VA awards $44.7M for EHRM Infrastructure Upgrades in Tuscaloosa, AL to Hurley JV, LLP

Contract Overview

Contract Amount: $44,743,288 ($44.7M)

Contractor: Hurley JV, LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-22

End Date: 2027-09-22

Contract Duration: 730 days

Daily Burn Rate: $61.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR SHALL SUPPLY ALL MATERIALS, SUPERVISION, AND LABOR TO COMPLETE PROJECT 679-20-104 EHRM INFRASTRUCTURE UPGRADES TUSCALOOSA, AL PER CONTRACT DRAWINGS AND SPECIFICATIONS.

Place of Performance

Location: TUSCALOOSA, TUSCALOOSA County, ALABAMA, 35404

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $44.7 million to HURLEY JV, LLP for work described as: CONTRACTOR SHALL SUPPLY ALL MATERIALS, SUPERVISION, AND LABOR TO COMPLETE PROJECT 679-20-104 EHRM INFRASTRUCTURE UPGRADES TUSCALOOSA, AL PER CONTRACT DRAWINGS AND SPECIFICATIONS. Key points: 1. Contract value of $44.7 million for infrastructure upgrades. 2. Project duration of 730 days (2 years). 3. Awarded by the Department of Veterans Affairs. 4. Location: Tuscaloosa, Alabama. 5. Contract type: Firm Fixed Price. 6. Competition: Full and Open Competition after Exclusion of Sources.

Value Assessment

Rating: fair

The contract value of $44.7 million for infrastructure upgrades appears to be within a reasonable range for a project of this scope and duration. However, without specific benchmarks for EHRM infrastructure upgrades in the Tuscaloosa area or comparable VA facilities, a precise value-for-money assessment is challenging. The firm fixed-price structure shifts risk to the contractor, which can be beneficial for cost control if the contractor's bid accurately reflects the work required.

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 while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The presence of 5 bidders suggests a moderate level of competition. This level of competition is generally positive for price discovery, but the exclusion of certain sources could potentially limit the most competitive bids.

Taxpayer Impact: The competition level suggests that taxpayers likely benefited from a competitive bidding process, leading to a more efficient use of funds compared to a sole-source award. However, the exclusion of sources warrants further scrutiny to ensure no potentially lower bids were missed.

Public Impact

Benefits veterans by ensuring the infrastructure supporting their Electronic Health Record Management (EHRM) systems is robust and reliable. Delivers critical infrastructure upgrades to the VA facility in Tuscaloosa, Alabama. Enhances the operational capacity and data integrity of the EHRM system. Supports the healthcare delivery mission of the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen infrastructure issues arise that were not fully captured in the fixed-price bid.
Risk of schedule delays if the contractor encounters difficulties in sourcing materials or labor, impacting the 2-year timeline.
Ensuring the contractor's proposed solution meets all technical specifications for EHRM infrastructure is critical.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency and cost control.
Multiple bidders (5) indicate a degree of market interest and potential for competitive pricing.
The Department of Veterans Affairs has a clear need for this infrastructure upgrade to support critical healthcare systems.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on infrastructure upgrades for a healthcare-related IT system. The market for such specialized construction services is driven by government and private sector demand for facility modernization and technology integration. Comparable spending benchmarks would typically involve analyzing other VA facility upgrade projects or large-scale IT infrastructure build-outs in institutional settings.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, Hurley JV, LLP, will be responsible for managing its own supply chain and labor, with no explicit requirement to engage small businesses for this particular award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified infrastructure upgrades within the agreed-upon scope and timeline. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA EHRM Modernization Program
Federal IT Infrastructure Projects
Government Construction Contracts
Healthcare Facility Upgrades

Risk Flags

Potential for scope creep impacting cost and schedule.
Reliance on contractor's ability to manage complex infrastructure upgrades.
Ensuring compliance with all technical specifications for EHRM infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $44.7 million to HURLEY JV, LLP. CONTRACTOR SHALL SUPPLY ALL MATERIALS, SUPERVISION, AND LABOR TO COMPLETE PROJECT 679-20-104 EHRM INFRASTRUCTURE UPGRADES TUSCALOOSA, AL PER CONTRACT DRAWINGS AND SPECIFICATIONS.

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 $44.7 million.

What is the period of performance?

Start: 2025-09-22. End: 2027-09-22.

What is the track record of Hurley JV, LLP in completing similar large-scale infrastructure projects for the federal government?

Assessing the track record of Hurley JV, LLP requires a review of their past performance on federal contracts, particularly those involving infrastructure upgrades and IT system support. Information on their past performance, including on-time completion rates, adherence to budget, and quality of work, would be available through sources like the Contractor Performance Assessment Reporting System (CPARS). A history of successful project delivery would indicate a lower risk for this current contract, while past issues could signal potential challenges. Without specific CPARS data for Hurley JV, LLP, it is difficult to definitively assess their suitability for this project.

How does the awarded amount of $44.7 million compare to similar EHRM infrastructure upgrade projects at other VA facilities?

To benchmark the $44.7 million award, one would need to compare it against similar EHRM infrastructure upgrade projects undertaken by the VA or other federal agencies. Key comparison points would include the scope of work (e.g., square footage, specific system components upgraded), geographic location (which can influence labor and material costs), and the year the contract was awarded (to account for inflation). Analyzing a portfolio of comparable contracts, ideally from the same agency and within a similar timeframe, would reveal if this award represents a fair market price or if it is significantly higher or lower than average. This analysis is crucial for determining value for money.

What are the primary risks associated with this firm fixed-price contract for EHRM infrastructure upgrades?

The primary risks associated with this firm fixed-price contract revolve around potential cost overruns and schedule delays if the contractor encounters unforeseen issues. While the fixed price shifts financial risk to Hurley JV, LLP, significant scope creep or unexpected site conditions (e.g., discovering hazardous materials, encountering complex existing infrastructure not fully documented) could lead to change orders, increasing the total cost. Schedule risks include delays in material procurement, labor shortages, or permitting issues, which could impact the 730-day duration. The VA's risk is primarily in ensuring the contractor adequately priced and planned for all contingencies.

How effective is the 'Full and Open Competition after Exclusion of Sources' approach in ensuring competitive pricing for infrastructure projects?

The 'Full and Open Competition after Exclusion of Sources' approach aims to balance broad competition with specific needs or limitations. It means that while the competition was open, certain potential bidders were intentionally excluded based on predefined criteria. This can be effective if the exclusions are justified and do not unduly restrict the pool of qualified bidders. If the excluded sources represented significant competition, the final price might be higher than if all potential bidders were included. The effectiveness hinges on the rationale for exclusion and the number and competitiveness of the remaining bidders (5 in this case).

What are the historical spending patterns of the Department of Veterans Affairs on EHRM infrastructure and related construction projects?

Analyzing historical spending patterns of the VA on EHRM infrastructure and related construction is vital for context. This would involve examining annual budget allocations and actual expenditures for IT infrastructure, facility upgrades, and specific EHRM-related projects over several fiscal years. Trends in spending can indicate the agency's priorities, the scale of its investments in modernization, and the typical contract values and durations. Understanding these patterns helps in evaluating whether the $44.7 million award is consistent with past investments or represents a significant shift in spending for such projects.

What are the potential implications of this contract on the local Tuscaloosa, Alabama economy and workforce?

This $44.7 million contract for infrastructure upgrades is likely to have a positive impact on the local Tuscaloosa, Alabama economy. It will create jobs in the construction sector, potentially requiring skilled labor for various trades. The prime contractor, Hurley JV, LLP, may also source materials and services locally, further stimulating economic activity. Additionally, the improved infrastructure will support the VA's mission, indirectly benefiting the community by ensuring reliable healthcare services for veterans. The duration of the project (2 years) suggests a sustained period of economic activity and employment opportunities.

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: 36C77625R0025

Offers Received: 5

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: $44,743,288

Exercised Options: $44,743,288

Current Obligation: $44,743,288

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline