VA awards $38.9M construction contract for EHRM infrastructure upgrades in Indiana

Contract Overview

Contract Amount: $38,926,496 ($38.9M)

Contractor: Valiant Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-28

End Date: 2025-01-06

Contract Duration: 831 days

Daily Burn Rate: $46.8K/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 SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT.

Place of Performance

Location: MARION, GRANT County, INDIANA, 46953

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38.9 million to VALIANT CONSTRUCTION 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 COMPLETION OF THE EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT. Key points: 1. Contract focuses on essential infrastructure upgrades for the Electronic Health Record Modernization program. 2. The project involves significant construction work, indicating a substantial physical footprint. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The fixed-price contract type aims to control costs for the government. 5. The duration of the contract extends over two fiscal years, requiring sustained oversight. 6. The contractor, Valiant Construction LLC, is responsible for all aspects of the project's completion.

Value Assessment

Rating: good

The contract value of $38.9 million for EHRM infrastructure upgrades appears reasonable given the scope of work, which includes providing all necessary tools, equipment, materials, labor, and supervision for a construction project. Benchmarking against similar large-scale federal construction projects for healthcare infrastructure would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for the government in managing cost certainty for construction projects of this magnitude.

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 the solicitation was made broadly available to all responsible prospective contractors. While the specific number of bids received is not detailed, this procurement method generally fosters a competitive environment, which can lead to better pricing and quality. The exclusion of sources clause might warrant further investigation to understand if any specific capabilities were sought that limited the pool, though it typically aims for broad participation.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the potential for receiving competitive bids, driving down costs and ensuring the government obtains the best value for its investment in critical infrastructure.

Public Impact

Veterans will benefit from improved healthcare delivery through modernized infrastructure supporting the EHRM system. The project will result in the completion of essential construction work at a VA facility. The geographic impact is concentrated in Indiana, where the construction project is located. The project will likely create or sustain jobs in the construction sector within Indiana. Enhanced efficiency and reliability of the EHRM system are anticipated outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite fixed-price contract.
Ensuring timely completion within the specified duration is critical to EHRM system functionality.
Quality control of construction work to meet healthcare infrastructure standards requires diligent oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process that could yield competitive pricing.
The contractor is responsible for all aspects of project completion, consolidating accountability.

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 operations, including healthcare facilities. The value of this contract, approximately $38.9 million, is substantial and aligns with major construction projects. Comparable spending benchmarks would typically involve analyzing other large-scale federal building construction contracts, particularly those for healthcare or institutional facilities, to assess cost-effectiveness.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through this prime contract is likely minimal unless Valiant Construction LLC engages them as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its implications for the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the completed project within the agreed-upon price. Transparency can be assessed through contract award databases and any publicly available project status reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Electronic Health Record Modernization (EHRM)
VA Facility Construction Projects
Federal Infrastructure Spending
Commercial Building Construction Contracts

Risk Flags

Potential for construction delays impacting EHRM system rollout.
Ensuring compliance with healthcare infrastructure standards.
Contractor's past performance on large-scale federal projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38.9 million to VALIANT CONSTRUCTION LLC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT.

Who is the contractor on this award?

The obligated recipient is VALIANT 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 $38.9 million.

What is the period of performance?

Start: 2022-09-28. End: 2025-01-06.

What is Valiant Construction LLC's track record with similar federal construction projects, particularly those involving healthcare infrastructure?

A review of Valiant Construction LLC's past performance is crucial for assessing their capability to successfully execute this EHRM infrastructure upgrade project. Information on their experience with projects of similar scale, complexity, and sector (e.g., healthcare facilities, government buildings) would be highly informative. Specifically, examining their history with firm-fixed-price contracts, adherence to schedules, and quality of work on previous federal awards can provide insights into their reliability. Data from contract performance reports (CPARS) or other federal procurement databases would be the primary source for this analysis. A lack of relevant experience or a history of performance issues could indicate a higher risk for this contract.

How does the awarded amount of $38.9 million compare to the estimated cost or benchmark for similar EHRM infrastructure upgrade construction projects?

To benchmark the value of this $38.9 million contract, it's essential to compare it against similar projects. This involves identifying federal or large-scale private sector construction projects focused on upgrading IT infrastructure within healthcare facilities, specifically those supporting Electronic Health Record systems. Key comparison points include the square footage of the area upgraded, the complexity of the infrastructure work (e.g., data centers, network cabling, power systems), and the duration of the project. If data on similar projects is available, an analysis of cost per square foot or cost per functional unit (e.g., per bed supported, per user) can reveal whether this contract represents a fair and reasonable price. The firm-fixed-price nature suggests the government has negotiated a ceiling, but understanding the market rate is vital.

What are the primary risks associated with the construction of EHRM infrastructure, and how are they mitigated in this contract?

Key risks in constructing EHRM infrastructure include unforeseen site conditions, delays in material procurement or labor availability, integration challenges with existing systems, and potential scope creep. This contract attempts to mitigate some of these risks through its firm-fixed-price structure, which places the financial burden of cost overruns on the contractor. The requirement for the contractor to provide 'all things necessary' also clarifies responsibilities. However, risks related to schedule adherence and quality of work remain. Robust project management, regular site inspections, and clear communication channels between the VA and Valiant Construction LLC are critical for ongoing risk mitigation. The contract's duration (over 800 days) also necessitates careful schedule management to avoid cascading delays.

What is the expected impact of these infrastructure upgrades on the effectiveness and efficiency of the VA's EHRM system?

The infrastructure upgrades are intended to provide a more stable, reliable, and potentially faster foundation for the Electronic Health Record Modernization (EHRM) system. Improved infrastructure can lead to reduced system downtime, faster data retrieval and processing, and enhanced security. This, in turn, can improve the efficiency of healthcare providers by reducing time spent waiting for the system, minimize errors related to system performance, and ultimately contribute to better patient care and safety. The success of the EHRM system is heavily dependent on the underlying physical and network infrastructure, making this construction project a critical enabler for the broader modernization effort.

How has federal spending on EHRM-related infrastructure construction evolved over the past five years, and does this contract align with historical trends?

Analyzing historical federal spending on EHRM-related infrastructure construction requires examining VA and potentially other agency budgets and contract awards over the past five years. Spending in this area is likely influenced by the overall pace and scope of the EHRM program rollout and any necessary upgrades to support its implementation and ongoing operations. This $38.9 million contract represents a significant investment in a single project. Trends might show an increase in such spending as the EHRM program matures and requires more robust infrastructure, or it could reflect a specific phase of upgrades. Comparing this award's value and timing to previous similar projects can indicate whether it aligns with established spending patterns or represents a new surge in investment.

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: 36C77622B0040

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4124 WAHL STREET BLVD, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $38,926,496

Exercised Options: $38,926,496

Current Obligation: $38,926,496

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline