VA awards $2.8M engineering contract for EHRM IU Project at Danville VAMC to Vali Cooper International LLC

Contract Overview

Contract Amount: $2,813,419 ($2.8M)

Contractor: Vali Cooper International LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-05

End Date: 2028-11-16

Contract Duration: 2,660 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AE SERVICE FOR EHRM IU PROJECT AT THE DANVILLE VAMC

Place of Performance

Location: DANVILLE, VERMILION County, ILLINOIS, 61832

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to VALI COOPER INTERNATIONAL LLC for work described as: AE SERVICE FOR EHRM IU PROJECT AT THE DANVILLE VAMC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm fixed price, which shifts cost risk to the contractor. 3. The duration of the contract is over 5 years, indicating a long-term need for these services. 4. The awardee, Vali Cooper International LLC, is a relatively new entity in federal contracting. 5. The contract is for engineering services, a critical component for facility upgrades and projects. 6. The project is located in Illinois, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

The contract value of $2.8 million over approximately 5 years for engineering services appears reasonable for a project of this nature. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar engineering contracts for VAMC projects would provide a clearer picture of whether the pricing is competitive. The firm fixed-price structure is generally favorable for the government in managing costs, provided the scope is well-defined.

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.' This indicates that while the competition was intended to be open, there was a prior exclusion of specific sources, which warrants further investigation into the justification for such exclusion. The number of bidders is not specified, but the 'full and open' designation suggests multiple entities had the opportunity to compete, which is generally positive for price discovery.

Taxpayer Impact: A competitive bidding process, even with prior exclusions, is intended to secure the best value for taxpayers. The level of competition directly influences the final price and the quality of services obtained.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, specifically the Danville VAMC, which will receive engineering services for its EHRM IU Project. The services delivered will support the modernization and upgrade of critical healthcare infrastructure. The geographic impact is localized to Danville, Illinois, potentially creating opportunities for local engineering firms and skilled labor. The project's success could lead to improved healthcare delivery and operational efficiency for veterans in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The justification for 'exclusion of sources' in a 'full and open' competition needs clarification to ensure no potential bidders were unfairly excluded.
Limited public information on Vali Cooper International LLC's track record and past performance makes it difficult to fully assess their capability and reliability for this significant project.
The long contract duration (over 5 years) increases the risk of scope creep or unforeseen cost increases if not meticulously managed.

Positive Signals

The use of a firm fixed-price contract shifts cost control and risk to the contractor, which is a positive for budget predictability.
Awarding under full and open competition, despite the exclusion clause, suggests an effort to leverage market competition for better outcomes.
The project addresses a critical need for the VA's Electronic Health Record Modernization (EHRM) program, indicating strategic alignment with government priorities.

Sector Analysis

Engineering services represent a significant segment of federal contracting, supporting a wide array of infrastructure, defense, and technology projects. The market is characterized by both large, established firms and specialized smaller businesses. This contract for the VA's EHRM IU Project fits within the broader trend of federal agencies investing in facility modernization and IT infrastructure upgrades to improve service delivery. Comparable spending benchmarks for similar VAMC engineering projects would typically range from hundreds of thousands to millions of dollars, depending on the project's complexity and scale.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further review of the contract's subcontracting plan would be necessary for a comprehensive analysis.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of cost control. Transparency regarding project milestones and performance could be enhanced through regular public reporting or updates on the VA's project management portals. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Veterans Health Administration IT Modernization
Electronic Health Record (EHR) Systems
VAMC Infrastructure Projects
Federal Engineering Services Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

Limited Contractor Performance History
Ambiguity in Competition Designation
Potential for Scope Creep in Long-Term Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.8 million to VALI COOPER INTERNATIONAL LLC. AE SERVICE FOR EHRM IU PROJECT AT THE DANVILLE VAMC

Who is the contractor on this award?

The obligated recipient is VALI COOPER INTERNATIONAL 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 $2.8 million.

What is the period of performance?

Start: 2021-08-05. End: 2028-11-16.

What is the specific scope of work for the EHRM IU Project at the Danville VAMC, and how does it align with the overall EHRM initiative?

The provided data does not detail the specific scope of work for the EHRM IU Project. However, 'IU' often refers to 'Interface Unit' or 'Integration Unit' within the context of large IT systems like EHRs. Therefore, it is likely that this engineering contract supports the integration, installation, or modification of hardware and software components necessary for the successful deployment and operation of the new Electronic Health Record system at the Danville VAMC. This would involve tasks such as site surveys, design modifications, installation oversight, and testing to ensure seamless data flow and system functionality. The project's alignment with the broader EHRM initiative is crucial for standardizing veteran health records across the VA enterprise.

What is the track record of Vali Cooper International LLC in performing similar engineering services for federal agencies, particularly the Department of Veterans Affairs?

Information regarding the track record of Vali Cooper International LLC is limited in the public domain. As a relatively new entity or one with less extensive federal contracting history, assessing their past performance on similar projects is challenging. Federal agencies typically rely on past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) to gauge a contractor's reliability, quality of work, and adherence to schedule and budget. Without access to such detailed performance data for Vali Cooper International LLC, it is difficult to definitively benchmark their capabilities against established engineering firms. Further due diligence by the VA would have been necessary prior to award.

How does the $2.8 million contract value compare to similar engineering projects for VAMC facilities or EHRM implementations?

Benchmarking the $2.8 million contract value requires comparing it to similar engineering services procured for VAMC facilities or EHRM implementations. The complexity, duration, and specific deliverables of the EHRM IU Project at Danville VAMC are key factors. Generally, engineering services for major IT system integrations and facility modifications within healthcare settings can range significantly. Smaller, specialized tasks might cost tens to hundreds of thousands of dollars, while comprehensive design, integration, and oversight for a large-scale project like EHRM could easily reach several million dollars. Without a detailed scope of work and comparison data points for similar VA projects, it's difficult to definitively state if this value is high or low, but it falls within a plausible range for significant infrastructure support.

What are the potential risks associated with a firm fixed-price contract for engineering services in a complex project like EHRM?

Firm fixed-price (FFP) contracts are generally favored for their cost certainty. However, for complex projects like EHRM implementations, FFP contracts carry inherent risks. If the scope of work is not meticulously defined and understood by both parties from the outset, the contractor may face unforeseen challenges or increased costs during execution. This could lead to the contractor attempting to cut corners on quality to maintain profitability, or seeking change orders that can drive up the total cost, negating some of the FFP benefits. Conversely, if the contractor significantly underestimates the effort, they may incur losses, potentially impacting their financial stability and ability to complete the project. Effective project management and clear communication are crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process and potential cost savings?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat contradictory and requires careful interpretation. 'Full and open competition' implies that all responsible sources were permitted to submit offers. However, the 'after exclusion of sources' clause suggests that certain potential offerors were disqualified or excluded prior to the competition phase, likely based on specific criteria or justifications (e.g., national security, prior performance issues, or specific technical requirements). While the intent is to still leverage competition among the remaining eligible sources, the exclusion could potentially limit the pool of bidders, possibly reducing the competitive pressure and potentially leading to higher prices than if truly all sources were allowed to compete. The justification for exclusion is critical to understanding the impact on cost savings.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 36C77621R0034

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 126 TERRA BELLA BLVD STE B, COVINGTON, LA, 70433

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $4,152,172

Exercised Options: $2,813,419

Current Obligation: $2,813,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline