VA awards $25.1M for tablet/capsule automation systems to Cornerstone Automation Systems LLC

Contract Overview

Contract Amount: $25,144,926 ($25.1M)

Contractor: Cornerstone Automation Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-09-26

End Date: 2023-05-26

Contract Duration: 3,529 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GREAT LAKES TABLET/CAPSULE AUTOMATION SYSTEM AND ON LINE MANUAL FILLING STATIONS.

Place of Performance

Location: FRISCO, COLLIN County, TEXAS, 75033

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.1 million to CORNERSTONE AUTOMATION SYSTEMS LLC for work described as: GREAT LAKES TABLET/CAPSULE AUTOMATION SYSTEM AND ON LINE MANUAL FILLING STATIONS. Key points: 1. The contract value of $25.1M is significant for specialized industrial machinery. 2. Cornerstone Automation Systems LLC is the sole awardee, raising questions about competition. 3. The long contract duration (2013-2023) suggests a substantial, ongoing need. 4. The 'Other Industrial Machinery Manufacturing' sector is broad, but this is a niche application.

Value Assessment

Rating: fair

The contract value of $25.1M over 10 years averages $2.5M annually. Benchmarking is difficult without specific unit cost data, but this appears to be a substantial investment for specialized automation equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors could have bid. However, only one award was made, indicating Cornerstone Automation Systems LLC was likely the most competitive or the only one meeting all requirements.

Taxpayer Impact: Taxpayer funds are being used for essential medical equipment automation, aiming for efficiency and accuracy in VA facilities.

Public Impact

Ensures efficient and accurate dispensing of medications at VA facilities. Supports the operational needs of the Department of Veterans Affairs. Potential for improved patient care through reliable medication delivery systems. Investment in specialized manufacturing technology for healthcare applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data for benchmarking.
Sole awardee despite full and open competition could indicate limited market or specific technical requirements.

Positive Signals

Addresses a critical operational need for the VA.
Long-term contract suggests sustained value and reliability.
Awarded under full and open competition.

Sector Analysis

This contract falls under 'Other Industrial Machinery Manufacturing,' a broad category. Specialized automation for pharmaceutical handling is a niche within this sector, requiring specific engineering and manufacturing capabilities.

Small Business Impact

The awardee, Cornerstone Automation Systems LLC, is not identified as a small business. There is no indication of specific set-asides for small businesses in this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The long duration and single award warrant scrutiny to ensure continued value and fair pricing throughout the contract term.

Related Government Programs

Other Industrial Machinery Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for limited competition despite 'full and open' status.
Lack of transparency in specific unit costs.
Long contract duration may mask potential inefficiencies.
Dependence on a single vendor for critical operational systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.1 million to CORNERSTONE AUTOMATION SYSTEMS LLC. GREAT LAKES TABLET/CAPSULE AUTOMATION SYSTEM AND ON LINE MANUAL FILLING STATIONS.

Who is the contractor on this award?

The obligated recipient is CORNERSTONE AUTOMATION SYSTEMS LLC.

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 $25.1 million.

What is the period of performance?

Start: 2013-09-26. End: 2023-05-26.

What was the specific technical capability that led to a single award despite full and open competition?

While awarded under full and open competition, the specific technical requirements for the tablet/capsule automation system and online manual filling stations may have narrowed the field significantly. Cornerstone Automation Systems LLC likely possessed unique expertise or offered a solution that best met the VA's stringent operational and technical specifications, leading to their sole award.

How does the $25.1M contract value compare to industry benchmarks for similar automation systems?

Benchmarking this contract is challenging without detailed specifications. However, $25.1M over 10 years for specialized pharmaceutical automation equipment suggests a significant investment. The value depends heavily on the system's complexity, throughput, and integration capabilities within VA facilities. Further analysis would require comparing it to similar custom-built systems rather than off-the-shelf machinery.

What is the long-term effectiveness and maintainability of the awarded automation systems?

The 10-year duration (2013-2023) implies a degree of expected effectiveness and reliability. However, the long-term performance and maintainability are crucial. The VA would need to monitor system uptime, maintenance costs, and adherence to regulatory standards to ensure continued effectiveness and value for taxpayer money throughout the contract's life.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › Other Industrial Machinery Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA797M-13-R-0089

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10351 HOME RD, FRISCO, TX, 75033

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,144,926

Exercised Options: $25,144,926

Current Obligation: $25,144,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline