VA awards $1.34M sole-source purchase order for dental equipment maintenance to Apryse Software Corp

Contract Overview

Contract Amount: $133,800 ($133.8K)

Contractor: Apryse Software Corp.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-01

End Date: 2027-04-30

Contract Duration: 1,033 days

Daily Burn Rate: $130/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE OF DENTAL MIPACS SERVICE AGREEMENT FOR VISN 23

Place of Performance

Location: SAINT PAUL, DAKOTA County, MINNESOTA, 55121

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $133,800 to APRYSE SOFTWARE CORP. for work described as: MAINTENANCE OF DENTAL MIPACS SERVICE AGREEMENT FOR VISN 23 Key points: 1. The contract is a sole-source award, raising questions about potential cost savings through competition. 2. The duration of the contract (over 3 years) suggests a need for sustained service. 3. The service category, 'Electronic and Precision Equipment Repair and Maintenance,' is critical for healthcare operations. 4. The award is a Purchase Order, a less complex contracting vehicle than a traditional contract. 5. The fixed-price nature of the award provides cost certainty for the government. 6. The contract is awarded to a single vendor, Apryse Software Corp., indicating a specific need or limited vendor pool.

Value Assessment

Rating: questionable

The contract value of $1.34 million over approximately three years for dental equipment maintenance appears to be within a reasonable range for specialized services. However, without competitive bidding, it is difficult to benchmark the value for money effectively. The fixed-price structure offers predictability, but the absence of competition means potential savings from a more robust bidding process may have been forgone. Further analysis would require comparing this price to similar maintenance agreements for comparable dental equipment across different healthcare systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of Veterans Affairs (VA) likely determined that only Apryse Software Corp. could provide the required maintenance services, possibly due to proprietary technology, specialized expertise, or unique support requirements for the dental equipment. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed scenario.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. Without multiple bids, there is less assurance that the government secured the best possible price.

Public Impact

Veterans receiving care at VISN 23 facilities will benefit from the continued maintenance of essential dental equipment. The services ensure the operational readiness and accuracy of dental diagnostic and treatment systems. The geographic impact is focused on VISN 23, which serves multiple states including Minnesota. The contract supports the maintenance of specialized medical technology, indirectly supporting healthcare professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized maintenance requirements.

Positive Signals

Fixed-price contract provides cost certainty.
Contract duration suggests a stable, ongoing need for critical services.
Award to a single vendor may indicate specialized expertise required for the equipment.

Sector Analysis

The contract falls within the broader 'Healthcare Equipment Maintenance' sector, a critical component of the healthcare industry. This sector involves specialized services for maintaining complex medical devices, ensuring their functionality and longevity. The market for such services can be niche, often dominated by original equipment manufacturers or specialized third-party providers. The size of this specific market segment is difficult to ascertain without more detailed data on the specific dental equipment covered.

Small Business Impact

This contract does not appear to involve a small business set-aside. The award is a sole-source purchase order to Apryse Software Corp. There is no indication of subcontracting opportunities for small businesses within this specific award. The impact on the small business ecosystem is likely minimal for this particular transaction.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. Accountability is maintained through the terms of the fixed-price purchase order and the delivery of services as specified. Transparency is limited due to the sole-source nature of the award, with the justification for this approach being the primary document for public scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA VISN 23 Medical Equipment Maintenance
Dental Equipment Service Contracts
Federal Healthcare IT Maintenance
Precision Equipment Repair Services

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $133,800 to APRYSE SOFTWARE CORP.. MAINTENANCE OF DENTAL MIPACS SERVICE AGREEMENT FOR VISN 23

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 $133,800.

What is the period of performance?

Start: 2024-07-01. End: 2027-04-30.

What is the specific dental equipment covered by this maintenance agreement?

The provided data does not specify the exact make and model of the dental equipment requiring maintenance. The contract description refers to 'DENTAL MIPACS SERVICE AGREEMENT.' MIPACS typically stands for Medical Image Processing and Communication System, which can be a component of advanced dental imaging and diagnostic systems. Understanding the specific technology is crucial for assessing the justification for a sole-source award and the appropriateness of the maintenance costs. Without this detail, it's challenging to compare pricing or evaluate the vendor's unique qualifications.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not detailed in the provided data. Typically, agencies must demonstrate that only one responsible source can provide the supplies or services, or that the public interest would not be served by a full and open competition. For specialized equipment maintenance, this often involves proprietary technology, unique manufacturer expertise, or critical interoperability requirements. The Department of Veterans Affairs would have a formal justification document (e.g., a Justification and Approval, J&A) outlining these reasons, which is not publicly available in this dataset. This lack of transparency is a key concern.

How does the annual cost of this contract compare to similar maintenance agreements for dental equipment?

The total contract value is $1,338,000 over approximately 34 months (July 1, 2024, to April 30, 2027), averaging roughly $393,529 per year. Benchmarking this cost is difficult without knowing the specific type and quantity of dental equipment being maintained. Maintenance costs vary significantly based on the complexity of the technology (e.g., digital imaging systems, CAD/CAM units, specialized surgical tools), the scope of services included (e.g., preventive maintenance, on-demand repairs, parts replacement), and the vendor's pricing structure. A comparison would require identifying similar VA VISNs or other federal healthcare facilities with comparable dental equipment and maintenance contracts.

What is Apryse Software Corp.'s track record with the VA or other federal agencies for similar services?

The provided data indicates that Apryse Software Corp. is the contractor for this specific purchase order. However, it does not offer details on their past performance history with the VA or other federal agencies, particularly concerning dental equipment maintenance. A comprehensive assessment would require reviewing contract databases (like SAM.gov) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. Without this historical context, it's difficult to gauge their reliability and expertise in delivering these critical services.

What are the potential risks associated with a sole-source award for critical dental equipment maintenance?

The primary risk of a sole-source award for critical dental equipment maintenance is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government may not be achieving the best possible price. Another risk is vendor lock-in, where the specialized nature of the maintenance or proprietary software makes it difficult and costly to switch vendors in the future. This can reduce leverage for future negotiations. Furthermore, a sole-source award might indicate a lack of market availability or a failure to adequately explore alternative solutions, potentially impacting long-term cost-effectiveness and service options.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26324Q0637

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $223,000

Exercised Options: $133,800

Current Obligation: $133,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline