VA awards $2.86M contract for VOCERA SERVICES to ALVAREZ LLC, emphasizing firm fixed price

Contract Overview

Contract Amount: $286,403 ($286.4K)

Contractor: Alvarez LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $787/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VOCERA SERVICES

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $286,403.36 to ALVAREZ LLC for work described as: VOCERA SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 364 days indicates a need for ongoing services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. Awarded by the Department of Veterans Affairs, likely supporting healthcare operations. 5. The North American Industry Classification System (NAICS) code 511210 points to software publishing or related services. 6. The contract value is relatively modest, suggesting a focused scope of work.

Value Assessment

Rating: good

The contract value of $2.86 million for a one-year period appears reasonable for specialized software services. Benchmarking against similar contracts for communication or clinical software solutions would provide a more precise value-for-money assessment. The firm fixed price structure is a positive indicator for cost control, assuming the scope of work is well-defined and unlikely to change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bidders (no) suggests a moderate level of competition for this specific requirement. While not a large number of bidders, full and open competition generally allows for price discovery and encourages competitive pricing.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it aims to secure the best possible price through a structured bidding process.

Public Impact

Veterans receiving care through the VA may benefit from improved communication systems facilitated by these services. The services delivered are likely related to software or IT support for healthcare operations. The contract is geographically focused on South Carolina (SN: SOUTH CAROLINA). Potential implications for the IT workforce supporting VA healthcare systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and integrated.
Risk of scope creep if requirements are not clearly defined in the firm fixed price contract.

Positive Signals

Firm fixed price contract provides cost certainty.
Awarded through full and open competition, promoting a fair bidding process.
Contract duration allows for sustained service delivery.

Sector Analysis

The IT services sector, particularly within healthcare, is characterized by rapid innovation and a constant need for reliable software solutions. This contract likely falls within the broader category of health IT or specialized software services. The market for such solutions is competitive, with many vendors offering communication, data management, and clinical support software. The value of this contract is modest compared to large-scale IT system procurements, suggesting a focused application or support role.

Small Business Impact

There is no indication that this contract was set aside for small businesses (SB: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not specified in the provided data. Without a small business set-aside, large businesses or those with established prime contracts are more likely to be the direct awardees.

Oversight & Accountability

The Department of the Veterans Affairs (VA) has established oversight mechanisms for its contracts, including potential reviews by the VA Office of Inspector General (OIG). The firm fixed price contract type provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight activities are not provided in this summary.

Related Government Programs

VA Electronic Health Record Modernization
VA Telehealth Services
VA IT Support Services
Federal Health IT Contracts

Risk Flags

Potential for vendor lock-in
Risk of scope creep in FFP contracts
Dependence on contractor performance for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $286,403.36 to ALVAREZ LLC. VOCERA SERVICES

Who is the contractor on this award?

The obligated recipient is ALVAREZ 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 $286,403.36.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the track record of ALVAREZ LLC in performing similar federal contracts, particularly with the Department of Veterans Affairs?

Information regarding ALVAREZ LLC's specific track record with the Department of Veterans Affairs or on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government awards. This would help determine their capacity and reliability in delivering the specified VOCERA SERVICES. Without this historical data, it's difficult to fully gauge their suitability beyond the competitive award process.

How does the awarded price of $2.86 million compare to market rates for similar VOCERA SERVICES or communication platforms in the federal sector?

A direct comparison of the $2.86 million award to market rates for similar VOCERA SERVICES requires detailed benchmarking. Factors such as the specific features, user licenses, support levels, and duration of the contract significantly influence pricing. Generally, firm fixed price contracts aim to secure a competitive rate. However, without access to a database of comparable federal contracts or industry pricing for similar solutions, it is challenging to definitively state whether this represents a superior or average value. The fact that it was awarded under full and open competition suggests the price was deemed acceptable through the bidding process.

What are the primary risks associated with this contract, considering the firm fixed price (FFP) structure and the nature of software services?

The primary risks associated with this firm fixed price (FFP) contract for software services include potential scope creep if requirements are not meticulously defined, leading to disputes or the contractor seeking additional funds outside the FFP. There's also a risk that the contractor might cut corners on quality or support to maintain profitability under the fixed price. For the government, the risk lies in the potential for the contractor to underperform if penalties or performance metrics are not robustly defined and enforced. Vendor lock-in could also be a concern if the services become deeply integrated into VA systems.

What is the expected effectiveness of these VOCERA SERVICES in improving VA healthcare operations in South Carolina?

The expected effectiveness of these VOCERA SERVICES hinges on their specific functionality and integration into the VA's existing operational framework in South Carolina. If VOCERA SERVICES are designed to enhance clinical communication, patient tracking, or staff coordination, they could significantly improve efficiency and patient care. However, the provided data does not detail the specific capabilities of the services being procured. Their effectiveness will ultimately depend on proper implementation, user adoption, and alignment with the VA's strategic healthcare goals for the region.

How has the Department of Veterans Affairs historically spent on similar communication or software services, and does this award represent an increase or decrease?

Analyzing historical spending patterns for similar communication or software services by the Department of Veterans Affairs (VA) is crucial for context. Without access to historical VA procurement data for VOCERA SERVICES or comparable systems, it's impossible to determine if this $2.86 million award represents an increase or decrease in spending. Trends in federal IT spending, particularly within healthcare, often show increases due to technological advancements and evolving needs. A thorough analysis would involve comparing this award to previous contract values for similar services over several fiscal years.

What are the implications of awarding this contract to ALVAREZ LLC, a single entity, for the long-term IT infrastructure of the VA?

Awarding this contract to ALVAREZ LLC, as a single entity, could have implications for the VA's long-term IT infrastructure depending on the nature of the services. If the services are highly specialized and proprietary, it could lead to vendor lock-in, making it difficult and costly to switch providers in the future. Conversely, if ALVAREZ LLC proves to be a reliable and innovative partner, it could foster a stable and efficient operational environment. The VA's strategy for managing multiple vendors and ensuring interoperability across its IT systems will be key to mitigating potential long-term risks associated with single-entity awards.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 335, LEESBURG, VA, 20176

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

Financial Breakdown

Contract Ceiling: $1,529,270

Exercised Options: $286,403

Current Obligation: $286,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D006J

IDV Type: FSS

Timeline