VA awards $47M construction contract for EHR modernization infrastructure at Amarillo VA Medical Center

Contract Overview

Contract Amount: $46,999,614 ($47.0M)

Contractor: Bridger Richard JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-23

End Date: 2027-03-25

Contract Duration: 548 days

Daily Burn Rate: $85.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION SERVICES TO COMPLETE THE ELECTRONIC HEALTH RECORD MODERNIZATION INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE AMARILLO VA MEDICAL CENTER.

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79106

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.0 million to BRIDGER RICHARD JV LLC for work described as: CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION SERVICES TO COMPLETE THE ELECTRONIC HEALTH RECORD MODERNIZATION INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE AMARILLO VA MEDICAL CENTER. Key points: 1. Contract focuses on critical infrastructure upgrades to support electronic health record modernization. 2. The award represents a significant investment in the Amarillo VA Medical Center's facilities. 3. Construction services are essential for ensuring the reliability and scalability of the EHR system. 4. The project duration spans over 540 days, indicating a substantial scope of work. 5. Fixed-price contract type aims to provide cost certainty for the government. 6. The project is located in Texas, impacting the regional construction market.

Value Assessment

Rating: good

The contract value of $46,999,614 for construction services appears reasonable given the scope of work involving infrastructure upgrades for EHR modernization. Benchmarking against similar large-scale federal construction projects for healthcare facilities suggests that this price falls within expected ranges. The firm-fixed-price structure provides a degree of cost control, although the final cost will depend on the contractor's execution and management of unforeseen issues. Further analysis would require detailed cost breakdowns and comparison to specific project requirements.

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, indicating that multiple potential bidders were considered. The presence of 5 bids suggests a competitive environment, which generally leads to better pricing and value for the government. The specific exclusion of sources prior to the full and open competition phase warrants further investigation to understand if any specific capabilities or limitations were considered. However, the overall competitive nature is a positive sign.

Taxpayer Impact: A competitive bidding process for this substantial contract helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Veterans in the Amarillo region will benefit from improved healthcare services facilitated by a modernized EHR system. The project will deliver essential construction services to upgrade the physical infrastructure supporting the VA's electronic health records. The geographic impact is concentrated in Amarillo, Texas, potentially creating local employment opportunities. The construction activities will likely involve a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of project delays impacting the EHR modernization timeline.
Ensuring compliance with all VA facility and healthcare construction standards.

Positive Signals

Award to a joint venture (BRIDGER RICHARD JV LLC) may indicate a blend of experience and capacity.
Firm-fixed-price contract provides budget certainty.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this sector often supports critical infrastructure for government agencies, including healthcare facilities. The market size for federal construction is substantial, with agencies like the Department of Veterans Affairs consistently investing in facility upgrades and modernization. This specific project aligns with the trend of government investment in technology infrastructure, such as electronic health records, which require robust physical support.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). While the prime contractor is a joint venture, further analysis would be needed to determine the small business composition within that entity. There is no explicit mention of subcontracting goals for small businesses in the provided data. This suggests that opportunities for small businesses may be limited to those that can partner with the prime contractor or compete for specific, un-set-aside portions of the work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which places the onus on the contractor to deliver within the agreed-upon cost. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the performance of the contract.

Related Government Programs

Department of Veterans Affairs Electronic Health Record Modernization Program
Federal Healthcare Facility Construction
Government Infrastructure Upgrades
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential for scope creep
Risk of construction delays impacting EHR go-live
Ensuring adequate cybersecurity during infrastructure upgrades

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.0 million to BRIDGER RICHARD JV LLC. CONTRACTOR IS TO PROVIDE ALL CONSTRUCTION SERVICES TO COMPLETE THE ELECTRONIC HEALTH RECORD MODERNIZATION INFRASTRUCTURE UPGRADES CONSTRUCTION PROJECT AT THE AMARILLO VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is BRIDGER RICHARD 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 $47.0 million.

What is the period of performance?

Start: 2025-09-23. End: 2027-03-25.

What is the track record of BRIDGER RICHARD JV LLC in completing similar large-scale federal construction projects, particularly within healthcare settings?

A thorough review of BRIDGER RICHARD JV LLC's past performance is crucial. This would involve examining their contract history within federal agencies, specifically the Department of Veterans Affairs, to assess their experience with projects of similar scope, complexity, and value. Key performance indicators to scrutinize include on-time and on-budget completion rates, quality of work, and any history of disputes or contract modifications. For healthcare construction, specific experience with medical facility requirements, infection control, and integration with specialized systems like EHR infrastructure would be highly relevant. Without access to detailed past performance reports or specific project case studies for BRIDGER RICHARD JV LLC, it is difficult to definitively assess their capability for this particular EHR modernization infrastructure project.

How does the awarded amount of approximately $47 million compare to the estimated cost or budget for this specific EHR modernization infrastructure upgrade project?

The provided data indicates an award amount of $46,999,614. To assess value for money, this figure needs to be compared against the government's independent government cost estimate (IGCE) or the agency's allocated budget for this project. If the award is significantly below the IGCE, it could indicate strong competition and favorable pricing. Conversely, if it's at or above the IGCE, further scrutiny of the bidding process and cost components might be warranted. Without access to the IGCE or the agency's budget documentation for this specific project, a definitive comparison cannot be made. However, the fact that it was awarded under full and open competition with 5 bids suggests that the pricing achieved is likely competitive within the market.

What are the primary risks associated with the construction phase of EHR modernization infrastructure, and how are they mitigated in this contract?

Key risks in constructing EHR modernization infrastructure include potential delays due to unforeseen site conditions, integration challenges with existing systems, cybersecurity vulnerabilities during the upgrade process, and ensuring minimal disruption to ongoing medical services. This contract, being a firm-fixed-price (FFP) award, shifts much of the cost risk to the contractor, BRIDGER RICHARD JV LLC. The defined period of performance (548 days) and specific project scope aim to delineate responsibilities. Mitigation strategies would typically involve detailed project planning, rigorous site assessments prior to construction, robust security protocols, phased implementation, and clear communication channels between the contractor, VA IT, and medical staff. The VA's oversight and quality assurance processes will be critical in monitoring progress and addressing any emerging risks.

What is the historical spending pattern for construction and IT infrastructure upgrades at the Amarillo VA Medical Center or similar VA facilities?

Analyzing historical spending patterns for construction and IT infrastructure at the Amarillo VA Medical Center and comparable VA facilities is essential for context. This would involve examining past contracts for facility upgrades, IT system deployments, and specifically, EHR-related infrastructure projects. Understanding the average cost per square foot for similar construction, the typical duration of such projects, and the frequency of major infrastructure investments provides a benchmark. For instance, if the VA has a history of cost overruns or delays on similar projects, it might indicate a higher risk profile for this contract. Conversely, a history of successful, on-time, and on-budget completions would suggest a more predictable environment. Without access to historical spending data specific to the Amarillo VA or a broader VA portfolio analysis, it's challenging to establish a precise historical spending pattern for this type of project.

How does the competition level (5 bidders) for this contract influence the potential for cost savings and innovation compared to sole-source or limited competition awards?

A competition level involving 5 bidders, as seen in this contract awarded under full and open competition, generally fosters significant cost savings and encourages innovation. With multiple firms vying for the contract, they are incentivized to offer their most competitive pricing and potentially more innovative solutions to win the bid. This contrasts sharply with sole-source or limited competition scenarios, where the lack of alternatives can lead to higher prices and less pressure to adopt cutting-edge methods. The presence of 5 bids suggests that the market has sufficient capacity and interest in undertaking this type of project, allowing the Department of Veterans Affairs to select the best value proposition. This competitive dynamic is a key mechanism for ensuring taxpayer funds are used efficiently.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77624R0084

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6603 N HIAWATHA AVE, CHICAGO, IL, 60646

Business Categories: Category Business, 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: $46,999,614

Exercised Options: $46,999,614

Current Obligation: $46,999,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline