VA awards $119K for EHRM upgrade, highlighting need for specialized medical instrument manufacturing

Contract Overview

Contract Amount: $119,003 ($119.0K)

Contractor: Cadwell Laboratories Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-01-22

End Date: 2027-09-30

Contract Duration: 2,808 days

Daily Burn Rate: $42/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EHRM CADWELL EMG UPGRADE AND INTERFACE

Place of Performance

Location: KENNEWICK, BENTON County, WASHINGTON, 99336

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $119,003.2 to CADWELL LABORATORIES INC for work described as: EHRM CADWELL EMG UPGRADE AND INTERFACE Key points: 1. Contract value appears modest, suggesting a focused scope for the upgrade. 2. Competition dynamics are favorable with full and open bidding. 3. Performance risk seems low given the specific nature of the upgrade. 4. This contract supports the broader Electronic Health Record Modernization (EHRM) program. 5. The sector is specialized, focusing on medical instrument manufacturing. 6. Delivery order structure implies flexibility within a larger framework.

Value Assessment

Rating: good

The contract value of $119,003.20 for an EHRM upgrade and interface is relatively small, suggesting a targeted enhancement rather than a system-wide overhaul. Benchmarking against similar, larger EHRM modernization efforts would place this as a minor component. The firm fixed-price structure provides cost certainty for the government. Without specific per-unit data for the upgrade components, a direct value-for-money assessment is challenging, but the modest total suggests efficient allocation for this specific task.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters competitive pricing and encourages innovation. The presence of multiple bidders, even if not explicitly detailed, suggests a healthy market for this type of specialized medical equipment upgrade and interface development.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible value by considering a wide range of qualified suppliers.

Public Impact

Veterans will benefit from improved electronic health records through the upgraded system. The Department of Veterans Affairs (VA) healthcare system will receive enhanced functionality. The geographic impact is likely national, supporting the VA's widespread network. Workforce implications include IT specialists and potentially clinical staff trained on the new interface.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for integration challenges with existing EHRM systems.
Dependence on Cadwell Laboratories Inc. for specialized knowledge and support.
Risk of scope creep if upgrade requirements are not strictly managed.

Positive Signals

Cadwell Laboratories Inc. is a specialized manufacturer, implying expertise.
Firm fixed-price contract provides cost predictability.
Delivery order structure allows for phased implementation and payment.

Sector Analysis

The contract falls within the Surgical and Medical Instrument Manufacturing sector (NAICS 339112), a specialized area focused on producing devices and equipment for medical and surgical use. This contract specifically addresses the integration and upgrade of such equipment within the VA's Electronic Health Record Modernization (EHRM) program. The market for medical device manufacturing is highly regulated and competitive, with significant investment in R&D. This contract represents a small but critical component of the VA's broader digital health infrastructure.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized medical instrument manufacturing may limit direct subcontracting opportunities for general small businesses, though specialized small businesses in related fields could potentially be involved.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. As a delivery order under a larger contract vehicle, it likely falls under the existing oversight framework for that vehicle. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Electronic Health Record Modernization (EHRM)
Department of Veterans Affairs Healthcare IT
Medical Instrument Manufacturing Contracts

Risk Flags

Potential for integration issues with existing EHRM systems.
Cybersecurity vulnerabilities associated with connected medical devices.
Reliance on a single vendor for specialized equipment upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $119,003.2 to CADWELL LABORATORIES INC. EHRM CADWELL EMG UPGRADE AND INTERFACE

Who is the contractor on this award?

The obligated recipient is CADWELL LABORATORIES 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 $119,003.2.

What is the period of performance?

Start: 2020-01-22. End: 2027-09-30.

What is the specific functionality or upgrade being provided by Cadwell Laboratories Inc. for the EHRM system?

The data indicates an 'EHRM CADWELL EMG UPGRADE AND INTERFACE'. This suggests that Cadwell Laboratories Inc. is providing an upgrade to their existing Electromyography (EMG) equipment or software that interfaces with the VA's Electronic Health Record Modernization (EHRM) system. EMG is a diagnostic procedure to assess nerve and muscle function. The upgrade likely aims to improve the accuracy, efficiency, or data integration capabilities of this diagnostic equipment within the broader EHRM framework, ensuring that patient data from EMG tests is seamlessly captured, stored, and accessible within the electronic health record.

How does the $119,003.20 contract value compare to other EHRM-related procurements by the VA?

The contract value of $119,003.20 is relatively modest when compared to the overall scale of the VA's Electronic Health Record Modernization (EHRM) program, which has involved multi-billion dollar investments. This specific award appears to be for a targeted upgrade or interface enhancement related to a particular piece of medical equipment (Cadwell EMG). Larger EHRM contracts typically encompass system-wide software implementation, hardware deployment, and extensive training across numerous facilities. Therefore, this contract represents a small, specialized component within the much larger EHRM initiative, likely focused on ensuring compatibility and improved data flow for a specific diagnostic tool.

What is Cadwell Laboratories Inc.'s track record with the VA or other federal agencies for similar contracts?

Cadwell Laboratories Inc. is a known manufacturer of EMG and evoked potential equipment. Their track record with the VA specifically for EHRM-related upgrades and interfaces would need detailed examination of past contract awards. However, their specialization in this niche suggests they are a qualified vendor for such requirements. Federal procurement databases would reveal the extent of their past performance, including the types of contracts awarded, their value, and performance history. A positive history with the VA on similar medical equipment integration would reduce performance risk for this current contract.

What are the potential risks associated with upgrading and interfacing specialized medical equipment within a large EHRM system?

Key risks include technical integration challenges, where the new or upgraded equipment may not seamlessly communicate with the existing EHRM infrastructure, leading to data silos or inaccuracies. There's also the risk of user adoption issues if the new interface is not intuitive for clinicians, potentially impacting workflow efficiency. Furthermore, cybersecurity risks are present, as any connected medical device becomes a potential entry point for threats to the broader network. Ensuring data integrity and patient privacy throughout the upgrade and interface process is paramount. Finally, vendor lock-in or reliance on a single manufacturer for critical components can pose long-term risks.

How does the firm fixed-price contract type influence the value and risk for this EHRM upgrade?

A firm fixed-price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined, as it is likely for a specific upgrade and interface. This structure shifts the risk of cost overruns to the contractor, Cadwell Laboratories Inc. For the VA, it provides budget certainty, as the total price is fixed regardless of the contractor's actual costs. This can lead to better value if the contractor efficiently manages their resources. However, if unforeseen technical complexities arise that were not reasonably foreseeable during bidding, the contractor may be less incentivized to resolve them without additional cost, potentially impacting the quality or completeness of the delivered solution if not managed carefully.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cadwell Industries, Inc.

Address: 909 N KELLOGG ST, KENNEWICK, WA, 99336

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

Financial Breakdown

Contract Ceiling: $119,003

Exercised Options: $119,003

Current Obligation: $119,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797P4366B

IDV Type: FSS

Timeline