VA awards $6.1M contract for Anesthesia Record Keeping Systems support to Picis Clinical Solutions

Contract Overview

Contract Amount: $6,095,098 ($6.1M)

Contractor: Picis Clinical Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANESTHESIA RECORD KEEPING (ARK) SYSTEMS HARDWARE AND SOFTWARE SUPPORT

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to PICIS CLINICAL SOLUTIONS, INC. for work described as: ANESTHESIA RECORD KEEPING (ARK) SYSTEMS HARDWARE AND SOFTWARE SUPPORT Key points: 1. Contract awarded for essential healthcare IT infrastructure. 2. Sole-source award to incumbent vendor raises competition concerns. 3. Long-term contract (5 years) for hardware and software support. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: fair

The contract value of $6.1M over 5 years appears reasonable for specialized healthcare IT support. However, without competitive bidding, it's difficult to definitively assess if this represents the best value compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no opportunity for other vendors to bid.

Taxpayer Impact: The lack of competition could lead to higher spending than if the contract were openly competed, impacting taxpayer funds.

Public Impact

Ensures continuity of critical patient care systems. Supports the Department of Veterans Affairs' healthcare operations. Potential for increased costs for taxpayers due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing
Long-term commitment without re-competition

Positive Signals

Ensures continuity of critical system
Supports veteran healthcare

Sector Analysis

The healthcare IT sector is critical for modern healthcare delivery. Spending on Electronic Health Records (EHR) and related systems like Anesthesia Record Keeping (ARK) is substantial. Benchmarks for similar support contracts vary widely based on system complexity and vendor.

Small Business Impact

This contract was awarded to a large business (Picis Clinical Solutions, Inc.) and does not appear to include specific provisions for small business participation. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The sole-source nature of the award warrants close monitoring to ensure fair pricing and adequate performance throughout the contract duration.

Related Government Programs

Custom Computer Programming Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for overpricing
Long-term commitment without re-evaluation
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to PICIS CLINICAL SOLUTIONS, INC.. ANESTHESIA RECORD KEEPING (ARK) SYSTEMS HARDWARE AND SOFTWARE SUPPORT

Who is the contractor on this award?

The obligated recipient is PICIS CLINICAL SOLUTIONS, 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 $6.1 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is the justification for the sole-source award, and has the VA explored alternatives?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one vendor can provide the required goods or services, often due to proprietary technology or unique capabilities. The VA should have documented the rationale and explored if any competitive alternatives existed before proceeding with a sole-source decision to ensure best value.

What is the potential cost increase compared to a competitive bid for this type of service?

Estimating the exact cost increase without a competitive benchmark is challenging. However, studies suggest that sole-source contracts can be 10-30% more expensive than competitively awarded contracts for similar services. This is due to the lack of market pressure to offer the lowest possible price and the vendor's ability to set terms.

How will the VA ensure the effectiveness and value of this contract over its 5-year term?

The VA can ensure effectiveness and value through robust contract management, including regular performance reviews, monitoring key performance indicators (KPIs), and comparing pricing against market trends for similar services. Proactive engagement with the vendor to address any emerging issues and exploring options for future competition, even if limited, will be crucial.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unitedhealth Group Incorporated

Address: 100 QUANNAPOWITT PKWY STE 405, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $6,095,098

Exercised Options: $6,095,098

Current Obligation: $6,095,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10G21A0007

IDV Type: BPA

Timeline