VA awards $234K for Pyxis IV Prep software to CareFusion Solutions, LLC

Contract Overview

Contract Amount: $234,396 ($234.4K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $214/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PYXIS IV PREP SOFTWARE LICENSE - BD CATO SW SUBSCRIPTION AND IV PREP GRAVIMETRIC PACK

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92130

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $234,396 to CAREFUSION SOLUTIONS, LLC for work described as: PYXIS IV PREP SOFTWARE LICENSE - BD CATO SW SUBSCRIPTION AND IV PREP GRAVIMETRIC PACK Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 1094 days suggests a long-term need for the software. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. No small business set-aside was utilized. 5. The North American Industry Classification System (NAICS) code 541519 indicates 'Other Computer Related Services'.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source procurements for similar software. The total value of $234,396 over approximately three years appears reasonable for a specialized software license and subscription. However, the lack of competition prevents a definitive assessment of whether this represents the best possible value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, CareFusion Solutions, LLC, was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The rationale for the sole-source award was not provided in the data.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the most economical solution.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving the software license and subscription. The software is intended for use within the VA's healthcare system. The contract is managed by the VA, with the place of performance indicated as California (ST: CA).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than a competitively awarded contract.
Sole-source awards can reduce transparency in government spending.
Limited information available on the specific justification for the sole-source award.

Positive Signals

Firm Fixed Price contract provides cost predictability for the VA.
The contract duration of nearly three years indicates a stable, ongoing need for the service.
The vendor, CareFusion Solutions, LLC, is likely providing a specialized or proprietary solution.

Sector Analysis

This contract falls within the 'Other Computer Related Services' sector, specifically related to software licensing and subscriptions. The market for specialized healthcare IT solutions can be competitive, but often involves proprietary software where sole-source awards are more common. The value of this contract is relatively small compared to broader IT spending within the federal government.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award to CareFusion Solutions, LLC, a likely larger entity, suggests no direct benefit or impact on the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. However, the sole-source nature limits the transparency typically afforded by competitive bidding processes.

Related Government Programs

Veterans Health Administration IT Services
Software Licensing and Maintenance
Healthcare Information Technology

Risk Flags

Sole-source award limits competition and potential for cost savings.
Lack of detailed justification for sole-source award.
Limited public information on the specific software's performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $234,396 to CAREFUSION SOLUTIONS, LLC. PYXIS IV PREP SOFTWARE LICENSE - BD CATO SW SUBSCRIPTION AND IV PREP GRAVIMETRIC PACK

Who is the contractor on this award?

The obligated recipient is CAREFUSION 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 $234,396.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the specific functionality of Pyxis IV Prep software and why is it critical for the VA?

The Pyxis IV Prep software, provided by CareFusion Solutions, LLC, is part of the Pyxis medication management system. It is designed to automate and streamline the preparation of medications, particularly for IV admixtures. This software likely integrates with dispensing cabinets and other pharmacy automation systems to ensure accurate, efficient, and safe medication compounding. For the VA, which serves a large and complex patient population, such systems are critical for improving patient safety by reducing medication errors, enhancing workflow efficiency in pharmacies, and ensuring compliance with regulatory standards. The 'IV Prep Gravimetric Pack' suggests a specific module or enhancement related to the precise measurement and preparation of intravenous medications.

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

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which typically aligns with sole-source justifications. Common reasons for sole-source awards include: the item or service is available only from a single responsible source (e.g., proprietary software), there is a compelling urgency, or the government has a unique requirement that cannot be met by other vendors. Without the specific justification document (e.g., a Justification and Approval or J&A), it is impossible to determine the exact reason. However, for specialized software like medication management systems, it is often the case that the software is proprietary, and the original equipment manufacturer or its authorized reseller is the only viable source for licenses, updates, and support.

How does the $234,396 contract value compare to similar software procurements within the VA or other federal agencies?

Directly comparing this $234,396 contract value is difficult without knowing the exact scope, duration, and specific modules of the Pyxis IV Prep software. However, for specialized pharmacy automation software licenses and subscriptions, this amount over approximately three years (1094 days) appears to be within a reasonable range for a single site or a limited number of facilities. Larger enterprise-wide deployments of such systems can cost millions. The fact that it is a sole-source award means that a direct price-to-price comparison with competitively bid alternatives is not feasible, making it harder to ascertain if this represents optimal value. Federal agencies often procure similar IT solutions, but contract specifics vary widely.

What are the potential risks associated with a sole-source contract for critical software like this?

The primary risk associated with a sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the vendor has less incentive to offer the lowest possible price. Additionally, sole-source awards can reduce transparency and limit the government's options if the vendor's performance is unsatisfactory or if pricing increases significantly in the future. There's also a risk of vendor lock-in, where switching to a different system becomes prohibitively expensive or complex due to integration and data migration challenges. For critical software like medication management, reliance on a single vendor also poses a risk if that vendor experiences financial instability or discontinues the product.

What is the historical spending pattern for Pyxis IV Prep software or similar medication management systems at the VA?

Historical spending data for this specific 'Pyxis IV PREP SOFTWARE LICENSE - BD CATO SW SUBSCRIPTION AND IV PREP GRAVIMETRIC PACK' is not detailed in the provided snippet. However, the Pyxis brand, associated with Becton, Dickinson and Company (BD), is a well-established player in the healthcare automation market, particularly for medication dispensing and management. The VA has historically invested significantly in technology to improve patient care and operational efficiency within its healthcare facilities. Spending on pharmacy automation, including IV compounding software, is likely a recurring expenditure for the VA, reflecting ongoing needs for medication safety and efficiency. Without access to broader contract databases or specific VA budget allocations for this category, detailed historical spending patterns cannot be precisely outlined.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 3750 TORREY VIEW CT, SAN DIEGO, CA, 92130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $391,860

Exercised Options: $234,396

Current Obligation: $234,396

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline