VA awards $3.5M for RALS-WEB3 Middleware Support to Abbott Rapid Diagnostics Informatics, Inc

Contract Overview

Contract Amount: $35,309 ($35.3K)

Contractor: Abbott Rapid Diagnostics Informatics, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-05

End Date: 2027-04-04

Contract Duration: 1,094 days

Daily Burn Rate: $32/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RALS-WEB3 MIDDLEWARE MODULE SYSTEM SUPPORT, REMOTE ACCESS AND INTERFACE.

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35,309 to ABBOTT RAPID DIAGNOSTICS INFORMATICS, INC for work described as: RALS-WEB3 MIDDLEWARE MODULE SYSTEM SUPPORT, REMOTE ACCESS AND INTERFACE. Key points: 1. Contract awarded for critical middleware system support, indicating a need for ongoing operational stability. 2. Sole-source award raises questions about potential lack of competition and price discovery. 3. The contract duration of nearly three years suggests a long-term reliance on this specific vendor. 4. Focus on remote access and interface highlights the importance of secure and efficient data exchange.

Value Assessment

Rating: questionable

The contract value of $3.5M over 1094 days for computer systems design services appears reasonable given the specialized nature of middleware support. However, without competitive bidding, it's difficult to definitively assess if this represents the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition for this contract could lead to inflated costs, impacting taxpayer value.

Public Impact

Ensures continued functionality of the RALS-WEB3 system, crucial for diagnostic operations. Potential for increased costs due to sole-source award impacts taxpayer funds. Veterans may experience uninterrupted access to essential diagnostic information. Lack of transparency in the procurement process could erode public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Ensures critical system support
Long-term contract provides stability

Sector Analysis

This contract falls under Computer Systems Design Services, a sector vital for government IT infrastructure. Spending benchmarks for similar support contracts vary widely based on system complexity and vendor rates.

Small Business Impact

The contract was awarded to Abbott Rapid Diagnostics Informatics, Inc., a large business. There is no indication of small business participation in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the VA obtained fair value and that the justification for not competing was robust.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in procurement.
Dependence on a single vendor.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35,309 to ABBOTT RAPID DIAGNOSTICS INFORMATICS, INC. RALS-WEB3 MIDDLEWARE MODULE SYSTEM SUPPORT, REMOTE ACCESS AND INTERFACE.

Who is the contractor on this award?

The obligated recipient is ABBOTT RAPID DIAGNOSTICS INFORMATICS, 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 $35,309.

What is the period of performance?

Start: 2024-04-05. End: 2027-04-04.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically involves unique capabilities, critical urgency, or a lack of other responsible sources. Without further details, it's unclear if the VA thoroughly explored all competitive avenues or if this vendor possesses truly unique qualifications essential for the RALS-WEB3 system's continued operation and support.

How does the per-unit cost of this contract compare to industry benchmarks for similar middleware support services, especially considering the lack of competition?

Benchmarking is challenging without competitive bids. However, sole-source contracts often carry a premium. The VA should have conducted a price analysis to ensure the $3.5M award is fair and reasonable, comparing it against historical data or similar government contracts, even if not directly competitive.

What are the potential risks to system performance and data security if this vendor's support is interrupted or inadequate, given the sole-source nature of the contract?

The primary risk is the government's dependence on a single vendor. Any interruption or inadequacy in support could significantly impact the RALS-WEB3 system's functionality, potentially affecting diagnostic operations and data integrity. The VA must have robust performance monitoring and contingency plans in place.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 506.24.2.1022.0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 HOLIDAY DR, CHARLOTTESVILLE, VA, 22901

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

Financial Breakdown

Contract Ceiling: $49,934

Exercised Options: $35,309

Current Obligation: $35,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline