VA awards $6.47M for camera replacement, citing sole-source justification for digital health equipment

Contract Overview

Contract Amount: $6,471,247 ($6.5M)

Contractor: Soldierpoint Digital Health, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-26

End Date: 2026-03-25

Contract Duration: 545 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24 TOPCON AND CANON CAMERA REPLACEMENT

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.5 million to SOLDIERPOINT DIGITAL HEALTH, LLC for work described as: FY24 TOPCON AND CANON CAMERA REPLACEMENT Key points: 1. Contract awarded to SoldierPoint Digital Health, LLC, a single vendor. 2. Focus on electronic computer manufacturing, specifically camera systems. 3. Duration of 545 days, ending March 2026. 4. Firm Fixed Price contract type suggests predictable costs. 5. No small business set-aside indicated. 6. Geographic location: Virginia.

Value Assessment

Rating: questionable

The contract value of $6.47 million for camera replacement appears high without further context on the specific technology and quantity. Benchmarking against similar sole-source procurements for specialized digital health equipment is difficult due to limited public data. The absence of competition raises concerns about whether the government secured the best possible price and value for these critical systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SoldierPoint Digital Health, LLC, was solicited. The justification for this approach is not detailed in the provided data, but sole-source awards typically occur when a unique capability or proprietary technology is required, or in emergency situations. The lack of competition limits the government's ability to explore alternative solutions or negotiate pricing.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. Without a competitive process, it is harder to ensure that the awarded price reflects fair market value.

Public Impact

Veterans receiving care through VA digital health initiatives may benefit from updated camera technology. Services delivered include the provision and potential integration of new camera systems. Geographic impact is primarily within the VA system, with a specific mention of Virginia. Workforce implications could involve training for personnel using the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for better value.
Lack of detailed justification for sole-source award raises transparency concerns.
High dollar value for camera replacement warrants scrutiny of necessity and pricing.

Positive Signals

Contract supports the Department of Veterans Affairs' digital health modernization efforts.
Firm Fixed Price contract provides cost certainty for this procurement.
Specific end-date ensures a defined project timeline.

Sector Analysis

This contract falls within the Electronic Computer Manufacturing sector, specifically related to imaging and digital health technology. The market for specialized cameras used in healthcare and digital solutions can be niche, often involving proprietary technology. Comparable spending benchmarks are difficult to establish without knowing the exact specifications and intended use of these cameras, but significant investments are common in upgrading healthcare IT infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, there was no opportunity for small businesses to compete. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless SoldierPoint Digital Health, LLC voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the delivery of the specified camera systems according to the contract terms and performance standards. Transparency is limited due to the sole-source nature and lack of detailed public justification. Inspector General jurisdiction may apply if performance issues or fraud are suspected.

Related Government Programs

VA IT Modernization Programs
Digital Health and Telemedicine Initiatives
Medical Equipment Procurement
Electronic Computer Manufacturing Contracts

Risk Flags

Sole-source award lacks competitive justification.
High contract value for camera replacement requires detailed justification.
Limited transparency regarding specific technology and application.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.5 million to SOLDIERPOINT DIGITAL HEALTH, LLC. FY24 TOPCON AND CANON CAMERA REPLACEMENT

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 $6.5 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-03-25.

What specific type of cameras are being procured, and what is their intended application within the VA's digital health strategy?

The provided data classifies the contract under NAICS code 334111 (Electronic Computer Manufacturing) and mentions 'TOPCON AND CANON CAMERA REPLACEMENT'. This suggests the procurement involves specialized camera systems, potentially from brands like Topcon or Canon, which are known for high-precision imaging equipment. Within the VA's digital health strategy, these cameras could be used for various purposes such as telemedicine consultations (e.g., dermatology, ophthalmology), diagnostic imaging, patient monitoring, or even for training and simulation purposes. The exact application is crucial for understanding the necessity and value of the $6.47 million award. Without this detail, it's difficult to assess if the technology is standard or highly specialized.

What is the justification for awarding this contract on a sole-source basis to SoldierPoint Digital Health, LLC?

The data explicitly states the contract was 'NOT COMPETED' and is a 'sole-source' award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when a unique capability is needed that cannot be obtained through competition. For this contract, the justification might stem from SoldierPoint Digital Health, LLC possessing proprietary technology, exclusive distribution rights for the specified camera models, or a unique integration capability essential for the VA's digital health systems. A detailed justification document, typically required for sole-source awards above certain thresholds, would outline these reasons. The absence of this justification in the provided snippet limits a full assessment.

How does the $6.47 million contract value compare to industry benchmarks for similar camera systems, considering the sole-source nature?

Benchmarking the $6.47 million contract value is challenging due to the sole-source award and the unspecified nature of the 'TOPCON AND CANON CAMERA REPLACEMENT'. Sole-source contracts often command higher prices than competitively procured ones because the government lacks the leverage of multiple bids. If these are standard off-the-shelf cameras, the price would likely be considered excessive. However, if they are highly specialized, integrated systems critical for specific digital health functions (e.g., advanced diagnostic imaging), the cost might be justifiable within that niche market. Without details on the quantity, specific models, features, and required integration services, a direct comparison to market rates or similar contracts is speculative.

What are the potential risks associated with a sole-source award of this magnitude for camera replacement?

The primary risk associated with a sole-source award of this magnitude is the potential for overpayment and lack of optimal value. Without competition, there's less incentive for the contractor to offer the lowest possible price. There's also a risk that the chosen solution might not be the most innovative or cost-effective available on the market. Furthermore, reliance on a single vendor can create long-term dependencies and potential supply chain vulnerabilities. If SoldierPoint Digital Health, LLC fails to perform adequately or experiences financial difficulties, the VA could face significant disruption in its digital health operations, with limited alternative options due to the initial sole-source decision.

What is SoldierPoint Digital Health, LLC's track record with the VA or other federal agencies, particularly regarding sole-source contracts?

The provided data identifies SoldierPoint Digital Health, LLC as the contractor but does not offer details on their past performance or track record with the VA or other federal agencies. To assess this contract's risk, it would be crucial to examine the company's history. Key areas to investigate would include previous contract awards (especially sole-source), performance reviews, any past disputes or contract terminations, and their experience with similar technology or digital health solutions. A company with a strong, proven track record, even on sole-source awards, might mitigate some of the inherent risks. Conversely, a limited or problematic history would heighten concerns about this specific $6.47 million award.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: $6,471,247

Exercised Options: $6,471,247

Current Obligation: $6,471,247

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