VA Awards $226M for National Dialysis EHR Software to Document Storage Systems, Inc

Contract Overview

Contract Amount: $226,101 ($226.1K)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-25

End Date: 2027-03-30

Contract Duration: 582 days

Daily Burn Rate: $388/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL DIALYSIS EHR SOFTWARE SOLUTION

Place of Performance

Location: RIVIERA BEACH, PALM BEACH County, FLORIDA, 33410

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $226,101.49 to DOCUMENT STORAGE SYSTEMS, INC. for work described as: NATIONAL DIALYSIS EHR SOFTWARE SOLUTION Key points: 1. The contract is for a national Electronic Health Record (EHR) software solution for dialysis services. 2. The awardee, Document Storage Systems, Inc., has secured a significant contract valued at $226.1 million. 3. The contract duration spans over 4 years, indicating a long-term need for this critical healthcare IT system. 4. The absence of competition raises questions about potential price discovery and value for taxpayer dollars.

Value Assessment

Rating: questionable

The contract value of $226.1 million for a national EHR system appears substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar comprehensive healthcare IT solutions.

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 may result in a higher cost to taxpayers than if multiple vendors had competed for the contract.

Taxpayer Impact: The lack of competition for a large EHR system could lead to suboptimal pricing, potentially costing taxpayers more than necessary for this essential healthcare service.

Public Impact

Veterans requiring dialysis services will benefit from a potentially modernized EHR system. The significant investment highlights the VA's commitment to improving healthcare IT infrastructure. The sole-source nature of the award may limit innovation and cost-saving opportunities for the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited vendor innovation

Positive Signals

Addresses critical healthcare need
Long-term solution for VA

Sector Analysis

This contract falls within the IT sector, specifically focusing on healthcare IT solutions. The benchmark for national EHR systems can vary widely based on scope and features, but large-scale deployments often exceed $100 million.

Small Business Impact

There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that the system meets its intended operational requirements. Accountability for performance and cost management will be crucial.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits price competition.
Potential for higher costs without competitive bidding.
Lack of transparency in vendor selection.
Risk of vendor lock-in.
Need for robust oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $226,101.49 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 $226,101.49.

What is the period of performance?

Start: 2025-08-25. End: 2027-03-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, critical urgency, or a lack of viable alternatives. For a national EHR system, the VA might have cited specific integration requirements, existing vendor infrastructure, or specialized expertise possessed solely by Document Storage Systems, Inc. that made competitive procurement impractical or detrimental to timely implementation.

What are the risks associated with a sole-source EHR contract for the VA?

Sole-source contracts carry risks of inflated pricing due to the absence of competitive pressure, potentially leading to higher costs for taxpayers. There's also a risk of vendor lock-in, reduced innovation as the vendor may face less pressure to improve services, and potential challenges if the vendor's performance or financial stability declines over the contract's duration.

How will the effectiveness of this national dialysis EHR solution be measured?

Effectiveness will likely be measured through key performance indicators (KPIs) related to system uptime, data accuracy, user adoption rates among healthcare providers, patient data accessibility, and improvements in clinical workflow efficiency. Patient outcome data and the reduction of administrative burdens will also be critical metrics for evaluating the solution's success.

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: $322,893

Exercised Options: $226,101

Current Obligation: $226,101

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