VA awards $246K for dental IT maintenance, raising questions on competition and value

Contract Overview

Contract Amount: $24,618 ($24.6K)

Contractor: Apryse Software Corp.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2027-05-31

Contract Duration: 546 days

Daily Burn Rate: $45/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FULL-SERVICE CONTRACT TO PROVIDE PREVENTATIVE MAINTENANCE, CORRECTIVE MAINTENANCE AND SUPPORT NECESSARY TO KEEP THE DENTAL DEPARTMENT'S MIPACS STORAGE SERVER AND DENTAL VIEWERS PERFORMING IN ACCORDANCE WITH OEM SPECIFICATION.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24,618 to APRYSE SOFTWARE CORP. for work described as: FULL-SERVICE CONTRACT TO PROVIDE PREVENTATIVE MAINTENANCE, CORRECTIVE MAINTENANCE AND SUPPORT NECESSARY TO KEEP THE DENTAL DEPARTMENT'S MIPACS STORAGE SERVER AND DENTAL VIEWERS PERFORMING IN ACCORDANCE WITH OEM SPECIFICATION. Key points: 1. Contract focuses on maintaining critical dental IT infrastructure. 2. Sole-source award limits price discovery and potential savings. 3. Firm-fixed-price contract shifts some risk to the government. 4. Long-term maintenance contract may indicate vendor lock-in. 5. Performance period spans over 1.5 years. 6. IT infrastructure maintenance is crucial for healthcare delivery.

Value Assessment

Rating: fair

The contract value of $246,180 for a 546-day period appears reasonable for specialized IT maintenance. However, without a competitive bidding process, it is difficult to benchmark against market rates or assess if the government received the best possible price. The firm-fixed-price structure provides cost certainty but may not capture potential savings from a more competitive environment. The lack of competition is the primary driver for a 'fair' rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple qualified vendors. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price competition and potentially higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that typically arise from a bidding process. This could result in a higher overall expenditure for the required services.

Public Impact

Veterans in Florida will benefit from uninterrupted access to dental imaging services. The contract ensures the operational readiness of the dental department's IT systems. Geographic impact is limited to the VA facility in Florida. No direct workforce implications are stated, but IT support is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits transparency in pricing.
Potential for vendor lock-in with long-term maintenance.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Maintenance ensures critical IT systems remain operational.
Contract duration aligns with system lifecycle needs.

Sector Analysis

This contract falls within the Software Publishers (NAICS 513210) sector, specifically focusing on IT maintenance and support for specialized medical imaging software. The market for IT maintenance services is competitive, but specialized systems like MIPACS storage servers and dental viewers often require vendor-specific expertise, which can sometimes lead to sole-source or limited competition scenarios. Benchmarking is difficult without comparable sole-source awards for similar specialized medical IT maintenance.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities. The award was made to Apryse Software Corp., and no information is provided regarding their size or any subcontracting plans. The nature of specialized IT maintenance for specific medical equipment often favors established vendors with proprietary knowledge, potentially limiting small business involvement.

Oversight & Accountability

The contract is a Purchase Order, which is a standard procurement instrument. Oversight would typically be managed by the Department of Veterans Affairs contracting officer and program managers responsible for the dental department's IT infrastructure. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration IT Services
Medical Imaging Software Maintenance
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award
Limited competition
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24,618 to APRYSE SOFTWARE CORP.. FULL-SERVICE CONTRACT TO PROVIDE PREVENTATIVE MAINTENANCE, CORRECTIVE MAINTENANCE AND SUPPORT NECESSARY TO KEEP THE DENTAL DEPARTMENT'S MIPACS STORAGE SERVER AND DENTAL VIEWERS PERFORMING IN ACCORDANCE WITH OEM SPECIFICATION.

Who is the contractor on this award?

The obligated recipient is APRYSE SOFTWARE CORP..

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 $24,618.

What is the period of performance?

Start: 2025-12-01. End: 2027-05-31.

What is the track record of Apryse Software Corp. with the Department of Veterans Affairs?

Information regarding Apryse Software Corp.'s specific track record with the Department of Veterans Affairs (VA) is not detailed in the provided data. However, the award of this contract suggests they have the necessary qualifications or have been identified as the sole provider for this specific maintenance need. Further investigation into past performance evaluations, other contracts awarded by the VA to this vendor, and any reported issues would be necessary for a comprehensive assessment of their track record. Without this additional context, it's difficult to gauge their reliability and past success in fulfilling similar IT maintenance obligations for federal agencies.

How does the pricing of this contract compare to similar IT maintenance contracts for medical imaging systems?

Direct comparison of pricing is challenging due to the sole-source nature of this award and the specificity of the equipment (MIPACS storage server and dental viewers). Typically, competitive solicitations allow for benchmarking against multiple bids, revealing market rates. In a sole-source scenario, the government relies on the vendor's proposed pricing, which may not reflect the lowest possible cost. To assess value, one would ideally compare this contract's per-unit costs or overall value against similar maintenance contracts for comparable specialized medical IT systems awarded competitively by other federal agencies or large healthcare organizations. The absence of such comparative data makes a definitive value assessment difficult.

What are the primary risks associated with this sole-source IT maintenance contract?

The primary risks associated with this sole-source IT maintenance contract include potential overpricing due to the lack of competition, vendor lock-in where the government becomes dependent on a single provider for critical maintenance, and limited flexibility to adopt newer technologies or alternative solutions. There's also a risk that the vendor may not prioritize this contract if they have more lucrative opportunities, potentially impacting service quality or response times. Furthermore, the absence of competitive pressure might reduce the incentive for the vendor to innovate or offer cost-saving efficiencies. Ensuring robust contract management and performance monitoring becomes crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring the performance of critical IT maintenance?

The firm-fixed-price (FFP) contract type is generally effective in ensuring performance for well-defined services like IT maintenance, as it establishes a set price regardless of the contractor's actual costs. This provides cost certainty for the government and incentivizes the contractor to manage their expenses efficiently to maximize profit. For routine preventative and corrective maintenance, FFP can be suitable. However, if unforeseen technical issues arise that require extensive troubleshooting beyond the scope of standard maintenance, the FFP structure might lead to change order negotiations, potentially increasing the overall cost. The effectiveness also hinges on clear performance standards and diligent oversight by the VA.

What are the historical spending patterns for dental IT maintenance at the VA?

Historical spending patterns for dental IT maintenance at the VA are not provided in the current data. To analyze this, one would need to examine past contracts for similar services, including maintenance for MIPACS servers, dental viewers, and related IT infrastructure within the VA's dental departments across different facilities and fiscal years. Understanding historical spending would involve looking at the number of contracts awarded, their values, durations, competition levels (competitive vs. sole-source), and the vendors involved. This analysis could reveal trends in IT modernization, recurring maintenance costs, and the prevalence of sole-source awards for specialized equipment.

What is the potential impact of this contract on the broader IT maintenance market for healthcare providers?

This specific contract's impact on the broader IT maintenance market for healthcare providers is likely minimal due to its relatively small value ($246,180) and specialized nature. However, it exemplifies a common trend where federal agencies, particularly in healthcare, rely on specialized vendors for maintaining critical, often proprietary, IT systems. The sole-source award highlights a potential challenge for smaller or newer IT service companies trying to enter the market for specialized medical equipment maintenance, as established vendors may hold exclusive rights or possess unique expertise. It underscores the importance of ensuring fair competition where possible to foster a more dynamic and cost-effective market.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24825Q0993

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2399 BLAKE ST STE 125, DENVER, CO, 80205

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

Financial Breakdown

Contract Ceiling: $73,854

Exercised Options: $24,618

Current Obligation: $24,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline