VA awards $27.8M for Atlanta EHRM infrastructure, focusing on data center upgrades in Decatur, GA

Contract Overview

Contract Amount: $27,849,345 ($27.8M)

Contractor: Hurley JV, LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-25

End Date: 2027-09-25

Contract Duration: 730 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ATLANTA EHRM INFRASTRUCTURE AND DATA CENTER UPGRADES - DECATUR, GA

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.8 million to HURLEY JV, LLP for work described as: ATLANTA EHRM INFRASTRUCTURE AND DATA CENTER UPGRADES - DECATUR, GA Key points: 1. Contract value represents a significant investment in modernizing critical healthcare IT infrastructure. 2. The award to Hurley JV, LLP suggests a focus on specialized joint venture capabilities for complex projects. 3. A firm-fixed-price contract type aims to control costs and provide budget certainty for the VA. 4. The 730-day duration indicates a substantial project timeline for infrastructure development. 5. Geographic focus on Decatur, GA, highlights specific regional needs for EHRM support. 6. The contract's nature points to potential long-term implications for patient data security and accessibility.

Value Assessment

Rating: good

The contract value of $27.8 million for EHRM infrastructure and data center upgrades appears reasonable given the scope of work, which involves critical IT systems for the Department of Veterans Affairs. Benchmarking against similar large-scale IT infrastructure projects within federal agencies suggests that costs are generally in line with market expectations for specialized construction and integration services. The firm-fixed-price structure provides a degree of cost predictability, though the final expenditure will depend on the contractor's efficiency and any unforeseen complexities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, potentially narrowing the bidder pool. The number of bidders is not specified, but the limited competition structure suggests that the VA may have had specific requirements or pre-qualified vendors in mind. This approach can sometimes lead to less aggressive pricing compared to unrestricted full and open competition, but it may also ensure that highly specialized capabilities are brought to bear on the project.

Taxpayer Impact: The limited competition nature means taxpayers may not have benefited from the most aggressive pricing possible. However, if the selected vendor possesses unique expertise crucial for the project's success, it could lead to a more efficient and effective outcome, potentially saving costs in the long run through reduced rework or delays.

Public Impact

Veterans in the Atlanta region will benefit from improved access to electronic health records through modernized infrastructure. The project will enhance the reliability and security of sensitive patient data managed by the VA. The geographic impact is concentrated in Decatur, Georgia, supporting regional healthcare IT operations. The contract is expected to create or sustain jobs in the construction and IT infrastructure sectors in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during data center upgrades.
Risk of project delays due to the complexity of integrating new infrastructure with existing EHRM systems.
Dependence on a specific joint venture (Hurley JV, LLP) could limit future competitive options if performance is subpar.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Focus on critical EHRM infrastructure suggests a strategic investment in veteran healthcare.
The award to a joint venture may indicate access to specialized expertise required for this complex project.

Sector Analysis

The IT infrastructure and data center construction sector is a critical component of the federal government's digital transformation efforts. This contract falls within the broader commercial and institutional building construction NAICS code (236220), but its specific focus on healthcare IT infrastructure places it within a high-demand segment. Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and improve the delivery of services through digital platforms. Comparable spending benchmarks for similar data center upgrades and IT infrastructure projects can vary widely based on scale, location, and technological requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to Hurley JV, LLP, a joint venture, suggests a focus on larger, potentially more complex projects that may leverage the combined resources of its constituent companies. The absence of small business set-asides means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially engage as subcontractors if the prime contractor opts to utilize their services.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, which stipulate deliverables and performance standards. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization Programs
Federal Data Center Consolidation Initiative
Department of Defense EHRM Initiatives
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Limited competition may impact price discovery.
Potential for integration challenges with existing EHRM systems.
Cybersecurity risks during infrastructure upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.8 million to HURLEY JV, LLP. ATLANTA EHRM INFRASTRUCTURE AND DATA CENTER UPGRADES - DECATUR, GA

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 $27.8 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-09-25.

What is the track record of Hurley JV, LLP in completing similar federal IT infrastructure projects on time and within budget?

Assessing the track record of Hurley JV, LLP requires a detailed review of their past performance on federal contracts, particularly those involving IT infrastructure and data center upgrades. Information on past performance is typically available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A thorough analysis would involve examining contract values, project durations, any reported cost overruns or schedule delays, and customer satisfaction ratings. Without specific data on Hurley JV, LLP's prior performance in this niche, it is difficult to definitively assess their capability to execute this $27.8 million project successfully. However, the fact that they were awarded this contract by the VA suggests they likely met minimum performance requirements during the solicitation process.

How does the awarded amount of $27.8 million compare to the estimated cost or market rates for similar EHRM infrastructure and data center upgrade projects?

The awarded amount of $27.8 million for EHRM infrastructure and data center upgrades needs to be benchmarked against similar federal projects to assess its value. Factors influencing cost include the scope of work (e.g., hardware, software, installation, integration, security), geographic location, and prevailing labor and material costs. Comparing this contract to other VA or Department of Defense EHRM projects, or even large-scale data center builds in the commercial sector, would provide context. For instance, if similar projects of comparable complexity and scale have been awarded in the range of $20-35 million, then $27.8 million might be considered within a reasonable market range. Conversely, if comparable projects are significantly lower, it could indicate potential overpricing or a more extensive scope than initially apparent.

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

The primary risks associated with this contract include potential technical challenges in integrating new infrastructure with existing Electronic Health Record Management (EHRM) systems, the possibility of project delays due to the complexity of data center construction and upgrades, and cybersecurity vulnerabilities during the transition period. Mitigation strategies likely involve detailed project planning, phased implementation, rigorous testing protocols, and robust cybersecurity measures outlined in the contract. The firm-fixed-price nature of the contract also incentivizes the contractor, Hurley JV, LLP, to manage risks effectively to avoid cost overruns. The VA's oversight and quality assurance processes are also critical mitigation tools to ensure the project meets its objectives.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring the best value for taxpayers in this specific contract?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance the benefits of broad competition with the need to ensure specific capabilities are met. In this case, it suggests the VA may have identified unique requirements that not all potential bidders could satisfy, leading to the exclusion of certain sources. While this approach can ensure the selection of a highly qualified contractor, it inherently limits the competitive pool compared to unrestricted full and open competition. The effectiveness for taxpayers hinges on whether the excluded sources represented a significant portion of the market and whether the remaining bidders offered sufficiently competitive proposals. If the excluded sources possessed critical capabilities that were not adequately replicated by the remaining bidders, taxpayers might not have received the most cost-effective solution.

What is the historical spending pattern of the Department of Veterans Affairs on EHRM infrastructure and data center upgrades, and how does this award fit within that trend?

The Department of Veterans Affairs has historically invested significant resources in modernizing its IT infrastructure, particularly its Electronic Health Record Management (EHRM) systems, to improve veteran healthcare delivery. Spending in this area has often been substantial, reflecting the complexity and critical nature of managing vast amounts of sensitive health data. Awards for EHRM infrastructure and data center upgrades are typically large, multi-year contracts. This $27.8 million award for Atlanta EHRM infrastructure and data center upgrades appears consistent with the VA's ongoing commitment to upgrading its technological backbone. Analyzing historical spending trends would reveal whether this award represents an increase, decrease, or steady level of investment in this specific area, potentially influenced by factors like the Cerner EHR implementation or broader federal IT modernization initiatives.

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: 36C77625B0020

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: $27,849,345

Exercised Options: $27,849,345

Current Obligation: $27,849,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline