VA awards $2.4M for Glucose Monitoring Software to Monarch Medical Technologies, LLC

Contract Overview

Contract Amount: $244,368 ($244.4K)

Contractor: Monarch Medical Technologies, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2027-06-30

Contract Duration: 1,094 days

Daily Burn Rate: $223/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GLUCLOSE MONITORING SOFTWARE AND MAINTENENACE FOR HINES VAMC

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $244,368 to MONARCH MEDICAL TECHNOLOGIES, LLC for work described as: GLUCLOSE MONITORING SOFTWARE AND MAINTENENACE FOR HINES VAMC Key points: 1. Contract awarded for essential glucose monitoring software and maintenance. 2. Sole-source award to Monarch Medical Technologies, LLC raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. IT sector spending on custom computer programming services.

Value Assessment

Rating: questionable

The award amount of $2,443,680 over three years for custom computer programming services is difficult to benchmark without specific details on the software's scope and features. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed. This limits price discovery and may result in a higher cost to the government compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for this critical software and maintenance.

Public Impact

Ensures continuity of care for veterans relying on glucose monitoring. Potential for increased healthcare costs due to non-competitive award. Highlights reliance on specific vendors for specialized medical IT solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of price benchmark due to non-competitive nature.
Potential for cost overruns.

Positive Signals

Provides essential medical software.
Long-term contract ensures service continuity.

Sector Analysis

This contract falls under the IT sector, specifically custom computer programming services (NAICS 541511). Spending in this area is significant across government agencies, with a focus on specialized software development and maintenance for critical functions like healthcare.

Small Business Impact

The award was made to Monarch Medical Technologies, LLC, a single entity. There is no indication in the provided data whether this is a small business or if subcontracting opportunities for small businesses were considered or mandated.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Oversight would typically involve contract management to ensure deliverables are met and costs are justified, especially given the sole-source nature of this award.

Related Government Programs

Custom Computer Programming 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 vendor selection.
Dependency on a single vendor for critical software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $244,368 to MONARCH MEDICAL TECHNOLOGIES, LLC. GLUCLOSE MONITORING SOFTWARE AND MAINTENENACE FOR HINES VAMC

Who is the contractor on this award?

The obligated recipient is MONARCH MEDICAL TECHNOLOGIES, 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 $244,368.

What is the period of performance?

Start: 2024-07-01. End: 2027-06-30.

What is the justification for the sole-source award, and was a market research conducted to confirm no other vendors could provide the service?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies must conduct market research to determine if other capable vendors exist. Without this information, it's difficult to assess if the government received the best value and if the sole-source determination was appropriate and truly necessary for this glucose monitoring software.

How does the per-unit cost of this software and maintenance compare to industry benchmarks for similar glucose monitoring solutions, especially considering the lack of competition?

Benchmarking the per-unit cost is challenging due to the sole-source nature of this award. Without competitive bids, it's difficult to establish a fair market price. A thorough analysis would require comparing the contract's pricing structure against publicly available data for similar custom software solutions in the healthcare IT sector, factoring in the specific functionalities and support levels provided.

What are the key performance indicators (KPIs) for this contract, and how will the VA ensure the effectiveness and value of the software and maintenance over its duration?

The effectiveness and value of the software and maintenance will be measured through specific KPIs outlined in the contract. These likely include system uptime, data accuracy, user satisfaction, and timely resolution of issues. The VA's contract management team will monitor these KPIs to ensure Monarch Medical Technologies, LLC meets its obligations and delivers the expected benefits for patient care.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25224Q0477

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 112 S TRYON ST STE 800, CHARLOTTE, NC, 28284

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

Financial Breakdown

Contract Ceiling: $427,197

Exercised Options: $244,368

Current Obligation: $244,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline