VA awards $2.88M for FISH Workstation Upgrade to Applied Spectral Imaging, Inc

Contract Overview

Contract Amount: $28,850 ($28.9K)

Contractor: Applied Spectral Imaging, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-20

End Date: 2027-04-19

Contract Duration: 364 days

Daily Burn Rate: $79/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FISH WORKSTATION UPGRADE

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,850 to APPLIED SPECTRAL IMAGING, INC. for work described as: FISH WORKSTATION UPGRADE Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. The contract duration of one year with a potential for extension warrants monitoring for long-term value. 4. The North American Industry Classification System (NAICS) code 513210 indicates a focus on software publishing. 5. This award represents a single purchase order, suggesting a specific, defined need. 6. The contract is not set aside for small businesses, indicating no specific small business participation goal.

Value Assessment

Rating: fair

Benchmarking the value of this specific workstation upgrade is challenging without detailed technical specifications and comparable market data for similar specialized software. The award amount of $2.88 million for a one-year duration suggests a significant investment per workstation or a comprehensive software solution. Without competitive bids, it is difficult to ascertain if this price represents optimal value for money or if it aligns with industry standards for similar software deployments.

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 among multiple vendors. This approach is typically used when a specific product or service is required from a single source, or when only one vendor possesses the necessary capabilities. The lack of competition means that the Department of Veterans Affairs did not benefit from the price discovery and potential cost reductions that typically arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the vendor was not incentivized to offer the lowest possible price.

Public Impact

The primary beneficiaries are likely the medical professionals within the Department of Veterans Affairs who will utilize the upgraded FISH workstations. The contract will deliver enhanced software capabilities for the FISH workstation, potentially improving diagnostic processes and efficiency. The geographic impact is focused on the facilities where these workstations are deployed, primarily within Minnesota (ST, SN). Workforce implications may include training needs for staff on the new software and potential improvements in their daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely managed due to lack of competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Specific software upgrade addresses a defined need for the VA.
Clear end date for the contract period.

Sector Analysis

The software publishing sector (NAICS 513210) is characterized by companies that develop, publish, and distribute software. This contract falls within the broader IT services and software market, which is a significant area of federal spending. Comparable spending benchmarks for specialized medical imaging software can vary widely based on features, user base, and vendor. The $2.88 million award for a one-year term suggests a substantial investment in a critical software solution for the VA.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. Consequently, there is no direct indication of immediate benefits or opportunities for the small business ecosystem through this particular award. The prime contractor, Applied Spectral Imaging, Inc., is not explicitly identified as a small business in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the delivery of the specified software upgrade and adherence to the firm fixed price terms. Transparency regarding the justification for the sole-source award and the performance metrics would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs IT Modernization Initiatives
Medical Imaging Software Procurement
Healthcare IT Solutions
Software Licenses and Maintenance

Risk Flags

Sole-source award may lead to higher costs.
Lack of competitive bidding limits price discovery.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,850 to APPLIED SPECTRAL IMAGING, INC.. FISH WORKSTATION UPGRADE

Who is the contractor on this award?

The obligated recipient is APPLIED SPECTRAL IMAGING, 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 $28,850.

What is the period of performance?

Start: 2026-04-20. End: 2027-04-19.

What is the specific functionality and intended use of the FISH workstation software being upgraded?

The provided data does not detail the specific functionality of the FISH workstation software. However, given the contractor's specialization in spectral imaging and the context of a healthcare provider like the VA, it is highly probable that the FISH workstation software is related to medical imaging analysis. This could involve processing, analyzing, and visualizing images from various medical diagnostic equipment (e.g., microscopy, pathology slides, radiology scans) to aid in diagnosis and treatment planning. The upgrade likely aims to enhance these capabilities, potentially through improved algorithms, user interface, data handling, or integration with other hospital systems.

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

The provided data indicates the contract was 'NOT COMPETED,' which typically implies a sole-source award. The specific justification for this sole-source determination is not detailed in the data. Common reasons for sole-source awards include proprietary technology, unique capabilities possessed by only one vendor, urgent and compelling needs where competition is not feasible, or when the cost of competition would outweigh the benefits. For Applied Spectral Imaging, Inc., it might be due to their unique spectral imaging technology or specialized software that no other vendor can provide to meet the VA's specific requirements for the FISH workstation.

How does the $2.88 million price compare to similar software upgrades or licenses in the federal market?

Directly comparing the $2.88 million price for this one-year FISH Workstation Upgrade is difficult without more specific details on the scope of work, the number of licenses, and the exact software functionalities. However, for specialized enterprise-level software solutions within the federal government, especially in the healthcare IT sector, such figures are not uncommon, particularly if the software involves advanced analytics, proprietary technology, or supports critical functions. The absence of competitive bids makes a precise value-for-money assessment challenging. A benchmark would ideally involve comparing it to other sole-source or competitively awarded contracts for similar medical imaging or diagnostic software from other agencies or for comparable user bases.

What are the potential risks associated with a sole-source award for this type of IT upgrade?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. The government may not be receiving the best possible price. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility and innovation. Without competition, there's also less incentive for the vendor to provide exceptional customer service or proactive support beyond the contract's minimum requirements. Oversight becomes crucial to mitigate these risks, ensuring the vendor delivers as promised and that the pricing remains reasonable.

What is Applied Spectral Imaging, Inc.'s track record with the Department of Veterans Affairs or other federal agencies?

The provided data does not include information on Applied Spectral Imaging, Inc.'s past performance or track record with the Department of Veterans Affairs or other federal agencies. To assess their reliability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. This information is crucial for understanding their ability to deliver on this $2.88 million contract.

What are the performance metrics or key performance indicators (KPIs) for this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this FISH Workstation Upgrade contract. Typically, for software upgrades, KPIs might include successful installation and integration, system uptime, software performance benchmarks (e.g., processing speed, accuracy of analysis), user satisfaction, and timely resolution of any reported issues. The Department of Veterans Affairs would be responsible for defining and monitoring these KPIs to ensure the contractor meets the contract's objectives and delivers the expected value.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6160 INNOVATION WAY, CARLSBAD, CA, 92009

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

Financial Breakdown

Contract Ceiling: $28,850

Exercised Options: $28,850

Current Obligation: $28,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline