VA awards $32.6M for EHRM infrastructure upgrades in Des Moines, Iowa

Contract Overview

Contract Amount: $32,629,534 ($32.6M)

Contractor: Hurley JV, LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-25

End Date: 2025-04-26

Contract Duration: 579 days

Daily Burn Rate: $56.4K/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: PROJECT: 636A6-21-101 EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION DES MOINES

Place of Performance

Location: DES MOINES, POLK County, IOWA, 50310

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.6 million to HURLEY JV, LLP for work described as: PROJECT: 636A6-21-101 EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION DES MOINES Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which transfers some risk to the contractor. 4. Project duration of 579 days indicates a significant undertaking. 5. The contractor, Hurley JV, LLP, is a relatively new entity for this scale of work. 6. The project falls under commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $32.6 million for EHRM infrastructure upgrades is within a typical range for large construction projects. Benchmarking against similar VA or other federal healthcare facility construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the final cost will depend on the contractor's efficiency. Without specific cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging.

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 broad, specific sources may have been excluded based on predefined criteria. The presence of 4 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through a wide range of offers. However, the exclusion of certain sources warrants further investigation to ensure no potentially competitive bidders were unfairly barred.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and the veterans who will utilize the upgraded Electronic Health Record Management (EHRM) infrastructure. The project will deliver essential construction services to modernize healthcare facilities. The geographic impact is localized to Des Moines, Iowa, where the construction will take place. The project will likely create jobs in the construction sector in the Des Moines area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contractor, Hurley JV, LLP, is a joint venture, and its track record on projects of this magnitude needs further scrutiny.
The 'exclusion of sources' clause in the competition type requires a clear understanding of the rationale to ensure fairness and maximum competition.
The firm-fixed-price contract shifts risk to the contractor, but unforeseen site conditions or material cost escalations could still impact the final cost if not adequately addressed in the contract terms.

Positive Signals

The use of 'Full and Open Competition' is a positive signal for achieving competitive pricing.
The firm-fixed-price contract type provides cost certainty for the government.
The project aims to improve critical EHRM infrastructure, which is vital for veteran healthcare delivery.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this sector often supports infrastructure modernization, particularly in healthcare and government facilities. Comparable spending benchmarks would involve analyzing other large-scale construction contracts for federal agencies, especially those involving healthcare IT infrastructure integration.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific contract. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was awarded to a larger entity or joint venture, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency would be enhanced through public contract databases and regular reporting, though specific oversight mechanisms like Inspector General involvement would depend on identified risks or performance issues.

Related Government Programs

Veterans Health Administration (VHA) IT Infrastructure Projects
Federal Healthcare Facility Construction
Electronic Health Record (EHR) Modernization Programs
Department of Veterans Affairs Capital Investments

Risk Flags

Contractor track record for joint ventures can be less established than for prime companies.
Potential for cost overruns in long-duration construction projects.
Clarity needed on the specific criteria for 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.6 million to HURLEY JV, LLP. PROJECT: 636A6-21-101 EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION DES MOINES

Who is the contractor on this award?

The obligated recipient is HURLEY JV, LLP.

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 $32.6 million.

What is the period of performance?

Start: 2023-09-25. End: 2025-04-26.

What is the specific nature of the EHRM infrastructure upgrades required by this contract?

This contract, identified as 636A6-21-101, specifically addresses construction needs for the Electronic Health Record Management (EHRM) infrastructure at a Department of Veterans Affairs (VA) facility in Des Moines, Iowa. While the provided data does not detail the exact technical specifications of the upgrades, it is reasonable to infer that these involve physical modifications, installations, or enhancements to the building's infrastructure to support the robust and secure operation of the VA's EHRM system. This could include upgrades to power, cooling, network cabling, data center facilities, or physical security measures necessary for housing and operating critical IT systems. The construction nature of the award suggests a focus on the physical environment supporting the digital health records.

How does the $32.6 million contract value compare to similar VA construction projects for IT infrastructure?

Benchmarking the $32.6 million contract value requires access to a database of comparable VA construction projects specifically related to IT infrastructure. However, for large-scale federal construction projects, especially those involving critical infrastructure like healthcare IT systems, this figure is substantial but not necessarily excessive. Projects involving significant structural modifications, upgrades to power and cooling systems, and compliance with stringent healthcare regulations can command high costs. A more precise comparison would involve analyzing the scope, duration, and specific technical requirements of other VA EHRM or data center construction contracts. Without such granular comparative data, it's difficult to definitively state if this represents excellent or merely fair value.

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

A firm-fixed-price (FFP) contract, while beneficial for cost control, carries inherent risks for both the government and the contractor, especially in complex construction projects. For the government, the primary risk is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise, potentially leading to long-term maintenance problems or performance deficiencies. Conversely, the contractor bears the risk of cost overruns due to inaccurate initial estimates, unexpected site conditions, or escalating material and labor costs. In this specific project, the duration of 579 days increases the potential for market fluctuations in material prices. Effective risk mitigation relies on a well-defined scope of work, robust inspection protocols, and clear contract clauses addressing potential change orders and unforeseen circumstances.

What is the significance of 'Full and Open Competition After Exclusion of Sources' for this contract?

The 'Full and Open Competition After Exclusion of Sources' designation for this $32.6 million VA contract is a nuanced approach to procurement. It signifies that the solicitation was broadly advertised, allowing any responsible source to submit an offer. However, it also indicates that specific sources were intentionally excluded from the competition based on predefined criteria outlined in the solicitation. The rationale for such exclusions can vary, potentially including past performance issues, specific technical capabilities not met, or requirements related to security clearances or certifications. While aiming for broad competition, this clause suggests that the VA had specific reasons for limiting the pool of potential bidders, which could impact the level of price competition achieved compared to a purely 'full and open' process without exclusions.

What is the track record of Hurley JV, LLP, as a contractor for the VA or similar federal agencies?

Information regarding the specific track record of 'Hurley JV, LLP' for the VA or similar federal agencies is not detailed in the provided data snippet. As a joint venture (JV), its performance history may be a composite of its individual member companies or a newly established record for the JV entity itself. A thorough assessment would require examining past performance evaluations, contract completion records, and any history of disputes or claims associated with Hurley JV, LLP on previous federal contracts. Given this is a significant $32.6 million award, understanding the JV's experience with projects of comparable scale, complexity, and sector (healthcare construction) would be crucial for evaluating performance risk.

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: 36C77623R0165

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1545 CEDAR VALLEY LN, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, 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: $32,629,534

Exercised Options: $32,629,534

Current Obligation: $32,629,534

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline