VA awards $26M for prosthetics and logistics GUI maintenance, highlighting IT services for veteran healthcare

Contract Overview

Contract Amount: $25,976,471 ($26.0M)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-10-01

End Date: 2023-05-31

Contract Duration: 1,338 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FFP TASK ORDER FOR CONTINUED MAINTENANCE OF PROSTHETICS AND LOGISTICS GUI FOR VISTA. POP: 6 MONTH BASE, WITH 3 SUBSEQUENT 12 MONTH OPTIONS

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.0 million to DOCUMENT STORAGE SYSTEMS, INC. for work described as: FFP TASK ORDER FOR CONTINUED MAINTENANCE OF PROSTHETICS AND LOGISTICS GUI FOR VISTA. POP: 6 MONTH BASE, WITH 3 SUBSEQUENT 12 MONTH OPTIONS Key points: 1. Contract focuses on essential IT maintenance for prosthetics and logistics systems, directly supporting veteran care. 2. The firm-fixed-price structure aims to control costs for ongoing software support. 3. Competition was full and open, suggesting a competitive bidding process for this service. 4. The contract duration spans over three years, indicating a sustained need for these IT services. 5. This award falls under 'Other Computer Related Services,' a broad category within the IT sector. 6. The contractor, DOCUMENT STORAGE SYSTEMS, INC., has secured this task order for continued system support.

Value Assessment

Rating: good

The total award of approximately $26 million over a 1338-day period (roughly 3.6 years) for IT maintenance services appears reasonable given the scope. While specific performance metrics and comparable contract data are not provided, the firm-fixed-price (FFP) contract type suggests that the government has a clear understanding of the costs involved. Benchmarking against similar IT maintenance contracts for specialized systems within the VA or other agencies would provide a more precise value assessment, but the duration and nature of the service suggest a fair price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed openly suggests that the Department of Veterans Affairs sought the best possible pricing and technical solutions available in the market. The number of bidders is not specified, but open competition generally leads to a more robust price discovery process and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation. This process ensures that taxpayer funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

Veterans requiring prosthetic services benefit from the reliable functioning of the underlying logistics and management software. The contract ensures the continued operation and maintenance of critical IT systems used by the VA. This IT support indirectly impacts healthcare delivery by ensuring the smooth operation of administrative and logistical functions. The services provided are primarily IT-focused, with no direct geographic or workforce implications beyond the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the GUI becomes highly specialized and difficult to transition away from.
Reliance on a single vendor for critical system maintenance could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the period of performance.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract addresses a clear need for ongoing maintenance of essential veteran support systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services.' The market for IT maintenance and support services is vast and highly competitive, with numerous companies offering specialized solutions. The Department of Veterans Affairs, like many large federal agencies, relies heavily on IT infrastructure to manage complex operations, including healthcare and benefits administration. Spending benchmarks for similar IT maintenance contracts can vary widely based on the complexity of the systems supported, but contracts in the multi-million dollar range are common for maintaining critical enterprise-level software.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is minimal for this particular award, though the prime contractor's overall subcontracting practices would determine broader effects.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. As a task order under a larger contract vehicle, it likely falls under the purview of the agency's established procurement and oversight processes. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
VA Medical IT Support Services
Federal Health IT Contracts
Prosthetics and Sensory Aids Service (PSAS) IT Systems

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical system maintenance
Lack of specific performance metrics in award data
Limited insight into number of bidders under full and open competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.0 million to DOCUMENT STORAGE SYSTEMS, INC.. FFP TASK ORDER FOR CONTINUED MAINTENANCE OF PROSTHETICS AND LOGISTICS GUI FOR VISTA. POP: 6 MONTH BASE, WITH 3 SUBSEQUENT 12 MONTH OPTIONS

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 $26.0 million.

What is the period of performance?

Start: 2019-10-01. End: 2023-05-31.

What is the specific functionality of the prosthetics and logistics GUI, and how critical is its maintenance to VA operations?

The prosthetics and logistics GUI (Graphical User Interface) likely serves as the interface for managing the inventory, distribution, and potentially the fitting and maintenance schedules for prosthetic devices provided to veterans. Its criticality stems from ensuring that veterans receive timely and appropriate prosthetic care. A well-functioning system is essential for tracking devices, managing patient appointments, coordinating with manufacturers, and maintaining accurate records. Disruptions or failures in this GUI could lead to delays in care, inventory shortages, and administrative inefficiencies, directly impacting the quality and timeliness of services delivered to veterans requiring prosthetics.

How does the $26 million cost compare to similar IT maintenance contracts for specialized healthcare systems within the VA or other federal agencies?

Benchmarking this $26 million contract requires detailed comparison with similar IT maintenance agreements for specialized healthcare logistics and inventory management systems. Factors such as the complexity of the software, the number of users, the scope of maintenance (e.g., bug fixes, updates, enhancements), and the contract duration are crucial. For instance, contracts supporting large-scale Electronic Health Record (EHR) systems often run into hundreds of millions or billions of dollars over many years. However, for a specific GUI focused on prosthetics logistics, $26 million over approximately 3.6 years suggests a significant but potentially reasonable investment if the system is complex and supports a large veteran population or a wide array of prosthetic services. Without specific comparable contract data, a definitive assessment is challenging, but it indicates a substantial commitment to maintaining this particular IT function.

What are the potential risks associated with relying on DOCUMENT STORAGE SYSTEMS, INC. for the continued maintenance of this critical system?

The primary risks associated with relying on a single contractor, DOCUMENT STORAGE SYSTEMS, INC., for critical system maintenance include potential vendor lock-in, where the VA becomes overly dependent on the contractor's proprietary knowledge and technology, making future transitions difficult and costly. There's also the risk of service disruption if the contractor faces financial instability, operational issues, or decides to discontinue support for the specific product line. Furthermore, if the contractor's performance degrades over time or if they fail to innovate, the system's effectiveness could diminish, impacting the services provided to veterans. Ensuring robust Service Level Agreements (SLAs) and maintaining clear lines of communication are crucial mitigation strategies.

What is the historical spending pattern for prosthetics and logistics IT support at the VA, and does this award represent an increase or decrease?

Analyzing historical spending patterns for prosthetics and logistics IT support at the VA is essential to contextualize this $26 million award. Without access to specific historical data for this particular GUI or service category, it's difficult to determine if this represents an increase or decrease. However, federal IT spending, particularly in healthcare, has generally been on an upward trend due to increasing system complexity, cybersecurity needs, and the push for digital transformation. If previous support contracts were significantly smaller, this could indicate an expansion of services, increased complexity, or inflation. Conversely, if prior spending was higher, it might suggest cost efficiencies or a shift in technology. A thorough analysis would require examining prior contract awards for similar functions over several fiscal years.

How does the firm-fixed-price (FFP) contract type influence the risk allocation between the VA and DOCUMENT STORAGE SYSTEMS, INC. for this maintenance task order?

The firm-fixed-price (FFP) contract type places the majority of the cost risk on the contractor, DOCUMENT STORAGE SYSTEMS, INC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If their expenses for labor, materials, or overhead exceed their estimates, their profit margin will decrease, or they could incur a loss. Conversely, if they manage their costs efficiently, their profit will increase. For the VA, the FFP structure provides cost certainty, making budgeting more predictable. However, it can sometimes disincentivize the contractor from proactively suggesting cost-saving innovations, as their primary focus is on delivering the defined scope within the fixed price. The VA retains risk related to scope creep if changes are not managed through formal contract modifications.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,134,491

Exercised Options: $25,976,471

Current Obligation: $25,976,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0485N

IDV Type: FSS

Timeline