VA Awards $65.4M EHRM Infrastructure Contract to Richard Group LLC for Massachusetts Facilities

Contract Overview

Contract Amount: $65,366,170 ($65.4M)

Contractor: Richard Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-27

End Date: 2027-01-18

Contract Duration: 1,209 days

Daily Burn Rate: $54.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EHRM INFRASTRUCTURE UPGRADES - CENTRAL WESTERN MASSACHUSETTS

Place of Performance

Location: LEEDS, HAMPSHIRE County, MASSACHUSETTS, 01053

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65.4 million to RICHARD GROUP LLC for work described as: EHRM INFRASTRUCTURE UPGRADES - CENTRAL WESTERN MASSACHUSETTS Key points: 1. Contract awarded for EHRM infrastructure upgrades in Central Western Massachusetts. 2. Richard Group LLC secured the contract valued at $65.4 million. 3. The contract falls under Commercial and Institutional Building Construction. 4. Competition was full and open after exclusion of sources, indicating a structured procurement process.

Value Assessment

Rating: good

The contract value of $65.4 million for EHRM infrastructure upgrades appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for federal facilities 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,' suggesting that while multiple sources were considered, some were initially excluded. This method aims for competitive pricing while potentially streamlining the process.

Taxpayer Impact: The $65.4 million expenditure represents a significant investment in modernizing critical healthcare infrastructure, aiming for long-term efficiency and improved veteran care.

Public Impact

Enhances electronic health record system infrastructure, potentially improving patient care for veterans. Supports the modernization of VA facilities in Massachusetts. Creates construction jobs and economic activity in the region. Ensures the reliability and security of sensitive health data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large infrastructure projects.
Dependence on a single contractor for a significant duration.
Ensuring seamless integration with existing EHRM systems.

Positive Signals

Clear contract award with defined scope and duration.
Use of a firm-fixed-price contract to control costs.
Focus on critical healthcare infrastructure modernization.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Spending benchmarks for similar VA infrastructure projects would be relevant for a detailed comparison.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to Richard Group LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established oversight mechanisms for large construction projects. Monitoring progress and adherence to specifications will be crucial for accountability.

Related Government Programs

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

Risk Flags

Contract duration extends over multiple years, increasing exposure to potential changes in requirements or economic conditions.
Large contract value ($65.4M) presents significant financial commitment.
Infrastructure projects are inherently complex and prone to delays or cost overruns.
Reliance on a single entity for critical system upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65.4 million to RICHARD GROUP LLC. EHRM INFRASTRUCTURE UPGRADES - CENTRAL WESTERN MASSACHUSETTS

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 $65.4 million.

What is the period of performance?

Start: 2023-09-27. End: 2027-01-18.

What is the projected impact of these EHRM infrastructure upgrades on the efficiency and effectiveness of healthcare delivery for veterans in the region?

The upgrades are expected to enhance the reliability and speed of the EHRM system, leading to more efficient data access for clinicians. This can improve diagnostic accuracy, reduce wait times for appointments and test results, and ultimately contribute to better patient outcomes and a more streamlined healthcare experience for veterans.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' method for this large infrastructure project?

While aiming for competition, excluding sources upfront could limit the pool of potential bidders, potentially leading to less competitive pricing than true full and open competition. There's also a risk that innovative solutions from excluded firms might be missed. The VA must ensure the exclusion criteria were justified and transparent.

How does the firm-fixed-price contract structure mitigate financial risks for the government in this long-term construction project?

A firm-fixed-price contract shifts most of the financial risk to the contractor. Richard Group LLC is obligated to complete the work within the agreed-upon price, regardless of unforeseen cost increases during construction. This provides budget certainty for the VA, protecting taxpayers from escalating expenses.

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: 36C77623R0051

Offers Received: 1

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: $65,366,170

Exercised Options: $65,366,170

Current Obligation: $65,366,170

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline