VA Awards $32.5M EHRM Infrastructure Upgrades Contract to AC JV ONE LLC

Contract Overview

Contract Amount: $32,507,507 ($32.5M)

Contractor: AC JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-18

End Date: 2025-11-03

Contract Duration: 930 days

Daily Burn Rate: $35.0K/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 GENERAL CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION AND RELATED SERVICES TO COMPLETE THE EHRM INFRASTRUCTURE UPGRADES PROJECT AT THE CINCINNATI VAMC.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45220

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.5 million to AC JV ONE LLC for work described as: THE GENERAL CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION AND RELATED SERVICES TO COMPLETE THE EHRM INFRASTRUCTURE UPGRADES PROJECT AT THE CINCINNATI VAMC. Key points: 1. Contract awarded for critical EHRM infrastructure upgrades at Cincinnati VAMC. 2. AC JV ONE LLC secured the $32.5 million contract. 3. Project duration is 930 days, ending November 2025. 4. The contract type is Firm Fixed Price, indicating defined costs.

Value Assessment

Rating: good

The contract value of $32.5 million appears reasonable for a large-scale infrastructure upgrade project of this nature. Benchmarking against similar VAMC construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific source limitations. This method can impact price discovery if the pool of eligible bidders is restricted.

Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare infrastructure improvements, aiming for long-term operational efficiency and patient care enhancement.

Public Impact

Enhances critical EHRM infrastructure at a major VA medical center. Aims to improve the reliability and security of patient health records. Supports the modernization of healthcare facilities for better veteran care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted final pricing.
Scope creep potential in large construction projects.

Positive Signals

Addresses critical infrastructure needs.
Firm Fixed Price contract provides cost certainty.

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 modernization and facility upgrades across various agencies.

Small Business Impact

The contract data indicates that small business participation was not a stated factor (sb: false). Further investigation may be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight will be crucial to ensure project completion aligns with specifications, budget, and timeline, particularly given the project's scale and duration.

Related Government Programs

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

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Dependency on a single contractor for critical infrastructure.
Risk of delays impacting VAMC operations.
Ensuring data security during and after upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.5 million to AC JV ONE LLC. THE GENERAL CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION AND RELATED SERVICES TO COMPLETE THE EHRM INFRASTRUCTURE UPGRADES PROJECT AT THE CINCINNATI VAMC.

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 $32.5 million.

What is the period of performance?

Start: 2023-04-18. End: 2025-11-03.

What specific criteria led to the exclusion of certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The specific criteria for excluding sources are not detailed in the provided data. Typically, such exclusions are based on pre-qualification requirements, past performance, specialized capabilities, or specific security clearances necessary for the project's unique demands, such as sensitive EHRM infrastructure.

How does the $32.5 million contract value compare to industry benchmarks for similar EHRM infrastructure upgrade projects?

Without specific project scope details and regional cost variations, a direct benchmark is challenging. However, $32.5 million for a comprehensive infrastructure upgrade at a large VAMC is within a plausible range. Comparative analysis with similar-sized hospital construction or IT infrastructure projects would be necessary for a definitive assessment.

What are the key performance indicators (KPIs) being used to measure the success and effectiveness of this EHRM infrastructure upgrade?

Key performance indicators likely include project completion on time and within budget, successful integration of new infrastructure with existing systems, improved system uptime and reliability, enhanced data security, and positive feedback from end-users (clinicians and staff) regarding system performance and usability.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77623B0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 837 OAKTON ST, 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: $32,507,507

Exercised Options: $32,507,507

Current Obligation: $32,507,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline