VA Awards $44.3M for Automated Tablet Packaging, Boosting Efficiency with Innovation Associates

Contract Overview

Contract Amount: $44,270,411 ($44.3M)

Contractor: Innovation Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2026-07-17

Contract Duration: 654 days

Daily Burn Rate: $67.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCURE TABLET CAPSULE AUTOMATION WITH SUPPORTING AUTOMATED PACKING STATIONS TO INCLUDE COMPLETE INSTALLATION, OPERATIONAL TESTING AND TRAINING OF STAFF

Place of Performance

Location: BINGHAMTON, BROOME County, NEW YORK, 13905

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $44.3 million to INNOVATION ASSOCIATES, INC. for work described as: PROCURE TABLET CAPSULE AUTOMATION WITH SUPPORTING AUTOMATED PACKING STATIONS TO INCLUDE COMPLETE INSTALLATION, OPERATIONAL TESTING AND TRAINING OF STAFF Key points: 1. The Department of Veterans Affairs (VA) is investing $44.3 million in automated tablet packaging and packing stations. 2. This procurement aims to enhance operational efficiency and staff training within the VA. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The sector is Packaging Machinery Manufacturing, indicating a focus on specialized industrial equipment.

Value Assessment

Rating: good

The contract value of $44.3 million for automated packaging machinery appears reasonable given the scope, which includes installation, testing, and training. Benchmarking against similar large-scale automation projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing all eligible vendors to bid. This method typically fosters competitive pricing and encourages innovative solutions, leading to better value for the government.

Taxpayer Impact: The investment in automation is expected to improve the VA's operational efficiency, potentially leading to cost savings in the long run through reduced manual labor and fewer errors.

Public Impact

Improved medication dispensing accuracy and speed for veterans. Potential for reduced operational costs within VA pharmacies. Modernization of pharmaceutical packaging processes. Ensuring a reliable supply chain for critical medications. Enhanced training for VA staff on new automated systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for integration challenges with existing VA systems.
Reliance on a single vendor for support and maintenance.

Positive Signals

Use of full and open competition.
Investment in modern, efficient technology.
Comprehensive training included in the contract.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

The Packaging Machinery Manufacturing sector is characterized by specialized equipment designed for high-volume production and precision. Spending in this area often reflects investments in automation to improve efficiency and reduce labor costs, aligning with the VA's objectives.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify any small business participation. Further analysis would be needed to determine the extent of small business involvement, if any.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight will likely focus on successful installation, operational testing, and staff training to ensure the system meets its intended purpose and delivers value.

Related Government Programs

Packaging Machinery Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in for future maintenance and upgrades.
Dependence on technology that may become obsolete.
Risk of disruption during the installation and transition phase.
Ensuring data security and patient privacy with automated systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $44.3 million to INNOVATION ASSOCIATES, INC.. PROCURE TABLET CAPSULE AUTOMATION WITH SUPPORTING AUTOMATED PACKING STATIONS TO INCLUDE COMPLETE INSTALLATION, OPERATIONAL TESTING AND TRAINING OF STAFF

Who is the contractor on this award?

The obligated recipient is INNOVATION ASSOCIATES, 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 $44.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-07-17.

What are the projected efficiency gains or cost savings expected from this automation?

The projected efficiency gains and cost savings are not explicitly detailed in the provided data. However, automation in packaging typically leads to increased throughput, reduced error rates, and lower labor costs. The VA likely has internal projections based on the capabilities of the selected automated systems and the volume of pharmaceutical products handled.

What are the key risks associated with implementing new automated packaging systems in a healthcare setting?

Key risks include potential system malfunctions leading to production delays, integration issues with existing pharmacy management software, cybersecurity vulnerabilities if the systems are networked, and the need for extensive staff retraining. Ensuring compliance with healthcare regulations and maintaining sterility are also critical considerations.

How will the effectiveness of the automated system be measured post-installation?

Effectiveness will likely be measured through key performance indicators (KPIs) such as increased packaging speed, reduced error rates in labeling and dispensing, decreased downtime, and successful completion of operational testing and staff training. User feedback and long-term operational cost analysis will also contribute to assessing effectiveness.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Packaging Machinery Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77024R0011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walgreens Boots Alliance, Inc.

Address: 30 CHARLES ST, BINGHAMTON, NY, 13905

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,270,411

Exercised Options: $44,270,411

Current Obligation: $44,270,411

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,597,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline