VA Awards $75.8M for Hines IL EHRM Infrastructure Upgrade to Richard Group LLC

Contract Overview

Contract Amount: $75,835,423 ($75.8M)

Contractor: Richard Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-16

End Date: 2027-03-09

Contract Duration: 1,240 days

Daily Burn Rate: $61.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

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 INFRA. UPG. HINES IL CONSTRUCTION PROJECT CONSISTENT WITH SPECS AND DRAWINGS

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $75.8 million to RICHARD GROUP 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 INFRA. UPG. HINES IL CONSTRUCTION PROJECT CONSISTENT WITH SPECS AND DRAWINGS Key points: 1. Significant investment in healthcare infrastructure for veterans. 2. Construction sector, specifically commercial and institutional building. 3. Potential risks include project delays and cost overruns in large construction. 4. Spending aligns with infrastructure modernization efforts in federal healthcare.

Value Assessment

Rating: good

The contract value of $75.8M appears reasonable for a large-scale infrastructure upgrade project. Benchmarking against similar VA or DoD construction projects would provide a more precise assessment.

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 a competitive bidding process. This method generally promotes price discovery and value for taxpayer money.

Taxpayer Impact: The competitive award aims to ensure the best value for taxpayers on this substantial infrastructure project.

Public Impact

Improved electronic health record infrastructure at Hines VA. Potential for enhanced patient care and operational efficiency. Supports local construction jobs and economic activity in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Construction project complexity
Potential for scope creep
Supply chain disruptions

Positive Signals

Modernization of critical healthcare IT infrastructure
Investment in veteran healthcare services
Competitive award process

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area is often driven by infrastructure modernization needs, particularly in healthcare facilities. Benchmarks vary widely based on project scope and location.

Small Business Impact

The contract was not awarded to small businesses, as indicated by the 'sb' field being false. Future opportunities for small businesses may exist as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The fixed-price contract type provides some cost control, but diligent project management is crucial for success.

Related Government Programs

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

Risk Flags

Large contract value
Construction project complexity
Long project duration (1240 days)
Potential for cost overruns
Reliance on a single contractor for the full scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $75.8 million to RICHARD GROUP 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 INFRA. UPG. HINES IL CONSTRUCTION PROJECT CONSISTENT WITH SPECS AND DRAWINGS

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 $75.8 million.

What is the period of performance?

Start: 2023-10-16. End: 2027-03-09.

What is the specific scope of the EHRM infrastructure upgrade, and how does it align with the VA's broader digital health strategy?

The contract specifies the provision of all tools, equipment, materials, labor, and supervision necessary for the EHRM infrastructure upgrade at Hines IL. This includes construction consistent with provided specifications and drawings. The upgrade aims to modernize the physical infrastructure supporting the Electronic Health Record Management system, which is a critical component of the VA's digital health strategy for improving patient care coordination and data accessibility.

What are the primary risks associated with a large-scale construction project of this nature, and what mitigation strategies are in place?

Key risks include potential construction delays due to unforeseen site conditions, weather, or labor shortages; cost overruns if initial estimates are inaccurate or scope changes occur; and integration challenges with existing hospital systems. Mitigation strategies likely involve robust project management, contingency planning, clear change order processes, and regular progress monitoring by the VA.

How will the success of this infrastructure upgrade be measured in terms of improved EHRM functionality and impact on veteran healthcare delivery?

Success will be measured by the timely and within-budget completion of the physical infrastructure upgrades according to specifications. Functionally, success will be gauged by the system's ability to support enhanced EHRM performance, reliability, and security. Ultimately, the impact on veteran healthcare delivery will be assessed through improved access to records, streamlined clinical workflows, and potentially better patient outcomes resulting from a more robust and efficient 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: 36C77623B0043

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 566 W LAKE STREET, CHICAGO, IL, 60661

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: $75,835,423

Exercised Options: $75,835,423

Current Obligation: $75,835,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline