VA awards $32.8M for CMOP pharmaceutical systems integration, with 3 bidders competing

Contract Overview

Contract Amount: $32,780,962 ($32.8M)

Contractor: Clear Vantage Point Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-03

End Date: 2025-12-02

Contract Duration: 1,186 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONSOLIDATED MAIL OUTPATIENT PHARMACY (CMOP) PHARMACEUTICAL-DISPENSING MEDICAL DEVICE SYSTEMS INTEGRATION SUPPORT AND DEVELOPMENT

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.8 million to CLEAR VANTAGE POINT SOLUTIONS LLC for work described as: CONSOLIDATED MAIL OUTPATIENT PHARMACY (CMOP) PHARMACEUTICAL-DISPENSING MEDICAL DEVICE SYSTEMS INTEGRATION SUPPORT AND DEVELOPMENT Key points: 1. Contract focuses on critical IT infrastructure for pharmaceutical dispensing. 2. Competition level suggests a potentially healthy market for these services. 3. Performance period extends over three years, indicating a need for sustained support. 4. The fixed-price contract type aims to control costs for the government. 5. This award falls within the broader category of IT services for healthcare.

Value Assessment

Rating: good

The contract value of $32.8 million over approximately three years appears reasonable for complex systems integration and development in a specialized healthcare IT environment. Benchmarking against similar contracts for large-scale IT system support within the Department of Veterans Affairs (VA) or other federal health agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to manage cost overruns, but the success of this depends heavily on the clarity of the statement of work and the contractor's ability to deliver within the agreed-upon scope.

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 offers. With three bidders participating, the competition level is moderate. While more bidders could potentially drive prices lower, three bidders suggest that there is sufficient market interest and capability to provide these specialized services. This level of competition generally allows for a reasonable degree of price discovery and selection of a technically capable vendor.

Taxpayer Impact: A moderate level of competition, with three bidders, is generally favorable for taxpayers as it encourages competitive pricing and allows the government to select from multiple qualified vendors, potentially leading to better value.

Public Impact

Veterans will benefit from improved efficiency and reliability in pharmaceutical dispensing through modernized IT systems. The contract supports the core mission of the Consolidated Mail Outpatient Pharmacy (CMOP) program. Services delivered will enhance the integration and development of medical device systems within the pharmacy. The geographic impact is national, as CMOP serves veterans across the United States. Workforce implications include potential needs for specialized IT professionals to support and develop these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if system requirements are not clearly defined upfront.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
Integration challenges with existing VA healthcare IT systems may lead to delays or increased costs.

Positive Signals

Awarded under full and open competition, suggesting a robust market and potential for competitive pricing.
Fixed-price contract type helps to control costs and provides budget certainty.
Longer performance period allows for sustained development and integration, potentially leading to more stable systems.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The market for healthcare IT, particularly systems supporting pharmacy operations and medical device integration, is substantial and growing. The VA's significant investment in modernizing its healthcare infrastructure, including pharmacy systems like CMOP, reflects a sector-wide trend towards leveraging technology to improve patient care and operational efficiency. Comparable spending benchmarks would likely be found in other large federal health IT procurements or large-scale private healthcare system IT upgrades.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Clear Vantage Point Solutions LLC, a company that may or may not be a small business itself, does not automatically imply benefits or drawbacks for the broader small business ecosystem without further information on subcontracting plans. Analysis of the prime contractor's small business utilization goals and actual performance would be necessary to assess the impact.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Veterans Health Administration IT Modernization
Consolidated Mail Outpatient Pharmacy (CMOP) Operations
Medical Device Integration Systems
Healthcare IT Systems Development
Federal Pharmacy Benefit Management Systems

Risk Flags

Potential for integration complexity
Cybersecurity risks in healthcare IT
Dependence on contractor performance
System reliability for patient care

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.8 million to CLEAR VANTAGE POINT SOLUTIONS LLC. CONSOLIDATED MAIL OUTPATIENT PHARMACY (CMOP) PHARMACEUTICAL-DISPENSING MEDICAL DEVICE SYSTEMS INTEGRATION SUPPORT AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is CLEAR VANTAGE POINT SOLUTIONS LLC.

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 $32.8 million.

What is the period of performance?

Start: 2022-09-03. End: 2025-12-02.

What is the track record of Clear Vantage Point Solutions LLC with the Department of Veterans Affairs and in similar IT integration projects?

A review of federal procurement data would be necessary to fully assess Clear Vantage Point Solutions LLC's track record. Specifically, examining past performance evaluations on VA contracts, particularly those involving IT systems integration, medical device support, or pharmaceutical systems, would provide insight into their reliability, technical capabilities, and past performance quality. Understanding their experience with fixed-price contracts and large-scale development projects is also crucial. Without specific past performance data, it's difficult to definitively gauge their suitability beyond the current award, though the award itself implies they met initial qualification criteria.

How does the awarded price of $32.8 million compare to similar IT systems integration contracts for pharmaceutical operations within the federal government?

Benchmarking this $32.8 million contract against similar federal IT systems integration contracts for pharmaceutical operations requires access to detailed contract data, including scope of work, duration, and specific services rendered. However, for a multi-year project involving complex integration and development for a critical function like the VA's Consolidated Mail Outpatient Pharmacy (CMOP), this figure appears within a plausible range. Large-scale IT modernization efforts within federal health agencies often run into tens or hundreds of millions of dollars. The key is to compare apples to apples: similar complexity, duration, and service requirements. A preliminary assessment suggests the price is not immediately an outlier, but detailed comparative analysis is needed.

What are the primary risks associated with integrating medical device systems with pharmaceutical dispensing IT, and how are they mitigated in this contract?

Key risks in integrating medical device systems with pharmaceutical dispensing IT include cybersecurity vulnerabilities, data interoperability issues, system downtime impacting patient care, and potential for errors in dispensing. This contract aims to mitigate these risks through a fixed-price structure, which incentivizes the contractor to deliver a well-defined solution efficiently. The Department of Veterans Affairs (VA) will likely implement stringent testing, validation, and cybersecurity protocols throughout the development and integration process. Clear requirements, phased rollouts, and robust oversight by the VA program office are also critical mitigation strategies to ensure system reliability and patient safety.

How effective has the VA's CMOP program been historically, and how will this IT systems integration support its effectiveness?

The Consolidated Mail Outpatient Pharmacy (CMOP) program has been a cornerstone of the VA's efforts to provide prescription medications to veterans nationwide, aiming for efficiency and cost savings compared to retail pharmacies. Historically, CMOP has faced challenges related to IT infrastructure, dispensing accuracy, and timely delivery, particularly as prescription volumes and complexity have grown. This contract for systems integration and development is intended to modernize the underlying IT infrastructure, improve the seamless interaction between medical devices and dispensing systems, and enhance overall operational efficiency. By upgrading these systems, the VA aims to reduce errors, speed up processing times, and ensure more reliable medication delivery to veterans.

What has been the historical spending trend for IT systems integration and development within the VA's pharmacy services over the past five years?

Analyzing historical spending trends for IT systems integration and development within the VA's pharmacy services over the past five years would reveal the agency's investment priorities and patterns in this area. Such an analysis would likely show a consistent need for upgrades and modernization due to the critical nature of pharmaceutical services and the increasing reliance on technology. Spending may have fluctuated based on specific modernization initiatives, system lifecycle replacements, or responses to emerging technological capabilities and security requirements. This $32.8 million award represents a significant, multi-year investment, suggesting a strategic push towards enhancing the CMOP's technological capabilities.

What is the potential impact of this contract on the VA's ability to manage pharmaceutical inventory and reduce medication waste?

This contract has the potential to significantly improve the VA's ability to manage pharmaceutical inventory and reduce medication waste. By integrating medical device systems with pharmaceutical dispensing IT, the VA can achieve more real-time visibility into inventory levels, track drug expiration dates more effectively, and optimize ordering processes. Enhanced system integration can lead to more accurate dispensing, minimizing errors that might result in wasted medication. Furthermore, improved data analytics derived from these integrated systems can help forecast demand more accurately, reducing overstocking and the associated risk of waste due to expiry or obsolescence.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7630 LITTLE RIVER TPKE STE 205, ANNANDALE, VA, 22003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,791,049

Exercised Options: $32,780,962

Current Obligation: $32,780,962

Actual Outlays: $70,675

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,358,616

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1024

IDV Type: IDC

Timeline