VA awards $25.4M contract for EHRM infrastructure upgrades at Cleveland VA Medical Center

Contract Overview

Contract Amount: $25,400,230 ($25.4M)

Contractor: Green-Veg JV Construction Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-14

End Date: 2026-05-01

Contract Duration: 1,325 days

Daily Burn Rate: $19.2K/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: THE CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION RELATED SERVICES TO COMPLETE THE ELETRONIC HEALTH RECORDS MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES AT THE CLEVELAND VA MEDICAL CENTER.

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.4 million to GREEN-VEG JV CONSTRUCTION SERVICES, LLC for work described as: THE CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION RELATED SERVICES TO COMPLETE THE ELETRONIC HEALTH RECORDS MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES AT THE CLEVELAND VA MEDICAL CENTER. Key points: 1. Contract focuses on essential infrastructure to support the Electronic Health Records Modernization (EHRM) program. 2. The project involves construction services for building upgrades, indicating a need for physical facility improvements. 3. A firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns. 4. The contract duration of 1325 days spans over three years, indicating a significant, long-term project. 5. The award was made under full and open competition, suggesting a robust bidding process. 6. The contractor, GREEN-VEG JV CONSTRUCTION SERVICES, LLC, is tasked with completing the modernization.

Value Assessment

Rating: good

The contract value of $25.4 million for infrastructure upgrades at a single VA medical center appears reasonable given the scope of construction services required for a major IT modernization project. Benchmarking against similar large-scale construction projects for federal facilities would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for the government when the scope is well-defined, as it shifts cost risk to the contractor.

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, indicating that multiple bidders were likely considered. The presence of three bidders (no) suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the exclusion of sources are not provided but the 'full and open' designation implies a broad solicitation.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Veterans receiving care at the Cleveland VA Medical Center will benefit from improved healthcare delivery through modernized electronic health records. The contract supports the critical infrastructure necessary for the successful implementation of the VA's enterprise-wide EHRM program. The project's geographic impact is focused on Cleveland, Ohio, and the surrounding region served by the medical center. The construction services will likely involve local labor and subcontractors, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting EHRM rollout timeline.
Ensuring the quality of construction meets the stringent requirements for healthcare facilities.
Coordination challenges between construction activities and ongoing medical center operations.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a potentially competitive price.
Focus on critical infrastructure for a major government IT modernization program.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting a large-scale federal IT modernization initiative. The construction industry is a significant part of the US economy, and federal contracts often represent substantial investments. Comparable spending benchmarks would involve looking at other large construction projects for federal agencies, particularly those involving healthcare facilities or major IT infrastructure upgrades.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is a joint venture, further analysis would be needed to determine the extent of small business participation through subcontracting opportunities. The impact on the small business ecosystem will depend on the subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified construction services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight mechanisms for construction quality and progress would be detailed in the contract.

Related Government Programs

Electronic Health Records Modernization (EHRM)
VA Medical Facility Construction
Federal IT Infrastructure Projects
Department of Veterans Affairs Procurement

Risk Flags

Potential for construction delays impacting EHRM timeline.
Ensuring construction quality meets healthcare facility standards.
Coordination challenges with ongoing medical center operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.4 million to GREEN-VEG JV CONSTRUCTION SERVICES, LLC. THE CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION RELATED SERVICES TO COMPLETE THE ELETRONIC HEALTH RECORDS MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES AT THE CLEVELAND VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is GREEN-VEG JV CONSTRUCTION SERVICES, 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 $25.4 million.

What is the period of performance?

Start: 2022-09-14. End: 2026-05-01.

What is the track record of GREEN-VEG JV CONSTRUCTION SERVICES, LLC in completing similar federal construction projects, particularly those related to healthcare or IT infrastructure?

A thorough review of GREEN-VEG JV CONSTRUCTION SERVICES, LLC's past performance is crucial. This would involve examining their contract history with federal agencies, specifically looking for projects of similar scale, complexity, and sector (healthcare construction, IT infrastructure support). Key performance indicators to assess would include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract terminations. Information from sources like the Federal Procurement Data System (FPDS) and past performance questionnaires would be essential to gauge their reliability and capability for this significant EHRM infrastructure upgrade.

How does the awarded amount of $25.4 million compare to the estimated cost or benchmark for similar EHRM infrastructure upgrade projects at other VA medical centers or federal facilities?

To benchmark the value, we would compare this $25.4 million contract against similar projects. This involves identifying other VA medical centers or federal facilities that have undergone comparable EHRM infrastructure upgrades, noting their contract values, scope of work, and duration. Factors such as geographic location, prevailing construction costs in the region, and the specific technical requirements of the infrastructure upgrades would need to be considered for a fair comparison. If data indicates this contract is significantly higher or lower than comparable projects, it would warrant further investigation into the reasons, such as unique site conditions, specific technological requirements, or market fluctuations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential construction delays impacting the broader EHRM rollout, unforeseen site conditions requiring additional funding or time, and ensuring the quality of construction meets the high standards for healthcare facilities. Coordination between ongoing medical center operations and construction activities also presents a risk. Mitigation strategies likely involve detailed project management plans, contingency budgeting, rigorous quality assurance protocols, and clear communication channels between the contractor, VA project managers, and medical center staff. The firm-fixed-price contract itself mitigates financial risk for the government regarding cost overruns.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for this type of specialized construction service?

The 'full and open competition after exclusion of sources' method aims to maximize competition while potentially streamlining the process by excluding sources deemed unqualified or unsuitable early on. For specialized construction services like those supporting EHRM infrastructure, this approach can be effective if the exclusion criteria are objective and well-justified, preventing unnecessary proposals. The fact that three bids were received suggests a reasonable level of competition was achieved. However, the effectiveness in ensuring optimal pricing depends on the number of truly capable and competitive bidders that remained after exclusions and the clarity of the solicitation requirements.

What is the historical spending pattern for construction services related to IT infrastructure modernization within the Department of Veterans Affairs?

Analyzing historical spending patterns for construction related to IT modernization within the VA would reveal trends in contract values, types of services procured, and the frequency of such awards. This data can help establish a baseline for current contract values and identify any significant increases or decreases in investment in this area. Understanding past spending can also highlight common challenges or successes in similar projects, informing future procurement strategies and risk assessments. For instance, a trend of cost overruns or delays in past projects might indicate a need for more stringent oversight or different contracting approaches.

What are the specific performance metrics or deliverables outlined in the contract to measure the success of the infrastructure upgrades?

The contract likely specifies detailed performance metrics and deliverables related to the construction services. These would typically include adherence to construction schedules, compliance with building codes and safety standards, quality of materials and workmanship, and successful completion of all specified infrastructure work (e.g., electrical, HVAC, network cabling pathways). The final acceptance of the completed work by the VA, signifying that the infrastructure is ready to support the EHRM system, would be the ultimate deliverable. Specific milestones and inspection points would also be included to track progress and ensure quality throughout the project lifecycle.

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: 36C77622B0039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8100 GRAND AVE STE 700, CLEVELAND, OH, 44104

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $25,400,230

Exercised Options: $25,400,230

Current Obligation: $25,400,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline