VA awards $100M contract for MIM SOFTWARE, Inc. to provide software publishing services

Contract Overview

Contract Amount: $99,977 ($100.0K)

Contractor: MIM Software Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-07-01

End Date: 2027-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $55/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MIM SOFTWARE

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $99,976.7 to MIM SOFTWARE INC for work described as: MIM SOFTWARE Key points: 1. Contract value appears reasonable given the 5-year duration. 2. Full and open competition suggests potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risks. 4. Software publishers sector is critical for government IT infrastructure. 5. Performance period spans across multiple fiscal years. 6. Delivery order structure allows for phased implementation.

Value Assessment

Rating: good

The contract value of approximately $100 million over five years, averaging $20 million annually, seems aligned with typical software licensing and support agreements for enterprise-level solutions. Benchmarking against similar contracts for comprehensive software suites would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator, as it caps the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This process is designed to foster a competitive environment, which typically leads to better pricing and more innovative solutions for the government. The presence of multiple bidders generally suggests a healthy market for the required software services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the software services procured.

Public Impact

Veterans Affairs (VA) will benefit from enhanced software capabilities. Services delivered will support critical IT infrastructure for the VA. Geographic impact is national, supporting VA operations across the country. Workforce implications include IT support staff and end-users within the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated.
Reliance on a single vendor for critical software could pose a risk.
Ensuring adequate technical support and maintenance throughout the contract term is crucial.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Full and open competition suggests a competitive market.
Long-term contract provides stability for software provision.

Sector Analysis

The Software Publishers sector (NAICS 511210) is a vital component of the IT industry, providing essential software products and services to government agencies. This contract fits within the broader category of government IT procurement, which represents a significant portion of federal spending. Comparable spending benchmarks in this sector often involve multi-year licenses, maintenance, and support agreements for enterprise resource planning (ERP), electronic health records (EHR), or other mission-critical software.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of enterprise software solutions, it is common for larger, established vendors to dominate this market. There is no explicit information provided regarding subcontracting plans for small businesses, which could be an area for further inquiry to ensure opportunities for smaller firms within the broader IT ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Affairs IT Modernization Programs
Federal Software Licensing Agreements
Enterprise Resource Planning (ERP) Systems
Health Information Technology Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single-source software provider
Adequacy of long-term technical support

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $99,976.7 to MIM SOFTWARE INC. MIM SOFTWARE

Who is the contractor on this award?

The obligated recipient is MIM SOFTWARE 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 $99,976.7.

What is the period of performance?

Start: 2022-07-01. End: 2027-06-30.

What is the track record of MIM SOFTWARE INC. with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data would be necessary to fully assess MIM SOFTWARE INC.'s track record. This would involve examining past contract performance, any reported issues or disputes, and the overall value and duration of previous awards. Understanding their history with the VA specifically, and other agencies, can provide insights into their reliability, ability to meet performance requirements, and capacity to handle large-scale federal contracts. Without specific historical data, it's difficult to definitively state their track record, but the award of this significant contract suggests a level of confidence from the VA.

How does the annual cost of this contract compare to similar software solutions procured by other federal agencies?

To benchmark the value, one would need to compare the approximate annual cost of $20 million ($100M / 5 years) against contracts for comparable enterprise software suites or services awarded to other agencies. Factors such as the scope of functionality, number of users, level of support, and contract duration are critical for a fair comparison. If similar agencies are procuring comparable solutions for significantly less or more, it would indicate whether this contract represents excellent, fair, or questionable value. Access to detailed contract line item data and market research reports would be essential for this analysis.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential vendor lock-in, where the VA becomes heavily reliant on MIM SOFTWARE's proprietary technology, making future transitions difficult and costly. There's also a risk of performance issues if the software doesn't meet the VA's evolving needs or if support is inadequate. Mitigation strategies likely include clearly defined performance metrics in the contract, phased delivery and acceptance, and potentially clauses allowing for termination for convenience or default. Regular performance reviews and open communication channels with the contractor are also crucial for proactive risk management.

How effective is the MIM SOFTWARE solution expected to be in supporting the VA's mission-critical operations?

The effectiveness of the MIM SOFTWARE solution hinges on its specific functionalities and how well they align with the VA's operational requirements. As a software publisher, MIM SOFTWARE likely provides foundational or specialized applications. Its effectiveness will be measured by its ability to improve efficiency, enhance data management, support decision-making, and ultimately contribute to the VA's mission of serving veterans. Performance metrics within the contract, user feedback, and objective measures of operational improvements (e.g., reduced processing times, improved data accuracy) will be key indicators of its success.

What has been the historical spending trend for MIM SOFTWARE INC. with the federal government over the past five years?

Analyzing historical spending data for MIM SOFTWARE INC. over the past five years would reveal their growth trajectory and relationship with federal agencies. This includes identifying the agencies they've contracted with, the types of services or products provided, and the total value of awards. A consistent or increasing trend in federal spending could indicate strong performance and demand for their offerings. Conversely, a declining trend might signal challenges or reduced agency reliance. This historical context is vital for understanding their current market position and future potential.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: MIM Software Inc.

Address: 25800 SCIENCE PARK DR, BEACHWOOD, OH, 44122

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

Financial Breakdown

Contract Ceiling: $110,252

Exercised Options: $99,977

Current Obligation: $99,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F425CA

IDV Type: FSS

Timeline