VA awards $2.45M contract for Electronic Computer Manufacturing to Soldierpoint Digital Health, LLC

Contract Overview

Contract Amount: $2,451,416 ($2.5M)

Contractor: Soldierpoint Digital Health, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-26

End Date: 2024-09-25

Contract Duration: 365 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHISS V

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to SOLDIERPOINT DIGITAL HEALTH, LLC for work described as: CHISS V Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Short 1-year duration may indicate a pilot program or specific project need. 4. No small business set-aside was applied to this contract. 5. Contractor's primary NAICS code is Electronic Computer Manufacturing. 6. Awarded by the Department of Veterans Affairs, indicating a focus on healthcare IT infrastructure.

Value Assessment

Rating: questionable

The contract value of $2.45 million for a 1-year duration for Electronic Computer Manufacturing services is difficult to benchmark without more specific details on the deliverables. As a sole-source award, there is no direct comparison to similar contracts that underwent competitive bidding. The firm fixed price structure provides cost certainty, but the absence of competition raises concerns about whether the government secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means that the Department of Veterans Affairs did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive pressure on pricing.

Public Impact

The Department of Veterans Affairs is the primary beneficiary, likely receiving critical electronic computer manufacturing services. Services delivered are related to electronic computer manufacturing, supporting VA's IT infrastructure. The geographic impact is likely concentrated in Virginia, where the contractor is located. Workforce implications are tied to the contractor's ability to perform the manufacturing services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for better value.
Lack of transparency in the justification for sole-source award.
No small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to a single vendor may indicate specialized capabilities required.
Contract duration is limited, suggesting a focused scope of work.

Sector Analysis

The Electronic Computer Manufacturing sector (NAICS 334111) is a critical component of the IT infrastructure supporting government operations. This contract, valued at $2.45 million, falls within the typical range for specialized manufacturing services. Benchmarking is challenging due to the sole-source nature, but it represents a specific investment by the VA in its technological capabilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. This could mean missed opportunities for small business innovation and economic participation within this procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to internal VA review and potentially external audits. Transparency regarding the specific services and performance metrics would be key to assessing accountability.

Related Government Programs

Department of Veterans Affairs IT Modernization Programs
Federal Electronic Manufacturing Contracts
Sole-Source IT Procurement

Risk Flags

Sole-source award may result in suboptimal pricing.
Lack of competition limits market research and potential for innovation.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to SOLDIERPOINT DIGITAL HEALTH, LLC. CHISS V

Who is the contractor on this award?

The obligated recipient is SOLDIERPOINT DIGITAL HEALTH, 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 $2.5 million.

What is the period of performance?

Start: 2023-09-26. End: 2024-09-25.

What specific electronic computer manufacturing services are being procured under this contract?

The provided data indicates the NAICS code is 334111 (Electronic Computer Manufacturing), and the contract is with SOLDIERPOINT DIGITAL HEALTH, LLC. However, the specific nature of the 'electronic computer manufacturing' services is not detailed. This could range from the assembly of custom computer hardware, manufacturing of specialized components, to the production of integrated systems. Without further details on the Statement of Work (SOW), it's impossible to ascertain the exact services. The contractor's name, 'Soldierpoint Digital Health,' suggests a potential focus on healthcare-related IT hardware or systems for the VA.

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

The data explicitly states the contract type as 'NOT COMPETED,' which typically implies a sole-source award. The justification for a sole-source award usually stems from situations where only one responsible source is available or capable of meeting the government's needs. Common reasons include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the contract is a follow-on to a previously competed effort where only the original contractor can provide the necessary services. The Department of Veterans Affairs would have had to document and approve this justification.

How does the $2.45 million contract value compare to similar Electronic Computer Manufacturing contracts awarded by the VA or other federal agencies?

Benchmarking this $2.45 million contract is challenging due to its sole-source nature and the 1-year duration. However, for context, federal spending on IT hardware and manufacturing can vary significantly based on scale and complexity. Contracts for large-scale manufacturing or complex system integration can reach tens or hundreds of millions of dollars. Smaller, specialized manufacturing efforts or component-level production might fall within the low millions. Without knowing the specific deliverables (e.g., number of units, complexity of components, R&D involved), a precise comparison is difficult. The value suggests a moderately sized, specific manufacturing requirement rather than a broad, long-term production contract.

What is the track record of Soldierpoint Digital Health, LLC in performing federal contracts, particularly for the Department of Veterans Affairs?

The provided data does not include information on Soldierpoint Digital Health, LLC's past performance or track record with federal contracts. To assess their capabilities, one would typically review contract databases (like FPDS or SAM.gov) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. Given this is a sole-source award, the VA likely conducted some level of due diligence on the contractor's ability to meet the requirements, but public-facing data on their specific track record is not immediately available from the provided snippet.

What are the potential risks associated with a sole-source award for electronic computer manufacturing services?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may pay more than it would in a competitive environment. Other risks include limited innovation, as the sole provider may not be incentivized to offer cutting-edge solutions. There's also a risk of vendor lock-in, making it difficult to switch providers in the future. Furthermore, if the sole-source justification is weak or flawed, it could lead to protests and delays. Finally, the absence of competition can sometimes mask performance issues if not rigorously overseen.

What is the expected impact of this contract on the VA's IT infrastructure or healthcare delivery?

The contract's focus on 'Electronic Computer Manufacturing' suggests it will directly impact the VA's IT infrastructure. This could involve the procurement or manufacturing of new computer hardware, specialized medical devices, or components essential for the operation of the VA's digital health systems. By ensuring the availability of necessary hardware, this contract supports the VA's mission to provide healthcare services to veterans. The specific impact depends heavily on what is being manufactured – whether it's for direct patient care systems, administrative functions, or underlying network infrastructure.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 COOPERATIVE WAY STE 500, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,667,844

Exercised Options: $2,451,416

Current Obligation: $2,451,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G21D0016

IDV Type: IDC

Timeline