VA awards $1.19M for FORESEER software support at Milwaukee VAMC, with limited competition

Contract Overview

Contract Amount: $119,422 ($119.4K)

Contractor: Eaton Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-01

End Date: 2027-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $82/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FORESEER SOFTWARE SUPPORT FOR THE CLEMENT J ZABLOCKI VAMC IN MILWAUKEE WI

Place of Performance

Location: BEACHWOOD, CUYAHOGA County, OHIO, 44122

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $119,422 to EATON CORPORATION for work described as: FORESEER SOFTWARE SUPPORT FOR THE CLEMENT J ZABLOCKI VAMC IN MILWAUKEE WI Key points: 1. The contract value of $1.19 million over four years suggests a moderate annual expenditure for specialized software support. 2. The sole-source nature of this award raises questions about potential price efficiencies and the availability of alternative solutions. 3. Performance is tied to the Clement J Zablocki VAMC, indicating a critical need for uninterrupted software functionality. 4. The contract duration of 1460 days (4 years) provides stability for the vendor but limits re-competition opportunities. 5. The 'Other Computer Related Services' NAICS code suggests a broad category, making direct benchmarking challenging without more specific service details.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without specific details on the FORESEER software's criticality and the scope of support. Given the sole-source award, it's challenging to assess if the $1.19 million represents competitive pricing. However, the annual average of approximately $298,500 for specialized software support for a major VAMC facility appears within a reasonable range for such services, assuming comprehensive support is provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, EATON CORPORATION, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in higher prices and reduced innovation compared to full and open competition.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible price for taxpayers. This can lead to overspending if alternative, more cost-effective solutions were not explored.

Public Impact

Veterans receiving care at the Clement J Zablocki VAMC in Milwaukee, WI, will benefit from the continued availability and functionality of the FORESEER software. The contract ensures the provision of essential IT support services for a critical healthcare facility. The geographic impact is localized to Milwaukee, Wisconsin, directly supporting the operations of the VAMC in that area. The contract supports the IT workforce within EATON CORPORATION, potentially involving specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source awards can indicate a lack of market research or potential vendor lock-in.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Ensures continuity of essential software support for a VAMC.
Provides a stable, long-term contract for the vendor.
Clear performance period and delivery location.

Sector Analysis

The IT services sector, particularly software support and maintenance, is a significant area of federal spending. This contract falls under 'Other Computer Related Services,' a broad category that includes a wide range of IT support functions. Federal agencies often rely on specialized software for critical operations, leading to contracts for maintenance, upgrades, and support. Benchmarking this specific contract is challenging due to the proprietary nature of the FORESEER software and the sole-source award, but annual spending on IT support services across the government runs into billions.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses. The award to EATON CORPORATION, a large business, suggests that small businesses were not directly involved in this specific procurement, potentially missing an opportunity to contribute to the federal IT support ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it may be subject to internal VA oversight procedures. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration IT Support
Department of Veterans Affairs Software Maintenance
Federal IT Services Procurement
Sole Source IT Contracts
Healthcare IT Infrastructure Support

Risk Flags

Sole-source award lacks competitive pricing.
Potential for vendor lock-in due to specialized software.
Limited transparency on justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $119,422 to EATON CORPORATION. FORESEER SOFTWARE SUPPORT FOR THE CLEMENT J ZABLOCKI VAMC IN MILWAUKEE WI

Who is the contractor on this award?

The obligated recipient is EATON CORPORATION.

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 $119,422.

What is the period of performance?

Start: 2023-07-01. End: 2027-06-30.

What is the specific functionality and criticality of the FORESEER software at the Clement J Zablocki VAMC?

The provided data does not specify the exact functionality or criticality of the FORESEER software. However, its use at a Veterans Affairs Medical Center (VAMC) suggests it likely plays a role in clinical operations, patient management, resource allocation, or administrative functions essential for healthcare delivery. Software supporting VAMC operations is typically critical for ensuring seamless patient care, efficient facility management, and compliance with healthcare regulations. Without more detailed information, its precise impact remains inferred based on its deployment in a healthcare setting.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when a compelling urgency exists. For this contract, the justification would likely stem from EATON CORPORATION possessing unique rights, licenses, or expertise related to the FORESEER software that no other vendor could replicate. A detailed justification document, typically required for sole-source procurements, would outline these specific reasons, which are not included in the provided data.

How does the annual cost of $298,500 compare to similar software support contracts for VAMCs or other federal healthcare facilities?

Directly comparing the annual cost of approximately $298,500 for FORESEER software support is challenging without knowing the specific features, scope of services, and criticality of the software. However, federal IT support contracts, especially for specialized systems in healthcare, can vary widely. Contracts for enterprise resource planning (ERP) systems, electronic health records (EHR), or cybersecurity solutions can range from tens of thousands to millions of dollars annually per contract, depending on complexity and user base. Given this is for a specific software at a single VAMC, the cost appears moderate, but a true benchmark would require comparing it to contracts for similar types of specialized software support within the VA or other healthcare agencies.

What is EATON CORPORATION's track record with the Department of Veterans Affairs and similar federal contracts?

The provided data identifies EATON CORPORATION as the contractor but does not offer details on their specific track record with the Department of Veterans Affairs (VA) or other federal agencies. To assess their performance history, one would need to examine past contract awards, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. EATON CORPORATION is a large, diversified industrial manufacturer, and their involvement in IT services, particularly specialized software support, might be through a specific division or subsidiary. A comprehensive review of their federal contracting history would be necessary to evaluate their reliability and past performance.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not include specific performance metrics or Service Level Agreements (SLAs) for this contract. Typically, contracts for software support include clauses defining expected performance, such as response times for issues, resolution times, uptime guarantees, and availability of support personnel. These metrics are crucial for ensuring the contractor meets the government's needs and for holding them accountable. Without this information, it is difficult to assess the effectiveness of the support being provided and whether it aligns with the operational requirements of the Clement J Zablocki VAMC.

What is the historical spending pattern for FORESEER software support at this VAMC or within the VA?

The provided data only includes information for the current contract award (2023-2027). It does not offer any historical spending data for FORESEER software support at the Clement J Zablocki VAMC or within the broader Department of Veterans Affairs. To understand historical spending patterns, one would need to access historical contract databases (like FPDS or USASpending.gov) to identify previous awards for this specific software or similar support services. This would help determine if spending has increased, decreased, or remained consistent over time, and whether this current award represents a new investment or continued support.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25223Q0542

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eaton Corporation Public Limited Company

Address: 1000 EATON BLVD, BEACHWOOD, OH, 44122

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $153,101

Exercised Options: $119,422

Current Obligation: $119,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline