VA Awards $50.6M EHRM Construction Contract to Veterans Contracting, Inc. for Ohio Facility

Contract Overview

Contract Amount: $50,658,241 ($50.7M)

Contractor: Veterans Contracting, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-15

End Date: 2026-07-17

Contract Duration: 823 days

Daily Burn Rate: $61.6K/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: EHRM CONSTRUCTION

Place of Performance

Location: CHILLICOTHE, ROSS County, OHIO, 45601

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50.7 million to VETERANS CONTRACTING, INC. for work described as: EHRM CONSTRUCTION Key points: 1. Contract value of $50.6 million for EHRM construction. 2. Competition method: Full and open after exclusion of sources. 3. Risk: Potential for limited competition impacting price discovery. 4. Sector: Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $50.6 million appears significant for a single construction project. Benchmarking against similar EHRM construction projects would be necessary to assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and open competition after exclusion of sources,' which suggests a limited competition scenario. This method might not yield the most competitive pricing compared to truly full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for this significant construction project. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Impacts veterans' healthcare infrastructure through facility construction. Potential for job creation in the Ohio region. Ensures modernization of Electronic Health Record Management systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Contract duration of 823 days requires close monitoring.
Fixed-price contract offers limited flexibility for scope changes.

Positive Signals

Addresses critical EHRM infrastructure needs.
Awarded to a company with relevant contracting experience.
Clear end date for project completion.

Sector Analysis

The Commercial and Institutional Building Construction sector is vital for infrastructure development. Spending benchmarks for similar VA construction projects would provide context for this $50.6 million award.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.

Oversight & Accountability

Oversight will be crucial to ensure the project stays on schedule and within budget, given the contract's fixed-price nature and duration. The VA's contracting office is responsible for monitoring performance.

Related Government Programs

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

Risk Flags

Potential for reduced competition leading to inflated costs.
Contract duration and fixed-price nature may pose risks if unforeseen issues arise.
Lack of small business participation noted.
Need for detailed benchmarking to validate pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50.7 million to VETERANS CONTRACTING, INC.. EHRM CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is VETERANS CONTRACTING, 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 $50.7 million.

What is the period of performance?

Start: 2024-04-15. End: 2026-07-17.

What is the specific scope of work for this EHRM construction project, and how does it align with the overall EHRM modernization goals?

The specific scope of work involves the construction of facilities related to the Electronic Health Record Management system. This likely includes building or renovating spaces to house new technology, data centers, or operational hubs required for the EHRM system's implementation and functioning. The project's alignment with modernization goals hinges on whether the constructed facilities directly support the technological and operational requirements of the upgraded EHRM system.

How did the 'exclusion of sources' in the competition process impact the final contract price and overall value for the government?

The 'exclusion of sources' implies that certain potential bidders were not allowed to compete, narrowing the field of eligible contractors. This limitation could reduce competitive pressure, potentially leading to a higher contract price than if a broader range of companies had participated. Assessing the value requires comparing the awarded price against benchmarks and understanding the rationale behind the source exclusion.

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

Key performance indicators likely include adherence to the construction schedule, quality of workmanship meeting specified standards, compliance with safety regulations, and effective budget management. The VA will measure effectiveness through regular site inspections, progress reports, milestone achievement tracking, and post-completion reviews to ensure the facility meets all contractual requirements and functional needs for the EHRM system.

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: 36C77623B0058

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4770 W 139TH ST, CLEVELAND, OH, 44135

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: $50,658,241

Exercised Options: $50,658,241

Current Obligation: $50,658,241

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline