VA awards $24.78M contract for EHRM infrastructure upgrades in Wilkes-Barre, PA

Contract Overview

Contract Amount: $24,780,000 ($24.8M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-22

End Date: 2027-09-22

Contract Duration: 730 days

Daily Burn Rate: $33.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONSTRUCT EHRM INFRASTRUCTURE UPGRADES WILKES-BARRE, PA

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18711

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24.8 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: CONSTRUCT EHRM INFRASTRUCTURE UPGRADES WILKES-BARRE, PA Key points: 1. Contract awarded to Senate Builders & Construction Managers, Inc. for EHRM infrastructure. 2. Project aims to enhance electronic health record management systems. 3. Located in Wilkes-Barre, Pennsylvania, impacting local VA facilities. 4. Contract duration is 730 days, ending September 22, 2027. 5. Firm Fixed Price contract type suggests predictable costs. 6. This award represents a significant investment in healthcare IT infrastructure.

Value Assessment

Rating: good

The contract value of $24.78 million for EHRM infrastructure upgrades appears reasonable given the scope of construction and technology integration required. Benchmarking against similar large-scale federal construction projects for healthcare facilities suggests this price point is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded prior to the final award. The data indicates 4 bidders participated in this limited competition. This level of competition suggests a moderate degree of price discovery, but potentially less than a truly open solicitation.

Taxpayer Impact: A limited competition may result in slightly higher prices compared to full and open competition, but the presence of multiple bidders helps to ensure a degree of cost reasonableness for taxpayers.

Public Impact

Veterans in the Wilkes-Barre, PA area will benefit from improved healthcare services through enhanced EHRM systems. The project will deliver upgraded physical infrastructure necessary for the functioning of modern electronic health records. Geographic impact is concentrated in Wilkes-Barre, PA, supporting local VA medical centers. The construction and integration work will likely create jobs in the local Pennsylvania economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed-price structure.
Dependence on contractor's ability to manage complex IT infrastructure integration alongside construction.
Risk of delays impacting the modernization timeline for EHRM systems.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Award to an established construction management firm suggests experience in similar projects.
Clear end date and defined scope aim to manage project execution.

Sector Analysis

This contract falls within the broader construction and IT infrastructure sector, specifically focusing on healthcare technology modernization. The market for healthcare IT infrastructure is substantial, driven by the need for secure, efficient, and interoperable electronic health record systems. Comparable spending benchmarks for federal healthcare facility upgrades and IT system integrations can vary widely based on scale and complexity, but this award represents a significant, targeted investment.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the award was not set aside for small businesses and the prime contractor is not identified as a small business. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary benefits for small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data.

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 within the agreed budget. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization Programs
Federal Electronic Health Record (EHR) Initiatives
Department of Veterans Affairs Construction Projects
Healthcare Infrastructure Improvement Programs

Risk Flags

Potential for cost overruns
Risk of project delays
Integration complexity
Contractor performance history unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.8 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. CONSTRUCT EHRM INFRASTRUCTURE UPGRADES WILKES-BARRE, PA

Who is the contractor on this award?

The obligated recipient is SENATE BUILDERS & CONSTRUCTION MANAGERS, INC..

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 $24.8 million.

What is the period of performance?

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

What is the track record of Senate Builders & Construction Managers, Inc. with federal contracts, particularly within the Department of Veterans Affairs?

Senate Builders & Construction Managers, Inc. has a history of federal contracting, though specific details regarding their track record with the Department of Veterans Affairs (VA) and similar EHRM infrastructure projects require deeper analysis of contract databases. A review of past performance would involve examining prior VA awards, contract values, performance evaluations, and any history of disputes or contract modifications. Understanding their experience with large-scale construction and IT integration projects is crucial for assessing their capability to successfully execute this $24.78 million contract within the specified timeline and budget. Without specific past performance data, it's difficult to definitively assess their reliability for this particular project.

How does the awarded price of $24.78 million compare to similar EHRM infrastructure upgrade projects within the federal government?

Comparing the $24.78 million award for EHRM infrastructure upgrades requires identifying comparable federal projects in terms of scope, scale, and technological complexity. Projects involving the modernization of critical IT infrastructure within healthcare facilities, especially those mandated by large federal agencies like the VA, can vary significantly in cost. Factors such as geographic location, existing infrastructure conditions, specific EHR system requirements, and the extent of construction involved all influence pricing. Preliminary assessment suggests the price is within a reasonable range for a project of this nature, but a detailed benchmark analysis against projects with similar characteristics (e.g., square footage, system integration complexity, duration) would provide a more precise value-for-money evaluation.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, integration challenges between new infrastructure and existing IT systems, and the possibility of cost overruns despite the firm fixed-price (FFP) structure. Mitigation strategies typically involve robust project management, detailed site assessments prior to construction, phased implementation plans, and clear communication protocols between the contractor and the VA. The FFP contract itself mitigates financial risk for the government by capping the total cost, placing the burden of managing cost fluctuations on the contractor. However, the VA must ensure thorough oversight to prevent scope creep or quality compromises.

What is the expected impact of these EHRM infrastructure upgrades on the delivery of healthcare services to veterans?

These EHRM infrastructure upgrades are expected to significantly enhance the delivery of healthcare services to veterans by improving the reliability, speed, and security of the electronic health record system. A robust and modern infrastructure is foundational for efficient data management, seamless access to patient information by healthcare providers, and the implementation of advanced health IT functionalities. This can lead to better-coordinated care, reduced medical errors, improved patient safety, and a more streamlined patient experience. The upgrades aim to ensure that the VA's IT systems can support current and future healthcare demands effectively.

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

Federal spending on healthcare IT infrastructure modernization has seen a consistent upward trend over the past five years, driven by the increasing digitization of healthcare, cybersecurity imperatives, and the need to replace aging systems. Agencies like the Department of Veterans Affairs have prioritized investments in upgrading their Electronic Health Record Management (EHRM) systems and associated infrastructure to improve patient care and operational efficiency. This $24.78 million contract for EHRM infrastructure upgrades in Wilkes-Barre represents a specific, localized investment within this broader federal strategy. It aligns with the government's ongoing commitment to modernizing its healthcare IT backbone, reflecting a larger pattern of significant federal outlays in this critical sector.

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: 36C77625R0056

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 DEKALB PIKE, EAST NORRITON, PA, 19401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,780,000

Exercised Options: $24,780,000

Current Obligation: $24,780,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline