VA awards $23.8M construction contract for EHRM infrastructure upgrades to AC JV ONE LLC

Contract Overview

Contract Amount: $23,788,114 ($23.8M)

Contractor: AC JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-03

End Date: 2025-08-27

Contract Duration: 755 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

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 CITY County, MISSOURI, 63106

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.8 million to AC JV ONE 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 aims to modernize critical healthcare infrastructure, potentially improving patient care delivery. 2. The project involves significant construction work, indicating a substantial investment in physical facilities. 3. A firm-fixed-price contract type suggests cost certainty for the government, but may limit flexibility. 4. The duration of 755 days highlights the complexity and scale of the infrastructure upgrades. 5. The award was made under full and open competition, indicating a broad market search. 6. The contractor's role is to provide all necessary resources for project completion.

Value Assessment

Rating: good

The contract value of $23.8 million for EHRM infrastructure upgrades appears reasonable given the scope of work, which includes providing all tools, equipment, materials, labor, and supervision for a construction project. Benchmarking against similar large-scale institutional building construction projects would provide a more precise value assessment. However, the firm-fixed-price nature of the contract helps to control costs for the government, assuming the scope is well-defined.

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,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. The presence of 5 bids suggests a competitive environment, which generally leads to better pricing and value for the government. This level of competition is positive for price discovery and ensures a wide range of potential contractors had the opportunity to bid.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down costs and ensuring the government receives the best possible value for its investment in this critical infrastructure project.

Public Impact

Benefits include improved infrastructure for the Electronic Health Record Modernization (EHRM) system, potentially leading to enhanced healthcare services for veterans. The project delivers essential construction services for upgrading medical facilities. The geographic impact is focused on the specific VA facility where the construction is taking place. Workforce implications include job creation for construction labor and related trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting EHRM system rollout timelines.
Risk of scope creep if project requirements are not precisely defined upfront.
Dependence on AC JV ONE LLC for successful project completion within the specified timeframe.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process and potential for competitive pricing.
The contractor is responsible for providing all necessary resources, simplifying government oversight of labor and materials.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The Department of Veterans Affairs is a major spender in healthcare infrastructure, and projects like this are crucial for maintaining and upgrading its facilities to support modern healthcare delivery. Comparable spending benchmarks would involve looking at other large-scale construction projects awarded by federal agencies for institutional or healthcare facilities.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. While the prime contractor is not a small business, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this project and its overall impact on 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 completion of the specified construction work. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Electronic Health Record Modernization (EHRM)
VA Facility Construction and Modernization
Healthcare Infrastructure Projects
Commercial and Institutional Building Construction

Risk Flags

Potential for construction delays impacting EHRM system timelines.
Risk of scope creep in a large construction project.
Ensuring quality of construction meets long-term healthcare facility standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.8 million to AC JV ONE 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 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 $23.8 million.

What is the period of performance?

Start: 2023-08-03. End: 2025-08-27.

What is the track record of AC JV ONE LLC in completing large-scale federal construction projects on time and within budget?

Information regarding AC JV ONE LLC's specific track record on large-scale federal construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract histories, and any reported issues or successes on similar projects. Federal procurement databases and past performance questionnaires are typically used to gather this information. Without this data, it is difficult to definitively assess their reliability for this $23.8 million EHRM infrastructure upgrades construction project, though the award suggests they met initial qualification criteria.

How does the awarded amount of $23.8 million compare to similar EHRM infrastructure upgrade projects at other VA facilities?

Direct comparison of the $23.8 million award for EHRM infrastructure upgrades to similar projects at other VA facilities requires access to detailed cost data for those specific projects. Factors such as facility size, existing infrastructure condition, specific upgrade requirements, and geographic location can significantly influence project costs. While the provided data indicates 5 bids were received, suggesting a competitive process, a true value-for-money assessment would necessitate benchmarking against projects with comparable scope, complexity, and timeline. The firm-fixed-price nature aims to provide cost certainty, but the ultimate value will be determined by the quality of the completed work and adherence to schedule.

What are the primary risks associated with the firm-fixed-price contract type for this construction project?

The primary risk associated with a firm-fixed-price (FFP) contract for a construction project of this magnitude ($23.8 million) is the potential for scope creep if the project requirements are not meticulously defined and managed. If unforeseen issues arise during construction that were not accounted for in the initial scope, the contractor may seek change orders, potentially increasing the overall cost beyond the initial fixed price, although the FFP structure aims to prevent this. Conversely, if the scope is underestimated by the contractor, they may cut corners on quality to maintain profitability, posing a risk to the project's long-term durability and functionality. The government's ability to clearly define all requirements upfront is crucial for mitigating these risks.

What is the expected impact of these infrastructure upgrades on the operational efficiency of the EHRM system?

The expected impact of these infrastructure upgrades on the operational efficiency of the EHRM system is anticipated to be positive, though the specific benefits are not detailed in the provided contract abstract. Modernizing the underlying infrastructure, which could include network, power, cooling, or physical space improvements, is essential for supporting the robust performance and reliability of complex systems like EHRM. Improved infrastructure can lead to faster data access, reduced system downtime, enhanced security, and better overall user experience for healthcare providers, ultimately contributing to more efficient patient care delivery. The success of this impact is contingent on the quality of the construction and its alignment with EHRM's technical requirements.

How has VA's spending on construction projects for healthcare infrastructure evolved over the past five years?

Analyzing the evolution of VA's spending on construction projects for healthcare infrastructure over the past five years requires access to historical budget and contract award data. This contract, valued at $23.8 million, represents a single investment within this category. Trends in VA construction spending are influenced by factors such as infrastructure aging, modernization initiatives (like EHRM), healthcare demand, and congressional appropriations. A detailed analysis would involve aggregating spending data across multiple years and contract types to identify patterns, significant increases or decreases, and the proportion of spending dedicated to infrastructure versus other VA priorities.

What are the key performance indicators (KPIs) that will be used to measure the success of this construction project?

Key performance indicators (KPIs) for this construction project are not explicitly detailed in the provided contract abstract. However, typical KPIs for such projects include adherence to the project schedule (755 days duration), quality of construction (meeting building codes and specifications), safety compliance (minimizing accidents), and final cost within the firm-fixed-price agreement. The Department of Veterans Affairs will likely have internal metrics and inspection processes to ensure the contractor meets all contractual obligations. Successful completion of the EHRM infrastructure upgrades according to the defined scope and standards would be the ultimate measure of success.

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: 36C77623B0034

Offers Received: 5

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: $23,788,114

Exercised Options: $23,788,114

Current Obligation: $23,788,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline