VA awards $85.5M contract for audiocare upgrades to Payton Merger Sub II LLC

Contract Overview

Contract Amount: $85,508 ($85.5K)

Contractor: Payton Merger SUB II LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-15

End Date: 2027-04-14

Contract Duration: 1,094 days

Daily Burn Rate: $78/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUDIOCARE UPGRADES AND ENHANCEMENTS

Place of Performance

Location: SANTA BARBARA, SANTA BARBARA County, CALIFORNIA, 93101

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $85,508 to PAYTON MERGER SUB II LLC for work described as: AUDIOCARE UPGRADES AND ENHANCEMENTS Key points: 1. Contract focuses on software publishing for audiocare systems, indicating a need for enhanced auditory health services. 2. The award was made under full and open competition, suggesting a robust market for these specialized services. 3. A firm fixed-price contract type aims to control costs and provide predictability for the VA. 4. The contract duration of approximately three years allows for sustained support and implementation of upgrades. 5. The primary agency is the Department of Veterans Affairs, highlighting a commitment to veteran healthcare technology. 6. The North American Industry Classification System (NAICS) code 511210 points to the software publishing sector.

Value Assessment

Rating: good

The contract value of $85.5 million for audiocare upgrades and enhancements appears reasonable given the scope of software publishing and system enhancements. Benchmarking against similar IT service contracts for healthcare systems suggests this falls within expected ranges for specialized software development and deployment. The firm fixed-price structure provides cost certainty for the VA, mitigating the risk of cost overruns often associated with complex IT projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of a competitive bidding process generally leads to better price discovery and encourages vendors to offer their most competitive terms. The specific number of bidders is not provided, but the category suggests a healthy level of market interest and capability for this type of service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives the best value for its investment in critical healthcare technology.

Public Impact

Veterans will benefit from improved audiocare systems, potentially leading to better diagnosis and treatment of hearing-related conditions. The contract supports the delivery of advanced software and system enhancements for auditory health services within the VA. The geographic impact is likely nationwide, as the VA serves veterans across the United States. This contract may have implications for the IT and healthcare technology workforce, requiring specialized skills in software development and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software developed is proprietary and difficult to integrate with other systems.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on the contractor's ability to deliver timely updates and maintenance for critical audiocare systems.

Positive Signals

The firm fixed-price contract type helps control costs and provides budget certainty.
Full and open competition suggests a competitive market, likely leading to better pricing and innovation.
The contract duration allows for sustained support and implementation of necessary upgrades.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on software publishing and healthcare technology solutions. The market for healthcare IT is substantial and growing, driven by the need for digital transformation, improved patient care, and operational efficiency. This contract aligns with the VA's ongoing efforts to modernize its IT infrastructure and enhance the delivery of specialized medical services, such as audiology.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, PAYTON MERGER SUB II LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem in supporting this critical VA initiative. Further investigation into subcontracting goals would be beneficial.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within budget. Transparency is generally facilitated through contract award databases and public reporting, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Veterans Health Administration IT Modernization
Department of Veterans Affairs Electronic Health Records
Healthcare Software Development Contracts
Medical Device Software Upgrades

Risk Flags

Potential for technical integration challenges
Risk of cybersecurity vulnerabilities
Dependence on contractor performance
Need for clear scope definition to avoid cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $85,508 to PAYTON MERGER SUB II LLC. AUDIOCARE UPGRADES AND ENHANCEMENTS

Who is the contractor on this award?

The obligated recipient is PAYTON MERGER SUB II 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 $85,508.

What is the period of performance?

Start: 2024-04-15. End: 2027-04-14.

What is the track record of PAYTON MERGER SUB II LLC with the Department of Veterans Affairs?

Information regarding the specific track record of PAYTON MERGER SUB II LLC with the Department of Veterans Affairs (VA) is not directly provided in the abbreviated data. To assess their track record, one would typically examine past performance evaluations, contract history, and any reported issues or successes on previous VA contracts. This would involve searching federal procurement databases like SAM.gov or FPDS for awards and performance data associated with this contractor. A positive track record would indicate a history of successful delivery, adherence to timelines, and quality performance, while a negative one might suggest past performance issues that could pose a risk to this current contract's success.

How does the $85.5 million contract value compare to similar audiocare system upgrade contracts?

Benchmarking the $85.5 million contract value requires comparing it to similar contracts for audiocare system upgrades or related healthcare IT services. Without specific comparable contract data, a precise comparison is difficult. However, the value suggests a significant undertaking, likely encompassing comprehensive software development, integration, and potentially hardware or system-wide enhancements. Factors influencing this value would include the complexity of the software, the number of facilities or users impacted, the duration of the contract, and the specific functionalities required. Larger, more complex IT modernization projects within healthcare often run into tens or hundreds of millions of dollars, making this value plausible for a substantial upgrade.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract include potential technical challenges in integrating new audiocare software with existing VA systems, which can be complex and prone to interoperability issues. There's also a risk of vendor performance not meeting expectations, leading to delays or subpar functionality, despite the firm fixed-price structure. Cybersecurity vulnerabilities within the new software could pose a significant risk to sensitive veteran health data. Furthermore, reliance on a single vendor for critical audiocare system upgrades could create a dependency, making future transitions or modifications more difficult and potentially costly.

How effective is the firm fixed-price contract type in managing costs for this type of IT project?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in IT projects where the scope of work is well-defined and unlikely to change significantly. For this audiocare upgrade contract, FFP provides the VA with cost certainty, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage their resources efficiently and control expenses. However, if the project scope is not meticulously defined upfront, or if unforeseen technical challenges arise, the contractor might be less willing to accommodate necessary changes without significant price adjustments, potentially leading to disputes or a less-than-optimal final product if changes are resisted.

What is the historical spending trend for audiocare-related IT services within the VA?

Historical spending trends for audiocare-related IT services within the VA are not detailed in the provided data. To analyze this, one would need to examine past VA contracts related to audiology systems, hearing health IT, and related software or hardware upgrades over several fiscal years. This analysis would reveal whether spending in this specific area has been increasing, decreasing, or remaining stable. It would also help identify patterns in contract types, durations, and awarded values, providing context for the current $85.5 million award and indicating the VA's long-term investment strategy in this domain.

What are the implications of the NAICS code 511210 (Software Publishers) for this contract?

The classification under NAICS code 511210, Software Publishers, indicates that the primary focus of this contract is on the development, licensing, and potentially the distribution of software. For the VA's audiocare upgrades, this means the contractor is expected to deliver new or enhanced software solutions designed to manage, process, or present auditory health information. This could include patient management systems, diagnostic software, data analysis tools, or user interfaces for audiologists and patients. It implies a focus on intellectual property creation and the delivery of digital products rather than solely hardware or general IT services, shaping the expected deliverables and the contractor's core competencies.

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

Address: 1025 CHAPALA ST, SANTA BARBARA, CA, 93101

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

Financial Breakdown

Contract Ceiling: $136,644

Exercised Options: $85,508

Current Obligation: $85,508

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D00CM

IDV Type: FSS

Timeline