VA awards $12.3M contract to McKesson for software publishing services in June 2008

Contract Overview

Contract Amount: $12,298,000 ($12.3M)

Contractor: Mckesson Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-06-01

End Date: 2008-06-30

Contract Duration: 29 days

Daily Burn Rate: $424.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PPV - JUNE 2008

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.3 million to MCKESSON CORPORATION for work described as: PPV - JUNE 2008 Key points: 1. The contract value is $12.3 million. 2. The award was made under full and open competition. 3. The contract is for software publishing services. 4. The duration of the contract was 29 days.

Value Assessment

Rating: fair

The contract value of $12.3 million for a 29-day period suggests a high per-day cost. Without specific deliverables or comparable contracts, it's difficult to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though the short duration and high value warrant scrutiny.

Public Impact

Veterans may benefit from improved software services. The short contract duration raises questions about the scope and necessity of the services. The significant award amount for a brief period could indicate a critical or specialized need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day
Short contract duration

Positive Signals

Full and open competition
Awarded to a known entity

Sector Analysis

Software publishing services fall under the IT sector. The average contract value for this sector can vary widely based on complexity and duration. This award's high value for a short period is notable.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs managed this procurement. Oversight would involve ensuring the services met the contract's requirements and that the pricing was justified throughout the period.

Related Government Programs

Software Publishers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High daily cost
Short contract duration
Lack of detailed service description
Potential for uncompetitive pricing despite full and open competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.3 million to MCKESSON CORPORATION. PPV - JUNE 2008

Who is the contractor on this award?

The obligated recipient is MCKESSON CORPORATION.

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 $12.3 million.

What is the period of performance?

Start: 2008-06-01. End: 2008-06-30.

What specific software publishing services were procured for $12.3 million over 29 days?

The specific software publishing services procured are not detailed in the provided data. The high value for a short duration suggests potentially complex or urgent requirements, such as critical software updates, emergency system support, or specialized development tasks that demanded significant resources within a compressed timeframe.

What was the competitive landscape for this software publishing contract?

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a competitive market for the services. However, the specific number of bids received and the details of the evaluation process are not provided, which would offer further insight into the competitive intensity.

How does this contract's cost compare to similar software publishing services?

Benchmarking this contract's cost is challenging without more specific details on the services rendered and comparable contract data. The $12.3 million award over 29 days translates to approximately $424,000 per day. This daily rate appears high and would require detailed comparison with industry standards for similar, short-term, high-value software publishing tasks.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ONE POST STREET, 19TH FLR, SAN FRANCISCO, CA, 90

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

Financial Breakdown

Contract Ceiling: $12,298,000

Exercised Options: $12,298,000

Current Obligation: $12,298,000

Timeline