VA awards $55.3M contract for Encounter Management Tool license to Blue Tech Inc

Contract Overview

Contract Amount: $55,262 ($55.3K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $304/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENCOUNTER MANAGEMENT TOOL LIMITED LICENSE

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38104

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $55,262.17 to BLUE TECH INC. for work described as: ENCOUNTER MANAGEMENT TOOL LIMITED LICENSE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration is 182 days, indicating a short-term need for the software license. 3. The fixed-price contract type aims to control costs for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a service-based IT procurement. 5. The award is a Delivery Order, suggesting it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or similar vehicle. 6. The contract is not set aside for small businesses, indicating larger firms were likely primary bidders.

Value Assessment

Rating: fair

The contract value of $55.3 million for a 182-day license for an Encounter Management Tool appears high on a daily basis. Without specific details on the software's functionality, user base, or licensing model, it is difficult to benchmark against similar contracts. However, the cost per day is approximately $303,638, which warrants further scrutiny to ensure value for money, especially given the short duration. It is possible this represents a significant upfront licensing fee or a critical, specialized tool.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that all responsible sources were permitted to submit a bid. The presence of two bids (no: 2) indicates some level of competition, but the low number of bidders could suggest potential limitations in the market for this specific tool or the way the requirement was structured. Further investigation into the solicitation process would clarify if the exclusion of sources was justified and if the competition was truly robust.

Taxpayer Impact: A competitive process, even with a limited number of bidders, is generally favorable for taxpayers as it encourages vendors to offer competitive pricing. However, with only two bids, there is a risk that the price may not be as low as it could have been with broader participation.

Public Impact

The Department of Veterans Affairs (VA) will benefit from this contract by acquiring a license for an Encounter Management Tool. This tool is expected to support the delivery of healthcare services to veterans. The specific geographic impact is not detailed but likely supports VA facilities nationwide where veteran encounters are managed. The contract may have implications for IT support staff within the VA responsible for implementing and managing the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost warrants scrutiny for value.
Limited number of bidders (2) may indicate reduced price competition.
Short contract duration (182 days) raises questions about long-term strategy or potential for follow-on work.
The specific nature of 'Encounter Management Tool' is not detailed, making it hard to assess its criticality and necessity.

Positive Signals

Awarded under full and open competition, indicating an attempt at broad market engagement.
Fixed-price contract type helps control costs.
The vendor, Blue Tech Inc., is providing a specific IT solution to a government agency.

Sector Analysis

The procurement falls within the Information Technology sector, specifically focusing on software licensing and potentially related services. The market for healthcare IT solutions, including patient and encounter management systems, is substantial and growing. This contract represents a specific instance of the VA investing in IT infrastructure to manage its healthcare operations. Comparable spending benchmarks would depend heavily on the specific functionalities of the 'Encounter Management Tool' and the scale of its deployment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on obtaining the specific software license from a vendor capable of meeting the VA's requirements, potentially favoring larger, established IT providers. The impact on the small business ecosystem is likely minimal unless Blue Tech Inc. itself is a small business, which is not indicated by the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a Delivery Order, it likely falls under a larger contract vehicle that may have its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration IT Modernization
Electronic Health Records (EHR) Systems
Healthcare Information Systems
Software Licensing Agreements

Risk Flags

High Cost Per Day
Limited Competition (2 Bidders)
Short Contract Duration
Lack of Detailed Functionality Description

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $55,262.17 to BLUE TECH INC.. ENCOUNTER MANAGEMENT TOOL LIMITED LICENSE

Who is the contractor on this award?

The obligated recipient is BLUE TECH 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 $55,262.17.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-30.

What is the specific functionality and criticality of the 'Encounter Management Tool' being licensed?

The provided data does not detail the specific functionalities of the 'Encounter Management Tool.' However, based on its name, it likely plays a crucial role in managing patient appointments, scheduling, tracking patient visits, and potentially integrating with other healthcare systems within the VA. Its criticality would be assessed by its impact on patient flow, resource allocation, and the overall efficiency of healthcare delivery to veterans. Without this information, it's difficult to fully evaluate the necessity and value of the $55.3 million expenditure for a 182-day license.

How does the per-day cost of this license compare to industry benchmarks for similar software?

The per-day cost for this license is approximately $303,638 ($55,262,170 / 182 days). Benchmarking this against industry standards is challenging without knowing the specific features, user count, and type of license (e.g., enterprise, per-user). However, this daily rate is exceptionally high for a software license, even for enterprise-level solutions. Typically, software costs are analyzed on an annual or per-user basis. This high daily rate suggests either a very specialized, high-demand tool, a significant upfront cost amortized over a short period, or a potential area for cost savings if the pricing is not competitive within the market.

What is Blue Tech Inc.'s track record with the VA or similar government contracts?

The provided data does not include information on Blue Tech Inc.'s specific track record with the VA or other government agencies. To assess their performance, one would need to review past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. A positive track record with similar IT solutions for healthcare providers would increase confidence in their ability to deliver the licensed software effectively. Conversely, a history of poor performance would raise concerns.

What are the risks associated with a short-term (182-day) license for a critical management tool?

A short-term license for a critical management tool like an 'Encounter Management Tool' presents several risks. Firstly, it implies a potential lack of a long-term solution or an interim measure, which could lead to disruption if a permanent solution is not secured promptly. Secondly, the government might incur higher per-unit costs due to the short duration compared to a multi-year commitment. Thirdly, there's a risk of vendor lock-in or dependency if the tool proves essential and the vendor is unwilling to offer favorable terms for renewal or transition. Finally, the short timeframe may not allow for adequate training, integration, and full utilization of the tool's capabilities.

How does this $55.3 million expenditure fit into the VA's overall IT spending patterns?

The $55.3 million expenditure for this specific license represents a portion of the VA's substantial IT budget, which often runs into billions of dollars annually. The VA invests heavily in IT to support its vast healthcare network and manage veteran benefits. This contract's significance within the overall budget depends on its strategic importance and whether it replaces or augments existing systems. Analyzing historical spending on similar encounter management or patient scheduling software would provide context. If this is a new capability or a significant upgrade, the cost might be justified; if it's a routine renewal, the amount warrants closer examination against prior spending.

What are the implications of awarding this contract after 'Exclusion of Sources'?

The phrase 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be open, certain sources were initially excluded. This exclusion must be justified by the agency, often due to specific technical requirements, existing infrastructure compatibility, or other valid reasons. The implication for taxpayers is that the competition might have been narrower than truly 'full and open,' potentially leading to higher prices if the excluded sources could have offered a more competitive bid. It necessitates a review of the justification for exclusion to ensure it was appropriate and did not unduly limit competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $580,621

Exercised Options: $55,262

Current Obligation: $55,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline