VA awards $4.56M for EHRM Infrastructure Upgrades in Central Western MA, focusing on engineering services

Contract Overview

Contract Amount: $4,564,384 ($4.6M)

Contractor: Acela Architects + Engineers PC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-16

End Date: 2026-03-24

Contract Duration: 1,650 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EHRM INFRASTRUCTURE UPGRADES CENTRAL WESTERN MA

Place of Performance

Location: LEEDS, HAMPSHIRE County, MASSACHUSETTS, 01053

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.6 million to ACELA ARCHITECTS + ENGINEERS PC for work described as: EHRM INFRASTRUCTURE UPGRADES CENTRAL WESTERN MA Key points: 1. Contract awarded to ACELA ARCHITECTS + ENGINEERS PC for engineering services. 2. The contract has a duration of 1650 days, indicating a long-term project. 3. The award type is a Definitive Contract, suggesting a clear scope and timeline. 4. The contract is Firm Fixed Price, providing cost certainty for the government. 5. This contract is not set aside for small businesses. 6. The geographic focus is Massachusetts, specifically Central Western MA.

Value Assessment

Rating: fair

The contract value of $4.56 million for engineering services appears moderate for a long-term infrastructure project. Benchmarking against similar EHRM infrastructure upgrade contracts would be necessary to fully assess value for money. The fixed-price nature offers cost predictability, but the absence of detailed performance metrics or comparisons makes a definitive value assessment challenging without further data. The contract's duration suggests a significant undertaking, and the price should reflect the complexity and scope of the engineering work required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for excluding other sources are not detailed, which raises questions about the extent of true competition. A limited competition may lead to less aggressive pricing compared to full and open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified engineering firms had been allowed to bid.

Public Impact

The primary beneficiary is the Department of Veterans Affairs (VA), which will receive upgraded EHRM infrastructure. The services delivered are engineering and design for infrastructure improvements. The geographic impact is concentrated in Central Western Massachusetts. The contract supports the VA's broader mission to modernize its healthcare systems and improve veteran care delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency and effectiveness.
The exclusion of sources, without clear justification, warrants further scrutiny to ensure fairness and maximize competition.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Long contract duration (1650 days) suggests a comprehensive and well-defined project scope.
The contract is awarded to a firm with engineering expertise, aligning with the service needs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure upgrades within the healthcare domain. The market for specialized engineering services supporting federal IT infrastructure is competitive, with numerous firms capable of undertaking such projects. The VA's spending on healthcare IT modernization is substantial, and contracts like this are crucial for maintaining and upgrading the systems that support veteran healthcare. Comparable spending benchmarks would typically involve analyzing other large-scale infrastructure projects within federal agencies or large healthcare organizations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that the primary contract value will likely flow to the prime contractor, ACELA ARCHITECTS + ENGINEERS PC. The absence of small business set-asides or subcontracting goals means there is no direct positive impact on the small business ecosystem through this specific award. Opportunities for small businesses would likely arise through prime contractors seeking specialized support, but this is not mandated by the contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. The contract's fixed-price nature provides a degree of financial oversight. Transparency regarding the specific engineering deliverables and progress reports would be key. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, ensuring accountability.

Related Government Programs

Veterans Health Administration EHR Modernization
Federal IT Infrastructure Modernization Programs
Engineering and Architectural Services Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

Limited competition may impact price and innovation.
Potential for scope creep in long-term infrastructure projects.
Justification for source exclusion requires further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.6 million to ACELA ARCHITECTS + ENGINEERS PC. EHRM INFRASTRUCTURE UPGRADES CENTRAL WESTERN MA

Who is the contractor on this award?

The obligated recipient is ACELA ARCHITECTS + ENGINEERS PC.

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 $4.6 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-03-24.

What is the track record of ACELA ARCHITECTS + ENGINEERS PC with the Department of Veterans Affairs?

A review of federal procurement data indicates that ACELA ARCHITECTS + ENGINEERS PC has received multiple contracts from various federal agencies, including the Department of Veterans Affairs. While specific details on past performance for EHRM-related projects are not immediately available from the provided data, the firm's engagement with the VA suggests a level of familiarity with the agency's requirements. Further investigation into their past performance ratings, contract completion history, and any past disputes or awards would provide a more comprehensive understanding of their reliability and capability in executing projects of this magnitude and complexity for the VA.

How does the awarded price compare to similar EHRM infrastructure upgrade contracts?

Without access to a comprehensive database of comparable EHRM infrastructure upgrade contracts, a direct price comparison is challenging. However, the $4.56 million award for engineering services over 1650 days (approximately 4.5 years) suggests a significant investment. Factors influencing price include the scope of work, complexity of the existing infrastructure, specific technological requirements, and the geographic location. To benchmark effectively, one would need to identify contracts with similar scope, duration, and agency (e.g., other large federal healthcare IT infrastructure projects) and analyze their total contract values and per-year costs. The 'limited competition' aspect also suggests the price might be higher than in a fully open market.

What are the primary risks associated with this contract?

Key risks include potential cost overruns if the scope of work expands beyond initial estimates, despite the fixed-price nature, due to unforeseen complexities in the existing infrastructure. Schedule delays are also a risk, given the long duration and the potential for integration challenges with the EHRM system. Furthermore, the 'limited competition' aspect introduces a risk of suboptimal pricing and potentially less innovative solutions compared to a broader competitive environment. Contractor performance risk, ensuring the quality and timeliness of engineering deliverables, is always present, especially with complex infrastructure projects.

How effective is the VA's approach to competing infrastructure upgrade contracts?

The VA's approach to competing infrastructure upgrade contracts, as exemplified by this award under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' appears to be a mixed bag. While aiming for open competition, the exclusion of certain sources suggests a potential limitation on the breadth of competition. The effectiveness hinges on the justification for these exclusions and whether they were necessary to secure specialized expertise or meet specific program requirements. A more robust competition, involving a wider array of qualified bidders, generally leads to better price discovery and potentially higher quality outcomes for the government and taxpayers. The VA's effectiveness here would be better assessed by understanding the rationale behind the source exclusion.

What is the historical spending trend for engineering services related to EHRM at the VA?

Analyzing historical spending trends for engineering services related to EHRM at the VA would require access to historical contract databases and spending reports. Generally, federal agencies like the VA have seen increasing investment in healthcare IT modernization, including EHR systems, over the past decade. This often translates to sustained or growing spending on related infrastructure upgrades and engineering support. Without specific historical data for this contract category, it's difficult to provide precise figures, but the trend across the federal government points towards significant and ongoing investment in upgrading critical IT systems like EHRM.

What are the implications of the 'Definitive Contract' award type for this project?

A Definitive Contract, particularly when awarded under full and open competition (even with exclusions), typically implies a well-defined scope of work, a fixed price, and a specific delivery schedule. For this EHRM infrastructure upgrade, it suggests that the VA has a clear understanding of the engineering services required and has negotiated terms that provide cost certainty. This award type is generally preferred for projects where requirements are stable and well-understood, reducing the risk of scope creep and associated cost increases compared to cost-reimbursement contracts. It signifies a commitment to a specific outcome and price point.

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: TWO STEP

Solicitation ID: 36C77621R0089

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2633 MORAVIAN AVE, ALLENTOWN, PA, 18103

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: $5,574,345

Exercised Options: $4,564,384

Current Obligation: $4,564,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline