VA Awards $5.1M Contract for EHRM Data Center Construction at Kansas City VAMC

Contract Overview

Contract Amount: $5,120,204 ($5.1M)

Contractor: Falcon JV, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-13

End Date: 2026-02-05

Contract Duration: 846 days

Daily Burn Rate: $6.1K/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: CONSTRUCTION CONTRACT TO UPDATE EHRM DATA IN DATA CENTER AT KANSAS CITY MO VAMC

Place of Performance

Location: KANSAS CITY, CLAY County, MISSOURI, 64116

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.1 million to FALCON JV, LLC for work described as: CONSTRUCTION CONTRACT TO UPDATE EHRM DATA IN DATA CENTER AT KANSAS CITY MO VAMC Key points: 1. Contract awarded to Falcon JV, LLC for $5.1M. 2. Project involves updating EHRM data in a data center. 3. Competition was full and open after exclusion of sources. 4. The sector is Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $5.1M for construction services appears within a reasonable range for data center upgrades. Benchmarking against similar VA or other federal data center construction projects would provide a more precise assessment of value.

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 an attempt to broaden the bidder pool. This method generally supports competitive pricing, though the specific impact depends on the number and capability of bidders.

Taxpayer Impact: The $5.1M expenditure supports critical infrastructure upgrades for the VA's Electronic Health Record Modernization (EHRM) program, aiming for improved data management and system efficiency.

Public Impact

Enhances the reliability and security of veteran health data. Supports the broader Electronic Health Record Modernization (EHRM) initiative. Invests in critical IT infrastructure at a major VA facility. Potential for improved healthcare delivery through better data access.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited information on specific construction scope and potential cost overruns.
Exclusion of sources in the competition phase warrants further review.
Long contract duration (846 days) increases risk of scope creep or market changes.

Positive Signals

Focus on critical EHRM data infrastructure.
Utilizes a full and open competition strategy.
Fixed-price contract type can control costs if scope is well-defined.

Sector Analysis

The construction sector, particularly for specialized facilities like data centers, requires significant investment. Benchmarks for similar government data center construction projects vary widely based on size, complexity, and location.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight will be crucial to ensure the project stays within budget and schedule, given the complexity of data center construction and the long duration. The VA's contracting and project management offices will be responsible for monitoring progress and performance.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to construction complexity.
Risk of schedule delays impacting EHRM modernization timeline.
Adequacy of competition despite 'exclusion of sources' method.
Long contract duration increasing exposure to market fluctuations.
Ensuring long-term technological relevance of the upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.1 million to FALCON JV, LLC. CONSTRUCTION CONTRACT TO UPDATE EHRM DATA IN DATA CENTER AT KANSAS CITY MO VAMC

Who is the contractor on this award?

The obligated recipient is FALCON JV, 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 $5.1 million.

What is the period of performance?

Start: 2023-10-13. End: 2026-02-05.

What specific technological upgrades are included in the EHRM data center update, and how do they align with future VA IT needs?

The provided data lacks specifics on the technological upgrades. A detailed review of the contract's SOW would be necessary to understand the scope, such as server capacity expansion, cooling system enhancements, or network infrastructure modernization. Understanding these details is crucial to assess if the upgrades are future-proof and align with the VA's long-term IT strategy for EHRM.

What was the rationale for excluding specific sources prior to the full and open competition, and did this exclusion impact the final contract price?

The rationale for excluding sources before the 'full and open competition after exclusion of sources' is not detailed in the provided data. This specific procurement method suggests that certain potential bidders were initially disqualified or not solicited. Understanding the reasons for exclusion is important to ensure fairness and to assess if it limited competitive pressure, potentially affecting the final price achieved.

How will the VA measure the effectiveness of this data center upgrade in improving EHRM performance and data accessibility for healthcare providers?

Effectiveness will likely be measured through key performance indicators (KPIs) related to system uptime, data retrieval speeds, system latency, and user satisfaction surveys from healthcare providers. The contract should ideally outline specific, measurable, achievable, relevant, and time-bound (SMART) goals for these metrics post-upgrade to ensure the investment translates into tangible improvements in healthcare delivery.

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: 36C77623B0065

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 130 E 13TH AVE, KANSAS CITY, MO, 64116

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $5,120,204

Exercised Options: $5,120,204

Current Obligation: $5,120,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline