VA Awards $12.17M Contract to Intelerad for NTP PACS Upgrade, Lacking Competition

Contract Overview

Contract Amount: $12,165,015 ($12.2M)

Contractor: Intelerad Medical Systems Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-08-19

End Date: 2026-09-30

Contract Duration: 2,599 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NTP PACS UPGRADE FROM VERSION 4.9 TO 4.14 OR NEWER

Plain-Language Summary

Department of Veterans Affairs obligated $12.2 million to INTELERAD MEDICAL SYSTEMS INC for work described as: NTP PACS UPGRADE FROM VERSION 4.9 TO 4.14 OR NEWER Key points: 1. Contract awarded to a single vendor, raising questions about price discovery. 2. Significant investment in software upgrade for a critical healthcare system. 3. Potential for higher costs due to lack of competitive bidding. 4. The sector is Software Publishers, supporting medical imaging technology.

Value Assessment

Rating: questionable

The contract value of $12.17M for a software upgrade is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar software upgrades in the healthcare IT sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to inflated costs for the government.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of a competitive process, as the VA did not explore alternative vendors or pricing.

Public Impact

Patients may experience improved diagnostic imaging services through the upgraded system. Healthcare providers will benefit from enhanced software capabilities for medical image management. The Department of Veterans Affairs aims to modernize its IT infrastructure for better patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Vendor lock-in risk

Positive Signals

Modernization of critical healthcare IT
Potential for improved diagnostic capabilities

Sector Analysis

The Software Publishers sector is crucial for healthcare IT, providing essential tools for medical imaging and data management. Benchmarks for similar PACS upgrades are difficult to ascertain without competitive data, but large sole-source contracts warrant scrutiny.

Small Business Impact

This contract does not appear to involve small businesses, as it was awarded directly to Intelerad Medical Systems Inc. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The lack of competition raises concerns about oversight. Further review is needed to understand why this contract was sole-sourced and if adequate justification was provided.

Related Government Programs

Software Publishers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Potential for inflated pricing
Lack of transparency in procurement
Limited vendor options for future upgrades

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.2 million to INTELERAD MEDICAL SYSTEMS INC. NTP PACS UPGRADE FROM VERSION 4.9 TO 4.14 OR NEWER

Who is the contractor on this award?

The obligated recipient is INTELERAD MEDICAL SYSTEMS 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 $12.2 million.

What is the period of performance?

Start: 2019-08-19. End: 2026-09-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without further documentation, it's unclear if the VA thoroughly explored competitive options or if specific circumstances necessitated this approach. This lack of competition is a primary driver of potential cost inefficiencies.

How does the cost of this upgrade compare to industry benchmarks for similar software?

Direct comparison is challenging without competitive data. However, sole-source contracts often carry a premium. The VA should have conducted a thorough price analysis against market research or similar government contracts to ensure fair and reasonable pricing, especially given the $12.17M value.

What are the risks associated with upgrading to a newer version of the same vendor's software?

Risks include vendor lock-in, where switching to a different vendor becomes prohibitively expensive or complex. There's also the potential for unexpected integration issues or performance problems with the new version. Ensuring thorough testing and validation is crucial to mitigate these risks.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B19Q0305

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 895 RUE DE LA GAUCHETIERE O BUREAU 400, MONTREAL

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,249,953

Exercised Options: $12,165,015

Current Obligation: $12,165,015

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline