VA awards $23M construction contract for EHRM infrastructure at Fort Meade VAMC to MDM Construction LLC

Contract Overview

Contract Amount: $22,968,940 ($23.0M)

Contractor: MDM Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-18

End Date: 2028-09-02

Contract Duration: 1,080 days

Daily Burn Rate: $21.3K/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: EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE FORT MEADE VAMC LOCATED IN FORT MEADE, SD

Place of Performance

Location: FORT MEADE, MEADE County, SOUTH DAKOTA, 57741

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.0 million to MDM CONSTRUCTION LLC for work described as: EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE FORT MEADE VAMC LOCATED IN FORT MEADE, SD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for construction services, specifically EHRM infrastructure upgrades. 3. The duration of the contract is 1080 days, spanning nearly three years. 4. The award amount of $22.97 million represents a significant investment in facility modernization. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The project is located in Fort Meade, South Dakota, indicating a specific geographic focus.

Value Assessment

Rating: good

The contract value of $22.97 million for EHRM infrastructure construction appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale construction projects for healthcare facilities would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the government has a clear understanding of the project's requirements and associated costs, which can help control expenditures.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 5 bidders indicates a moderate level of competition for this construction project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Veterans in South Dakota will benefit from improved healthcare infrastructure through modernized EHRM systems. The project will deliver essential construction services to upgrade critical medical facility components. The geographic impact is concentrated in Fort Meade, South Dakota, supporting local infrastructure development. The construction project is expected to create or sustain jobs within the construction sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependence on the timely completion of EHRM system integration alongside physical infrastructure upgrades.
Risk of contractor performance issues impacting project timelines and quality.
Geographic remoteness of Fort Meade, SD, could present logistical challenges for materials and labor.

Positive Signals

Award to a single contractor (MDM Construction LLC) can streamline communication and project management.
Firm fixed-price contract provides cost predictability for the Department of Veterans Affairs.
The project addresses critical infrastructure needs for electronic health records, enhancing patient care.
The contract specifies a clear end date, aiding in project planning and resource allocation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The healthcare construction sub-sector is particularly important, given the increasing demand for modernized medical facilities and the integration of advanced technologies like EHRM. Spending in this area is influenced by government healthcare initiatives, aging infrastructure, and the need for specialized medical environments. Comparable spending benchmarks would involve analyzing other VA construction projects or similar federal healthcare facility upgrades.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, MDM Construction LLC, is not explicitly identified as a small business in the provided details. There is no information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if small businesses will be involved in fulfilling parts of this large construction project.

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 in the firm fixed-price contract terms, which stipulate deliverables and timelines. Transparency can be assessed through publicly available contract data and reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Electronic Health Record Modernization (EHRM) Program
Federal Healthcare Construction Projects
Department of Veterans Affairs Capital Asset Management
Military Construction Projects

Risk Flags

Potential for scope creep if EHRM integration requirements evolve during construction.
Dependency on timely availability of specialized construction materials and skilled labor.
Risk of cybersecurity vulnerabilities during infrastructure upgrades impacting sensitive patient data.
Coordination challenges between construction timelines and EHRM software deployment schedules.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.0 million to MDM CONSTRUCTION LLC. EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE FORT MEADE VAMC LOCATED IN FORT MEADE, SD

Who is the contractor on this award?

The obligated recipient is MDM CONSTRUCTION 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 $23.0 million.

What is the period of performance?

Start: 2025-09-18. End: 2028-09-02.

What is the track record of MDM Construction LLC in completing similar federal construction projects, particularly those involving healthcare infrastructure?

Information regarding MDM Construction LLC's specific track record with federal projects, especially those related to healthcare infrastructure and EHRM systems, is not detailed in the provided data. A thorough review of past performance evaluations, contract completion history, and any reported disputes or challenges on previous government contracts would be necessary to assess their reliability and expertise. Examining their experience with projects of similar scale and complexity, particularly within the Department of Veterans Affairs or other healthcare systems, is crucial for understanding their capability to successfully execute this $22.97 million contract.

How does the awarded amount of $22.97 million compare to the estimated cost or benchmark for similar EHRM infrastructure construction projects at other VAMC facilities?

Direct comparison of the $22.97 million award to specific benchmark data for similar EHRM infrastructure construction projects at other VAMC facilities requires access to detailed cost breakdowns and project scopes for those comparable contracts. However, the award amount represents a significant investment, suggesting a substantial scope of work. Factors such as geographic location, specific facility needs, prevailing labor and material costs in South Dakota, and the complexity of integrating EHRM infrastructure can influence project costs. A comprehensive value analysis would involve comparing cost-per-square-foot, cost-per-bed, or cost-per-system-component metrics across multiple, similarly scoped VA projects.

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

Key risks in EHRM infrastructure construction include unforeseen site conditions, integration challenges with existing systems, potential delays in material delivery or specialized labor, and cybersecurity vulnerabilities during the upgrade process. This contract, being a firm fixed-price award, shifts much of the cost-overrun risk to the contractor, MDM Construction LLC. Mitigation strategies likely include detailed project planning, phased implementation, rigorous quality control, and clear communication protocols between the VA and the contractor. The contract's defined duration and scope also serve as risk management tools by setting clear expectations and timelines.

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

The EHRM infrastructure upgrades are expected to significantly enhance the delivery of healthcare services by improving the reliability, speed, and accessibility of patient health records. Modernized infrastructure can support more robust data management, facilitate seamless information sharing among healthcare providers, and enable advanced telehealth capabilities. This ultimately aims to improve patient safety, reduce administrative burdens on clinicians, and allow for more efficient and personalized care for veterans. The project's success is critical for the VA's broader goal of a unified, modern electronic health record system across all its facilities.

How has federal spending on healthcare facility construction and modernization evolved over the past five years, and where does this contract fit within that trend?

Federal spending on healthcare facility construction and modernization has generally seen consistent investment, driven by the need to maintain and upgrade aging infrastructure, incorporate new medical technologies, and expand capacity to meet veteran and public health demands. The Department of Veterans Affairs, in particular, has allocated substantial funds towards modernization efforts, including EHRM implementation. This $22.97 million contract for EHRM infrastructure at Fort Meade VAMC aligns with this trend of targeted investment in critical healthcare infrastructure. It reflects a commitment to improving the technological backbone of healthcare delivery within the VA system.

What is the significance of awarding this contract through 'full and open competition after exclusion of sources' with 5 bidders?

The 'full and open competition after exclusion of sources' designation, coupled with 5 bidders, signifies a robust procurement process that aimed to maximize competition while potentially adhering to specific statutory requirements that might have initially limited the pool of eligible bidders. The presence of five distinct bids suggests that multiple capable contractors were interested and able to compete for this project. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing and selecting the offeror that provides the best overall value, balancing cost, technical capability, and other factors.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77625B0015

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2215 SHEYENNE ST, WEST FARGO, ND, 58078

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

Financial Breakdown

Contract Ceiling: $22,968,940

Exercised Options: $22,968,940

Current Obligation: $22,968,940

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline