VA Awards $29M EHRM Construction Contract to AC JV ONE LLC for Hot Springs Project

Contract Overview

Contract Amount: $29,032,931 ($29.0M)

Contractor: AC JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-15

End Date: 2024-12-15

Contract Duration: 822 days

Daily Burn Rate: $35.3K/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: CONTRACTOR TO PROVIDE CONSTRUCTION SERVICES PER SPECIFICATIONS AND DRAWINGS TO COMPLETE THE EHRM HOT SPRINGS CONSTRUCTION PROJECT.

Place of Performance

Location: HOT SPRINGS, FALL RIVER County, SOUTH DAKOTA, 57747

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.0 million to AC JV ONE LLC for work described as: CONTRACTOR TO PROVIDE CONSTRUCTION SERVICES PER SPECIFICATIONS AND DRAWINGS TO COMPLETE THE EHRM HOT SPRINGS CONSTRUCTION PROJECT. Key points: 1. The contract is for construction services to complete the EHRM Hot Springs project. 2. AC JV ONE LLC is the contractor, with the Department of Veterans Affairs as the agency. 3. The contract value is $29,032,930.83 and has a duration of 822 days. 4. This is a Firm Fixed Price contract awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $29M appears reasonable for a large-scale construction project of this nature. Benchmarking against similar VA or institutional building construction contracts 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 a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary construction services.

Public Impact

Improved healthcare infrastructure through the Electronic Health Record Modernization (EHRM) program. Potential for job creation in the construction sector in South Dakota. Ensures the completion of a critical VA facility upgrade.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting EHRM rollout.
Risk of cost overruns if unforeseen issues arise during construction.

Positive Signals

Firm Fixed Price contract limits cost uncertainty.
Competitive award suggests potential for value.
Clear project scope defined by specifications and drawings.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for government projects is substantial, driven by infrastructure needs and modernization efforts.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Contract performance will be monitored against specifications and timelines to ensure accountability and successful project completion.

Related Government Programs

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

Risk Flags

Potential for construction delays.
Risk of unforeseen site conditions.
Contract duration is significant (822 days).
No small business award noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.0 million to AC JV ONE LLC. CONTRACTOR TO PROVIDE CONSTRUCTION SERVICES PER SPECIFICATIONS AND DRAWINGS TO COMPLETE THE EHRM HOT SPRINGS CONSTRUCTION PROJECT.

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 $29.0 million.

What is the period of performance?

Start: 2022-09-15. End: 2024-12-15.

What is the specific scope of the EHRM Hot Springs construction project and how does it align with the VA's overall EHRM strategy?

The contract specifies construction services to complete the EHRM Hot Springs project, implying physical infrastructure upgrades necessary for the Electronic Health Record Modernization. This likely involves facility modifications, potentially including IT infrastructure integration, to support the new system's operational requirements. The VA's EHRM strategy aims to standardize and modernize health records across all facilities, making projects like this crucial for successful implementation and improved patient care delivery.

What are the key performance indicators (KPIs) for this construction contract, and what mechanisms are in place to mitigate risks associated with construction timelines and quality?

Key performance indicators likely include adherence to the project schedule (822 days duration), completion within the firm fixed price ($29M), and meeting all specified construction quality standards. Mitigation mechanisms typically involve regular progress reviews, site inspections, potential liquidated damages for delays, and a robust quality assurance plan managed by the VA contracting officer's representative.

How does the 'Full and Open Competition After Exclusion of Sources' method ensure optimal value for taxpayer dollars in this specific construction contract?

This procurement method, while excluding certain sources, still allows for broad competition among eligible entities. By requiring proposals based on detailed specifications and drawings, it enables a thorough evaluation of technical capabilities and pricing. The competitive bidding process, coupled with a firm fixed price, incentivizes contractors to offer their best value proposition, thereby maximizing the efficient use of taxpayer funds for the construction services.

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: 36C77622B0032

Offers Received: 3

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: $29,032,931

Exercised Options: $29,032,931

Current Obligation: $29,032,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline