VA awards $46M EHRM infrastructure construction contract to Hurley JV, LLP for 4 years

Contract Overview

Contract Amount: $46,042,148 ($46.0M)

Contractor: Hurley JV, LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-19

End Date: 2026-07-18

Contract Duration: 486 days

Daily Burn Rate: $94.7K/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 CONSTRUCTION

Place of Performance

Location: TOPEKA, SHAWNEE County, KANSAS, 66622

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $46.0 million to HURLEY JV, LLP for work described as: EHRM INFRASTRUCTURE CONSTRUCTION Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a deliberate selection process. 2. The firm-fixed-price contract type indicates that costs are largely predetermined, offering budget predictability. 3. The contract duration of 486 days (approx. 4 years) suggests a significant, long-term project. 4. The project falls under Commercial and Institutional Building Construction, a broad category with potential for cost variations. 5. The awardee, Hurley JV, LLP, is a relatively new entity, raising questions about their track record on large federal projects. 6. The contract's value of $46M places it in the mid-to-large range for construction projects of this nature.

Value Assessment

Rating: fair

Benchmarking the $46M value against similar EHRM infrastructure construction projects is challenging without more specific project scope details. However, the duration and the nature of the work suggest a substantial investment. The firm-fixed-price contract type generally aims for cost control, but the final value will depend on the execution and any potential change orders. Without comparable per-unit costs or detailed scope breakdowns, a precise value-for-money assessment is difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 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 open, certain sources were excluded prior to the solicitation. The exact reasons for this exclusion are not detailed, but it suggests a potentially narrowed field of bidders compared to a truly open competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The exclusion of sources may limit the number of potential bidders, potentially impacting the government's ability to secure the lowest possible price. Taxpayers may not benefit from the full competitive pressure that a completely open solicitation could generate.

Public Impact

The primary beneficiary is the Department of Veterans Affairs (VA), which will receive upgraded EHRM infrastructure. The services delivered include construction of essential facilities to support the Electronic Health Record Modernization program. The geographic impact is centered in Kansas (ST: KS, SN: KANSAS), where the construction will take place. The project will likely involve a workforce of construction professionals, tradespeople, and project managers in the Kansas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access and optimal pricing.
The track record and capacity of Hurley JV, LLP for a project of this magnitude are not immediately apparent and require scrutiny.
The firm-fixed-price contract, while offering cost certainty, can lead to higher initial bids if the contractor assumes significant risk.
Potential for scope creep or change orders in large construction projects can impact the final cost beyond the initial $46M award.

Positive Signals

The contract is awarded under full and open competition principles, aiming for broad market participation.
The firm-fixed-price contract type provides cost predictability for the VA's budget.
The project directly supports the critical EHRM initiative, which is vital for modernizing veteran healthcare.
The specified duration suggests a commitment to a comprehensive and well-planned infrastructure upgrade.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. The market for federal construction projects is substantial, with agencies like the VA frequently undertaking large-scale infrastructure upgrades. Comparable spending benchmarks would typically involve analyzing the cost per square foot or cost per bed for similar healthcare-related construction projects, though specific details of this EHRM infrastructure are needed for precise comparison. The size of this contract ($46M) positions it as a major project within this sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct small business set-aside implications. However, the prime contractor, Hurley JV, LLP, may engage small businesses as subcontractors. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and any specific requirements or incentives included in the contract, which are not detailed here. The impact on the small business ecosystem would be indirect, through potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's lifecycle.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization Projects
Department of Defense Healthcare Infrastructure Projects
Federal Building and Construction Contracts
Electronic Health Record (EHR) System Implementation Support
Government Construction Management Services

Risk Flags

Contract awarded after exclusion of sources
Contractor's track record on large federal projects requires verification
Potential for scope creep in large construction projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $46.0 million to HURLEY JV, LLP. EHRM INFRASTRUCTURE CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is HURLEY JV, LLP.

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 $46.0 million.

What is the period of performance?

Start: 2025-03-19. End: 2026-07-18.

What is the specific nature of the EHRM infrastructure being constructed, and how does it differ from standard building construction?

The specific nature of the EHRM infrastructure construction likely involves specialized facilities designed to house and support the critical components of the Electronic Health Record Modernization program. This could include secure data centers, enhanced network infrastructure rooms, specialized power and cooling systems, and potentially upgraded physical spaces to improve the workflow for healthcare providers interacting with the EHR system. Unlike standard building construction, EHRM infrastructure may require adherence to stringent cybersecurity standards, specific environmental controls for sensitive electronic equipment, and integration with existing or planned IT networks. The $46M contract value suggests a significant undertaking that goes beyond basic construction, incorporating elements crucial for the reliability, security, and performance of a large-scale health IT system.

What is the track record and experience of Hurley JV, LLP in managing federal construction projects of this scale?

Information regarding the specific track record and experience of Hurley JV, LLP, particularly on federal construction projects of this $46M scale, is not readily available in the provided data. As a joint venture, its constituent members may have individual experience, but the JV itself might be relatively new or have limited public federal contract history. A thorough assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), project portfolios, and financial stability reports for Hurley JV, LLP. Given the critical nature of EHRM infrastructure, the VA's due diligence in assessing the JV's capabilities and past performance would be paramount to ensuring successful project execution and mitigating risks associated with contractor inexperience.

How does the $46M contract value compare to similar EHRM infrastructure construction projects undertaken by the VA or other federal agencies?

Directly comparing the $46M contract value for EHRM infrastructure construction is challenging without detailed scope and location specifics for comparable projects. However, the VA has invested billions in its EHRM program, including significant infrastructure components. Large-scale federal construction projects, especially those involving specialized IT support facilities, can range from tens to hundreds of millions of dollars. Factors influencing cost include square footage, complexity of IT integration, security requirements, geographic location (labor and material costs), and the specific phase of the EHRM rollout. The $46M award suggests a substantial but potentially contained project, possibly focused on a specific facility or region, rather than an agency-wide overhaul.

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

Primary risks associated with this $46M EHRM infrastructure construction contract include potential cost overruns due to unforeseen site conditions or scope changes, schedule delays impacting the EHRM rollout, contractor performance issues (quality of work, management), and cybersecurity vulnerabilities during construction. Mitigation strategies likely include robust contract oversight by the VA, detailed project management plans, clear performance metrics, liquidated damages clauses for delays, and stringent quality assurance protocols. The firm-fixed-price nature of the contract shifts some cost risk to the contractor, but careful management of change orders is crucial. Cybersecurity considerations would involve secure site access, background checks for personnel, and secure handling of any IT equipment during the construction phase.

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

Historical spending patterns for EHRM infrastructure construction by the Department of Veterans Affairs are intrinsically linked to the broader EHR Modernization (EHRM) program. The VA has allocated substantial funding towards EHRM, which includes not only software and implementation but also the necessary physical and IT infrastructure. While specific figures for 'infrastructure construction' as a distinct category within EHRM spending are not provided, it's understood that significant investments have been made and will continue to be made in upgrading facilities, data centers, and network capabilities to support the new system. This $46M contract represents a component of that ongoing investment, reflecting a sustained commitment to building the foundational elements required for a modern, integrated electronic health record system across the VA.

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: 36C77624B0026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1545 CEDAR VALLEY LN, COLORADO SPRINGS, CO, 80919

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,042,148

Exercised Options: $46,042,148

Current Obligation: $46,042,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline