VA awards $18.9M contract for EHRM infrastructure upgrades in Wilmington, DE

Contract Overview

Contract Amount: $18,885,000 ($18.9M)

Contractor: Fdcd II Joint Venture, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-05

End Date: 2027-02-05

Contract Duration: 365 days

Daily Burn Rate: $51.7K/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: EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION- WILMINGTON

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19801

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.9 million to FDCD II JOINT VENTURE, LLC for work described as: EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION- WILMINGTON Key points: 1. Contract awarded to FDCD II JOINT VENTURE, LLC for construction services. 2. Project aims to upgrade Electronic Health Record Management (EHRM) infrastructure. 3. Contract duration is 365 days, with an estimated completion date of February 5, 2027. 4. The contract type is Firm Fixed Price, indicating predictable costs for the government. 5. Awarded under full and open competition after exclusion of sources. 6. The base value of the contract is $5.17M, with potential for growth.

Value Assessment

Rating: good

The base contract value of $5.17M appears reasonable for infrastructure upgrades of this nature, though a full comparison requires detailed project scope. The total potential value of $18.9M suggests significant scope for modifications or additional work. Benchmarking against similar construction projects for federal healthcare facilities would provide a clearer picture of value for money. The firm fixed price structure helps mitigate cost overruns.

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 multiple vendors were likely considered. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. This method ensures a broad range of potential contractors could participate.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it helps ensure the government secures services at a fair market price, preventing potential overspending that could occur with less competitive solicitations.

Public Impact

Benefits the Department of Veterans Affairs by improving critical healthcare IT infrastructure. Enhances the functionality and reliability of the Electronic Health Record Management system. Services are delivered in Wilmington, Delaware, impacting local VA facilities. Potential for job creation in the construction sector within the specified geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the significant difference between base and total potential value.
Reliance on a single joint venture for critical infrastructure upgrades requires careful performance monitoring.

Positive Signals

Firm Fixed Price contract type limits cost uncertainty.
Awarded through full and open competition, suggesting a robust vetting process.
Clear project timeline with defined start and end dates.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting the IT infrastructure needs of a federal healthcare agency. The construction market for specialized federal facilities can be competitive, with pricing influenced by factors such as security requirements, specialized materials, and the need for minimal disruption to ongoing operations. Comparable spending benchmarks would typically be derived from similar VA or DoD facility construction projects.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this award (ss: false, sb: false). While the prime contractor is a joint venture, further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the construction and IT infrastructure scope.

Oversight & Accountability

Oversight 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 and performance expectations. Transparency is facilitated through federal contract databases, though specific project milestones and detailed spending breakdowns may not be publicly available.

Related Government Programs

Veterans Health Administration IT Modernization
Federal Healthcare Facility Construction
Electronic Health Record Systems

Risk Flags

Potential for cost overruns due to large difference between base and total potential value.
Risk of project delays impacting critical EHRM infrastructure.
Need to verify contractor's past performance on similar federal projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.9 million to FDCD II JOINT VENTURE, LLC. EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION- WILMINGTON

Who is the contractor on this award?

The obligated recipient is FDCD II JOINT VENTURE, 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 $18.9 million.

What is the period of performance?

Start: 2026-02-05. End: 2027-02-05.

What is the specific nature of the EHRM infrastructure upgrades required by this contract?

The contract specifies 'EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION' in Wilmington, DE. While the exact technical specifications are not detailed in the provided data, this typically involves physical construction work necessary to support or enhance the Electronic Health Record Management system. This could include upgrades to data centers, server rooms, network cabling, power and cooling systems, or physical security enhancements within VA facilities to ensure the robust and reliable operation of the EHRM. The scope is likely focused on the physical environment that houses and supports the digital health records infrastructure.

How does the total potential value of $18.9M compare to the base value of $5.17M, and what does this imply?

The significant difference between the base contract value ($5.17M) and the total potential value ($18.9M) suggests that the contract includes substantial options, indefinite-delivery/indefinite-quantity (IDIQ) components, or provisions for significant modifications and task orders. This structure allows the VA flexibility to scale the project or address unforeseen needs related to EHRM infrastructure upgrades. For taxpayers, it implies that while the initial commitment is $5.17M, the ultimate cost could be nearly four times higher, necessitating careful monitoring of scope and necessity for any additional work to ensure cost-effectiveness.

What is the track record of FDCD II JOINT VENTURE, LLC with federal contracts, particularly with the VA?

Information on the specific track record of 'FDCD II JOINT VENTURE, LLC' is not provided in the data snippet. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past performance history, including contract awards, performance ratings, and any past disputes or issues. Understanding their experience with similar construction projects, especially for federal healthcare facilities and IT infrastructure, is crucial for evaluating their capability to successfully execute this EHRM upgrade contract.

What are the risks associated with a 365-day contract duration for infrastructure upgrades?

A 365-day duration for significant infrastructure upgrades presents several potential risks. Firstly, construction projects can be susceptible to delays caused by unforeseen site conditions, weather, material shortages, or labor issues, potentially extending the timeline beyond the planned year. Secondly, if the upgrades are critical for EHRM functionality, any significant delays could impact the VA's operational efficiency and patient care delivery. Lastly, a fixed one-year term might create pressure to complete work rapidly, potentially compromising quality if not managed diligently. Effective project management and contingency planning are vital to mitigate these risks.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contracting method impact price discovery?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method is a variation of full and open competition. It implies that the solicitation was initially intended for broad competition, but certain sources were excluded based on specific criteria (e.g., capabilities, past performance, or specific requirements). While still competitive, the exclusion of some potential bidders might slightly limit the breadth of price discovery compared to unrestricted full and open competition. However, with 3 bidders noted, it suggests sufficient competition remained to drive a reasonably competitive price, especially under a Firm Fixed Price structure.

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: 36C77625B0044

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 408 EAST 4TH STREET, BRIDGEPORT, PA, 19405

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, 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: $18,885,000

Exercised Options: $18,885,000

Current Obligation: $18,885,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline