VA awards $5.7M data center construction contract to Guarantee Interiors, Inc. for EHRM infrastructure upgrades

Contract Overview

Contract Amount: $5,688,140 ($5.7M)

Contractor: Guarantee Interiors, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-14

End Date: 2026-07-02

Contract Duration: 414 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

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 CONSTRUCTION OF THE EHRM INFRASTRUCTURE UPGRADES DATA CENTER PROJECT.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.7 million to GUARANTEE INTERIORS, 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 CONSTRUCTION OF THE EHRM INFRASTRUCTURE UPGRADES DATA CENTER PROJECT. Key points: 1. Contract focuses on critical infrastructure for the Electronic Health Record Modernization (EHRM) program. 2. Fixed-price contract type aims to control costs for the government. 3. Competition was full and open, suggesting a competitive bidding process. 4. Project duration of 414 days indicates a significant construction timeline. 5. Geographic focus on Missouri for this specific infrastructure upgrade. 6. Contractor has a track record in commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $5.7 million for data center infrastructure upgrades appears reasonable given the scope of work, which includes providing all necessary tools, equipment, materials, labor, and supervision. Benchmarking against similar large-scale construction projects for federal data centers would provide a more precise value assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the initial scope is well-defined and change orders are managed effectively. The contractor's experience in commercial and institutional building construction suggests a relevant operational capacity.

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 that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. While the exact number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and quality for the government. The agency's decision to exclude specific sources, if any, would warrant further investigation into the rationale behind it.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a potentially lower price due to market forces and a wider selection of qualified contractors vying for the work.

Public Impact

Veterans will benefit from improved electronic health records through modernized data center infrastructure. The project delivers essential construction services for a critical federal healthcare IT program. Geographic impact is concentrated in Missouri, where the data center upgrades will take place. The construction project will likely create jobs for skilled trades and construction workers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands significantly beyond the initial definition.
Dependence on the contractor's ability to manage complex construction timelines and potential supply chain disruptions.
Ensuring the infrastructure upgrades meet future scalability and technological demands of the EHRM system.

Positive Signals

Firm fixed-price contract structure helps mitigate cost uncertainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Contractor's experience in commercial and institutional building provides a foundation for successful project execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The specific application here is critical IT infrastructure for the Department of Veterans Affairs' Electronic Health Record Modernization (EHRM) program. Spending in this sector for federal IT infrastructure projects can vary widely, but projects involving data center construction are typically high-value due to specialized requirements for power, cooling, security, and connectivity. Comparable spending benchmarks would focus on similar government data center build-outs or major facility upgrades.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small business set-asides is likely minimal for this prime contract. However, the prime contractor, Guarantee Interiors, Inc., may engage small businesses as subcontractors for various construction trades or material supply, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified infrastructure upgrades. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Electronic Health Record Modernization (EHRM)
Department of Veterans Affairs IT Infrastructure Projects
Federal Data Center Construction
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential for scope creep impacting budget and timeline.
Dependence on contractor's ability to deliver complex infrastructure on schedule.
Ensuring long-term technological relevance of the upgraded data center.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.7 million to GUARANTEE INTERIORS, INC.. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE EHRM INFRASTRUCTURE UPGRADES DATA CENTER PROJECT.

Who is the contractor on this award?

The obligated recipient is GUARANTEE INTERIORS, 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 $5.7 million.

What is the period of performance?

Start: 2025-05-14. End: 2026-07-02.

What is the track record of Guarantee Interiors, Inc. with federal construction contracts, particularly those involving IT infrastructure or data centers?

Guarantee Interiors, Inc. has a history of federal contracting, primarily within the Commercial and Institutional Building Construction (NAICS 236220) category. While specific details on their experience with large-scale data center construction for IT infrastructure are not immediately available from the provided data, their classification suggests they are equipped for significant building projects. A deeper dive into their past performance on similar federal projects, including any past performance evaluations or awards related to critical infrastructure or specialized facilities, would be necessary to fully assess their suitability and track record for this EHRM data center upgrade. Examining their portfolio for projects with comparable complexity, security requirements, or technological integration would provide further insight.

How does the awarded amount of $5.7 million compare to similar federal data center infrastructure upgrade projects?

The $5.7 million award for data center infrastructure upgrades by the VA is a significant but not extraordinary sum for such projects. The cost of data center construction can vary dramatically based on size, complexity, security requirements, and the specific upgrades needed (e.g., power, cooling, network infrastructure, physical security). For context, smaller-scale data center modernization efforts or upgrades to existing facilities might range from a few hundred thousand to a few million dollars. Larger, ground-up data center builds or major overhauls with advanced technological integration can easily exceed tens or even hundreds of millions. Without knowing the precise scope of 'infrastructure upgrades' and the scale of the data center involved, a direct comparison is challenging. However, the amount suggests a substantial project, likely involving significant physical construction and system integration within an existing or new facility.

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

Primary risks for this contract include potential cost overruns due to scope creep or unforeseen construction challenges, delays in project completion impacting the EHRM program, and ensuring the final infrastructure meets evolving technological requirements. Mitigation strategies include the firm fixed-price contract type, which shifts cost risk to the contractor and incentivizes them to manage expenses tightly. The full and open competition process aims to select a contractor with a proven ability to execute such projects. The defined project duration (414 days) and specific deliverables outlined in the contract also serve as benchmarks for performance and accountability. However, ongoing government oversight, clear change order management processes, and regular progress monitoring are crucial for continued risk mitigation throughout the project lifecycle.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers on this contract?

The 'full and open competition after exclusion of sources' method is generally effective in ensuring value for taxpayers by maximizing the pool of potential bidders while allowing the agency to exclude sources that may not meet specific, justifiable criteria (e.g., security, past performance issues). This broad competition drives down prices through market forces and encourages innovation. The 'exclusion of sources' aspect, if applied judiciously and transparently, can prevent the solicitation of bids from unqualified or unsuitable entities, thereby saving administrative costs and reducing the risk of contract failure. The effectiveness hinges on the clarity of the exclusion rationale and the robustness of the evaluation process to ensure the best value, not just the lowest price, is selected.

What are the historical spending patterns for data center construction and IT infrastructure upgrades within the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has historically invested significant funds in IT infrastructure, including data centers, to support its vast healthcare system and the modernization of electronic health records. Spending in this area has been substantial and often subject to scrutiny due to the critical nature of healthcare data and the complexities of large-scale IT projects. Past spending has included efforts to consolidate data centers, upgrade existing facilities, and implement new technologies to enhance security, reliability, and performance. The EHRM program itself represents a massive investment, and the underlying infrastructure upgrades are a necessary component. Analyzing historical VA IT spending trends, particularly on infrastructure and data center projects, would reveal patterns of investment, potential cost overruns on previous projects, and the evolution of their technological strategy.

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: 36C77625B0008

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2914 LOCUST ST, SAINT LOUIS, MO, 63103

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: $5,688,140

Exercised Options: $5,688,140

Current Obligation: $5,688,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline