VA awards $4.99M for EHRM Infrastructure Upgrades in Aurora, CO, to Veterans Construction LLC

Contract Overview

Contract Amount: $499,168 ($499.2K)

Contractor: Veterans Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-12-02

Contract Duration: 245 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EHRM INFRASTRUCTURE UPGRADES ( ADDITIONAL FCU'S) - AURORA - CO

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $499,168 to VETERANS CONSTRUCTION LLC for work described as: EHRM INFRASTRUCTURE UPGRADES ( ADDITIONAL FCU'S) - AURORA - CO Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract duration of 245 days suggests a focused scope of work. 3. Engineering services are critical for maintaining and upgrading essential healthcare IT infrastructure. 4. The firm-fixed-price structure aims to control costs, but requires careful monitoring. 5. Geographic focus on Aurora, Colorado, indicates specific facility needs. 6. The contract's value is relatively modest within the broader federal IT infrastructure spending landscape.

Value Assessment

Rating: fair

The contract value of $4.99 million for engineering services related to EHRM infrastructure upgrades appears within a reasonable range for specialized IT infrastructure projects. However, without specific details on the scope of work and deliverables, a direct comparison to similar contracts is challenging. The firm-fixed-price nature suggests an attempt to cap costs, but the absence of multiple bids limits the ability to benchmark pricing against a competitive market. Further analysis of the specific engineering tasks and their market rates would be needed for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be open, certain sources were excluded. This procurement method is less competitive than traditional full and open competition. The number of bidders is not explicitly stated, but the exclusion of sources suggests a potentially narrowed field. This could impact price discovery and potentially lead to higher costs compared to a fully open process with maximum bidder participation.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the exclusion of certain sources, potentially leading to a less optimal use of federal funds.

Public Impact

Benefits the Department of Veterans Affairs by ensuring the stability and functionality of its Electronic Health Record Management (EHRM) system. Delivers essential engineering services for infrastructure upgrades, crucial for modernizing healthcare IT. Geographic impact is concentrated in Aurora, Colorado, supporting local VA facilities. Workforce implications include potential for specialized engineering roles and support staff during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open bid process.
The specific scope of 'infrastructure upgrades' is broad and could lead to scope creep if not tightly managed.
Reliance on a single awarded contractor for critical EHRM infrastructure raises concerns about long-term support and vendor lock-in.

Positive Signals

The contract is firm-fixed-price, which helps to control costs and provides budget certainty.
The award to Veterans Construction LLC, if they have a strong track record, could indicate a reliable partner for this specific project.
The project addresses critical needs for the VA's EHRM system, ensuring continuity of care for veterans.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader IT infrastructure and healthcare technology market. The federal government is a significant consumer of engineering services, particularly for maintaining and upgrading complex systems like EHRM. The market for these services is competitive, with many firms offering specialized expertise. The value of this contract, approximately $5 million, is moderate within the context of large-scale federal IT projects, but significant for the specific infrastructure needs it addresses.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests that the contract was not specifically set aside for small businesses, nor was the prime contractor identified as a small business. Consequently, there are likely limited direct subcontracting opportunities for small businesses under this specific award, unless Veterans Construction LLC voluntarily engages them. The impact on the small business ecosystem is minimal for this particular contract.

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 within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget and timeline. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Affairs EHRM Modernization Program
Federal Health IT Infrastructure Spending
IT Infrastructure Support Services
Engineering and Architectural Services

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if scope is not tightly managed.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $499,168 to VETERANS CONSTRUCTION LLC. EHRM INFRASTRUCTURE UPGRADES ( ADDITIONAL FCU'S) - AURORA - CO

Who is the contractor on this award?

The obligated recipient is VETERANS CONSTRUCTION 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 $499,168.

What is the period of performance?

Start: 2026-04-01. End: 2026-12-02.

What is the specific scope of 'EHRM Infrastructure Upgrades' covered by this contract, and what are the key deliverables?

The provided data does not detail the specific scope of 'EHRM Infrastructure Upgrades.' This typically involves enhancements to the underlying hardware, software, and network components that support the Electronic Health Record Management system. Key deliverables could include system assessments, hardware replacements or upgrades, network optimization, software patching or updates, cybersecurity enhancements, and performance tuning. Without the full contract statement of work, it's impossible to ascertain the precise nature of the upgrades and the expected outcomes. Further inquiry into the contract documentation would be necessary to understand the granular details of the work to be performed and the tangible outputs expected from Veterans Construction LLC.

How does the $4.99 million contract value compare to similar EHRM infrastructure upgrade projects within the VA or other federal agencies?

Benchmarking the $4.99 million contract value requires access to detailed cost data for comparable projects, which is not fully available in the provided summary. However, federal IT infrastructure projects can range significantly in cost. Smaller, targeted upgrades for specific facilities or components might fall within this range. Larger, agency-wide overhauls or system replacements would likely cost tens or hundreds of millions of dollars. Given this contract is for 'additional FCU's' (likely Facility Control Units or similar infrastructure components) and focuses on upgrades rather than a full system replacement, $4.99 million appears to be a moderate investment for specific infrastructure enhancements. A more precise comparison would necessitate analyzing the scope, duration, and specific technical requirements of other similar VA or federal EHRM infrastructure projects.

What is Veterans Construction LLC's track record with the Department of Veterans Affairs and in performing similar IT infrastructure projects?

The provided data identifies Veterans Construction LLC as the contractor but does not offer details on their past performance or track record. To assess their suitability and reliability for this EHRM infrastructure upgrade project, a review of their contract history with the VA and other federal agencies would be essential. This would involve examining past performance evaluations, any documented issues or successes on similar projects, and their overall experience in IT infrastructure engineering and healthcare IT environments. A strong performance history would increase confidence in their ability to successfully execute this contract, while a history of issues might raise concerns about potential risks.

What are the potential risks associated with awarding this contract under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

Awarding a contract under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents several potential risks. Primarily, the exclusion of certain sources inherently limits the pool of potential bidders, which can stifle robust competition. This reduced competition may lead to less favorable pricing for the government, as the contractor may face less pressure to offer the most competitive bid. Furthermore, it raises questions about the justification for excluding specific sources; if the exclusion was not based on objective criteria or was perceived as arbitrary, it could lead to protests or challenges. This procurement method might also signal a less transparent process, potentially impacting public trust and the perception of fairness in federal contracting. Ensuring that the exclusion criteria were valid and well-documented is crucial for mitigating these risks.

How will the success and effectiveness of these EHRM infrastructure upgrades be measured and evaluated?

The success and effectiveness of these EHRM infrastructure upgrades will be measured and evaluated through a combination of contractual requirements and performance monitoring. Key performance indicators (KPIs) will likely be defined in the contract's Statement of Work (SOW) and may include metrics related to system uptime, performance improvements (e.g., faster data retrieval, reduced latency), successful integration of new components, and adherence to cybersecurity standards. The VA's project managers and contracting officers will be responsible for overseeing the contractor's progress, reviewing deliverables, and conducting acceptance testing. Regular progress reports from Veterans Construction LLC, site inspections, and user feedback from healthcare staff utilizing the EHRM system will also contribute to the evaluation of the project's effectiveness in meeting its intended objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 36C77625R0084

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 GRANITE AVE, MILTON, MA, 02186

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $499,168

Exercised Options: $499,168

Current Obligation: $499,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline