VA awards $11M for VISN 21 PACS maintenance, support, and sustainment to Four Points Technology

Contract Overview

Contract Amount: $11,050,158 ($11.1M)

Contractor: Four Points Technology, L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2026-09-30

Contract Duration: 1,643 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN 21 PICTURE ARCHIVING AND COMMUNICATION SYSTEM (PACS) MAINTENANCE, SUPPORT AND ONGOING SUSTAINMENT SERVICES

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.1 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: VISN 21 PICTURE ARCHIVING AND COMMUNICATION SYSTEM (PACS) MAINTENANCE, SUPPORT AND ONGOING SUSTAINMENT SERVICES Key points: 1. The contract focuses on critical Picture Archiving and Communication System (PACS) services for VISN 21. 2. Four Points Technology, L.L.C. is the sole awardee, indicating a specific vendor relationship. 3. The contract's duration of over 4 years suggests a need for long-term, specialized support. 4. The NAICS code 541519 points to a broad category of 'Other Computer Related Services'.

Value Assessment

Rating: fair

The award amount of $11,050,158.49 over approximately 4.5 years needs comparison to similar PACS maintenance contracts. Without benchmarks, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The total value of $11,050,158.49 represents taxpayer funds allocated to maintaining essential healthcare IT infrastructure. The efficiency of the procurement process and pricing will determine the ultimate taxpayer impact.

Public Impact

Ensures continuity of critical medical imaging services for veterans within VISN 21. Supports the operational readiness of healthcare facilities by maintaining essential PACS infrastructure. Potential for improved diagnostic capabilities through reliable PACS maintenance and support. Impacts the efficiency of radiologists and other medical professionals relying on the PACS.

Waste & Efficiency Indicators

Waste Risk Score: 67 / 10

Warning Flags

Limited competition may impact cost-effectiveness.
Lack of clear performance metrics in provided data.
Vendor lock-in potential due to specialized support.

Positive Signals

Addresses a critical healthcare IT need.
Long-term sustainment contract provides stability.
Awarded to a single, potentially specialized vendor.

Sector Analysis

The healthcare IT sector, particularly for specialized systems like PACS, often involves long-term contracts due to the complexity and integration requirements. Spending benchmarks for similar maintenance and support services can vary significantly based on system size and vendor.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract, suggesting it was not primarily targeted towards them.

Oversight & Accountability

Oversight would typically involve regular performance reviews, adherence to service level agreements, and financial audits to ensure the contractor meets obligations and taxpayer funds are used appropriately.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
Potential for vendor lock-in.
Lack of transparency in the exclusion of sources.
Long-term reliance on a single provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.1 million to FOUR POINTS TECHNOLOGY, L.L.C.. VISN 21 PICTURE ARCHIVING AND COMMUNICATION SYSTEM (PACS) MAINTENANCE, SUPPORT AND ONGOING SUSTAINMENT SERVICES

Who is the contractor on this award?

The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..

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 $11.1 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-09-30.

What is the benchmark cost for similar PACS maintenance and support contracts in the federal healthcare sector?

Benchmarking PACS maintenance costs requires detailed analysis of contract scope, system complexity, vendor rates, and service level agreements. Factors like the number of users, imaging modalities supported, and data storage needs influence pricing. Without specific comparable contracts, a precise benchmark is difficult, but costs can range from tens of thousands to millions annually depending on scale.

What are the specific risks associated with relying on a single vendor for critical PACS sustainment services?

Reliance on a single vendor for critical PACS sustainment poses risks such as potential price increases upon contract renewal, limited leverage in negotiations, and vulnerability to vendor-specific technical issues or business disruptions. If the vendor experiences financial difficulties or ceases operations, it could severely impact the continuity of essential medical imaging services for veterans.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the overall effectiveness and cost of this contract?

This method implies that while the initial solicitation was open, certain sources were excluded, leading to a limited competition. While it can ensure specialized capabilities, it may reduce the number of potential bidders, potentially limiting price competition and innovation. The effectiveness hinges on whether the selected vendor provides superior service at a reasonable price compared to what broader competition might yield.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13221 WOODLAND PARK RD, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $12,712,377

Exercised Options: $11,050,158

Current Obligation: $11,050,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline