VA Awards $29.4M Contract for Audie Murphy VAMC EHRM Upgrades to ESA South, Inc

Contract Overview

Contract Amount: $29,417,000 ($29.4M)

Contractor: ESA South, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-25

End Date: 2027-07-22

Contract Duration: 1,366 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING SELECTIVE DEMOLITION IN EXISTING STRUCTURES, FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE AUDIE L MURPHY VAMC EHRM UPGRADES AS REQUIRED BY DRAWINGS AND SPECS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.4 million to ESA SOUTH, INC. for work described as: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING SELECTIVE DEMOLITION IN EXISTING STRUCTURES, FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE AUDIE L MURPHY VAMC EHRM UPGRADES AS REQUIRED BY DRAWINGS AND SPECS Key points: 1. Contract focuses on site preparation and demolition for critical EHRM upgrades. 2. ESA South, Inc. is the prime contractor for this large-scale construction project. 3. Competition method indicates potential for price discovery but requires scrutiny. 4. The project falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $29.4 million appears reasonable for a comprehensive site preparation and demolition project of this scale, especially considering the complexity of EHRM upgrades within an existing facility. Benchmarking against similar VAMC construction 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 approach. While this can be efficient, it may not always yield the most competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades at a major VA medical center, aiming to improve healthcare delivery through enhanced electronic health records.

Public Impact

Improved patient care through modernized EHR systems. Potential for job creation in the construction sector in Texas. Ensures the Audie Murphy VAMC remains equipped with up-to-date facilities. Supports the Department of Veterans Affairs' modernization initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact final price.
Long project duration (over 3 years) increases risk of cost overruns.
Scope complexity requires robust oversight.

Positive Signals

Addresses critical EHRM upgrade needs.
Awarded to a single, experienced contractor.
Clear project objectives and defined deliverables.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for infrastructure development. Spending benchmarks for similar VA facility upgrades are typically in the multi-million dollar range, aligning with this award.

Small Business Impact

The contract was not awarded to a small business (SB=false). There is an opportunity to analyze subcontracting plans to ensure small businesses are involved in the execution of this project.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Given the project's duration and complexity, regular progress reviews, site inspections, and financial audits will be crucial for accountability and ensuring timely, cost-effective completion.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may not yield the best price.
Long project duration increases risk of cost escalation and delays.
Potential for unforeseen site conditions during demolition.
Complexity of EHRM integration requires careful management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.4 million to ESA SOUTH, INC.. CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING SELECTIVE DEMOLITION IN EXISTING STRUCTURES, FURNISH LABOR AND MATERIALS AND PERFORM WORK FOR THE AUDIE L MURPHY VAMC EHRM UPGRADES AS REQUIRED BY DRAWINGS AND SPECS

Who is the contractor on this award?

The obligated recipient is ESA SOUTH, INC..

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 $29.4 million.

What is the period of performance?

Start: 2023-10-25. End: 2027-07-22.

What specific criteria led to the exclusion of other sources in this 'limited' full and open competition, and how was the pricing validated against market rates?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique requirements are identified that only a limited number of contractors can meet. The VA would have likely conducted a price reasonableness analysis, comparing the proposed price to historical data, independent cost estimates, or other market research to ensure the $29.4 million award was fair and reasonable given the project's scope and the competitive landscape.

What are the primary risks associated with the 1366-day duration of this construction project, and what mitigation strategies are in place?

The extended duration presents risks such as material cost escalation, labor shortages, unforeseen site conditions, and potential design changes. Mitigation strategies likely include robust contract clauses for price adjustments, contingency planning for site issues, strong project management to monitor progress, and clear communication channels with the contractor to address challenges proactively.

How will the success of these EHRM upgrades be measured in terms of improved operational effectiveness and patient outcomes?

Success will be measured through key performance indicators (KPIs) related to system uptime, data accessibility, reduction in medical errors, improved clinician workflow efficiency, and ultimately, enhanced patient safety and care quality. Post-implementation reviews and user feedback will be critical in assessing the effectiveness of the upgrades.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77623B0064

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1681 SUCCESS DR, CANTONMENT, FL, 32533

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: $29,417,000

Exercised Options: $29,417,000

Current Obligation: $29,417,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline