VA awards $1.75M contract for ScriptPro robotic pill-dispensing system maintenance

Contract Overview

Contract Amount: $1,748,035 ($1.7M)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $958/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTATIVE MAINTENANCE SERVICES FOR THE SCRIPTPRO ROBOTIC PILL-DISPENSING SYSTEM FOR NMVAHCS, PVAHCS, NAVAHCS & SAVAHCS.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85723

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.7 million to SCRIPTPRO USA INC for work described as: PREVENTATIVE MAINTENANCE SERVICES FOR THE SCRIPTPRO ROBOTIC PILL-DISPENSING SYSTEM FOR NMVAHCS, PVAHCS, NAVAHCS & SAVAHCS. Key points: 1. Contract focuses on essential maintenance for critical healthcare technology. 2. Sole contractor, ScriptPro USA Inc., holds the original equipment manufacturer (OEM) status. 3. High degree of specialization required for robotic pill-dispensing systems. 4. Contract duration of five years suggests long-term reliance on the system. 5. Geographic coverage extends across multiple VA health administration facilities. 6. Firm-fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $1.75 million over five years for preventative maintenance of specialized robotic pill-dispensing systems appears reasonable given the critical nature of the equipment and the single-source provider for OEM maintenance. Benchmarking against similar specialized medical equipment maintenance contracts would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests an effort to manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the specific nature of maintaining OEM robotic systems often leads to a limited number of qualified bidders, even in a full and open competition. The number of bidders is not specified, but the OEM's likely advantage in specialized knowledge could influence the competitive landscape.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages competitive pricing. However, for highly specialized equipment like robotic pill dispensers, the actual number of capable bidders may be limited, potentially impacting the extent of price reductions achieved through competition.

Public Impact

Veterans receiving medications at NMVAHCS, PVAHCS, NAVAHCS & SAVAHCS benefit from reliable and efficient prescription fulfillment. Ensures the operational readiness and accuracy of the ScriptPro robotic pill-dispensing system. Supports the efficient workflow of pharmacy staff within these VA facilities. Contributes to patient safety by minimizing medication errors associated with manual dispensing. The contract's impact is concentrated within the Arizona facilities served by these VA health administrations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if specialized parts or labor become scarce.
Reliance on a single OEM for maintenance could limit negotiation leverage over time.
Risk of system obsolescence if not adequately supported or upgraded.

Positive Signals

Ensures continuity of care for veterans through reliable medication dispensing.
Firm-fixed-price contract provides cost certainty for the VA.
Preventative maintenance strategy aims to reduce costly emergency repairs.
Supports the operational efficiency of VA pharmacies.

Sector Analysis

The market for medical equipment maintenance, particularly for specialized robotic systems like the ScriptPro pill dispenser, is a niche within the broader healthcare technology sector. This contract falls under the Surgical and Medical Instrument Manufacturing (NAICS 339112) category. The demand for such systems is driven by the need for increased efficiency, accuracy, and safety in pharmacy operations within large healthcare institutions, including the Department of Veterans Affairs. Comparable spending benchmarks would likely focus on maintenance contracts for other automated pharmacy systems or high-complexity medical devices.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of the ScriptPro robotic pill-dispensing system and the requirement for OEM-specific maintenance, it is unlikely that small businesses would be primary bidders or subcontractors unless they are authorized service partners. The contract's focus on a specific technology may limit opportunities for broad small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is facilitated through contract databases like FPDS-NG, which provide public access to contract details, including award amounts, dates, and contractor information.

Related Government Programs

VA Pharmacy Automation Contracts
Medical Equipment Maintenance Services
Robotic Systems Maintenance
Healthcare Technology Support
Veterans Health Administration IT Services

Risk Flags

Potential for sole-source dependency despite full and open competition.
Limited competition due to specialized OEM requirements.
Reliance on a single vendor for critical system maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.7 million to SCRIPTPRO USA INC. PREVENTATIVE MAINTENANCE SERVICES FOR THE SCRIPTPRO ROBOTIC PILL-DISPENSING SYSTEM FOR NMVAHCS, PVAHCS, NAVAHCS & SAVAHCS.

Who is the contractor on this award?

The obligated recipient is SCRIPTPRO USA 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 $1.7 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the track record of ScriptPro USA Inc. in providing maintenance services for VA facilities?

ScriptPro USA Inc. is the original equipment manufacturer (OEM) for the ScriptPro robotic pill-dispensing system. Their track record in providing maintenance services for VA facilities is directly tied to the deployment and operational history of these specific systems within the VA network. As the OEM, they possess the proprietary knowledge, specialized tools, and access to genuine replacement parts necessary for effective maintenance. The VA's decision to award this contract, even under full and open competition, suggests confidence in ScriptPro's ability to maintain these critical systems. Further analysis would involve reviewing past performance evaluations, any documented issues or successes with previous VA contracts, and the overall uptime and reliability of ScriptPro systems under their maintenance agreements.

How does the annual cost of this contract compare to industry benchmarks for similar robotic pharmacy system maintenance?

The annual cost for this contract averages approximately $349,607 ($1,748,034.78 / 5 years). Benchmarking this against industry standards for similar robotic pharmacy system maintenance is challenging without specific details on the system's complexity, number of dispensing units, and service level agreements. However, maintenance contracts for sophisticated automated systems in healthcare can range significantly. Factors influencing cost include the criticality of the system, the required response times for service, the availability of spare parts, and the level of preventative maintenance included. Given the specialized nature and OEM exclusivity, this figure may fall within a reasonable range, but a detailed comparison with contracts for comparable systems at other large healthcare providers or federal agencies would be necessary for a definitive assessment of value for money.

What are the primary risks associated with relying on a single vendor (OEM) for maintenance of critical robotic pharmacy equipment?

The primary risks associated with relying on a single vendor (OEM) for maintenance of critical robotic pharmacy equipment include potential price escalation over time, as the OEM may have significant leverage due to proprietary knowledge and parts. There's also a risk of reduced responsiveness or service quality if the OEM faces internal resource constraints or prioritizes other clients. Furthermore, if the OEM decides to discontinue support for older models or if their business strategy changes, the VA could face significant challenges in maintaining the equipment, potentially necessitating costly replacements. This reliance can also limit the VA's ability to explore innovative or more cost-effective third-party maintenance solutions.

How effective is preventative maintenance in reducing overall operational costs and downtime for robotic pill-dispensing systems?

Preventative maintenance (PM) is generally highly effective in reducing overall operational costs and downtime for complex machinery like robotic pill-dispensing systems. By performing regular inspections, cleaning, lubrication, and component checks, potential issues can be identified and addressed before they lead to major failures. This proactive approach typically costs less than emergency repairs, which often involve expedited shipping for parts, overtime labor, and the significant cost of system downtime. Downtime in a pharmacy setting can lead to medication delays, increased manual workload for staff, potential patient safety risks, and decreased overall efficiency. Therefore, a robust PM program, as stipulated in this contract, is crucial for maximizing the lifespan and reliability of the equipment and minimizing disruptive and expensive breakdowns.

What is the historical spending pattern for ScriptPro robotic pill-dispensing system maintenance within the VA?

Historical spending data for ScriptPro robotic pill-dispensing system maintenance within the VA would provide valuable context for this $1.75 million award. Analyzing past contracts, including their values, durations, and the specific facilities they covered, would reveal trends in VA's investment in this technology. It would help determine if this current award represents an increase, decrease, or stable level of spending compared to previous periods. Understanding historical spending also allows for an assessment of whether maintenance costs have been escalating and whether the VA has consistently sought competitive bids or relied on sole-source arrangements. Without access to specific historical contract data, it's difficult to ascertain the long-term spending trajectory for this type of maintenance.

What are the implications of the firm-fixed-price contract type on the VA's budget and risk exposure?

A firm-fixed-price (FFP) contract type offers significant advantages for the VA in terms of budget certainty and risk management. Under an FFP contract, the total price is fixed and not subject to adjustment based on the contractor's cost experience. This means the VA knows the exact cost of the maintenance services upfront, making budgeting more predictable and reliable. The financial risk of cost overruns is primarily borne by the contractor, ScriptPro USA Inc. This structure incentivizes the contractor to manage its costs efficiently and perform the work within the agreed-upon price. For preventative maintenance, where the scope of work is generally well-defined, FFP is often an appropriate choice to ensure cost control and avoid unexpected expenditures for the government.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5828 REEDS RD, SHAWNEE MISSION, KS, 66202

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

Financial Breakdown

Contract Ceiling: $1,748,035

Exercised Options: $1,748,035

Current Obligation: $1,748,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36F79719D0135

IDV Type: FSS

Timeline