VA Awards $40.8M Contract for EHRM Infrastructure Upgrades in Wisconsin

Contract Overview

Contract Amount: $40,779,987 ($40.8M)

Contractor: Richard Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-01

End Date: 2025-10-17

Contract Duration: 839 days

Daily Burn Rate: $48.6K/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 SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE EHRM INFRASTRUCTURE UPGRADES MADISON PROJECT.

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53705

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.8 million to RICHARD GROUP LLC for work described as: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE EHRM INFRASTRUCTURE UPGRADES MADISON PROJECT. Key points: 1. Significant investment in healthcare infrastructure to support electronic health records. 2. Competition method suggests potential for price discovery, but details are limited. 3. Risk of cost overruns or delays in complex construction projects. 4. Construction sector spending benchmark needs further analysis for this specific project type.

Value Assessment

Rating: good

The contract value of $40.8 million for building construction appears within a reasonable range for a project of this scale, though specific benchmarks for EHRM infrastructure upgrades are not readily available. Further comparison with similar VA or healthcare 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,' indicating a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher prices than a truly open competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential healthcare infrastructure upgrades. The effectiveness of the competition method in securing the best value for taxpayer money is a key consideration.

Public Impact

Improved healthcare delivery through modernized EHR infrastructure. Potential for job creation in the construction sector in Wisconsin. Ensures continuity and enhancement of veteran healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact final price.
Project duration is substantial, increasing risk of unforeseen issues.
No small business participation noted.

Positive Signals

Supports critical healthcare IT modernization.
Clear project scope for infrastructure upgrades.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project complexity, location, and economic conditions. Benchmarking against similar government or private sector healthcare facility construction projects is recommended.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities for small business subcontracting were explored or if the nature of the work precluded their involvement.

Oversight & Accountability

Oversight will be crucial to ensure the project stays on schedule and within budget, given its complexity and duration. The Department of Veterans Affairs' established procurement and project management processes should provide a framework for accountability.

Related Government Programs

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

Risk Flags

Limited competition may not yield the best price.
Long project duration increases exposure to risks.
No small business participation identified.
Complexity of demolition and infrastructure upgrades.
Potential for unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.8 million to RICHARD GROUP LLC. CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE EHRM INFRASTRUCTURE UPGRADES MADISON PROJECT.

Who is the contractor on this award?

The obligated recipient is RICHARD GROUP 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 $40.8 million.

What is the period of performance?

Start: 2023-07-01. End: 2025-10-17.

What specific criteria led to the exclusion of other sources in this 'limited' full and open competition, and how did this impact the final price?

The exclusion of sources in a limited full and open competition typically arises from specific technical requirements, security needs, or unique capabilities that only a select few contractors can meet. Understanding these criteria is vital to assess if the exclusion was justified or if it unnecessarily restricted competition, potentially inflating the contract price. Without detailed justification, it's difficult to definitively state the price impact.

What are the primary risks associated with the demolition and infrastructure upgrade work, and what mitigation strategies are in place?

Key risks include unforeseen site conditions during demolition (e.g., hazardous materials, underground utilities), potential delays due to weather or supply chain issues, and ensuring seamless integration of new infrastructure with existing systems. Mitigation strategies likely involve thorough site assessments, contingency planning, robust project management, and clear communication protocols between the contractor and the VA.

How will the success of this EHRM infrastructure upgrade be measured in terms of improved veteran healthcare outcomes and operational efficiency?

Success will be measured by the successful implementation and operationalization of the upgraded EHR infrastructure, leading to improved data accessibility for clinicians, enhanced patient safety, and streamlined administrative processes. Key performance indicators (KPIs) should track system uptime, user satisfaction, reduction in medical errors, and efficiency gains in patient record management and access.

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: 36C77623B0011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1944 LEHIGH AVE, GLENVIEW, IL, 60026

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

Financial Breakdown

Contract Ceiling: $40,779,987

Exercised Options: $40,779,987

Current Obligation: $40,779,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline