VA Awards $46.3M for EHRM Infrastructure Upgrades in North Chicago

Contract Overview

Contract Amount: $46,317,913 ($46.3M)

Contractor: THE Povolny Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-20

End Date: 2026-02-04

Contract Duration: 868 days

Daily Burn Rate: $53.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EHRM INFRASTRUCTURE UPGRADES WEST CAMPUS, NORTH CHICAGO, CONSTRUCTION

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.3 million to THE POVOLNY GROUP INC for work described as: EHRM INFRASTRUCTURE UPGRADES WEST CAMPUS, NORTH CHICAGO, CONSTRUCTION Key points: 1. Significant investment in healthcare infrastructure to support electronic health records. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract is a firm-fixed-price definitive contract, providing cost certainty. 4. The project is categorized under Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The award amount of $46.3M for EHRM infrastructure upgrades appears reasonable for a large-scale construction project of this nature. Benchmarking against similar VA or large institutional construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized full and open competition after exclusion of sources, indicating a competitive process was intended. This method aims to achieve fair pricing through market forces, though the exclusion of specific sources warrants further understanding.

Taxpayer Impact: The $46.3M expenditure is a significant investment aimed at improving healthcare delivery, with the expectation of long-term benefits outweighing the initial cost.

Public Impact

Improved efficiency and accessibility of veteran health records through modernized infrastructure. Potential for enhanced patient care and reduced administrative burdens. Supports local construction jobs and economic activity in North Chicago, Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large construction projects.
Dependence on specific EHRM system compatibility.
Risk of delays impacting the modernization timeline.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition generally leads to better value.
Investment in critical healthcare infrastructure.

Sector Analysis

This contract falls under the construction sector, specifically for commercial and institutional buildings. Spending in this area is often driven by infrastructure needs, modernization efforts, and facility upgrades, particularly within government agencies like the VA.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Larger construction projects often involve prime contractors who may subcontract portions to small businesses, but direct award analysis is not provided.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight would typically involve project management, quality assurance, and financial monitoring to ensure contract compliance and successful project completion.

Related Government Programs

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

Risk Flags

Potential for scope creep in construction projects.
Dependency on vendor performance for specialized EHRM infrastructure.
Risk of integration challenges with existing VA IT systems.
Cybersecurity vulnerabilities during infrastructure transition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.3 million to THE POVOLNY GROUP INC. EHRM INFRASTRUCTURE UPGRADES WEST CAMPUS, NORTH CHICAGO, CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is THE POVOLNY GROUP 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 $46.3 million.

What is the period of performance?

Start: 2023-09-20. End: 2026-02-04.

What specific EHRM infrastructure components are being upgraded, and how do these upgrades align with the VA's broader digital health strategy?

The provided data does not specify the exact EHRM infrastructure components. However, such upgrades typically involve network enhancements, server capacity expansion, data storage solutions, and cybersecurity improvements. These are crucial for supporting the functionality, reliability, and security of the VA's electronic health record system, aligning with the strategic goal of providing seamless and secure digital health services to veterans.

What was the rationale for excluding specific sources during the 'full and open competition after exclusion of sources' process, and did this impact the final price?

The rationale for excluding sources is not detailed in the provided data. Agencies may exclude sources for reasons such as national security, proprietary technology, or to ensure compatibility with existing systems. While full and open competition aims for best value, excluding sources can limit the competitive pool, potentially impacting price discovery. A review of the justification for exclusion would be necessary to assess its price impact.

How will the success of these infrastructure upgrades be measured in terms of improved EHRM performance and user satisfaction among healthcare providers?

Success metrics would likely include system uptime, data access speed, reduction in system errors or downtime, and user feedback surveys from healthcare professionals. Performance benchmarks established prior to the upgrade would be compared against post-upgrade performance. Quantifiable improvements in these areas would indicate the effectiveness of the infrastructure investment in supporting the EHRM system.

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: 36C77623B0019

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1906 LIVINGSTON AVE, SAINT PAUL, MN, 55118

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: $46,317,913

Exercised Options: $46,317,913

Current Obligation: $46,317,913

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline