VA awards $23M EHRM infrastructure upgrade to Birmingham Industrial Construction, LLC for Birmingham VAMC

Contract Overview

Contract Amount: $22,981,550 ($23.0M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-16

End Date: 2026-07-31

Contract Duration: 1,019 days

Daily Burn Rate: $22.6K/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: ELECTRONIC HEALTH RECORD MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES, VETERANS AFFAIRS MEDICAL CENTER (VAMC) BIRMINGHAM, ALABAMA

Place of Performance

Location: ALABASTER, SHELBY County, ALABAMA, 35007

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.0 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: ELECTRONIC HEALTH RECORD MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES, VETERANS AFFAIRS MEDICAL CENTER (VAMC) BIRMINGHAM, ALABAMA Key points: 1. Contract focuses on critical infrastructure supporting electronic health records. 2. The award represents a significant investment in modernizing healthcare IT infrastructure. 3. Fixed-price contract type aims to control costs and manage budget predictability. 4. The duration of the contract suggests a phased approach to upgrades. 5. Competition was full and open after exclusion of sources, indicating a deliberate selection process. 6. The project's success hinges on seamless integration with existing VA systems.

Value Assessment

Rating: good

The contract value of $22.98 million for EHRM infrastructure upgrades at a single VAMC appears reasonable given the scope of work. Benchmarking against similar large-scale construction projects for healthcare facilities suggests that pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, assuming the contractor can accurately estimate and manage project expenses. Further analysis would require detailed cost breakdowns and comparison to specific construction cost indices for institutional buildings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be broad, certain sources were excluded, possibly due to specific technical requirements, past performance, or other pre-qualification criteria. The number of bidders (4) suggests a moderate level of competition, which is generally sufficient to drive competitive pricing, but less robust than a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even with four bidders, may have limited the potential for the lowest possible price. However, the competition still likely yielded a fair market price for the required specialized construction services.

Public Impact

Veterans receiving care at the Birmingham VAMC will benefit from improved healthcare IT infrastructure, potentially leading to more efficient and reliable access to their electronic health records. The project will deliver essential infrastructure upgrades necessary for the modernization of the VA's Electronic Health Record system. The geographic impact is concentrated in Birmingham, Alabama, supporting local economic activity through construction. The contract is expected to create or sustain jobs within the construction sector in the Birmingham area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays impacting the EHRM modernization timeline.
Dependency on the contractor's ability to integrate new infrastructure with existing, potentially aging, VA systems.
Ensuring compliance with stringent healthcare facility construction standards and VA IT security protocols.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The Department of Veterans Affairs has a clear need for EHRM infrastructure modernization.
The contractor, Birmingham Industrial Construction, LLC, was selected through a competitive process.
The contract duration is defined, allowing for structured project management and oversight.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on commercial and institutional building construction. The Electronic Health Record Modernization (EHRM) infrastructure upgrades are a critical component of the Department of Veterans Affairs' larger initiative to modernize its healthcare IT systems. The market for healthcare construction is substantial, driven by the need for advanced facilities and technology integration. Comparable spending benchmarks would involve analyzing other large-scale construction projects for federal medical centers or similar institutional facilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Birmingham Industrial Construction, LLC, a single entity, suggests that the primary focus was on securing the necessary expertise and capacity for this specialized infrastructure project. Further review of the contract details would be needed to ascertain any indirect impacts or opportunities for small businesses within the supply chain or through potential future subcontracting.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon scope and budget. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Electronic Health Record Modernization (EHRM)
Veterans Affairs Medical Center Construction
Healthcare IT Infrastructure Projects
Federal Building and Infrastructure Upgrades

Risk Flags

Potential for cost overruns
Risk of schedule delays
Integration challenges with existing systems
Compliance with healthcare construction standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.0 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. ELECTRONIC HEALTH RECORD MODERNIZATION (EHRM) INFRASTRUCTURE UPGRADES, VETERANS AFFAIRS MEDICAL CENTER (VAMC) BIRMINGHAM, ALABAMA

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC.

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 $23.0 million.

What is the period of performance?

Start: 2023-10-16. End: 2026-07-31.

What is the track record of Birmingham Industrial Construction, LLC with federal contracts, particularly within the Department of Veterans Affairs?

A review of federal procurement data indicates that Birmingham Industrial Construction, LLC has been awarded federal contracts, though specific details on their track record with the Department of Veterans Affairs (VA) require deeper analysis. The number of bids submitted (4) suggests they were among a select group considered for this project. To fully assess their track record, one would need to examine past performance evaluations, any history of contract disputes or terminations, and their experience with similar-sized and complex construction projects, especially those involving critical infrastructure or healthcare facilities. Understanding their past performance on VA contracts specifically would provide crucial insight into their reliability and capability for this EHRM infrastructure upgrade.

How does the awarded amount of $22.98 million compare to similar EHRM infrastructure upgrade projects at other VAMCs?

Benchmarking this $22.98 million award against similar EHRM infrastructure upgrade projects at other Veterans Affairs Medical Centers (VAMCs) is essential for assessing value for money. Without specific data on comparable projects, a direct comparison is difficult. However, the scale of the award suggests a significant undertaking, likely involving substantial structural, electrical, and network infrastructure modifications to support advanced IT systems. Factors influencing cost include the size and age of the VAMC, the specific scope of the modernization, and local construction market rates. A comprehensive analysis would involve identifying other VAMC infrastructure projects of similar scope and duration and comparing their total contract values, cost per square foot, and the specific technologies being supported.

What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for competition, introduces specific risks. The primary risk is that excluding certain sources, even if justified by technical requirements or past performance, may inadvertently limit the pool of highly qualified bidders, potentially leading to a less competitive outcome than a truly unrestricted competition. This could result in a higher price than might otherwise be achieved. Additionally, the justification for excluding sources needs to be robust to ensure fairness and prevent potential protests. The VA must ensure that the exclusion criteria were clearly defined, consistently applied, and directly related to the essential needs of the EHRM infrastructure upgrade project to mitigate risks of reduced competition and potential price inflation.

What is the expected impact of these infrastructure upgrades on the overall effectiveness and reliability of the VA's Electronic Health Record system at Birmingham VAMC?

These infrastructure upgrades are expected to significantly enhance the effectiveness and reliability of the VA's Electronic Health Record (EHR) system at the Birmingham VAMC. Modernized infrastructure, including robust network capabilities, reliable power systems, and secure data center environments, is fundamental to the performance of any advanced IT system, especially a critical one like an EHR. Improved infrastructure should lead to faster data access for clinicians, reduced system downtime, enhanced data security, and better support for new EHR functionalities. Ultimately, this translates to more efficient patient care, improved data integrity, and a more seamless experience for both healthcare providers and veterans interacting with the system.

How has VA spending on EHRM infrastructure upgrades evolved over the past five years, and does this contract align with historical spending patterns?

Analyzing VA spending on EHRM infrastructure upgrades over the past five years is crucial for context. While specific aggregate data for 'EHRM infrastructure upgrades' is not provided, the VA has consistently invested heavily in its IT modernization efforts, including the broader EHRM program. This $22.98 million contract represents a substantial, project-specific investment. Historical spending patterns would likely show a trend of increasing investment in IT infrastructure to support the national EHRM rollout and ongoing maintenance. This particular contract appears to be a significant component of that ongoing modernization strategy, aligning with the VA's stated commitment to improving its technological capabilities across its medical facilities.

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: 36C77623B0026

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $22,981,550

Exercised Options: $22,981,550

Current Obligation: $22,981,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline