VA awards $2.8M contract for nurse call system upgrades to RHI LLC, citing sole-source justification

Contract Overview

Contract Amount: $2,796,623 ($2.8M)

Contractor: RHI LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-17

End Date: 2026-05-22

Contract Duration: 765 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: UPDATE NURSE CALL SYSTEM

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84148

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to RHI LLC for work described as: UPDATE NURSE CALL SYSTEM Key points: 1. Contract awarded to RHI LLC for a firm-fixed-price definitive contract. 2. The contract has a duration of 765 days, ending May 22, 2026. 3. The award was made on April 17, 2024. 4. The contract is for updating a nurse call system. 5. The total value of the contract is approximately $2.8 million. 6. The contract was not competed, indicating a sole-source or limited competition scenario.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more information on the specific system being replaced and the scope of work. However, for a definitive contract of this duration and value, it falls within a typical range for specialized building systems. The firm-fixed-price structure suggests that cost overruns are the contractor's responsibility, which is a positive for the government. Further analysis would require comparing the proposed system's features and pricing against similar installations in other VA facilities or comparable healthcare institutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. The justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required supplies or services, or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or offered a wider range of solutions.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to ensure the most cost-effective solution is chosen. It also limits the opportunity for other businesses to compete for government contracts.

Public Impact

Patients in VA facilities will benefit from an updated and potentially more reliable nurse call system, improving communication and response times. The services delivered include the installation and integration of new nurse call system technology. The geographic impact is likely focused on a specific VA facility in Utah (ST: UT, SN: UTAH). The contract may have implications for the healthcare technology workforce, potentially requiring specialized technicians for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract had been competed.
Sole-source justification needs further scrutiny to ensure no viable alternatives were overlooked.
Dependence on a single contractor for a critical system could pose future supply chain or support risks.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost overruns.
The contract is for a critical patient care system, indicating a focus on essential services.
The award duration suggests a comprehensive upgrade rather than a minor fix.

Sector Analysis

The healthcare technology sector, particularly within government procurement, involves significant investment in maintaining and upgrading critical infrastructure like nurse call systems. These systems are vital for patient safety and operational efficiency in healthcare facilities. The market includes various providers specializing in communication and monitoring solutions for hospitals and clinics. Spending in this area is driven by the need to comply with evolving healthcare standards, enhance patient experience, and ensure the reliability of essential services. Comparable spending benchmarks would involve looking at other large-scale IT or building system upgrades within the VA or other federal health agencies.

Small Business Impact

The provided data indicates that small business participation is not a stated factor in this award (SB: false, SMB: false). There is no indication of a small business set-aside or specific subcontracting requirements for small businesses. This suggests that the primary contractor, RHI LLC, is likely not a small business, and opportunities for small business involvement may be limited unless they are part of RHI LLC's supply chain or subcontracting network, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which places the financial risk on the contractor. Transparency regarding the sole-source justification and the specific details of the system upgrade would be crucial for effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Electronic Health Record Modernization
VA Medical Facility Construction and Renovation
Healthcare IT Infrastructure Upgrades
Federal Healthcare Procurement

Risk Flags

Sole-source award requires justification review.
Potential for higher cost due to lack of competition.
Contractor performance history needs verification.
System integration risks with existing infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.8 million to RHI LLC. UPDATE NURSE CALL SYSTEM

Who is the contractor on this award?

The obligated recipient is RHI 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 $2.8 million.

What is the period of performance?

Start: 2024-04-17. End: 2026-05-22.

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

The provided data indicates the contract was awarded 'NOT AVAILABLE FOR COMPETITION' and classified as 'sole-source'. A definitive justification for this sole-source award is not included in the data. Typically, sole-source contracts are justified when only one vendor can provide the required product or service due to unique capabilities, proprietary technology, or urgent, unforeseen circumstances. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it's impossible to verify if this was the most appropriate procurement method. This lack of competition means taxpayers may not have received the best possible price or value compared to a competitive bidding process.

How does the pricing of this nurse call system compare to similar systems in the market or other VA facilities?

Direct comparison of the $2.8 million contract value for this nurse call system upgrade is difficult without detailed specifications of the system's features, scope of work, and the specific VA facility it serves. However, for a comprehensive system replacement in a large facility, this price point is not inherently unreasonable. To benchmark effectively, one would need to compare the per-bed cost, the number of features (e.g., integration with EHR, mobile alerts, patient entertainment), and the warranty/support terms against recent procurements of similar systems by the VA or other healthcare providers. The firm-fixed-price nature is a positive indicator, but the absence of competition makes a true value assessment challenging.

What are the potential risks associated with a sole-source award for critical healthcare infrastructure?

Sole-source awards for critical infrastructure like nurse call systems carry several risks. Firstly, the lack of competition can lead to inflated pricing, meaning taxpayers may overpay for the system and its installation. Secondly, it limits the government's options; if the chosen contractor fails to perform adequately, experiences financial difficulties, or discontinues the product line, switching to an alternative could be extremely difficult and costly. Thirdly, it reduces the incentive for the sole-source provider to innovate or offer superior customer service, as they face no direct competitive pressure. Finally, it bypasses opportunities to support a broader range of businesses, including small businesses, that might have offered competitive solutions.

What is the track record of RHI LLC in providing similar healthcare technology solutions to the federal government?

Information regarding RHI LLC's specific track record with federal healthcare technology solutions is not detailed in the provided contract data. To assess their reliability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contracts awarded to RHI LLC, particularly those involving nurse call systems or similar infrastructure in healthcare settings. Reviews of past performance, on-time delivery, adherence to budget, and quality of work on prior government contracts would be essential for a thorough risk assessment. Without this historical data, evaluating RHI LLC's suitability and potential performance risks is speculative.

What are the expected performance improvements or benefits for patients and staff from this system upgrade?

An updated nurse call system is expected to enhance patient safety and staff efficiency. Benefits for patients could include faster response times to calls for assistance, improved communication clarity, and potentially greater comfort or access to services. For staff, the new system might offer better workflow management, more accurate location data for patients needing assistance, reduced alarm fatigue through smarter notifications, and seamless integration with other hospital systems (like Electronic Health Records), allowing for quicker access to patient information. These improvements collectively contribute to a better patient experience and a more effective healthcare delivery environment.

How does this contract fit into the VA's broader strategy for modernizing its healthcare facilities and technology?

This contract for a nurse call system upgrade aligns with the Department of Veterans Affairs' ongoing efforts to modernize its healthcare infrastructure and technology. The VA has a stated goal of providing state-of-the-art care to veterans, which necessitates updating aging systems with more advanced, reliable, and efficient technologies. Nurse call systems are fundamental to patient care operations, and their modernization is a key component of ensuring patient safety and improving clinical workflows. This specific award, likely at a particular VA facility, represents a localized investment contributing to the larger strategic objective of enhancing the overall quality and delivery of healthcare services across the VA network.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2050 PAINTER LN, OGDEN, UT, 84401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,796,623

Exercised Options: $2,796,623

Current Obligation: $2,796,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline