VA Awards $50.9M EHRM Infrastructure Upgrades to The Povolny Group Inc

Contract Overview

Contract Amount: $50,861,928 ($50.9M)

Contractor: THE Povolny Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-27

End Date: 2025-10-23

Contract Duration: 757 days

Daily Burn Rate: $67.2K/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: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT.

Place of Performance

Location: PALM BEACH County, FLORIDA, 33410

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50.9 million to THE POVOLNY GROUP INC for work described as: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT. Key points: 1. Contract awarded for critical EHRM infrastructure upgrades. 2. The Povolny Group Inc. secured the $50.9M contract. 3. Project duration is 757 days, ending October 2025. 4. Competition method was 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: good

The contract value of $50.9M for commercial and institutional building construction appears reasonable for a project of this scope and duration. Benchmarking against similar infrastructure upgrade projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process. This method aims to ensure fair pricing and access for qualified contractors.

Taxpayer Impact: The $50.9M contract represents a significant taxpayer investment in modernizing critical healthcare infrastructure.

Public Impact

Enhances the Electronic Health Record Management (EHRM) system's foundation. Supports improved patient care through reliable IT infrastructure. Project completion by October 2025 ensures timely modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Dependency on contractor performance for timely completion.

Positive Signals

Investment in critical healthcare IT infrastructure.
Competitive award process likely secured a fair price.
Clear project scope and defined completion date.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for maintaining and upgrading federal facilities. Spending benchmarks in this sector vary widely based on project complexity and location.

Small Business Impact

The contract data indicates that small business participation was not a stated requirement or outcome for this specific award, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The 'Full and Open Competition' method suggests a structured procurement process, but ongoing oversight is crucial for project success and accountability.

Related Government Programs

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

Risk Flags

Project duration is substantial (757 days).
Contract type is Firm Fixed Price, which can limit flexibility.
Competition method, while competitive, excluded some sources.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50.9 million to THE POVOLNY GROUP INC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT.

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 $50.9 million.

What is the period of performance?

Start: 2023-09-27. End: 2025-10-23.

What specific EHRM infrastructure components are being upgraded, and how will these upgrades directly impact system performance and user experience?

The contract specifies 'EHRM Infrastructure Upgrades Construction Project' without detailing specific components. These upgrades likely involve physical infrastructure such as servers, networking equipment, and data center facilities. The impact on system performance and user experience is expected to be positive, leading to increased reliability, faster data access, and enhanced security for healthcare providers using the EHRM system.

What are the key performance indicators (KPIs) for this construction project, and how will the VA measure the contractor's success in meeting them?

Key performance indicators for this construction project would typically include adherence to schedule, budget compliance, quality of workmanship, and safety standards. The VA will likely measure success through regular site inspections, progress reports from the contractor, milestone completion verification, and final project acceptance. Specific quality assurance and control plans are usually stipulated in the contract.

Are there any identified risks associated with the construction timeline, and what mitigation strategies are in place if delays occur?

Potential risks to the construction timeline could include unforeseen site conditions, weather disruptions, or supply chain issues for materials. Mitigation strategies might involve contingency planning within the schedule, proactive communication with subcontractors and suppliers, and potentially contractual clauses for managing delays. The VA's project management team would be responsible for monitoring progress and implementing these strategies.

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: 36C77623B0045

Offers Received: 3

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: $50,861,928

Exercised Options: $50,861,928

Current Obligation: $50,861,928

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline