VA awards $8.9M contract for nurse call system replacement, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $8,984,545 ($9.0M)

Contractor: Epoch Concepts LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-27

End Date: 2026-03-31

Contract Duration: 2,377 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 580-18-117 REPLACE NURSE CALL SYSTEM IN BUILDING 100

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.0 million to EPOCH CONCEPTS LLC for work described as: 580-18-117 REPLACE NURSE CALL SYSTEM IN BUILDING 100 Key points: 1. Contract value appears reasonable for a multi-year IT infrastructure upgrade. 2. Full and open competition suggests a healthy market for this service. 3. Potential risks include system integration challenges and long-term maintenance costs. 4. Performance context is critical for ensuring the new system meets clinical needs. 5. This contract positions the VA within the broader healthcare IT sector. 6. The fixed-price nature of the contract shifts some cost risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $8.9 million for a nurse call system replacement over several years seems within a reasonable range for a federal healthcare IT project of this scope. Benchmarking against similar VA or other federal agency procurements for facility-wide communication systems would provide a more precise value-for-money assessment. The firm-fixed-price structure indicates a defined cost expectation, but the total expenditure will depend on the successful implementation and any potential change orders.

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,' indicating that the solicitation was broadly advertised, and multiple vendors were allowed to bid. The presence of 5 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is generally favorable for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: The robust competition in this procurement is beneficial for taxpayers as it likely drove down the final contract price and encouraged innovative solutions from the bidders.

Public Impact

Patients in Building 100 will benefit from an upgraded, potentially more reliable nurse call system, improving communication and response times. The Department of Veterans Affairs (VA) will receive a modernized IT system to support clinical operations. The geographic impact is localized to the VA facility where Building 100 is located. The contract may have implications for IT support staff and potentially clinical staff training on the new system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for system obsolescence if technology rapidly advances during the contract period.
Risk of implementation delays impacting patient care continuity.
Dependence on contractor for specialized technical support and maintenance.

Positive Signals

Award to a single contractor (EPOCH CONCEPTS LLC) suggests a clear selection based on defined criteria.
Firm-fixed-price contract provides cost certainty for the government.
Long contract duration (over 5 years) allows for phased implementation and potential for long-term support.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on healthcare IT solutions. The market for nurse call systems and integrated communication platforms within healthcare facilities is significant, driven by regulatory requirements, patient safety initiatives, and the need for operational efficiency. Comparable spending benchmarks would involve looking at other large-scale IT infrastructure upgrades in federal healthcare facilities or similar public sector organizations.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses is likely limited to potential subcontracting opportunities, if EPOCH CONCEPTS LLC chooses to engage them. Further analysis would be needed to determine if subcontracting plans were a factor in the award or if small businesses were precluded from bidding due to contract size or requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program/project managers within the Department of Veterans Affairs. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services and systems. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics and oversight activities may not be fully public.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
Federal Healthcare IT Infrastructure
Medical Equipment Procurement
Building Systems Modernization

Risk Flags

Potential for scope creep if system requirements are not precisely defined.
Risk of vendor lock-in for future maintenance and upgrades.
Dependence on contractor's technical expertise for successful implementation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.0 million to EPOCH CONCEPTS LLC. 580-18-117 REPLACE NURSE CALL SYSTEM IN BUILDING 100

Who is the contractor on this award?

The obligated recipient is EPOCH CONCEPTS 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 $9.0 million.

What is the period of performance?

Start: 2019-09-27. End: 2026-03-31.

What is the track record of EPOCH CONCEPTS LLC with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data indicates that EPOCH CONCEPTS LLC has received multiple federal contracts, primarily with the Department of Veterans Affairs. Their contract history includes various IT services, maintenance, and support. Analyzing the past performance ratings and any documented issues on previous VA contracts would provide insight into their reliability and capability to execute this nurse call system replacement. Specific details on past performance, including any awards or penalties, would require deeper access to contract performance reports and agency evaluations.

How does the $8.9 million cost compare to similar nurse call system procurements by the VA or other federal healthcare providers?

Benchmarking this $8.9 million contract against similar procurements is crucial for assessing value for money. Nurse call system replacements can vary significantly in cost based on facility size, the number of beds, the complexity of integration with existing systems (like EHRs), and the specific features required. Without direct comparative data on contracts for facilities of similar size and scope within the VA or other federal agencies (e.g., DoD healthcare), it is difficult to definitively state if this price is high or low. However, for a multi-year, facility-wide system upgrade, the amount appears to be within a plausible range for a large federal medical center.

What are the primary risks associated with replacing a nurse call system in a large federal facility?

Key risks in replacing a nurse call system include significant disruption to patient care during the transition, potential integration issues with existing hospital IT infrastructure (such as patient monitoring systems or electronic health records), cybersecurity vulnerabilities introduced by new network-connected devices, and the possibility of cost overruns if the scope expands beyond the initial fixed-price agreement (though less likely with FFP). Furthermore, ensuring adequate training for clinical staff on the new system and managing the physical installation process without compromising patient safety are critical operational risks. The long-term reliability and maintenance of the new system also pose a risk if not adequately planned for.

How effective are firm-fixed-price contracts in managing costs for complex IT infrastructure projects like this?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs in IT infrastructure projects when the scope of work is well-defined and understood upfront. This contract type shifts the majority of cost risk to the contractor, as they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides the government with significant cost certainty. However, FFP contracts can sometimes disincentivize contractors from proactively identifying efficiencies or innovations that might reduce costs, as their profit is fixed. They also require meticulous initial scope definition to avoid disputes or change orders, which can negate the cost certainty benefit.

What is the historical spending trend for nurse call systems or similar communication infrastructure at the VA?

Analyzing historical spending trends for nurse call systems or related communication infrastructure at the VA would provide context for the $8.9 million award. This would involve examining past contract awards for similar systems, their values, durations, and the number of bidders over several fiscal years. A rising trend in spending might indicate increasing needs, technological advancements driving up costs, or a strategic push for modernization. Conversely, stable or declining spending could suggest mature technology, successful cost-containment efforts, or a shift in VA priorities. Without specific historical data, it's challenging to identify a trend.

What are the implications of the 'Other Computer Related Services' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT services beyond just software development or hardware installation. For this nurse call system contract, it suggests the scope likely includes design, integration, installation, and potentially maintenance or support services for a computer-based system. This classification allows for flexibility in the types of services procured but also necessitates clear performance work statements to ensure the contractor delivers precisely what is needed for the nurse call system functionality and integration.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1510 W CANAL CT STE 1000, LITTLETON, CO, 80120

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,984,545

Exercised Options: $8,984,545

Current Obligation: $8,984,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD30B

IDV Type: GWAC

Timeline