VA awards $23.8M to First Databank for MedKnowledge Drug Database and Decision Support Tools

Contract Overview

Contract Amount: $23,881,166 ($23.9M)

Contractor: First Databank Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-31

End Date: 2026-01-30

Contract Duration: 1,460 days

Daily Burn Rate: $16.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THIS ACTION IS FOR A FIRM FIXED PRICE CONTRACT TO PROVIDE FIRST DATABANK INC. MEDKNOWLEDGE DRUG DATABASE AND DECISION SUPPORT TOOLS SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46240

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.9 million to FIRST DATABANK INC for work described as: THIS ACTION IS FOR A FIRM FIXED PRICE CONTRACT TO PROVIDE FIRST DATABANK INC. MEDKNOWLEDGE DRUG DATABASE AND DECISION SUPPORT TOOLS SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS. Key points: 1. Contract awarded to First Databank Inc. for essential drug database and decision support tools. 2. The contract is a Firm Fixed Price (FFP) type, indicating a set price for the services. 3. This procurement was not competed, raising questions about potential price discovery and value. 4. The sector is related to healthcare information technology and data services.

Value Assessment

Rating: questionable

The contract value of $23.8M over approximately four years needs to be benchmarked against similar drug database and decision support tool contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical healthcare data services.

Public Impact

Ensures continued access to vital drug information for healthcare providers within the VA. Supports clinical decision-making, potentially impacting patient care quality and safety. The significant contract value highlights the importance of reliable data for federal healthcare operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award
Reliance on a single vendor for critical data

Positive Signals

Provides essential tools for VA healthcare professionals
Long-term contract ensures continuity of service

Sector Analysis

The healthcare IT sector, particularly for specialized databases and decision support tools, is crucial for modern healthcare delivery. Spending benchmarks vary widely based on the scope and exclusivity of the data provided.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were explored or offered.

Oversight & Accountability

The non-competitive nature of this award warrants close oversight to ensure the VA is receiving fair value and that the vendor is meeting all contractual obligations.

Related Government Programs

Directory and Mailing List Publishers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Potential for inflated pricing
Lack of market research evidence
Vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.9 million to FIRST DATABANK INC. THIS ACTION IS FOR A FIRM FIXED PRICE CONTRACT TO PROVIDE FIRST DATABANK INC. MEDKNOWLEDGE DRUG DATABASE AND DECISION SUPPORT TOOLS SUPPORT FOR THE DEPARTMENT OF VETERANS AFFAIRS.

Who is the contractor on this award?

The obligated recipient is FIRST DATABANK 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 $23.9 million.

What is the period of performance?

Start: 2022-01-31. End: 2026-01-30.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award typically involves demonstrating that only one vendor can provide the required goods or services due to unique capabilities, proprietary technology, or urgent needs. The contracting officer must still conduct a price reasonableness analysis, often by comparing historical pricing, using independent cost estimates, or referencing commercial price lists, to ensure the government is not overpaying.

What are the risks associated with relying on a single vendor for critical drug database and decision support tools?

The primary risks include vendor lock-in, potential price increases in future contract renewals, and a lack of incentive for the vendor to innovate or improve services. If the vendor experiences financial difficulties or decides to discontinue the product, the VA could face significant disruption in accessing essential information, impacting healthcare operations and patient care.

How does this contract contribute to the VA's overall mission effectiveness in providing healthcare services?

This contract is critical for the VA's mission by providing healthcare professionals with accurate, up-to-date drug information and decision support tools. This directly supports safe medication management, helps prevent adverse drug events, and aids in selecting appropriate treatments, thereby enhancing the quality and effectiveness of care delivered to veterans.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Directory and Mailing List Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B22Q0087

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 E. 96TH STREET, STE 500, INDIANAPOLIS, IN, 46240

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,613,965

Exercised Options: $23,881,166

Current Obligation: $23,881,166

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline