VA Awards $3.5M Contract to SPEES LLC for EHR Modernization Infrastructure Upgrades Design

Contract Overview

Contract Amount: $3,527,732 ($3.5M)

Contractor: Spees LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-27

End Date: 2026-03-13

Contract Duration: 1,628 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AE IS TO PROVIDE ALL DESIGN AND ENGINEERING SERVICES FOR THE ELECTRONIC HEALTH RECORD MODERNIZATION INFRASTRUCTURE UPGRADES DESIGN PROJECT AT THE CENTRAL ARKANSAS VETERANS HEALTHCARE SYSTEM IN NORTH LITTLE ROCK, ARKANSAS.

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to SPEES LLC for work described as: AE IS TO PROVIDE ALL DESIGN AND ENGINEERING SERVICES FOR THE ELECTRONIC HEALTH RECORD MODERNIZATION INFRASTRUCTURE UPGRADES DESIGN PROJECT AT THE CENTRAL ARKANSAS VETERANS HEALTHCARE SYSTEM IN NORTH LITTLE ROCK, ARKANSAS. Key points: 1. Contract awarded to SPEES LLC for critical Electronic Health Record (EHR) modernization design. 2. The project aims to upgrade infrastructure at the Central Arkansas Veterans Healthcare System. 3. This is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. The award falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract value of $3,527,732 appears reasonable for specialized design and engineering services for a major healthcare system's EHR infrastructure. Benchmarking against similar large-scale IT infrastructure design projects would provide further validation.

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 limited competition where initial sources were identified and then competed. This method can sometimes lead to less aggressive pricing than broad full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare IT infrastructure upgrades, which should improve veteran care delivery efficiency and data security in the long run.

Public Impact

Improved healthcare IT infrastructure for veterans in Arkansas. Potential for enhanced electronic health record system performance and reliability. Modernization efforts support the VA's broader digital transformation goals. Ensures continued operation and security of sensitive veteran health data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted price discovery.
Contract duration is long (over 4 years), increasing risk of scope creep or cost overruns.

Positive Signals

Focus on critical EHR modernization.
Firm fixed price contract type helps control costs.
Project located within a specific VA healthcare system.

Sector Analysis

This contract falls within the IT and Healthcare sectors, specifically focusing on the design and engineering of critical infrastructure for an Electronic Health Record system. Spending benchmarks for similar large-scale healthcare IT infrastructure design projects vary widely but often run into millions of dollars.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Analysis of subcontracting opportunities for small businesses within this engineering services contract would be beneficial.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight will be crucial given the long duration and critical nature of the EHR system, ensuring adherence to design specifications and budget.

Related Government Programs

Engineering Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration increases risk.
Limited competition may affect price.
Potential for scope creep in design projects.
Dependence on a single contractor for critical design elements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to SPEES LLC. AE IS TO PROVIDE ALL DESIGN AND ENGINEERING SERVICES FOR THE ELECTRONIC HEALTH RECORD MODERNIZATION INFRASTRUCTURE UPGRADES DESIGN PROJECT AT THE CENTRAL ARKANSAS VETERANS HEALTHCARE SYSTEM IN NORTH LITTLE ROCK, ARKANSAS.

Who is the contractor on this award?

The obligated recipient is SPEES 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 $3.5 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-03-13.

What specific criteria were used to exclude other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price?

The exclusion of sources typically involves pre-qualification based on specialized expertise, past performance, or specific technical capabilities required for complex projects like EHR infrastructure design. This targeted approach can limit the pool of bidders, potentially affecting price competition compared to a broad solicitation. The VA would need to justify that the chosen method was necessary to secure the required specialized engineering services for this critical modernization.

What are the key performance indicators (KPIs) for this design project, and how will the VA measure the success of SPEES LLC's engineering services?

Success metrics for this design project would likely include adherence to the defined scope of work, timely delivery of design milestones, compliance with all relevant technical standards and regulations (e.g., HIPAA, VA IT policies), and the overall quality and completeness of the design documentation. The VA will likely track progress against the project schedule and conduct thorough reviews of deliverables to ensure they meet the requirements for the subsequent infrastructure upgrade phase.

Given the long contract duration (ending March 2026), what mechanisms are in place to manage potential changes in technology or requirements for EHR infrastructure?

Long-duration contracts for technology projects often include provisions for change management, scope adjustments, and potentially contract modifications. The VA likely has a formal process for evaluating and approving any changes to the design requirements based on evolving technology or operational needs. Regular reviews and stakeholder engagement will be critical to ensure the final design remains relevant and effective throughout the project lifecycle.

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: 36C77621R0132

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Spees-Hernandez JV LLC

Address: 625 1ST AVE STE 301, SEATTLE, WA, 98104

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,053,842

Exercised Options: $3,527,732

Current Obligation: $3,527,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline