VA Awards $13.9M EHRM Infrastructure Upgrade to MDM Construction LLC in Fargo
Contract Overview
Contract Amount: $13,900,600 ($13.9M)
Contractor: MDM Construction LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-09-17
End Date: 2027-03-31
Contract Duration: 560 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: EHRM TIER TWO INFRASTRUCTURE UPGRADES AT FARGO VAMC - PROJECT # 437-21-210 FARGO, ND
Place of Performance
Location: FARGO, CASS County, NORTH DAKOTA, 58102
Plain-Language Summary
Department of Veterans Affairs obligated $13.9 million to MDM CONSTRUCTION LLC for work described as: EHRM TIER TWO INFRASTRUCTURE UPGRADES AT FARGO VAMC - PROJECT # 437-21-210 FARGO, ND Key points: 1. The contract focuses on critical EHRM infrastructure upgrades at the Fargo VAMC. 2. MDM Construction LLC secured the award, indicating potential market concentration. 3. The project's fixed-price nature aims to control costs, but scope creep is a risk. 4. The construction sector is experiencing high demand, potentially impacting future bids.
Value Assessment
Rating: fair
The award amount of $13.9M for infrastructure upgrades appears within a reasonable range for a project of this scope. Benchmarking against similar VAMC construction projects would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited initial pool or specific pre-qualification. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The $13.9M price tag represents a significant taxpayer investment in healthcare infrastructure. Ensuring cost-effectiveness through robust oversight is crucial.
Public Impact
Improved healthcare IT infrastructure for veterans in Fargo. Potential for job creation in the North Dakota construction sector. Ensuring the reliability of electronic health records for patient care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated the price.
- Potential for cost overruns if project scope expands.
- Reliance on a single contractor for critical infrastructure.
Positive Signals
- Addresses essential EHRM infrastructure needs.
- Fixed-price contract provides cost certainty.
- Project completion by March 2027.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure needs, modernization efforts, and government facility maintenance.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis is needed to determine if small businesses were excluded or unable to compete.
Oversight & Accountability
The VA's oversight will be critical to ensure MDM Construction LLC adheres to the contract terms, manages the project effectively, and delivers the required infrastructure upgrades on time and within budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Potential for scope creep
- Reliance on a single contractor
- Cybersecurity risks during infrastructure upgrade
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, nd, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $13.9 million to MDM CONSTRUCTION LLC. EHRM TIER TWO INFRASTRUCTURE UPGRADES AT FARGO VAMC - PROJECT # 437-21-210 FARGO, ND
Who is the contractor on this award?
The obligated recipient is MDM 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 $13.9 million.
What is the period of performance?
Start: 2025-09-17. End: 2027-03-31.
What specific factors led to the exclusion of other potential sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?
The exclusion of sources typically occurs when specific technical requirements, past performance, or unique capabilities are mandated, limiting the pool of eligible bidders. Understanding these criteria is key to assessing if the competition was truly maximized or if it inadvertently restricted viable options, potentially impacting the final price and overall value achieved for the taxpayer.
What are the potential risks associated with upgrading EHRM infrastructure in an active healthcare facility?
Upgrading critical EHRM infrastructure in an active VAMC presents risks such as service disruptions, data integrity issues during migration, and cybersecurity vulnerabilities. Mitigation strategies must include phased implementation, rigorous testing, robust backup protocols, and continuous monitoring to ensure patient care is not compromised and sensitive health information remains secure throughout the upgrade process.
How will the VA measure the effectiveness of these infrastructure upgrades in improving EHRM performance and reliability?
Effectiveness will be measured through key performance indicators (KPIs) such as system uptime, data access speed, reduction in system errors, and user satisfaction surveys from VAMC staff. Post-implementation reviews and ongoing system monitoring will track improvements against baseline metrics established before the upgrades.
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: 36C77625B0014
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2215 SHEYENNE ST, WEST FARGO, ND, 58078
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: $13,900,600
Exercised Options: $13,900,600
Current Obligation: $13,900,600
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-17
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-09-15
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