VA awards $3.3M contract for Wilkes-Barre VAMC EHRM infrastructure upgrades to SPEES LLC

Contract Overview

Contract Amount: $3,315,083 ($3.3M)

Contractor: Spees LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-30

End Date: 2027-08-12

Contract Duration: 1,777 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AE SERVICES FOR WILKES BARRE VAMC FOR EHRM INFRASTRUCTURE UPGRADES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98104

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to SPEES LLC for work described as: AE SERVICES FOR WILKES BARRE VAMC FOR EHRM INFRASTRUCTURE UPGRADES Key points: 1. Contract awarded to SPEES LLC for critical EHRM infrastructure upgrades. 2. The contract duration spans nearly five years, indicating a long-term need. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The firm-fixed-price structure aims to control costs and provide predictability. 5. This contract supports the Department of Veterans Affairs' modernization efforts. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 7. The contract is a definitive contract, often used for complex or long-term projects. 8. The award value is approximately $3.3 million over the contract's life.

Value Assessment

Rating: good

The contract value of $3.3 million for engineering services related to EHRM infrastructure upgrades appears reasonable given the nearly five-year duration and the critical nature of the work. Benchmarking against similar IT infrastructure upgrade contracts within the federal government would provide a more precise value-for-money assessment. However, the firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous in managing costs for projects of this scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that the solicitation was broadly advertised, and multiple bids were likely considered. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and allows the government to select the most advantageous offer based on a combination of factors, including price and technical merit.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a competitive environment, potentially leading to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

Veterans receiving care at the Wilkes-Barre VAMC will benefit from improved electronic health record management infrastructure. The contract ensures the continued operation and enhancement of critical IT systems supporting healthcare delivery. The geographic impact is focused on the Wilkes-Barre, Pennsylvania region, serving the local veteran population. The contract supports specialized engineering services, potentially involving a skilled workforce in IT infrastructure and healthcare systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term infrastructure projects if not managed tightly.
Reliance on a single contractor for a critical five-year period carries inherent performance risks.
Ensuring SPEES LLC has the necessary security clearances and expertise for sensitive EHRM data is crucial.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive selection process.
Long contract duration allows for sustained focus and expertise development on the EHRM infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure for healthcare. The federal government is a significant investor in healthcare IT, with substantial spending on Electronic Health Record (EHR) systems and related infrastructure upgrades. Comparable spending benchmarks would involve analyzing other VA or Department of Defense contracts for similar EHRM support services, which often represent multi-million dollar investments over several years due to the complexity and criticality of these systems.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor, SPEES LLC. There is no explicit information on subcontracting plans for small businesses within this award. Future analysis could explore whether SPEES LLC has a history of subcontracting with small businesses on similar federal contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring SPEES LLC to deliver specified services within the agreed-upon budget. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Health Administration (VHA) IT Modernization
Electronic Health Record Modernization (EHRM) Program
Department of Veterans Affairs Infrastructure Support Contracts
Federal IT Services and Engineering Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of technological obsolescence over the contract's five-year term.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to SPEES LLC. AE SERVICES FOR WILKES BARRE VAMC FOR EHRM INFRASTRUCTURE UPGRADES

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 $3.3 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-08-12.

What is the track record of SPEES LLC in performing similar federal IT infrastructure upgrade contracts, particularly within the healthcare sector?

A review of federal procurement data would be necessary to fully assess SPEES LLC's track record. Specifically, searching for past contracts awarded to SPEES LLC for IT infrastructure upgrades, EHRM support, or similar engineering services within the Department of Veterans Affairs or other federal agencies would provide insight. Key metrics to examine would include contract performance reviews (if available), any history of contract modifications, and the successful completion of projects within scope, schedule, and budget. Understanding their experience with complex, long-term projects like EHRM infrastructure is crucial for evaluating their capability to execute this current award effectively.

How does the awarded value of $3.3 million compare to similar EHRM infrastructure upgrade contracts awarded by the VA or other federal agencies?

To benchmark the $3.3 million award, a comparative analysis of similar contracts is required. This would involve identifying other federal contracts for EHRM infrastructure upgrades, IT system modernization, or related engineering services awarded over the past few years. Factors to consider in the comparison include contract duration, scope of work, specific technologies involved, and the size and complexity of the facility being supported. If comparable contracts show significantly higher or lower values for similar services, it could indicate potential overpricing or exceptional value in this award. The firm-fixed-price nature of this contract also suggests a negotiated value, which should be considered during benchmarking.

What are the primary risks associated with a five-year contract for critical EHRM infrastructure upgrades, and how are they being mitigated?

The primary risks associated with a five-year contract for critical EHRM infrastructure upgrades include technological obsolescence, potential for scope creep, contractor performance issues, and cybersecurity vulnerabilities. Technological obsolescence is a risk as IT systems evolve rapidly; mitigation involves ensuring the contract allows for necessary updates or incorporates forward-looking solutions. Scope creep can inflate costs and delay timelines; mitigation requires robust project management and clear definition of deliverables. Contractor performance is managed through contract oversight and performance metrics, with remedies for non-performance. Cybersecurity is paramount for EHRM systems, necessitating stringent security protocols, regular audits, and adherence to federal data protection standards throughout the contract lifecycle.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific EHRM infrastructure upgrade project?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for projects with well-defined scopes, such as infrastructure upgrades, by providing cost certainty to the government. SPEES LLC assumes the risk of cost overruns, incentivizing efficient performance. For this EHRM infrastructure upgrade, FFP helps control the $3.3 million budget. However, its effectiveness hinges on the accuracy of the initial cost estimates and the clarity of the statement of work. If unforeseen technical challenges arise that significantly alter the scope, the FFP structure might limit flexibility or lead to disputes. Robust initial planning and clear specifications are key to maximizing the value derived from an FFP award in this context.

What is the historical spending pattern for engineering services related to EHRM infrastructure at the Wilkes-Barre VAMC or similar VA facilities?

Analyzing historical spending patterns for EHRM infrastructure engineering services at the Wilkes-Barre VAMC and comparable VA facilities is essential for context. This involves examining past contracts awarded for similar upgrades, maintenance, or support services. Trends in spending, frequency of awards, and average contract values over time can reveal whether this $3.3 million award represents a significant increase, a continuation of established investment, or a deviation from historical norms. Understanding these patterns can help assess the appropriateness of the current investment and identify potential areas for cost efficiencies or strategic shifts in future procurement.

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: 36C77622R0071

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Spees-Hernandez JV LLC

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

Business Categories: Category Business, 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: $3,315,083

Exercised Options: $3,315,083

Current Obligation: $3,315,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline