VA Awards $16.7M EHR Contract to The Povolny Group Inc for Building Construction
Contract Overview
Contract Amount: $16,682,584 ($16.7M)
Contractor: THE Povolny Group Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-11-19
End Date: 2025-10-12
Contract Duration: 693 days
Daily Burn Rate: $24.1K/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: ELECTRONIC HEALTH RECORD MODERNIZATION
Place of Performance
Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $16.7 million to THE POVOLNY GROUP INC for work described as: ELECTRONIC HEALTH RECORD MODERNIZATION Key points: 1. Spending focuses on building construction for EHR modernization. 2. The contract was awarded under full and open competition. 3. Potential risks include integration challenges and cost overruns. 4. The IT sector is indirectly impacted by this construction project.
Value Assessment
Rating: fair
The contract value of $16.7M for building construction appears reasonable given the scope of EHR modernization infrastructure. Benchmarking against similar large-scale construction projects for federal IT infrastructure would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary infrastructure development.
Public Impact
Veterans will benefit from modernized facilities supporting electronic health records. The project supports the Department of Veterans Affairs' digital transformation goals. Local economy may see job creation through construction activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting EHR rollout.
- Integration complexities between new infrastructure and existing systems.
- Scope creep leading to budget overruns.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Clear end date for project completion.
Sector Analysis
This contract falls under commercial and institutional building construction, supporting the IT infrastructure for the Department of Veterans Affairs' Electronic Health Record modernization. Benchmarks for similar federal construction projects of this scale are typically in the tens of millions.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation in this contract.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to manage construction timelines, quality, and budget adherence.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Construction delays
- Integration challenges
- Budget overruns
- Scope creep
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $16.7 million to THE POVOLNY GROUP INC. ELECTRONIC HEALTH RECORD MODERNIZATION
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 $16.7 million.
What is the period of performance?
Start: 2023-11-19. End: 2025-10-12.
What is the specific nature of the building construction required for EHR modernization?
The building construction likely involves creating or modifying facilities to house new IT infrastructure, data centers, and potentially user workstations necessary for the Electronic Health Record system. This could include secure server rooms, enhanced cooling systems, and upgraded power infrastructure to support advanced digital health capabilities.
What are the primary risks associated with this construction project impacting the EHR system?
Key risks include construction delays that could postpone the EHR system's deployment or upgrades, potential for unforeseen site conditions requiring additional funding, and ensuring the new infrastructure meets the stringent security and reliability requirements of a modern EHR system. Inadequate planning or execution could compromise the functionality and accessibility of patient data.
How does this construction contract contribute to the overall effectiveness of the VA's EHR system?
The effectiveness of the VA's EHR system is directly dependent on the underlying infrastructure. This construction project ensures that the physical environment and facilities are adequate to support the robust, secure, and high-performance demands of a modern EHR, thereby enhancing its overall operational effectiveness and reliability for healthcare providers and patients.
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: 36C77623B0063
Offers Received: 1
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: $16,682,584
Exercised Options: $16,682,584
Current Obligation: $16,682,584
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-19
Current End Date: 2025-10-12
Potential End Date: 2025-10-12 00:00:00
Last Modified: 2025-09-30
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