VA awards $3.95M for PICIS Software, custom programming services under BPA Call

Contract Overview

Contract Amount: $3,947,775 ($3.9M)

Contractor: Picis Clinical Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2024-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $3.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PICIS SOFTWARE

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85723

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to PICIS CLINICAL SOLUTIONS, INC. for work described as: PICIS SOFTWARE Key points: 1. Spending on PICIS SOFTWARE by the VA totals $3.95M. 2. Competition was limited to 'COMPETED UNDER SAP' for this contract. 3. The contract carries a risk of potentially higher costs due to limited competition. 4. The sector is IT, specifically custom computer programming services.

Value Assessment

Rating: fair

The contract's value of $3.95M for custom computer programming services appears reasonable given the duration and nature of the work. However, without specific benchmarks for PICIS software implementation or customization, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), indicating limited competition. This method may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The limited competition may result in a higher cost than if broader competition were pursued, impacting the overall value for taxpayers.

Public Impact

Ensures access to critical software for VA operations. Supports the Department of Veterans Affairs' IT infrastructure. Potential for improved patient care or administrative efficiency through software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for price not being optimized

Positive Signals

Contract supports critical VA functions
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending benchmarks for this category can vary widely based on software complexity and vendor. The $3.95M award for a 3-year period suggests a significant software solution or service.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded under a BPA Call, which typically has established oversight mechanisms. However, the limited competition under SAP warrants scrutiny to ensure fair pricing and effective use of funds.

Related Government Programs

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

Risk Flags

Limited competition
Potential for suboptimal pricing
Reliance on a single vendor for custom services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to PICIS CLINICAL SOLUTIONS, INC.. PICIS SOFTWARE

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 $3.9 million.

What is the period of performance?

Start: 2021-10-01. End: 2024-09-30.

What is the specific functionality of PICIS SOFTWARE and how does it contribute to the VA's mission?

PICIS SOFTWARE is likely a specialized application used within the VA, potentially for clinical operations, patient management, or administrative tasks. Its contribution to the VA's mission would depend on its specific function, aiming to improve efficiency, patient care, or data management within the healthcare system.

What are the risks associated with procuring custom computer programming services under SAP for critical software?

Procuring custom programming under SAP for critical software carries risks such as limited price discovery, potentially higher costs due to reduced competition, and the possibility of vendor lock-in. Ensuring clear requirements and robust performance metrics is crucial to mitigate these risks and ensure value for money.

How does the firm fixed price contract type ensure effectiveness and value for the VA in this scenario?

A firm fixed price contract provides cost certainty for the VA, transferring most of the risk to the contractor. This encourages the contractor to manage costs efficiently to maintain profitability. For effectiveness, the VA must clearly define performance standards and deliverables to ensure the software meets its needs.

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: 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: $4,422,005

Exercised Options: $3,947,775

Current Obligation: $3,947,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10G21A0007

IDV Type: BPA

Timeline