VA awards $47.3M contract for EHRM infrastructure upgrades in Lebanon, PA

Contract Overview

Contract Amount: $47,279,808 ($47.3M)

Contractor: Bridger Richard JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-22

End Date: 2027-03-24

Contract Duration: 548 days

Daily Burn Rate: $86.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT EHRM INFRASTRUCTURE UPGRADES LEBANON, PA

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.3 million to BRIDGER RICHARD JV LLC for work described as: CONSTRUCT EHRM INFRASTRUCTURE UPGRADES LEBANON, PA Key points: 1. Contract value represents a significant investment in modernizing healthcare IT infrastructure. 2. Competition was full and open, suggesting a robust bidding process. 3. The contract duration of 548 days indicates a substantial project scope. 4. Fixed-price contract type aims to control costs and manage financial risk. 5. Project location in Pennsylvania highlights regional focus for healthcare facility upgrades. 6. The award to BRIDGER RICHARD JV LLC suggests a capable contractor for complex construction.

Value Assessment

Rating: good

The contract value of $47.3 million for EHRM infrastructure upgrades appears reasonable given the scope of modernizing a healthcare facility's electronic health record management system. Benchmarking against similar large-scale IT infrastructure projects within the Department of Veterans Affairs or other federal agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to establish cost certainty, which is positive for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders suggests a competitive environment, which typically drives better pricing and service offerings for the government. The agency's decision to use full and open competition is a positive sign for maximizing taxpayer value.

Taxpayer Impact: A competitive bidding process generally leads to more favorable pricing for the government, ensuring that taxpayer funds are used efficiently. It also encourages innovation and quality from contractors vying for the award.

Public Impact

Veterans in the Lebanon, PA area will benefit from improved healthcare services through modernized EHR systems. The project will enhance the operational efficiency and data security of the VA facility. Construction and IT professionals in Pennsylvania may see employment opportunities related to this project. The upgrade supports the broader VA mission to provide seamless and effective healthcare to service members and veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of project delays impacting the timeline for EHR system integration.
Dependence on contractor performance for successful implementation and system uptime.

Positive Signals

Fixed-price contract helps mitigate budget risks.
Full and open competition suggests a well-defined scope and competitive pricing.
Experienced contractor likely selected through a rigorous evaluation process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on IT infrastructure upgrades for a healthcare facility. The market for healthcare IT construction and modernization is substantial, driven by the need for advanced electronic health record systems, cybersecurity, and facility upgrades. Comparable spending benchmarks would involve looking at other large-scale federal construction projects or IT modernization efforts within healthcare systems.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is a joint venture, the implications for subcontracting to small businesses are not detailed in the provided data. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms likely include regular progress reports, site inspections, and performance reviews. Accountability measures are inherent in the fixed-price contract terms, and transparency is generally maintained through federal contract databases. The Inspector General's office may conduct audits or investigations if concerns arise.

Related Government Programs

Veterans Health Administration EHR Modernization Program
Federal IT Infrastructure Modernization Projects
VA Capital Asset and Business Management Improvement Act Projects

Risk Flags

Potential for scope creep impacting fixed-price contract.
Dependency on contractor's specialized expertise for EHRM infrastructure.
Cybersecurity risks during infrastructure transition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.3 million to BRIDGER RICHARD JV LLC. CONSTRUCT EHRM INFRASTRUCTURE UPGRADES LEBANON, PA

Who is the contractor on this award?

The obligated recipient is BRIDGER RICHARD JV 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 $47.3 million.

What is the period of performance?

Start: 2025-09-22. End: 2027-03-24.

What is the track record of BRIDGER RICHARD JV LLC in completing similar federal construction projects, particularly those involving IT infrastructure?

A review of federal contract databases indicates that BRIDGER RICHARD JV LLC has been awarded contracts for various construction and renovation projects. However, specific details regarding their experience with large-scale EHRM infrastructure upgrades are not immediately available from the provided data. Further investigation into their past performance on projects of similar complexity, duration, and technical requirements would be necessary to fully assess their capabilities and track record in this specialized area. Examining past performance evaluations and any reported issues on previous contracts would provide a more comprehensive understanding of their reliability and expertise.

How does the awarded amount of $47.3 million compare to the estimated cost or benchmark for similar EHRM infrastructure upgrade projects within the VA or other federal agencies?

Without specific benchmark data for comparable EHRM infrastructure upgrade projects, it is challenging to definitively assess the value for money. However, $47.3 million represents a significant investment, suggesting a comprehensive scope of work. Factors such as the size of the facility, the extent of the required IT upgrades, and the complexity of integrating new systems into existing infrastructure would influence the cost. A detailed cost-benefit analysis comparing this award to similar projects, considering factors like square footage, system complexity, and project duration, would be required for a precise benchmark. The fixed-price nature of the contract suggests the agency aimed for cost certainty within this budget.

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 construction delays due to unforeseen site conditions or material shortages, and the possibility of cost overruns if the fixed-price contract does not adequately account for all potential issues. Integration challenges with existing IT systems and cybersecurity vulnerabilities during the upgrade process also pose significant risks. Mitigation strategies likely include robust project management, detailed site assessments prior to construction, contingency planning, and strict adherence to security protocols. The fixed-price nature of the contract itself serves as a risk mitigation tool for the government by capping the total expenditure, provided the scope is well-defined.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach for this type of project, and what does it imply for price discovery?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach, while seemingly contradictory, typically means that the agency initially intended full and open competition but later excluded specific sources for justified reasons (e.g., sole-source justification for a specific technology or capability). If it truly resulted in three bidders, it implies a competitive process occurred, which is generally good for price discovery. However, the 'exclusion of sources' aspect warrants scrutiny to ensure it did not unduly limit competition. If the exclusion was minimal and three capable bidders participated, it suggests a reasonable level of competition was achieved, leading to a more efficient price discovery process than a sole-source award.

What is the historical spending pattern for EHRM infrastructure upgrades at this specific VA facility or within the Pennsylvania region?

Historical spending data for EHRM infrastructure upgrades at this specific Lebanon, PA VA facility is not provided in the current data. To assess historical patterns, one would need to access VA budget and contract award databases, filtering by facility, project type (EHRM infrastructure), and relevant timeframes. Analyzing past expenditures would reveal trends in investment, frequency of upgrades, and average project costs. This context is crucial for understanding if the current $47.3 million award represents a typical investment, a significant increase, or a catch-up expenditure for deferred maintenance or modernization.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77625R0055

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6603 N HIAWATHA AVE, CHICAGO, IL, 60646

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,279,808

Exercised Options: $47,279,808

Current Obligation: $47,279,808

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline