VA awards $16.9M contract for EHRM infrastructure upgrades at Muskogee VAMC

Contract Overview

Contract Amount: $16,911,611 ($16.9M)

Contractor: Hurley JV, LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-23

End Date: 2027-09-23

Contract Duration: 730 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EHRM INFRASTRUCTURE UPGRADES MUSKOGEE VAMC

Place of Performance

Location: MUSKOGEE, MUSKOGEE County, OKLAHOMA, 74401

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.9 million to HURLEY JV, LLP for work described as: EHRM INFRASTRUCTURE UPGRADES MUSKOGEE VAMC Key points: 1. Contract awarded to Hurley JV, LLP for critical EHRM infrastructure. 2. Focus on building construction services for healthcare IT systems. 3. Long-term contract duration of 730 days. 4. Firm Fixed Price contract type suggests defined scope and cost. 5. Competition level indicates potential for competitive pricing. 6. Project located in Oklahoma, supporting regional VA facilities.

Value Assessment

Rating: good

The contract value of $16.9 million for EHRM infrastructure upgrades appears reasonable given the scope of work involving commercial and institutional building construction. Benchmarking against similar projects for healthcare IT infrastructure, especially within the Department of Veterans Affairs, would provide a more precise value-for-money assessment. The firm fixed price structure helps control costs, but the absence of detailed cost breakdowns makes direct price comparison challenging. The contract's duration of two years suggests a significant undertaking.

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 while the initial intent might have involved specific sources, the final award was made through a broad competitive process. The presence of 4 bidders suggests a healthy level of competition for this type of specialized construction work. This level of competition is generally favorable for price discovery and ensures that the government receives competitive offers.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final contract price compared to a sole-source or limited competition scenario. Multiple bidders ensure that the government is not overpaying for the required services.

Public Impact

Benefits the Department of Veterans Affairs by improving the Electronic Health Record Management (EHRM) infrastructure. Ensures the delivery of essential construction services to support critical healthcare IT systems. Geographic impact is primarily focused on the Muskogee, Oklahoma VAMC and potentially surrounding facilities. Workforce implications include employment opportunities for construction labor and specialized trades in the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Dependence on contractor's ability to meet stringent healthcare IT infrastructure standards.
Risk of schedule delays impacting EHRM system availability.

Positive Signals

Firm Fixed Price contract mitigates cost uncertainty for the government.
Full and open competition suggests a robust selection process.
Award to an established joint venture may indicate capacity and experience.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on commercial and institutional building construction, with a specialization in supporting healthcare IT infrastructure. The market for such specialized construction services is significant, driven by ongoing modernization efforts in healthcare facilities nationwide. Comparable spending benchmarks would involve analyzing other VA or Department of Defense construction projects for medical facilities and IT system support.

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 subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Hurley JV, LLP, is responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded within the firm fixed price contract terms, requiring the contractor to deliver specified infrastructure upgrades. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration EHR Modernization Program
Department of Veterans Affairs Capital Asset and Business Development Management
Federal Buildings and Facilities Construction

Risk Flags

Potential for schedule delays
Integration complexity with existing IT systems
Compliance with healthcare construction standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.9 million to HURLEY JV, LLP. EHRM INFRASTRUCTURE UPGRADES MUSKOGEE VAMC

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 $16.9 million.

What is the period of performance?

Start: 2025-09-23. End: 2027-09-23.

What is the track record of Hurley JV, LLP in completing similar healthcare infrastructure projects?

Information regarding the specific track record of Hurley JV, LLP in completing similar healthcare infrastructure projects is not directly available in the provided data. However, as a joint venture, it likely combines the expertise and resources of its constituent companies. A deeper dive into the past performance of Hurley JV, LLP and its parent entities, if applicable, would be necessary to assess their capabilities and history with complex construction projects, particularly those involving sensitive healthcare IT environments. Reviewing past performance evaluations and any reported issues on previous government contracts would provide further insight into their reliability and quality of work.

How does the awarded amount compare to the estimated cost or budget for this EHRM infrastructure upgrade project?

The provided data does not include the government's estimated cost or budget for this EHRM infrastructure upgrade project. Therefore, a direct comparison between the awarded amount of $16.9 million and the initial budget cannot be made. To assess value for money, one would need to obtain the government's cost estimate or benchmark this award against similar projects. The fact that it was awarded under full and open competition with four bidders suggests the price achieved was competitive, but without the estimate, it's difficult to determine if it represents exceptional value or if there was significant room for negotiation.

What are the primary risks associated with the construction of EHRM infrastructure, and how are they mitigated in this contract?

Primary risks associated with constructing EHRM infrastructure include potential delays due to unforeseen site conditions, integration challenges with existing IT systems, adherence to strict healthcare facility regulations, and cybersecurity vulnerabilities during the construction phase. This contract, being a Firm Fixed Price (FFP) award, mitigates cost overrun risks for the government, as the contractor is obligated to complete the work for the agreed-upon price. The contract duration of 730 days allows for a structured approach, and the 'Full and Open Competition' process likely selected a contractor with demonstrated experience in managing such risks. Specific mitigation strategies would be detailed in the contract's statement of work and performance clauses.

What is the expected impact of these infrastructure upgrades on the operational efficiency of the Muskogee VAMC's EHRM system?

The expected impact of these infrastructure upgrades on the operational efficiency of the Muskogee VAMC's EHRM system is anticipated to be significant and positive. Improved infrastructure, such as enhanced network capabilities, reliable power, and secure physical spaces for IT equipment, is foundational for the smooth and uninterrupted functioning of any Electronic Health Record Management system. This can lead to faster data access for clinicians, reduced system downtime, improved data integrity, and enhanced overall patient care delivery. The upgrades are designed to support the demands of modern healthcare IT, ensuring the EHRM system can perform optimally.

How has federal spending on EHRM infrastructure evolved over the past five years, and where does this contract fit in?

Federal spending on EHRM infrastructure has seen a consistent increase over the past five years, driven by the ongoing digital transformation of healthcare systems within agencies like the Department of Veterans Affairs. This $16.9 million contract for infrastructure upgrades at the Muskogee VAMC represents a specific investment within this broader trend. It aligns with the VA's larger strategic goals to modernize its IT systems and improve the functionality and reliability of its EHRM. This contract is one of many necessary investments to ensure the foundational IT infrastructure can support advanced healthcare delivery and data management.

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: 36C77625R0046

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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: $16,911,611

Exercised Options: $16,911,611

Current Obligation: $16,911,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline