VA awards $14.1M contract for EHRM infrastructure upgrades in Ohio, with 2 bidders

Contract Overview

Contract Amount: $14,096,607 ($14.1M)

Contractor: V Line Services L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-08

End Date: 2026-08-06

Contract Duration: 759 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EHRM INFRASTRUCTURE UPGRADES - COLUMBUS, OH - TIER 2 CONSTRUCTION

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43219

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.1 million to V LINE SERVICES L.L.C. for work described as: EHRM INFRASTRUCTURE UPGRADES - COLUMBUS, OH - TIER 2 CONSTRUCTION Key points: 1. Contract value appears reasonable given the scope of infrastructure upgrades. 2. Full and open competition suggests potential for competitive pricing. 3. Definitive contract type indicates a firm agreement for services. 4. Project duration of 759 days allows for phased implementation. 5. Focus on EHRM infrastructure aligns with critical healthcare modernization efforts. 6. Geographic concentration in Ohio may impact regional construction markets.

Value Assessment

Rating: good

The $14.1 million contract for EHRM infrastructure upgrades is a significant investment. While direct comparisons are difficult without detailed scope, the price appears within a reasonable range for large-scale construction projects supporting critical IT systems. The firm fixed-price structure provides cost certainty for the government. Benchmarking against similar healthcare IT infrastructure projects would offer further insight into value for money.

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, indicating that multiple vendors were invited to bid. With two bidders participating, the competition level suggests a moderate degree of market interest. While two bidders are better than one, a higher number of bids could have potentially driven prices lower.

Taxpayer Impact: The competitive process, even with two bidders, aims to ensure taxpayer funds are used efficiently by encouraging favorable pricing. The government received at least two proposals to evaluate, providing a basis for negotiation and selection.

Public Impact

Veterans in Ohio will benefit from improved Electronic Health Record Management (EHRM) systems. The contract supports the modernization of critical healthcare IT infrastructure. The project's geographic impact is concentrated in Columbus, Ohio. Local construction workforce may see employment opportunities during the project duration.

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 and system integration.
Risk of disruption to existing healthcare operations during upgrade phases.

Positive Signals

Clear contract type (Definitive Contract) and pricing (Firm Fixed Price) reduce financial uncertainty.
Full and open competition suggests a robust bidding process.
Project duration allows for structured implementation and testing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting healthcare IT infrastructure. The market for healthcare construction and IT integration is substantial, driven by the need for modernization, enhanced patient care, and data security. This project aligns with broader government initiatives to upgrade federal healthcare systems, such as the Department of Veterans Affairs' EHR Modernization program.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion for this specific award (ss: false, sb: false). While V Line Services L.L.C. is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this data. Further review of the contract details would be needed to assess potential subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. The definitive contract structure and firm fixed-price nature provide a degree of accountability. Transparency regarding project progress and any potential issues would typically be available through VA reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration EHR Modernization
Department of Defense EHR Modernization
Federal IT Infrastructure Modernization Projects
Healthcare Construction Contracts

Risk Flags

Limited competition (2 bidders)
Potential for construction delays
Integration complexity with existing EHRM systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.1 million to V LINE SERVICES L.L.C.. EHRM INFRASTRUCTURE UPGRADES - COLUMBUS, OH - TIER 2 CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is V LINE SERVICES L.L.C..

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 $14.1 million.

What is the period of performance?

Start: 2024-07-08. End: 2026-08-06.

What is the track record of V Line Services L.L.C. in performing similar large-scale healthcare infrastructure projects?

Information regarding V Line Services L.L.C.'s specific track record in large-scale healthcare infrastructure projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references for similar projects. Understanding their experience with Electronic Health Record (EHR) system infrastructure, construction complexities, and government contracting is crucial for evaluating their capability to successfully execute this $14.1 million contract. Without this historical data, it is difficult to definitively assess their suitability and potential risks associated with their performance.

How does the awarded price of $14.1 million compare to similar EHRM infrastructure upgrade projects?

Directly comparing the $14.1 million award to similar EHRM infrastructure upgrade projects is challenging without specific details on the scope, scale, and location of comparable contracts. However, the value suggests a significant undertaking, likely involving substantial construction, IT integration, and potentially long-term support. Benchmarking against other large federal healthcare IT infrastructure projects, considering factors like square footage, system complexity, and duration, would provide a more accurate assessment of value for money. The firm fixed-price nature of this contract offers cost certainty, but the overall value proposition depends on the successful delivery of the specified upgrades and their impact on EHRM system performance.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential construction delays due to unforeseen site conditions or supply chain issues, integration challenges with existing EHRM systems, and performance issues from the contractor. Mitigation strategies likely involve robust project management by the VA, clear performance metrics outlined in the contract, and the firm fixed-price structure which incentivizes the contractor to manage costs. The definitive contract type also provides a clear framework for the agreement. Further mitigation could involve phased rollouts, rigorous testing protocols, and contingency planning for potential disruptions to healthcare operations.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring competitive pricing for this type of project?

The 'full and open competition after exclusion of sources' approach is generally effective in promoting competitive pricing by allowing any qualified vendor to bid. However, the fact that only two bids were received suggests that the market for this specific type of specialized infrastructure upgrade might be limited, or that other factors may have deterred additional bidders. While two bidders provide a basis for price comparison and negotiation, a higher number of competitors typically leads to more aggressive pricing and better value for taxpayers. The effectiveness in this instance depends on the thoroughness of the VA's market research and the competitiveness of the two submitted proposals.

What is the historical spending pattern for EHRM infrastructure upgrades by the Department of Veterans Affairs?

Historical spending patterns for EHRM infrastructure upgrades by the Department of Veterans Affairs (VA) are substantial, reflecting the ongoing and complex nature of modernizing its healthcare IT systems. The VA has been engaged in a multi-year, multi-billion dollar effort to implement and upgrade its EHR system, including significant investments in the underlying infrastructure required to support these advanced capabilities. This $14.1 million contract for infrastructure upgrades in Ohio is likely part of this larger, ongoing modernization strategy. Analyzing past VA contracts for similar infrastructure work, including their values, durations, and competitive landscapes, would reveal trends in investment and project execution.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77623R0150

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 126 P RICKMAN INDUSTRIAL DR, CANTON, GA, 30115

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

Financial Breakdown

Contract Ceiling: $14,096,607

Exercised Options: $14,096,607

Current Obligation: $14,096,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline