VA Awards $110.5M for National Dialysis EHR Software, Sole-Source to Document Storage Systems, Inc
Contract Overview
Contract Amount: $110,510 ($110.5K)
Contractor: Document Storage Systems, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-08-23
End Date: 2027-08-22
Contract Duration: 1,094 days
Daily Burn Rate: $101/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NATIONAL DIALYSIS EHR SOFTWARE SOLUTION
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15240
Plain-Language Summary
Department of Veterans Affairs obligated $110,510.14 to DOCUMENT STORAGE SYSTEMS, INC. for work described as: NATIONAL DIALYSIS EHR SOFTWARE SOLUTION Key points: 1. The contract is a sole-source award, raising questions about potential cost savings through competition. 2. The value of $110.5 million over approximately three years requires scrutiny for fair pricing. 3. The IT sector, particularly healthcare IT, is a significant area of federal spending. 4. The lack of competition is a primary risk factor for this contract.
Value Assessment
Rating: questionable
The contract's value of $110.5 million for EHR software over three years needs comparison to similar government and commercial contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this critical healthcare IT solution.
Public Impact
Veterans will receive a dedicated EHR solution for dialysis, potentially improving care coordination. The sole-source nature of the award may limit innovation and cost-saving opportunities. The significant investment highlights the VA's commitment to modernizing its health IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Addresses critical healthcare need
- Long-term contract provides stability
Sector Analysis
This contract falls within the IT sector, specifically healthcare IT, which is a major area of federal spending. Benchmarks for similar EHR solutions, especially those awarded competitively, would be useful for comparison.
Small Business Impact
The contract was not competed and there is no indication of subcontracting opportunities for small businesses. This award does not appear to directly benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the contractor is meeting all performance requirements.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of competition may lead to overpayment.
- Potential for vendor lock-in.
- Limited transparency in pricing.
- Risk of unmet performance expectations without competitive pressure.
Tags
computer-systems-design-services, department-of-veterans-affairs, pa, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $110,510.14 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 $110,510.14.
What is the period of performance?
Start: 2024-08-23. End: 2027-08-22.
What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves a documented determination that only one responsible source can provide the required supplies or services. Agencies must still conduct price analysis to ensure the price is fair and reasonable, often by comparing to historical prices, commercial prices, or independent government cost estimates. Without this documentation, the fairness of the price remains questionable.
What are the potential risks associated with a sole-source contract for critical healthcare IT infrastructure?
Sole-source contracts carry risks such as inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the vendor to innovate or improve service quality. For critical infrastructure like an EHR system, these risks could impact patient care, data security, and the long-term cost-effectiveness of the solution.
How will the effectiveness of this national dialysis EHR software solution be measured and ensured for veteran care?
Effectiveness will likely be measured through performance metrics outlined in the contract, such as system uptime, data accuracy, user satisfaction among clinicians, and improvements in care coordination or patient outcomes. The VA's program management and oversight teams will be responsible for monitoring these metrics and ensuring the software meets the needs of veterans and healthcare providers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: $151,902
Exercised Options: $110,510
Current Obligation: $110,510
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
Start Date: 2024-08-23
Current End Date: 2027-08-22
Potential End Date: 2028-08-22 00:00:00
Last Modified: 2026-04-10
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