VA awards $3.86M for EHR modernization construction at St. Louis medical center

Contract Overview

Contract Amount: $3,857,196 ($3.9M)

Contractor: Anderson & Sons Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-27

End Date: 2025-08-19

Contract Duration: 1,057 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL CONSTRUCTION SERVICES FOR THE ELECTRONIC HEALTH RECORDS MODERNIZATION TRAINING AND ADMINISTRATIVE SUPPORT SPACE AT THE ST LOUIS JOHN COCHRAN VA MEDICAL CENTER

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63106

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to ANDERSON & SONS CONTRACTING LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL CONSTRUCTION SERVICES FOR THE ELECTRONIC HEALTH RECORDS MODERNIZATION TRAINING AND ADMINISTRATIVE SUPPORT SPACE AT THE ST LOUIS JOHN COCHRAN VA MEDICAL CENTER Key points: 1. Contract focuses on essential infrastructure for electronic health records training and administrative functions. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers some cost risk to the contractor. 4. Project duration spans over 1000 days, indicating a significant construction undertaking. 5. The award is managed by the Department of Veterans Affairs, aligning with healthcare infrastructure priorities. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of approximately $3.86 million for construction services appears reasonable for a project of this scope, involving specialized space for EHR modernization training and administrative support. Benchmarking against similar VA medical center construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the final cost will depend on the contractor's efficiency and management of unforeseen issues during the extended project timeline.

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 proposals were solicited from all eligible responsible sources. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and quality. The VA's approach suggests a commitment to leveraging market competition for this significant construction project.

Taxpayer Impact: A full and open competition likely resulted in a more favorable price for taxpayers by encouraging multiple contractors to submit bids, driving down costs through competitive pressure.

Public Impact

Veterans in the St. Louis area will benefit from improved healthcare services facilitated by the modernized EHR system. The project delivers essential construction services for training and administrative spaces crucial for EHR implementation. The geographic impact is localized to the John Cochran VA Medical Center in St. Louis, Missouri. The construction activities will likely involve local labor and subcontractors, providing economic stimulus to the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the EHR modernization timeline.
Risk of cost overruns if unforeseen site conditions arise during the extended construction period.
Ensuring compliance with VA facility standards and security protocols throughout the build.

Positive Signals

Firm fixed-price contract helps manage budget certainty.
Full and open competition suggests a robust selection process.
Project directly supports a critical VA initiative (EHR modernization).

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically for government facilities. The market for such construction is substantial, driven by ongoing infrastructure upgrades and modernization efforts across federal agencies. The VA's significant investment in healthcare facilities and technology, including EHR systems, positions this contract as a key component of its strategic modernization plan. Comparable spending benchmarks would involve analyzing other large-scale construction projects at federal medical centers.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While subcontracting opportunities may arise for small businesses within the construction trades, the primary awardee is Anderson & Sons Contracting LLC. Further analysis would be needed to determine the extent of small business participation through subcontracting agreements.

Oversight & Accountability

The Department of Veterans Affairs, as the awarding agency, is responsible for oversight of this contract. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified construction services within the agreed-upon price. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization Programs
VA Medical Facility Construction and Renovation Projects
Electronic Health Records (EHR) Systems Implementation

Risk Flags

Extended project duration increases risk of unforeseen issues.
Firm Fixed Price contract requires careful contractor performance monitoring.
Potential impact on EHR modernization timeline if construction is delayed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to ANDERSON & SONS CONTRACTING LLC. THE CONTRACTOR SHALL PROVIDE ALL CONSTRUCTION SERVICES FOR THE ELECTRONIC HEALTH RECORDS MODERNIZATION TRAINING AND ADMINISTRATIVE SUPPORT SPACE AT THE ST LOUIS JOHN COCHRAN VA MEDICAL CENTER

Who is the contractor on this award?

The obligated recipient is ANDERSON & SONS CONTRACTING 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 $3.9 million.

What is the period of performance?

Start: 2022-09-27. End: 2025-08-19.

What is the track record of Anderson & Sons Contracting LLC with the Department of Veterans Affairs?

Information regarding Anderson & Sons Contracting LLC's specific track record with the Department of Veterans Affairs is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, previous contracts awarded to this company by the VA, and any reported issues or successes. Federal procurement databases and contractor performance systems would be the primary sources for this information. Understanding their history with similar VA projects, particularly in healthcare facility construction, would be crucial for evaluating their suitability and reliability for this EHR modernization support space project.

How does the $3.86 million contract value compare to similar VA construction projects for EHR support spaces?

The $3.86 million contract value for construction services related to EHR modernization training and administrative support spaces at the John Cochran VA Medical Center needs to be benchmarked against similar projects. Without specific data on comparable contracts (e.g., size of space, scope of work, location, specific modernization phase), a precise comparison is difficult. However, for a significant medical center, this amount suggests a substantial undertaking. Factors influencing cost include the complexity of the build-out, integration of specialized IT infrastructure, and adherence to stringent healthcare facility codes. A detailed analysis would involve comparing square footage, duration, and specific functional requirements of this project against other VA construction awards for similar purposes.

What are the primary risks associated with this construction contract, and how are they being managed?

The primary risks associated with this construction contract include potential construction delays impacting the broader EHR modernization timeline, unforeseen site conditions requiring additional costs, and ensuring the contractor meets stringent VA facility standards and security protocols. The firm fixed-price (FFP) contract structure transfers some cost risk to the contractor, incentivizing efficient project management. The contract duration of over 1000 days necessitates robust project oversight to monitor progress and address issues proactively. The VA's contracting officers and project managers will be responsible for overseeing performance, managing change orders, and ensuring compliance with all contract terms and specifications to mitigate these risks.

How effective is the 'full and open competition' strategy in ensuring value for money for this specific project?

The 'full and open competition' strategy is generally effective in ensuring value for money by maximizing the pool of potential bidders, thereby fostering a competitive environment that can drive down prices and improve service quality. For this $3.86 million construction project, this approach suggests that multiple qualified contractors vied for the award, likely leading to a more cost-effective outcome than a sole-source or limited competition. The effectiveness is further realized if the evaluation criteria prioritize not only price but also technical capability and past performance, ensuring the selected contractor can deliver high-quality work efficiently. The VA's choice of this procurement method indicates a commitment to leveraging market forces for optimal taxpayer value.

What is the historical spending pattern for construction services at the John Cochran VA Medical Center?

Historical spending patterns for construction services at the John Cochran VA Medical Center are not provided in the current data. To establish such a pattern, one would need to analyze past VA contract awards specifically for construction, renovation, or facility upgrades at this particular medical center over several fiscal years. This analysis would reveal the frequency, average value, and types of construction projects undertaken. Understanding this history could provide context for the current $3.86 million award, indicating whether it represents a typical investment or a significant deviation, and potentially highlight trends in VA facility modernization efforts at this location.

What are the implications of the 1057-day duration for the EHR modernization project?

The 1057-day duration (approximately 2.9 years) for the construction of EHR modernization training and administrative support space has several implications. Firstly, it signifies a substantial and complex construction project requiring meticulous planning and execution. Secondly, it means that the physical infrastructure supporting the EHR system's training and administrative functions will be developed over an extended period, potentially phasing the overall EHR modernization timeline. Thirdly, the long duration increases the potential for encountering unforeseen challenges, such as material price fluctuations, labor availability issues, or changes in technology requirements, which need to be managed through contract oversight and potentially flexible contract modifications. Finally, it underscores the long-term commitment by the VA to this critical infrastructure upgrade.

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: 36C77622B0056

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1197 S DUCHESNE DR, SAINT CHARLES, MO, 63301

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $3,857,196

Exercised Options: $3,857,196

Current Obligation: $3,857,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline