically involve a clearly defined scope of work, robust contract administration, thorough site investigations prior to award, and a well-structured process for managing any necessary change orders. The VA's project management team will be crucial in overseeing these aspects.

What is the expected impact of these EHRM infrastructure upgrades on the efficiency and effectiveness of healthcare delivery to veterans in Wisconsin?

The upgrades to EHRM infrastructure are intended to enhance the reliability, speed, and security of the Electronic Health Record system. This can lead to more efficient clinical workflows, reduced downtime, and improved data accessibility for healthcare providers. For veterans, this could translate to faster appointment scheduling, more accurate medical records, better coordination of care, and potentially improved health outcomes. The success of these benefits is contingent on the seamless integration of the upgraded infrastructure with the existing EHR software and the effective training of end-users.

How has federal spending on healthcare infrastructure construction evolved over the past five years, and does this contract align with current trends?

Federal spending on healthcare infrastructure construction has generally seen fluctuations, influenced by factors such as agency modernization initiatives, healthcare reform, and budget appropriations. The Department of Veterans Affairs, in particular, has ongoing needs to modernize its facilities to support evolving healthcare delivery models and technological advancements like EHRM. This $33.86 million contract for EHRM infrastructure upgrades aligns with the trend of federal agencies investing in upgrading their IT and physical infrastructure to improve service delivery and operational efficiency. It reflects a commitment to enhancing the technological backbone of healthcare services provided to veterans.

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: 36C77622B0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1944 LEHIGH AVE, GLENVIEW, IL, 60026

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: $104,983,014

Exercised Options: $104,983,014

Current Obligation: $33,862,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline