VA awards $38M construction contract for EHRM infrastructure upgrades to Guarantee Interiors, Inc

Contract Overview

Contract Amount: $38,064,000 ($38.1M)

Contractor: Guarantee Interiors, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-23

End Date: 2026-01-31

Contract Duration: 984 days

Daily Burn Rate: $38.7K/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: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38.1 million to GUARANTEE INTERIORS, INC. 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 (EHRM) program. 2. Project duration of 984 days indicates a significant, multi-year construction effort. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Awarded by the Department of Veterans Affairs, highlighting a critical need within the agency. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract value of $38.06 million represents a substantial investment in healthcare infrastructure. 7. The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process. 8. The base award amount is $38,064,000 with a potential ceiling of $38,683,000.

Value Assessment

Rating: good

The contract value of $38.06 million for EHRM infrastructure upgrades appears reasonable given the scope of a large-scale construction project. Benchmarking against similar VA construction projects for healthcare facilities would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests the agency has a clear understanding of the project's requirements and has sought to control costs by transferring risk to the contractor. The difference between the base award and the ceiling suggests potential for change orders or additional work within defined parameters.

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.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria. The presence of 3 bids suggests a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but three bids can still result in a fair market price.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers by encouraging multiple firms to offer their best pricing and technical solutions. The fact that there were multiple bids suggests that taxpayer funds are being used efficiently by leveraging market forces.

Public Impact

Veterans will benefit from improved healthcare delivery through modernized infrastructure supporting the EHRM system. The project will deliver essential construction services, including upgrades to facilities crucial for healthcare operations. The geographic impact is focused on Missouri, as indicated by the 'MO' state code. The construction project will likely create jobs in the construction sector within Missouri, supporting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Delays in project completion could impact the rollout and effectiveness of the EHRM system.
Ensuring the quality of construction meets the stringent requirements for healthcare infrastructure.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Awarded after a competitive process, suggesting potential for good value.
Project addresses critical infrastructure needs for a vital government program (EHRM).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing infrastructure needs for a healthcare-related IT system. The construction market for healthcare facilities is specialized, requiring adherence to strict building codes, infection control measures, and integration with complex IT systems. The $38 million value places this project in the mid-to-large range for institutional construction contracts. Comparable spending benchmarks would involve looking at other large-scale renovations or new constructions of federal healthcare facilities.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Guarantee Interiors, Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. Further investigation into the subcontracting goals and performance would be necessary to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and project managers. The contract's fixed-price nature and defined scope should facilitate oversight. Transparency can be assessed through publicly available contract award data and reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the performance of the contract.

Related Government Programs

Electronic Health Record Modernization (EHRM) Program
Department of Veterans Affairs Construction Projects
Federal Healthcare Infrastructure Development
Commercial Building Construction Contracts

Risk Flags

Potential for scope creep despite fixed-price contract.
Dependency on contractor performance for critical EHRM system functionality.
Risk of construction delays impacting EHRM rollout timelines.
Need for robust oversight to ensure quality and compliance in healthcare construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38.1 million to GUARANTEE INTERIORS, INC.. 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 GUARANTEE INTERIORS, INC..

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 $38.1 million.

What is the period of performance?

Start: 2023-05-23. End: 2026-01-31.

What is the track record of Guarantee Interiors, Inc. with federal construction contracts, particularly those involving healthcare infrastructure?

A review of federal contract databases indicates that Guarantee Interiors, Inc. has a history of performing construction services for various government agencies. While specific details on their experience with healthcare infrastructure or EHRM-related projects require deeper analysis, their past performance on similar-sized institutional or commercial building projects would be a key indicator of their capability. Examining past performance evaluations (e.g., CPARS) would reveal their reliability, quality of work, and adherence to schedule and budget on previous federal contracts. Understanding their specific experience with complex IT infrastructure integration within construction is also crucial for assessing their suitability for this EHRM-related project.

How does the awarded price of $38.06 million compare to similar VA EHRM infrastructure upgrade projects?

Benchmarking this $38.06 million contract against similar VA EHRM infrastructure upgrade projects is essential for assessing value for money. Without direct comparative data on identical projects, analysis would involve comparing it to other large-scale construction or renovation contracts undertaken by the VA for healthcare facilities of comparable size and complexity. Factors such as geographic location, specific upgrade requirements (e.g., IT cabling, HVAC, power), and prevailing construction costs in the region would need to be considered. If this contract's cost per square foot or per functional unit is significantly higher than comparable projects, it could indicate potential overpricing or scope creep.

What are the primary risks associated with this construction contract, and how are they being mitigated?

The primary risks associated with this construction contract include potential cost overruns due to unforeseen site conditions, delays in material procurement or labor availability, and challenges in integrating new infrastructure with existing systems. The firm fixed-price (FFP) contract structure mitigates cost overrun risk for the VA by placing that burden on the contractor, Guarantee Interiors, Inc. However, this can incentivize the contractor to cut corners if not properly overseen. Mitigation strategies likely involve robust project management, detailed site investigations prior to and during construction, clear communication channels, and performance monitoring. The contract's defined duration and phased approach, if applicable, also help manage schedule risks.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring competitive pricing for this project?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad competition with specific requirements. While 'full and open' suggests an intention to solicit from all responsible sources, the 'exclusion of sources' clause indicates that certain potential bidders were not considered. The effectiveness in ensuring competitive pricing depends heavily on the justification for these exclusions. If the exclusions were narrowly defined and based on legitimate technical or capability requirements, the remaining competition among three bidders might still yield fair pricing. However, if the exclusions were overly broad or arbitrary, it could limit competition and potentially lead to higher prices than a truly unrestricted full and open competition.

What is the historical spending pattern for EHRM infrastructure upgrades by the Department of Veterans Affairs?

Analyzing the historical spending patterns for EHRM infrastructure upgrades by the VA is crucial for context. This involves examining previous contract awards related to EHRM, including construction, IT integration, and system maintenance. Understanding the total investment in EHRM infrastructure over the past several years, the average contract values, and the distribution of spending across different types of projects (e.g., new builds vs. upgrades) provides insight into the program's scale and the VA's commitment. Significant year-over-year increases or decreases in spending could indicate evolving priorities, budget fluctuations, or the maturation of the EHRM program.

What are the potential impacts of this contract on the VA's overall IT modernization goals?

This contract is directly linked to the VA's broader IT modernization goals, specifically the Electronic Health Record Modernization (EHRM) program. The successful completion of infrastructure upgrades is foundational for the reliable operation and future expansion of the EHRM system. Inadequate or outdated infrastructure can create bottlenecks, hinder system performance, and increase the risk of data breaches or system failures. Conversely, robust and modern infrastructure, as intended by this contract, will enhance system stability, improve data accessibility for clinicians, and support the integration of new functionalities, thereby directly contributing to the overall success and effectiveness of the VA's IT modernization efforts.

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: 36C77623R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2914 LOCUST ST, SAINT LOUIS, MO, 63103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $38,064,000

Exercised Options: $38,064,000

Current Obligation: $38,064,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline