VA awards $142.9M contract for national dialysis EHR software to Document Storage Systems, Inc

Contract Overview

Contract Amount: $142,868 ($142.9K)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-22

End Date: 2027-08-17

Contract Duration: 1,303 days

Daily Burn Rate: $110/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NATIONAL DIALYSIS EHR SOFTWARE SOLUTION

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23249

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $142,867.81 to DOCUMENT STORAGE SYSTEMS, INC. for work described as: NATIONAL DIALYSIS EHR SOFTWARE SOLUTION Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings from competition. 2. The contract duration of over three years suggests a significant commitment to the chosen vendor. 3. Focus on Electronic Health Records (EHR) indicates a critical need for modernizing patient data management in dialysis care. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $142.9 million over approximately three years for a national EHR solution appears substantial. Without comparable contract data for similar national-level dialysis EHR systems, a precise value-for-money assessment is challenging. However, the sole-source nature of this award suggests that the VA may not have explored the full spectrum of market pricing, potentially leading to a less competitive outcome than a fully competed contract. Benchmarking against other large-scale health IT procurements would be necessary for a more definitive evaluation.

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 vendor possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition means that the VA did not benefit from the price discovery and innovation that typically arises from multiple bids. This can potentially lead to higher costs for the government compared to a scenario with robust competition.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure that could have driven down the price. This increases the risk that the government may be paying more than necessary for the services provided.

Public Impact

Veterans receiving dialysis treatment will benefit from improved electronic health record management. The contract supports the delivery of critical healthcare services nationwide for dialysis patients. Implementation of this EHR system is expected to enhance data accuracy and accessibility for healthcare providers. The contract may have implications for the IT workforce within the VA and potentially for the vendor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in with a long-term national system.
No explicit small business set-aside, raising concerns about broader economic impact.

Positive Signals

Addresses a critical need for a unified national EHR system for dialysis.
Firm Fixed Price contract provides budget certainty.
Long-term contract indicates a strategic investment in patient care infrastructure.

Sector Analysis

The healthcare IT sector is characterized by significant investment in electronic health records (EHR) systems to improve patient care, data management, and operational efficiency. This contract falls within the health IT sub-sector, specifically focusing on specialized EHR solutions for dialysis services. The market for EHR systems is substantial, with numerous vendors offering solutions ranging from general practice to highly specialized clinical areas. The VA's procurement of a national solution indicates a move towards standardization and integration of critical patient data across its facilities.

Small Business Impact

This contract does not appear to include a small business set-aside. The sole-source nature of the award further limits the direct opportunities for small businesses to participate as prime contractors. While the prime contractor, Document Storage Systems, Inc., may engage small businesses for subcontracting, the absence of a specific set-aside or clear subcontracting plan in the provided data makes it difficult to assess the direct impact on the small business ecosystem. Further review of subcontracting goals would be necessary.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA). As a sole-source award, the justification and procurement process would have undergone internal VA review. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Transparency regarding the specific oversight mechanisms, performance metrics, and reporting requirements would be detailed in the contract itself. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA EHR Modernization Program
Department of Defense EHR Systems
Health Information Technology for Economic and Clinical Health (HITECH) Act initiatives
Federal Health IT Services

Risk Flags

Sole-source award may limit cost savings.
Potential for vendor lock-in.
Complexity of national EHR implementation.
Data security and privacy risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $142,867.81 to DOCUMENT STORAGE SYSTEMS, INC.. NATIONAL DIALYSIS EHR SOFTWARE SOLUTION

Who is the contractor on this award?

The obligated recipient is DOCUMENT STORAGE SYSTEMS, 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 $142,867.81.

What is the period of performance?

Start: 2024-01-22. End: 2027-08-17.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as the existence of only one responsible source capable of providing the required service or supply, or when a public exigency requires immediate contract award. For a national EHR system, potential justifications could include unique proprietary technology, specialized integration requirements with existing VA systems, or a critical need for continuity of service that cannot be met through a competitive process within the required timeframe. A thorough review of the contract's Justification and Approval (J&A) document would be necessary to understand the precise rationale.

How does the cost of this contract compare to similar national EHR solutions procured by other federal agencies or large healthcare systems?

A direct cost comparison is challenging without access to detailed pricing structures and the specific scope of services for comparable national EHR solutions. The $142.9 million contract value over approximately three years for a national dialysis EHR system is substantial. However, the sole-source nature of this award means it may not reflect the most competitive market pricing. To benchmark effectively, one would need to analyze contracts for similar scale and complexity, considering factors like the number of users, modules included, integration services, and ongoing support. Agencies like the Department of Defense (DoD) have undertaken large-scale EHR modernization efforts (e.g., MHS GENESIS), but direct comparisons require careful consideration of differing requirements and market conditions.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective delivery of the EHR software?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for a critical national EHR system, one would expect KPIs to focus on system uptime and availability, data accuracy and integrity, response times for technical support, successful data migration, and user satisfaction. SLAs would define the minimum acceptable performance levels for these metrics, often with associated remedies or penalties for non-compliance. The VA would typically establish these in the contract's Performance Work Statement (PWS) to ensure the vendor meets the required standards for patient care and data management.

What is the track record of Document Storage Systems, Inc. (DSS) in delivering large-scale federal health IT solutions, particularly EHR systems?

Document Storage Systems, Inc. (DSS) has a history of providing IT solutions to federal agencies, including the Department of Veterans Affairs (VA). They have been involved in various health IT projects, often focusing on document management, data integration, and EHR-related services. While DSS has experience with the VA, the scale of a national dialysis EHR software solution represents a significant undertaking. Assessing their track record would involve reviewing past performance on similar-sized contracts, client satisfaction feedback, and any history of performance issues or successes. Their ability to manage complex integrations and nationwide deployments is a key factor in evaluating their suitability for this specific contract.

What are the potential risks associated with implementing a new national EHR system, and what mitigation strategies are in place?

Implementing a national EHR system carries several risks, including data migration challenges, interoperability issues with existing systems, user adoption resistance, cybersecurity threats, and potential disruptions to patient care during transition. For this contract, risks might include the complexity of integrating with the VA's existing infrastructure, ensuring data privacy and security for a large patient population, and managing the change process across numerous dialysis facilities. Mitigation strategies would typically involve phased rollouts, comprehensive user training, robust cybersecurity protocols, dedicated project management teams, and contingency plans for system downtime. The specific mitigation strategies would be detailed within the contract's PWS and associated risk management plans.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12575 US HIGHWAY 1, JUNO BEACH, FL, 33408

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: $184,260

Exercised Options: $142,868

Current Obligation: $142,868

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10A22D0003

IDV Type: IDC

Timeline