HHS awards $228K for PACS to CDW Government LLC for Northern Navajo Medical Center

Contract Overview

Contract Amount: $228,810 ($228.8K)

Contractor: CDW Government LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE NORTHERN NAVAJO MEDICAL CENTER WITH A NEW AND UPDATED PICTURE ARCHIVING AND COMMUNICATION SYSTEMS (PACS).

Place of Performance

Location: SHIPROCK, SAN JUAN County, NEW MEXICO, 87420

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $228,810.24 to CDW GOVERNMENT LLC for work described as: THE CONTRACTOR SHALL PROVIDE NORTHERN NAVAJO MEDICAL CENTER WITH A NEW AND UPDATED PICTURE ARCHIVING AND COMMUNICATION SYSTEMS (PACS). Key points: 1. The contract is for a Picture Archiving and Communication System (PACS). 2. CDW Government LLC is the sole awardee. 3. The contract is a Firm Fixed Price purchase order. 4. The contract duration is 90 days. 5. The award is for Computer Systems Design Services.

Value Assessment

Rating: fair

The contract value of $228,810.24 for a 90-day period for a PACS system appears high for the duration. Benchmarking against similar, longer-term PACS procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may not have yielded the best possible price for the government.

Taxpayer Impact: The limited competition may result in a higher cost to taxpayers than a fully competed contract.

Public Impact

Ensures critical medical imaging services are available at Northern Navajo Medical Center. Supports healthcare delivery in a remote area. Modernizes essential medical technology infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price reasonableness.
Short contract duration may indicate a temporary solution or a gap filler.
Lack of small business participation noted.

Positive Signals

Addresses a critical need for medical imaging services.
Supports a specific healthcare facility.

Sector Analysis

The procurement falls under IT services, specifically computer systems design. Spending in this sector can vary widely, but for specialized medical systems like PACS, costs are often significant due to software, hardware, and integration requirements.

Small Business Impact

The contract was not awarded to a small business. Further analysis is needed to determine if small businesses were considered or had the capability to fulfill this requirement.

Oversight & Accountability

The award was made via a purchase order, which is a common method for acquiring goods and services. Oversight would focus on contract performance and adherence to terms.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Limited competition.
Potential for non-competitive pricing.
Short contract duration.
No small business award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $228,810.24 to CDW GOVERNMENT LLC. THE CONTRACTOR SHALL PROVIDE NORTHERN NAVAJO MEDICAL CENTER WITH A NEW AND UPDATED PICTURE ARCHIVING AND COMMUNICATION SYSTEMS (PACS).

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $228,810.24.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the expected lifespan and functionality of this new PACS system, and how does its cost compare to similar systems with comparable features and durations?

The provided data does not specify the expected lifespan or detailed functionalities of the new PACS system. A comprehensive comparison against similar systems, considering features, integration complexity, and contract duration, is crucial for a thorough value assessment. Without this, it's difficult to definitively state if the $228,810.24 price is competitive for the intended service.

Given the limited competition, what steps were taken to ensure fair and reasonable pricing, and what is the potential risk of overpayment?

The data indicates the contract was 'NOT COMPETED UNDER SAP,' suggesting a limited competition approach. The specific steps taken to ensure fair and reasonable pricing are not detailed. The primary risk associated with limited competition is the potential for overpayment due to the absence of a competitive bidding process, which typically drives down costs.

How effective will this new PACS system be in improving diagnostic capabilities and patient care at the Northern Navajo Medical Center, considering its short duration?

The effectiveness of the new PACS system in improving diagnostic capabilities and patient care is contingent on its technical specifications and integration with existing medical workflows. The short 90-day duration raises questions about whether this is a permanent solution or a temporary measure. Its immediate effectiveness will depend on seamless implementation and user training, but long-term impact requires further evaluation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71026Q00047

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $228,810

Exercised Options: $228,810

Current Obligation: $228,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline