VA Awards $29.7M Contract to Semper Tek for EHRM Infrastructure Upgrades at Alvin C. York VAMC

Contract Overview

Contract Amount: $29,743,000 ($29.7M)

Contractor: Semper TEK Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-04

End Date: 2027-11-24

Contract Duration: 720 days

Daily Burn Rate: $41.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE GENERAL CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, QUALIFIED SUPERVISION, AND OTHER ITEMS TO COMPLETE PROJECT EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION AT ALVIN C. YORK VAMC.

Place of Performance

Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37129

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.7 million to SEMPER TEK INC for work described as: THE GENERAL CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, QUALIFIED SUPERVISION, AND OTHER ITEMS TO COMPLETE PROJECT EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION AT ALVIN C. YORK VAMC. Key points: 1. Contract focuses on critical infrastructure upgrades for the Veterans Affairs Electronic Health Record Modernization (EHRM) program. 2. Semper Tek Inc. is the prime contractor for this large-scale construction project. 3. The contract is a Firm Fixed Price award, indicating defined costs for the scope of work. 4. This project falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $29.7 million for infrastructure upgrades appears reasonable given the scope of work at a VAMC facility. Benchmarking against similar large-scale construction projects at federal medical centers would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process but with specific criteria limiting the pool of eligible bidders. This method aims for fair pricing while ensuring specialized capabilities.

Taxpayer Impact: Taxpayer funds are allocated for essential facility upgrades to support the EHRM program, aiming for improved veteran healthcare delivery.

Public Impact

Enhances critical infrastructure at a Veterans Affairs Medical Center, directly impacting healthcare delivery. Supports the broader Electronic Health Record Modernization (EHRM) initiative, aiming for improved patient care and data management. Creates construction jobs and economic activity in the Tennessee region. Ensures the long-term operational capability of a key VA facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Dependence on Semper Tek Inc. for successful project completion.
Scope creep could impact final cost and timeline.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Project addresses essential infrastructure needs for healthcare.
Competition, even if limited, suggests efforts to secure fair value.

Sector Analysis

This contract is within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar VAMC construction projects would be relevant for detailed cost analysis.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large construction project.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency, implying internal oversight. The contract duration of 720 days (6 years) suggests a need for ongoing monitoring of progress and adherence to specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Large contract value requires close monitoring.
Infrastructure upgrades are critical for EHRM success.
Firm Fixed Price contract provides cost certainty.
Potential for unforeseen construction challenges.
Limited competition may warrant additional scrutiny on pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.7 million to SEMPER TEK INC. THE GENERAL CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, QUALIFIED SUPERVISION, AND OTHER ITEMS TO COMPLETE PROJECT EHRM INFRASTRUCTURE UPGRADES CONSTRUCTION AT ALVIN C. YORK VAMC.

Who is the contractor on this award?

The obligated recipient is SEMPER TEK 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 $29.7 million.

What is the period of performance?

Start: 2025-12-04. End: 2027-11-24.

What specific EHRM infrastructure upgrades are included in this contract, and how do they align with the overall EHRM program goals?

The contract specifies 'EHRM Infrastructure Upgrades Construction' at the Alvin C. York VAMC. While the exact technical details are not provided, these upgrades are crucial for supporting the functionality and reliability of the Electronic Health Record Modernization program. This includes ensuring robust network, power, and physical space requirements necessary for the new EHR system to operate effectively and securely, ultimately aiming to improve patient care and data management for veterans.

Given the 'limited' competition, what measures are in place to ensure the $29.7 million price is competitive and represents good value for taxpayers?

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies a competitive process but with specific pre-qualification criteria. The Department of Veterans Affairs likely utilized cost-benefit analyses, historical pricing data, and potentially independent government cost estimates to validate the proposed price. The Firm Fixed Price structure also shifts risk to the contractor, incentivizing them to manage costs effectively.

What are the primary risks associated with this construction project, and what mitigation strategies are likely employed by the VA?

Primary risks include potential construction delays due to unforeseen site conditions, material shortages, or labor issues, which could lead to cost overruns. Scope creep is another risk if additional requirements emerge during the project. The VA likely mitigates these through detailed contract specifications, rigorous project oversight, performance bonds from the contractor, and clear change order procedures to manage any necessary modifications.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77625R0066

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 848 NANDINO BLVD, LEXINGTON, KY, 40511

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: $29,743,000

Exercised Options: $29,743,000

Current Obligation: $29,743,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline