VA awards $2.2M for software support, highlighting need for specialized IT services in healthcare

Contract Overview

Contract Amount: $2,245,621 ($2.2M)

Contractor: Data Innovations LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTRUMENT MANAGER PROFESSIONAL SOFTWARE AND IMPLEMENTATION SUPPORT FOR LABORATORY

Place of Performance

Location: COLCHESTER, CHITTENDEN County, VERMONT, 05446

State: Vermont Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to DATA INNOVATIONS LLC for work described as: INSTRUMENT MANAGER PROFESSIONAL SOFTWARE AND IMPLEMENTATION SUPPORT FOR LABORATORY Key points: 1. Contract addresses critical IT infrastructure for laboratory operations, ensuring data integrity and system functionality. 2. Focus on implementation support suggests a need for specialized expertise beyond standard software licensing. 3. The fixed-price contract structure aims to control costs and provide predictable spending for the VA. 4. Competition was full and open, indicating a healthy market for this type of specialized IT service. 5. The duration of the contract suggests a long-term need for ongoing support and potential future enhancements. 6. This award reflects the VA's commitment to modernizing its healthcare IT systems.

Value Assessment

Rating: good

The contract value of $2.2 million for software and implementation support appears reasonable given the specialized nature of laboratory information systems. Benchmarking against similar contracts for IT support in federal healthcare agencies suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs, mitigating the risk of cost overruns. The award to Data Innovations LLC, a known entity in this space, further supports the assessment of good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the open competition suggests that multiple companies were capable of meeting the VA's requirements for laboratory software and implementation support. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

Veterans receiving care will benefit from improved laboratory data management and system reliability. The Department of Veterans Affairs gains enhanced capabilities for its laboratory information systems. Healthcare professionals in VA facilities will have access to more robust and efficient software tools. The contract supports the operational efficiency of VA medical centers and clinics nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if implementation is highly customized and difficult to transition away from.
Reliance on a single vendor for critical software support could pose risks if the vendor experiences financial instability or changes strategic direction.

Positive Signals

The use of a firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract duration allows for stable, long-term support of essential laboratory systems.

Sector Analysis

The federal IT services market is substantial, with significant spending directed towards software publishers and professional services, particularly within the healthcare sector. The Department of Veterans Affairs, as a major healthcare provider, consistently invests in IT solutions to manage patient data, streamline operations, and improve care delivery. This contract for laboratory information system support fits within the broader trend of federal agencies modernizing their digital infrastructure to enhance efficiency and data accuracy. Comparable spending benchmarks for similar IT support contracts within federal healthcare agencies typically range from hundreds of thousands to several million dollars, depending on the scope and complexity.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses is likely limited unless Data Innovations LLC engages in subcontracting opportunities. The absence of a small business set-aside suggests that the primary focus was on securing the best solution from the broader market, rather than specifically targeting small business participation for this particular requirement.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through a designated contracting officer and program manager. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified software and implementation services by the end date. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Health Administration IT Modernization
Federal Health IT Services
Laboratory Information Management Systems (LIMS) Contracts
Software Implementation and Support Services

Risk Flags

Potential for scope creep
Vendor performance risk
Integration challenges with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to DATA INNOVATIONS LLC. INSTRUMENT MANAGER PROFESSIONAL SOFTWARE AND IMPLEMENTATION SUPPORT FOR LABORATORY

Who is the contractor on this award?

The obligated recipient is DATA INNOVATIONS 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 $2.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the track record of Data Innovations LLC in supporting federal laboratory information systems?

Data Innovations LLC has a history of providing software solutions and support, including for laboratory information systems. While specific details on their past federal contracts are not provided in this data snippet, their presence in the market suggests experience. Further investigation into their contract history with federal agencies, particularly the VA or other healthcare providers, would be necessary to fully assess their track record. This would involve reviewing past performance evaluations, contract modifications, and any reported issues to understand their reliability and capability in delivering similar services.

How does the $2.2 million contract value compare to similar VA laboratory software support contracts?

Without access to a comprehensive database of all VA laboratory software support contracts, a precise comparison is difficult. However, $2.2 million for a two-year contract involving specialized software implementation and support for laboratory systems is generally within a reasonable range for federal healthcare IT procurements. The complexity of laboratory information systems, which often require integration with other hospital systems and adherence to strict data standards, can drive up costs. The firm fixed-price nature of this award also suggests that the VA sought to cap its financial exposure, which is a common practice for managing IT project budgets.

What are the primary risks associated with this contract for the Department of Veterans Affairs?

The primary risks for the VA in this contract include potential vendor performance issues, where Data Innovations LLC might fail to meet the specified software requirements or implementation timelines. There's also a risk of cost overruns if the scope of work expands beyond the initial agreement, although the firm fixed-price structure aims to mitigate this. Another concern could be the long-term maintainability and compatibility of the implemented software, as well as the potential for vendor lock-in, making future transitions to different systems costly and complex. Ensuring adequate technical support and system updates throughout the contract period is also crucial.

How effective is the firm fixed-price contract type in ensuring program effectiveness for IT support?

The firm fixed-price (FFP) contract type is generally effective in ensuring cost control and predictability for IT support services. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently to meet the agreed-upon price. For program effectiveness, FFP can be beneficial if the requirements are well-defined and unlikely to change significantly. However, if the scope of work is complex or subject to frequent changes, an FFP contract might lead to the contractor being less flexible or potentially cutting corners to maintain profitability, which could impact the quality or effectiveness of the delivered service. Close monitoring by the government is still essential.

What are the historical spending patterns for laboratory software and IT support within the VA?

Historical spending patterns for laboratory software and IT support within the VA are likely substantial and have been increasing over time, reflecting a broader trend in federal healthcare IT modernization. The VA manages a vast network of healthcare facilities, each requiring robust and integrated IT systems, including specialized solutions for clinical laboratories. While specific historical dollar amounts are not provided here, agencies like the VA typically allocate significant portions of their IT budgets to software acquisition, implementation, maintenance, and support services. This includes investments in electronic health records, laboratory information management systems (LIMS), and related infrastructure to ensure efficient and accurate patient care delivery.

What is the significance of the contract duration (729 days) in relation to the scope of work?

A contract duration of 729 days (approximately two years) for "INSTRUMENT MANAGER PROFESSIONAL SOFTWARE AND IMPLEMENTATION SUPPORT FOR LABORATORY" suggests a significant implementation phase followed by a period of operational support. This timeframe is often necessary for complex software deployments within a large organization like the VA, which may involve data migration, system integration, user training, and testing across multiple facilities. The duration allows for a structured rollout and stabilization period, ensuring that the software is effectively integrated into existing workflows and that end-users are adequately supported. It also provides a reasonable period for the contractor to demonstrate value and for the VA to assess the system's performance.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roper Technologies, Inc.

Address: 463 MOUNTAIN VIEW DR STE 305, COLCHESTER, VT, 05446

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,697,964

Exercised Options: $2,245,621

Current Obligation: $2,245,621

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F389DA

IDV Type: FSS

Timeline