VA awards $1.8M for Avasure software licenses and warranty to Sierra7, Inc

Contract Overview

Contract Amount: $182,954 ($183.0K)

Contractor: Sierra7, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-12

End Date: 2027-05-11

Contract Duration: 1,094 days

Daily Burn Rate: $167/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 12 AVASURE SOFTWARE LICENSES AND EXTENDED WARRANTY - BASE + 4 OPTION YEARS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $182,953.51 to SIERRA7, INC. for work described as: 12 AVASURE SOFTWARE LICENSES AND EXTENDED WARRANTY - BASE + 4 OPTION YEARS Key points: 1. Contract awarded for essential software licenses and extended warranty. 2. The contract duration spans over three years, indicating a long-term need. 3. The award was made under the Simplified Acquisition Procedures (SAP), suggesting a streamlined process for smaller procurements. 4. The fixed-price contract type helps manage cost certainty for the government. 5. The software is categorized under Publishers, indicating its nature as a commercial product. 6. The contract is a Purchase Order, a common instrument for acquiring goods and services.

Value Assessment

Rating: good

The contract value of $182,953.51 for 12 software licenses and extended warranty appears reasonable given the three-year term. Without specific details on the software's criticality or comparable enterprise license agreements, a precise benchmark is difficult. However, the award under SAP suggests it falls within a threshold where competitive pricing is expected. The fixed-price nature provides cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements below certain dollar thresholds. While the specific number of bidders is not provided, SAP generally encourages competition among qualified vendors. This method aims to balance efficiency with ensuring fair and reasonable pricing.

Taxpayer Impact: Competition under SAP helps ensure that taxpayer funds are used efficiently by fostering a market-driven price for the software licenses and warranty.

Public Impact

Veterans Affairs (VA) personnel will benefit from access to the Avasure software. The software likely supports administrative, clinical, or operational functions within the VA. The geographic impact is likely national, supporting VA facilities across the country. The contract supports the technology infrastructure necessary for VA operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for the software's utilization.
Details on the extended warranty's coverage and service level agreements are not provided.
The specific functionalities and criticality of the Avasure software are not detailed.

Positive Signals

Awarded under a competitive process (SAP).
Fixed-price contract type provides cost certainty.
Long-term contract (3 years) indicates sustained operational need.
Awarded to a single vendor, Sierra7, Inc., suggesting specialization or a strong bid.

Sector Analysis

The software publishers sector is a significant part of the IT industry, providing essential tools for government operations. Spending in this category often includes licenses for operating systems, productivity suites, specialized applications, and maintenance/support services. Government IT spending is substantial, with agencies continually seeking to modernize and maintain their software assets to ensure efficiency and security. This contract for Avasure software fits within the broader trend of government agencies procuring commercial off-the-shelf (COTS) software to meet specific functional requirements.

Small Business Impact

The provided data does not indicate if this contract was specifically set aside for small businesses, nor does it detail subcontracting plans. As the contract was competed under SAP, it is possible that small businesses participated in the bidding process. Further analysis would be needed to determine the extent of small business involvement or impact.

Oversight & Accountability

The contract is a Purchase Order issued by the Department of Veterans Affairs, indicating standard government procurement oversight. Accountability is maintained through the terms and conditions of the fixed-price contract and the delivery of software licenses and warranty services. Transparency is generally provided through contract databases like FPDS, where this award is likely recorded.

Related Government Programs

VA IT Software Procurement
Commercial Software Licensing
Extended Warranty Services
Simplified Acquisition Procedures Contracts

Risk Flags

Potential for vendor lock-in
Risk of software obsolescence
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $182,953.51 to SIERRA7, INC.. 12 AVASURE SOFTWARE LICENSES AND EXTENDED WARRANTY - BASE + 4 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is SIERRA7, 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 $182,953.51.

What is the period of performance?

Start: 2024-05-12. End: 2027-05-11.

What is the specific function and criticality of the Avasure software within the Department of Veterans Affairs?

The provided data does not specify the exact function or criticality of the Avasure software. However, its categorization under NAICS code 513210 (Software Publishers) suggests it is a commercial software product. Given the award by the Department of Veterans Affairs (VA), it likely supports administrative, clinical, or operational functions essential to the agency's mission, such as patient management, data analysis, or workflow automation. The three-year duration and extended warranty indicate a sustained operational need for this software. Further investigation into VA's IT asset inventory or procurement descriptions would be necessary to ascertain its precise role and importance.

How does the contract value of $182,953.51 compare to similar software license and warranty procurements by the VA or other federal agencies?

Benchmarking this contract's value requires comparing it to similar procurements for Avasure software or comparable commercial software licenses with extended warranties. The total value of $182,953.51 over approximately three years ($60,984.50 annually) for 12 licenses appears moderate. Without knowing the specific software tier, user count, or feature set, a direct comparison is challenging. However, awards under Simplified Acquisition Procedures (SAP) are typically for amounts below $250,000, suggesting this falls within a common range for such procurements. Agencies often negotiate enterprise licenses for larger volumes, which might offer lower per-unit costs. This contract's value should be assessed against market rates for similar commercial software and support packages.

What is Sierra7, Inc.'s track record with federal contracts, particularly with the Department of Veterans Affairs?

Sierra7, Inc. has a history of receiving federal contracts. A review of public contract databases would reveal the extent and nature of their awards. For the Department of Veterans Affairs specifically, understanding their past performance, including contract types, dollar values, and any performance feedback or awards, is crucial. This contract, a Purchase Order for software licenses and warranty, suggests Sierra7, Inc. is capable of fulfilling such requirements. Examining their portfolio of previous VA contracts can provide insights into their reliability, expertise, and pricing competitiveness within the agency.

What are the potential risks associated with this contract, such as vendor lock-in or obsolescence of the software?

Potential risks include vendor lock-in, where the VA becomes dependent on Sierra7, Inc. and Avasure software, making future transitions costly or difficult. Software obsolescence is another risk; if Avasure is not regularly updated or is superseded by newer technology, the investment could diminish in value. The extended warranty mitigates some operational risks by ensuring support, but it doesn't address the software's long-term relevance. The fixed-price nature helps control cost overruns, but the value derived from the software itself is a key factor in assessing overall risk. Ensuring clear exit strategies and evaluating alternative solutions periodically would be prudent.

How does the duration of the contract (3 years) align with the typical lifecycle of similar software solutions in the federal government?

A three-year contract duration for software licenses and extended warranty is relatively common in the federal government, striking a balance between providing stable access to necessary tools and allowing for periodic reassessment of technological needs. Many software solutions have lifecycles that can range from 3 to 5 years before significant upgrades or replacements are considered. This duration allows the VA to realize the benefits of the software while remaining agile enough to adapt to evolving technological landscapes or changing mission requirements. It avoids the commitment of much longer-term contracts that could lead to obsolescence, while also providing more certainty than very short-term agreements.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25924Q0419

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3190 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $318,518

Exercised Options: $182,954

Current Obligation: $182,954

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline