VA awards $46.2M for EHRM infrastructure upgrades in Columbia, SC, to ESA South, Inc

Contract Overview

Contract Amount: $46,214,848 ($46.2M)

Contractor: ESA South, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-12

End Date: 2026-03-15

Contract Duration: 824 days

Daily Burn Rate: $56.1K/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 - COLUMBIA, SC VAMC

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29201

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.2 million to ESA SOUTH, INC. for work described as: EHRM INFRASTRUCTURE UPGRADES - COLUMBIA, SC VAMC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating defined scope and cost. 3. Infrastructure upgrades for EHRM are critical for modernizing healthcare delivery. 4. The contract duration of 824 days allows for phased implementation and potential adjustments. 5. The award amount of $46.2 million represents a significant investment in facility modernization. 6. The project is located in Columbia, South Carolina, impacting local construction and IT sectors.

Value Assessment

Rating: fair

The contract value of $46.2 million for EHRM infrastructure upgrades appears to be a substantial investment. Benchmarking this against similar large-scale healthcare IT infrastructure projects is challenging without more specific details on the scope of work. However, the firm fixed-price nature suggests an attempt to control costs, but the overall value for money will depend on the successful execution and long-term benefits of the upgraded EHRM system.

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,' which implies that while the competition was intended to be broad, certain sources may have been excluded prior to the final award. The specifics of this exclusion are not detailed, but the 'full and open' designation suggests multiple bidders were likely considered. The level of competition, even with exclusions, should contribute to price discovery.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, potentially driving down costs and improving service quality.

Public Impact

Veterans in the Columbia, SC, area will benefit from improved healthcare services through modernized EHRM infrastructure. The contract supports the delivery of essential IT and construction services for the VAMC. The geographic impact is concentrated in Columbia, South Carolina, potentially creating local jobs. The project will likely involve a workforce of IT specialists, construction workers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to ensure fair market access.
Lack of detailed scope of work makes it difficult to assess the true value for money.
Potential for cost overruns if unforeseen infrastructure challenges arise during the upgrade process.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition, even with exclusions, suggests a structured procurement process.
Focus on EHRM infrastructure upgrades indicates a commitment to modernizing critical healthcare systems.

Sector Analysis

This contract falls within the broader construction and IT services sector, specifically focusing on healthcare infrastructure. The market for healthcare IT modernization is substantial, driven by the need for interoperability, data security, and improved patient care. This award to ESA South, Inc. for EHRM infrastructure at a VAMC aligns with government-wide efforts to upgrade legacy systems and enhance digital health capabilities. Comparable spending benchmarks would typically involve other large-scale VAMC or DoD facility IT and construction projects.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no explicit mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem may be limited unless ESA South, Inc. engages in significant subcontracting with small businesses, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specific outcomes within a set budget. Transparency is facilitated by the contract award notice, but further details on performance metrics and oversight activities would require access to internal VA documentation or IG reports.

Related Government Programs

Electronic Health Record Modernization (EHRM)
Veterans Affairs IT Modernization
Federal Healthcare Infrastructure Projects
Commercial and Institutional Building Construction

Risk Flags

Competition Type Ambiguity: 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' requires clarification on the nature and justification of excluded sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.2 million to ESA SOUTH, INC.. EHRM INFRASTRUCTURE UPGRADES - COLUMBIA, SC VAMC

Who is the contractor on this award?

The obligated recipient is ESA SOUTH, 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 $46.2 million.

What is the period of performance?

Start: 2023-12-12. End: 2026-03-15.

What is the specific scope of the EHRM infrastructure upgrades being undertaken by ESA South, Inc. at the Columbia, SC VAMC?

The provided data does not detail the specific scope of the EHRM infrastructure upgrades. It broadly categorizes the work under 'EHRM INFRASTRUCTURE UPGRADES - COLUMBIA, SC VAMC' and the North American Industry Classification System (NAICS) code 236220, which pertains to Commercial and Institutional Building Construction. This suggests the project likely involves physical facility modifications, IT network enhancements, and potentially the installation of new hardware or systems necessary to support the Electronic Health Record Modernization program. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW).

How does the $46.2 million award compare to similar EHRM infrastructure projects within the VA or other federal agencies?

Directly comparing the $46.2 million award for EHRM infrastructure upgrades to similar projects is challenging without more granular data on the scope and scale of those other projects. The VA's EHRM initiative is a massive undertaking, with various contracts awarded for different components and locations. This specific award to ESA South, Inc. appears to be for the physical infrastructure supporting the EHRM system at a single VAMC. Larger, system-wide EHRM implementations have involved significantly higher total program costs, but this figure represents a specific infrastructure investment. Benchmarking would require identifying contracts with comparable facility upgrade scopes for IT systems.

What are the key performance indicators (KPIs) and success metrics for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this contract. However, as a firm fixed-price contract for infrastructure upgrades, success would typically be measured by the contractor's ability to complete the project within the specified timeline (ending March 15, 2026) and budget ($46.2 million), meeting all technical specifications outlined in the Statement of Work. Performance would likely be evaluated based on the reliability and functionality of the upgraded infrastructure, its successful integration with the EHRM system, and adherence to construction quality standards. The Department of Veterans Affairs would establish and monitor these metrics.

What is ESA South, Inc.'s track record with large federal infrastructure or IT projects, particularly within the VA?

Information regarding ESA South, Inc.'s specific track record with large federal infrastructure or IT projects, especially within the VA, is not detailed in the provided data. The award itself signifies that the company met the VA's requirements for this particular contract. To assess their track record thoroughly, one would need to examine past performance evaluations, other federal contracts awarded to ESA South, Inc., and their history of delivering similar projects on time and within budget. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary for a comprehensive review.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include unforeseen construction challenges, delays in material or equipment delivery, integration issues with existing VAMC systems, and potential scope creep. Given the firm fixed-price nature, ESA South, Inc. bears much of the financial risk for cost overruns. Mitigation strategies would typically involve robust project management by both the contractor and the VA, clear communication channels, contingency planning for unexpected issues, and adherence to strict quality control measures during construction and IT implementation. The VA's oversight would be crucial in identifying and addressing risks proactively.

How does this spending align with the VA's broader strategy for modernizing its healthcare IT infrastructure?

This $46.2 million contract for EHRM infrastructure upgrades in Columbia, SC, directly aligns with the VA's overarching strategy to modernize its healthcare IT infrastructure. The Electronic Health Record Modernization (EHRM) program is a cornerstone of this strategy, aiming to provide a unified, modern, and interoperable health record system for veterans across the nation. Investments in the underlying physical and network infrastructure are essential prerequisites for the successful deployment and operation of advanced EHR systems. This spending supports the foundational elements needed to achieve the VA's digital health transformation goals.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77623R0096

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1681 SUCCESS DR, CANTONMENT, FL, 32533

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

Financial Breakdown

Contract Ceiling: $46,214,848

Exercised Options: $46,214,848

Current Obligation: $46,214,848

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline