VA awards $2.27M contract for EHRM training and admin support in Muskogee, OK

Contract Overview

Contract Amount: $2,274,335 ($2.3M)

Contractor: Utility Systems Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-25

End Date: 2026-02-06

Contract Duration: 865 days

Daily Burn Rate: $2.6K/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: EHRM TRAINING & ADMIN SUPPORT CONSTRUCT- MUSKOGEE

Place of Performance

Location: MUSKOGEE, MUSKOGEE County, OKLAHOMA, 74401

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to UTILITY SYSTEMS SOLUTIONS, INC. for work described as: EHRM TRAINING & ADMIN SUPPORT CONSTRUCT- MUSKOGEE Key points: 1. Contract awarded to Utility Systems Solutions, Inc. for EHRM training and administrative support. 2. The contract has a duration of 865 days, ending in February 2026. 3. Awarded under a firm-fixed-price contract type. 4. The contract was competed using full and open competition after exclusion of sources. 5. The base value of the contract is $2,274,335.47. 6. The contract is for commercial and institutional building construction services. 7. The contractor, Utility Systems Solutions, Inc., has a 'OK' status. 8. The contract is managed by the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract value of $2.27 million for EHRM training and administrative support appears to be within a reasonable range for specialized construction and support services. However, without specific benchmarks for EHRM training facilities or comparable administrative support contracts within the VA or other agencies, a precise value-for-money assessment is challenging. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control. Further analysis would require comparing the scope of work and deliverables to similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, certain sources may have been excluded based on specific criteria. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions. The exclusion of sources, if not clearly justified, could potentially limit the competitive landscape and impact price discovery.

Taxpayer Impact: The use of full and open competition, even with exclusions, is generally beneficial for taxpayers as it aims to secure the best value. However, the specific reasons for excluding sources warrant scrutiny to ensure no potential cost savings were foregone.

Public Impact

Veterans in the Muskogee, Oklahoma region will benefit from improved Electronic Health Record Management (EHRM) systems through enhanced training and administrative support. The contract supports the delivery of essential training and administrative services crucial for the effective functioning of the VA's healthcare system. The geographic impact is focused on Muskogee, Oklahoma, directly supporting the local VA facility. The contract implies a need for skilled labor in construction, training, and administrative support, potentially creating or sustaining jobs in the Oklahoma area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific criteria for 'exclusion of sources' in the full and open competition process are not detailed, which could limit transparency.
The 'OK' status for the contractor, while not indicating immediate concern, warrants monitoring for any performance issues.
The contract is for construction, which can be subject to unforeseen delays and cost increases, although the firm-fixed-price mitigates some risk.

Positive Signals

The contract was awarded through a competitive process, indicating an effort to secure fair pricing.
The firm-fixed-price contract type shifts cost risk to the contractor, promoting budget predictability.
The contract duration of over two years suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting the implementation and maintenance of critical healthcare IT infrastructure (EHRM). The construction sector is vast, and this contract represents a niche application within it, focusing on specialized facilities and support services for government healthcare. Comparable spending benchmarks would typically involve analyzing other VA construction projects or IT facility build-outs, which often require adherence to strict security and operational standards.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The prime contractor, Utility Systems Solutions, Inc., will be responsible for managing the entire scope of work. Opportunities for small businesses would likely arise through the prime contractor's own subcontracting decisions, which are not detailed in this award notice.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a firm-fixed-price contract, oversight will likely focus on ensuring adherence to the contract's scope of work, delivery timelines, and quality standards. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Health Administration EHRM Modernization
Department of Veterans Affairs IT Infrastructure Projects
Federal Government Construction Contracts
Healthcare Facility Support Services

Risk Flags

Potential for cost overruns despite firm-fixed-price due to unforeseen construction issues.
Risk associated with the 'exclusion of sources' potentially limiting competition.
Contractor performance risk, despite 'OK' status, requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to UTILITY SYSTEMS SOLUTIONS, INC.. EHRM TRAINING & ADMIN SUPPORT CONSTRUCT- MUSKOGEE

Who is the contractor on this award?

The obligated recipient is UTILITY SYSTEMS SOLUTIONS, 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 $2.3 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-02-06.

What is the track record of Utility Systems Solutions, Inc. with the Department of Veterans Affairs or similar federal agencies?

A review of federal procurement data indicates that Utility Systems Solutions, Inc. has received multiple federal contracts, primarily with the Department of Veterans Affairs. While specific details on past performance quality are not publicly available in this summary, the 'OK' status suggests no major performance red flags have been formally noted. Further investigation into contract performance reports (e.g., CPARS) would be necessary to fully assess their track record, especially concerning projects of similar scope and complexity. Understanding their history with EHRM-related construction or support services would provide more targeted insight into their suitability for this specific contract.

How does the awarded amount compare to similar EHRM training and administrative support construction contracts?

Benchmarking this $2.27 million contract against similar EHRM training and administrative support construction projects is challenging without access to a broader dataset of comparable contracts. The scope of EHRM implementation is unique to healthcare IT and requires specialized facilities. Factors such as the size of the facility, the specific technological requirements for training, and the duration of administrative support significantly influence costs. A preliminary assessment suggests the amount is reasonable for a specialized government project, but a detailed comparison would require identifying contracts with identical or highly similar scopes of work, locations, and delivery timelines within the VA or other federal health agencies.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential construction delays, unforeseen site conditions, and contractor performance issues. Mitigation strategies are in place, notably the firm-fixed-price contract type, which shifts the financial risk of cost overruns to the contractor. The contract duration of 865 days allows for a structured implementation. The 'OK' status of the contractor suggests a baseline level of acceptable performance, but ongoing monitoring by the VA will be crucial. Risks related to the specific 'exclusion of sources' in the competition process could also be a concern if it limited the pool of qualified bidders or led to suboptimal pricing.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' approach aims to balance broad competition with specific requirements that might necessitate excluding certain vendors. If the exclusions are based on legitimate technical capabilities, security clearances, or past performance issues directly relevant to the contract's needs, it can lead to a more focused competition among highly qualified bidders, potentially resulting in better technical solutions and value. However, if exclusions are arbitrary or overly broad, they can stifle competition, potentially leading to higher prices and reduced innovation. The effectiveness for taxpayers hinges on the transparency and justification of the exclusion criteria.

What is the historical spending pattern for EHRM training and administrative support at this VA facility or similar facilities?

Historical spending data for EHRM training and administrative support at this specific VA facility or comparable facilities is not provided in the current data extract. This contract, valued at $2.27 million over approximately 2.4 years, represents a significant investment. To understand historical patterns, one would need to analyze past VA contracts related to EHRM implementation, facility construction for IT training, and ongoing administrative support services. Trends in spending could reveal whether this award is consistent with previous investments, indicates an increase in demand, or reflects a new initiative. Without this historical context, it's difficult to assess if current spending is anomalous or aligned with long-term needs.

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: 36C77623B0040

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14330 MIDWAY ROAD STE 200, DALLAS, TX, 75244

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,274,335

Exercised Options: $2,274,335

Current Obligation: $2,274,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline