VA awards $67.9M for VistA Health Information Cloud software, maintenance, and support to Document Storage Systems, Inc

Contract Overview

Contract Amount: $67,917,054 ($67.9M)

Contractor: Document Storage Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-01-01

End Date: 2024-01-05

Contract Duration: 1,099 days

Daily Burn Rate: $61.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS EFFORT IS TO PROVIDE VETERANS HEALTH ADMINISTRATIONS HICBA VIRR SOFTWARE SOLUTION WITH MAINTENANCE AND TECHNICAL SUPPORT SERVICES WHICH PROVIDES FUNCTIONALITY FOR CODING, REVENUE WORKFLOWS, AND REPORTING.

Place of Performance

Location: JUNO BEACH, PALM BEACH County, FLORIDA, 33408

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67.9 million to DOCUMENT STORAGE SYSTEMS, INC. for work described as: THE PURPOSE OF THIS EFFORT IS TO PROVIDE VETERANS HEALTH ADMINISTRATIONS HICBA VIRR SOFTWARE SOLUTION WITH MAINTENANCE AND TECHNICAL SUPPORT SERVICES WHICH PROVIDES FUNCTIONALITY FOR CODING, REVENUE WORKFLOWS, AND REPORTING. Key points: 1. Contract focuses on critical VistA software for coding, revenue workflows, and reporting. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long duration (1099 days) suggests a need for stable, ongoing support. 4. Firm Fixed Price contract type aims to control costs for the government. 5. Contractor has a track record with the VA, indicating familiarity with their systems. 6. Geographic focus on Florida for service delivery.

Value Assessment

Rating: fair

The contract value of $67.9 million over approximately three years for VistA HICBA VIRR software, maintenance, and technical support appears to be within a reasonable range for specialized health IT services. However, without specific benchmarks for this particular software module or comparable sole-source contracts, a precise value-for-money assessment is challenging. The firm fixed-price structure is a positive indicator for cost control. The contractor's experience with the VA is a mitigating factor against potential cost overruns due to unfamiliarity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This approach is typically used when a unique product or service is required, or when there is a lack of adequate competition. The absence of a competitive bidding process means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from multiple bidders.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing. It also limits opportunities for other businesses to compete for this work.

Public Impact

Veterans will benefit from improved functionality and support for the VistA Health Information Cloud software. Essential services include coding, revenue workflows, and reporting, which are critical for healthcare operations. The contract supports the Department of Veterans Affairs' mission to provide healthcare to veterans. Workforce implications include the need for specialized IT support personnel familiar with VistA systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competitively bid contract.
Sole-source awards can limit innovation by not exploring alternative solutions.
Long contract duration could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Contractor's existing relationship with VA suggests familiarity and potential for efficient service delivery.
Focus on critical VistA software ensures continuity of essential healthcare IT functions.

Sector Analysis

This contract falls within the Health Information Technology (Health IT) sector, a critical component of the broader IT services market. The Health IT market is characterized by specialized software, stringent security requirements, and the need for deep understanding of healthcare workflows. Spending in this area is driven by the need for electronic health records (EHRs), data analytics, and operational efficiency within healthcare systems. The VA's significant investment in VistA software places this contract within a substantial category of federal IT spending focused on healthcare delivery.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. As a sole-source award to a single large vendor, it does not directly create opportunities for small businesses within the prime contract. However, the prime contractor may engage small businesses for specific support roles, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of cost control. Transparency regarding the sole-source justification and performance metrics would be key areas for oversight. The VA's Office of Inspector General may also review contracts of this magnitude for efficiency and effectiveness.

Related Government Programs

VistA EHR System
Veterans Health Administration IT Services
Healthcare Software Maintenance
Federal Health IT Contracts

Risk Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of competitive pricing.
Dependence on a single vendor for critical software support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67.9 million to DOCUMENT STORAGE SYSTEMS, INC.. THE PURPOSE OF THIS EFFORT IS TO PROVIDE VETERANS HEALTH ADMINISTRATIONS HICBA VIRR SOFTWARE SOLUTION WITH MAINTENANCE AND TECHNICAL SUPPORT SERVICES WHICH PROVIDES FUNCTIONALITY FOR CODING, REVENUE WORKFLOWS, AND REPORTING.

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 $67.9 million.

What is the period of performance?

Start: 2021-01-01. End: 2024-01-05.

What is the specific functionality of the HICBA VIRR software and its importance to the VA's operations?

The HICBA VIRR software is a crucial component of the Veterans Health Administration's (VHA) Health Information Cloud. VIRR stands for 'VistA Imaging, Reporting, and Records.' This software solution provides essential functionalities for coding patient encounters, managing revenue workflows, and generating critical reports. Accurate coding is vital for billing and reimbursement, while efficient revenue workflows ensure the financial health of VHA facilities. Comprehensive reporting capabilities support clinical decision-making, operational management, and compliance. The maintenance and technical support services ensure the software remains operational, up-to-date, and secure, directly impacting the VHA's ability to provide timely and effective healthcare services to veterans.

Why was this contract awarded on a sole-source basis, and what are the implications for cost?

The contract was awarded on a sole-source basis, likely because Document Storage Systems, Inc. (DSS-Inc) is the incumbent provider of the HICBA VIRR software solution and possesses unique knowledge and capabilities essential for its maintenance and support. This often occurs with proprietary software or highly specialized systems where only one vendor can provide the necessary expertise. While sole-source awards can ensure continuity and leverage existing expertise, they typically result in higher costs for taxpayers compared to competitively bid contracts. Without competition, there is less incentive for the vendor to offer the lowest possible price, and the government foregoes the potential for cost savings and innovative solutions that multiple bidders might provide.

How does the firm fixed-price contract type mitigate risks for the VA?

The Firm Fixed Price (FFP) contract type is beneficial for the VA as it shifts most of the risk to the contractor, Document Storage Systems, Inc. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the VA with cost certainty and predictability, making budgeting more straightforward. Unlike cost-reimbursement contracts, the VA is not liable for cost overruns incurred by the contractor. This structure incentivizes the contractor to manage their resources efficiently and control costs to maximize their profit margin, aligning the contractor's interests with the government's objective of obtaining services at a set price.

What is the track record of Document Storage Systems, Inc. with the VA, and how does it influence this contract?

Document Storage Systems, Inc. (DSS-Inc) has a significant track record of providing IT solutions and services to the Department of Veterans Affairs (VA), including support for the VistA system. Their long-standing relationship suggests a deep understanding of the VA's complex infrastructure, specific requirements, and operational challenges. This familiarity can lead to more efficient service delivery, reduced learning curves, and potentially fewer integration issues compared to a new vendor. For the VA, awarding this contract to a known entity like DSS-Inc can be seen as a way to ensure continuity of critical services and leverage their established expertise, mitigating risks associated with onboarding a less experienced contractor for such a vital software system.

What are the potential performance risks associated with this contract, and how might they be managed?

Potential performance risks include software bugs, system downtime, delays in providing technical support, or failure to deliver updates and maintenance as required. Given the sole-source nature and the critical function of the software, any disruption could significantly impact the VA's healthcare operations and veteran services. Risk mitigation strategies would involve robust performance monitoring by the VA, clearly defined Service Level Agreements (SLAs) within the contract, regular performance reviews with DSS-Inc, and potentially establishing contingency plans. The VA's contracting officer and technical team must actively manage the contract, ensuring DSS-Inc meets all contractual obligations and addressing any emerging issues promptly to maintain system stability and performance.

Industry Classification

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

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B21R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12575 US HWY 1 STE 200, JUNO BEACH, FL, 33408

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $68,001,975

Exercised Options: $67,917,054

Current Obligation: $67,917,054

Actual Outlays: $127,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline