VA awards $61.4M for HICBA Encoder Software and Support to Solvuentum Health Information Systems
Contract Overview
Contract Amount: $61,438,249 ($61.4M)
Contractor: Solventum Health Information Systems, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-03-22
End Date: 2025-12-18
Contract Duration: 1,732 days
Daily Burn Rate: $35.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HICBA ENCODER SOFTWARE AND ASSOCIATED SUPPORT
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84123
State: Utah Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $61.4 million to SOLVENTUM HEALTH INFORMATION SYSTEMS, INC. for work described as: HICBA ENCODER SOFTWARE AND ASSOCIATED SUPPORT Key points: 1. Contract awarded to Solvuentum Health Information Systems, Inc. for HICBA Encoder Software and Support. 2. Total contract value is $61,438,249.10. 3. The contract has a duration of 1732 days, ending December 18, 2025. 4. The agency is the Department of Veterans Affairs. 5. The NAICS code is 541519 (Other Computer Related Services).
Value Assessment
Rating: fair
The contract value of $61.4M over approximately 4.7 years suggests a moderate annual spend. Benchmarking against similar software and support contracts would be necessary to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary software and support services.
Public Impact
Impacts veterans' access to healthcare information systems. Supports the Department of Veterans Affairs' IT infrastructure. Ensures continued operation of critical encoder software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for cost overruns if scope expands.
- Reliance on a single vendor for software and support.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can control costs.
- Long-term duration provides stability for VA operations.
Sector Analysis
The IT services sector, particularly software development and support for government agencies, is a significant area of federal spending. Benchmarks for similar contracts would reveal if this $61.4M award is within expected ranges for the scope and duration.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to monitor performance, costs, and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in.
- Scope creep risk.
- Dependence on a single software solution.
- Cybersecurity vulnerabilities.
- Integration challenges with other VA systems.
Tags
other-computer-related-services, department-of-veterans-affairs, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $61.4 million to SOLVENTUM HEALTH INFORMATION SYSTEMS, INC.. HICBA ENCODER SOFTWARE AND ASSOCIATED SUPPORT
Who is the contractor on this award?
The obligated recipient is SOLVENTUM HEALTH INFORMATION 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 $61.4 million.
What is the period of performance?
Start: 2021-03-22. End: 2025-12-18.
What specific functionalities does the HICBA Encoder Software provide, and how critical are they to VA operations?
The HICBA Encoder Software likely plays a crucial role in processing and managing healthcare data within the VA system, potentially involving coding, billing, or patient record management. Its criticality would depend on its integration with other VA health IT systems and its direct impact on patient care delivery and administrative efficiency. Understanding these functions is key to assessing the value of the $61.4M investment.
What are the key performance indicators (KPIs) for this contract, and how will Solvuentum's performance be measured?
The provided data lacks specific Key Performance Indicators (KPIs) for this contract. Effective oversight requires clearly defined metrics related to software uptime, support response times, data accuracy, and user satisfaction. Without these, it is difficult to objectively assess Solvuentum's performance and ensure the VA is receiving the full value of the $61.4M expenditure.
How does the $61.4M contract value compare to historical spending on similar encoder software and support services within the VA or other federal agencies?
A direct comparison of the $61.4M contract value against historical spending for similar encoder software and support services is essential for a robust value assessment. Without this benchmark, it's challenging to determine if the price is competitive or if there's potential for cost savings. Analyzing trends in pricing for comparable IT services would provide crucial context.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C10B21R0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: 3M Company
Address: 575 W MURRAY BLVD, MURRAY, UT, 84123
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: $61,676,030
Exercised Options: $61,438,249
Current Obligation: $61,438,249
Actual Outlays: $23,931,773
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-22
Current End Date: 2025-12-18
Potential End Date: 2026-03-18 00:00:00
Last Modified: 2024-11-21
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