VA awards $15M for Cloud-Hosted COTS Dictation SaaS to Knowtex Inc

Contract Overview

Contract Amount: $14,996,000 ($15.0M)

Contractor: Knowtex Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-21

End Date: 2026-07-21

Contract Duration: 365 days

Daily Burn Rate: $41.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD-HOSTED, COMMERCIAL OFF-THE-SHELF (COTS) AMBIENT DICTATION SOFTWARE AS A SERVICE (SAAS), UTILIZING INFRASTRUCTURE PROVIDED BY THE CONTRACTOR COMPLIANT WITH VA ATO AND FEDRAMP.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.0 million to KNOWTEX INC for work described as: CLOUD-HOSTED, COMMERCIAL OFF-THE-SHELF (COTS) AMBIENT DICTATION SOFTWARE AS A SERVICE (SAAS), UTILIZING INFRASTRUCTURE PROVIDED BY THE CONTRACTOR COMPLIANT WITH VA ATO AND FEDRAMP. Key points: 1. Contract for cloud-hosted, commercial off-the-shelf (COTS) ambient dictation software as a service (SaaS). 2. Utilizes contractor-provided infrastructure compliant with VA ATO and FedRAMP. 3. Awarded as a definitive contract with a firm fixed price. 4. Contract duration is 365 days, with an estimated value of $14,996,000.

Value Assessment

Rating: fair

The contract value of $14,996,000 for a one-year SaaS solution appears high when compared to similar dictation software services. Benchmarking against other government or commercial SaaS contracts for dictation services is recommended to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may not have yielded the best possible price for the government.

Taxpayer Impact: The limited competition approach raises concerns about potential overspending, impacting taxpayer value.

Public Impact

Enhances dictation capabilities for VA staff, potentially improving efficiency. Relies on cloud infrastructure, requiring robust security and data privacy measures. The cost of the service could impact other VA technology investments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises price concerns.
High contract value requires justification.
Reliance on contractor infrastructure.

Positive Signals

Utilizes FedRAMP compliant infrastructure.
Addresses a specific VA need for dictation services.

Sector Analysis

This contract falls under 'Other Computer Related Services' (NAICS 541519). Spending in this sector, particularly for SaaS solutions, has been increasing across government agencies. Benchmarks for similar dictation SaaS are crucial for value assessment.

Small Business Impact

The contract was awarded to Knowtex Inc. and does not indicate any specific set-asides or participation goals for small businesses. Further analysis is needed to determine if small businesses were excluded or had opportunities.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets performance requirements and that the service delivers the expected value. Regular reviews of usage and cost are recommended.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to inflated pricing.
High per-unit cost requires strong justification.
Dependence on contractor-provided infrastructure.
Lack of small business participation noted.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.0 million to KNOWTEX INC. CLOUD-HOSTED, COMMERCIAL OFF-THE-SHELF (COTS) AMBIENT DICTATION SOFTWARE AS A SERVICE (SAAS), UTILIZING INFRASTRUCTURE PROVIDED BY THE CONTRACTOR COMPLIANT WITH VA ATO AND FEDRAMP.

Who is the contractor on this award?

The obligated recipient is KNOWTEX 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 $15.0 million.

What is the period of performance?

Start: 2025-07-21. End: 2026-07-21.

What is the specific functionality and user base for this dictation software, and how does it compare to available COTS alternatives?

The data indicates cloud-hosted, COTS ambient dictation SaaS. The specific functionality and user base are not detailed, but it's intended for VA staff. A comparison to other COTS alternatives would reveal if this specific solution offers unique capabilities justifying its cost or if more cost-effective options exist within the market.

What are the risks associated with relying on a single contractor's infrastructure for a critical service like dictation?

Reliance on a single contractor's infrastructure introduces risks such as vendor lock-in, potential service disruptions if the contractor experiences issues, and limited leverage in price negotiations. Ensuring robust Service Level Agreements (SLAs) and contingency plans are in place is vital to mitigate these risks.

How will the effectiveness of this dictation software be measured to ensure it meets VA's needs and justifies the investment?

Effectiveness should be measured through key performance indicators (KPIs) such as dictation accuracy rates, user adoption and satisfaction, time saved in documentation, and reduction in manual transcription costs. Regular performance reviews against these metrics will determine if the software is meeting VA's objectives and providing a return on investment.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C10G25Q0092

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 946 STOCKTON ST APT 14B, SAN FRANCISCO, CA, 94108

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,996,000

Exercised Options: $14,996,000

Current Obligation: $14,996,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline