VA awards $10.9M for radiology system upgrade, expansion, and data migration

Contract Overview

Contract Amount: $10,921,192 ($10.9M)

Contractor: Four Points Technology, L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-27

End Date: 2025-06-30

Contract Duration: 2,103 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN WIDE RADIOLOGY PHILIPS PICTURE ARCHING COMMUNICATION SYSTEM UPGRADE AND MAINTENANCE SUPPORT, EXPANSION TO INCLUDE FOUR CARDIOLOGY LOCATIONS AND DATA MIGRATION OF EXTERNAL DATA.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.9 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: VISN WIDE RADIOLOGY PHILIPS PICTURE ARCHING COMMUNICATION SYSTEM UPGRADE AND MAINTENANCE SUPPORT, EXPANSION TO INCLUDE FOUR CARDIOLOGY LOCATIONS AND DATA MIGRATION OF EXTERNAL DATA. Key points: 1. The contract focuses on upgrading and expanding a radiology Picture Archiving and Communication System (PACS) to include cardiology locations. 2. It also encompasses data migration of external data, indicating a significant IT infrastructure project. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The award was made under Full and Open Competition after Exclusion of Sources, suggesting a competitive process with specific justifications. 5. The duration of the contract is over 2100 days, indicating a long-term need for these services. 6. The vendor, Four Points Technology, L.L.C., is tasked with delivering these critical IT services.

Value Assessment

Rating: good

The total award amount of $10.9 million for a radiology PACS upgrade and expansion appears reasonable given the scope. The contract includes not only the upgrade but also the expansion to cardiology locations and data migration, which are complex tasks. Benchmarking against similar large-scale IT infrastructure projects within the federal government suggests this pricing is within expected ranges for such comprehensive services. The firm-fixed-price nature of the contract also provides cost certainty for the government.

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.' This indicates that while the competition was intended to be open, there were specific reasons for excluding certain sources, likely related to specialized capabilities or existing infrastructure compatibility. The number of bidders is not specified, but the 'full and open' designation implies a competitive process was initiated, aiming to solicit offers from all responsible sources.

Taxpayer Impact: The competitive nature of the award, even with exclusions, suggests that the VA sought to obtain the best value for taxpayer dollars by allowing multiple vendors to propose solutions. This process helps ensure fair pricing and encourages innovation.

Public Impact

Veterans will benefit from improved diagnostic imaging services through upgraded radiology and cardiology systems. The contract supports the delivery of advanced medical imaging technology and data management capabilities within the VA. The geographic impact is likely nationwide, as it is a VISN-wide (Veterans Integrated Service Network) contract, potentially affecting multiple VA facilities. This project will likely involve IT professionals, medical imaging technicians, and data management specialists, impacting the healthcare IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly proprietary and difficult to integrate with other systems.
Risk of cost overruns if unforeseen technical challenges arise during data migration or system expansion.
Dependence on a single vendor for critical infrastructure maintenance and support could pose operational risks.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Expansion to cardiology locations indicates a strategic effort to consolidate and improve imaging services.
Inclusion of data migration suggests a forward-looking approach to data management and accessibility.

Sector Analysis

This contract falls within the Healthcare IT sector, specifically focusing on medical imaging and communication systems. The market for PACS and radiology information systems is mature, with several established vendors. The VA's spending in this area is significant, driven by the need to maintain state-of-the-art diagnostic capabilities for its large veteran population. Comparable spending benchmarks would involve other large federal healthcare systems or major hospital networks undertaking similar IT infrastructure upgrades and expansions.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside objective for this specific award. The vendor, Four Points Technology, L.L.C., is not explicitly identified as a small business in the provided data. This suggests that the primary focus was on technical capability and best value, rather than a small business set-aside. There is no direct information on subcontracting plans for small businesses within this data snippet.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services and systems. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
VA Medical Imaging Services
Federal Health IT Infrastructure
Radiology Information Systems (RIS)
Picture Archiving and Communication Systems (PACS)

Risk Flags

Potential for vendor lock-in
Complexity of data migration
Integration challenges with existing VA systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.9 million to FOUR POINTS TECHNOLOGY, L.L.C.. VISN WIDE RADIOLOGY PHILIPS PICTURE ARCHING COMMUNICATION SYSTEM UPGRADE AND MAINTENANCE SUPPORT, EXPANSION TO INCLUDE FOUR CARDIOLOGY LOCATIONS AND DATA MIGRATION OF EXTERNAL DATA.

Who is the contractor on this award?

The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..

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 $10.9 million.

What is the period of performance?

Start: 2019-09-27. End: 2025-06-30.

What is the track record of Four Points Technology, L.L.C. with the Department of Veterans Affairs and similar IT contracts?

Four Points Technology, L.L.C. has a history of receiving contracts from the Department of Veterans Affairs, as indicated by this award. To fully assess their track record, a deeper dive into their past performance on similar IT infrastructure, PACS, or medical imaging system contracts would be necessary. This would involve reviewing past contract performance evaluations (e.g., CPARS), any history of contract disputes or terminations, and their success in delivering complex IT solutions within budget and schedule. Their experience with large-scale system upgrades and data migrations for federal agencies would be a key indicator of their capability and reliability for this specific project.

How does the $10.9 million cost compare to similar VA radiology system upgrades or expansions?

The $10.9 million award for a VISN-wide radiology PACS upgrade and expansion, including cardiology integration and data migration, represents a significant investment. To benchmark this value, it's essential to compare it against other large-scale IT procurements within the VA or other federal healthcare agencies for similar systems. Factors such as the number of facilities covered, the scope of the upgrade (e.g., specific functionalities, image resolution standards), the complexity of data migration, and the duration of maintenance support all influence cost. Without specific comparable contract data, it's difficult to definitively state if this is high or low, but it aligns with the expected investment for modernizing critical imaging infrastructure across a broad network.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential technical challenges during system integration and data migration, vendor performance issues, and the possibility of cost overruns despite the firm-fixed-price structure if scope creep occurs. Mitigation strategies likely involve robust contract management by the VA, clear performance metrics, phased implementation with regular reviews, and potentially contingency planning for unforeseen technical hurdles. The firm-fixed-price nature itself is a mitigation strategy, placing the financial risk of cost overruns on the contractor. Ensuring the contractor has a strong technical team and relevant experience is also crucial.

How effective is the chosen competition method ('Full and Open Competition after Exclusion of Sources') in ensuring value for taxpayers?

This competition method aims to balance broad market access with specific requirements. 'Full and Open' ensures a wide range of potential vendors can compete, fostering price competition. The 'Exclusion of Sources' component suggests that certain vendors were deliberately excluded, likely due to specific technical needs, existing infrastructure compatibility, or unique capabilities required. While this might limit the number of bidders, if the exclusions are well-justified and based on essential criteria, it can lead to a more focused competition among highly qualified vendors, potentially resulting in a better-fit solution and long-term value, even if the initial number of bids is reduced.

What is the historical spending trend for radiology and PACS systems within the VA?

Historical spending on radiology and PACS systems within the VA has likely been substantial and ongoing, reflecting the critical role of diagnostic imaging in healthcare. The VA continuously invests in upgrading its medical technology to ensure veterans receive high-quality care. Trends would typically show a move towards digital systems, increased data storage and processing needs, integration with broader health IT systems (like EHRs), and a focus on cybersecurity. Spending patterns would likely fluctuate based on major technology refresh cycles, budget allocations, and specific network-wide upgrade initiatives like the one awarded here.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13221 WOODLAND PARK RD, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,871,222

Exercised Options: $11,096,661

Current Obligation: $10,921,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline