VA awards $5.8M for PICIS CIS ARK System Maintenance, a sole-source contract

Contract Overview

Contract Amount: $5,832,407 ($5.8M)

Contractor: Picis Clinical Solutions, 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: $3.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PICIS CIS - ARK SYSTEM MAINTENANCE

Place of Performance

Location: MARTINEZ, CONTRA COSTA County, CALIFORNIA, 94553

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.8 million to PICIS CLINICAL SOLUTIONS, INC. for work described as: PICIS CIS - ARK SYSTEM MAINTENANCE Key points: 1. Contract awarded to PICIS CLINICAL SOLUTIONS, INC. for system maintenance. 2. Duration of the contract is 5 years, from October 2021 to September 2026. 3. The contract is a Firm Fixed Price type, indicating predictable costs. 4. Awarded by the Department of Veterans Affairs, serving the healthcare sector. 5. The contract was not competed under Simplified Acquisition Procedures (SAP). 6. The base contract value is $5.83 million. 7. The contract is a BPA Call, suggesting it's part of a larger agreement.

Value Assessment

Rating: fair

The contract value of $5.83 million over five years for system maintenance appears reasonable for specialized healthcare IT. However, without direct benchmarks for this specific PICIS CIS ARK system or comparable maintenance contracts, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost certainty for the VA. Further analysis would require understanding the system's criticality and the availability of alternative maintenance providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, PICIS CLINICAL SOLUTIONS, INC., was considered. This typically occurs when a product or service is unique and only one vendor can provide it, or in cases of follow-on work where switching vendors would be impractical or costly. The lack of competition means the VA did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no market pressure to offer the best value. It also limits the government's ability to explore innovative solutions from a wider range of vendors.

Public Impact

Veterans will continue to benefit from the reliable operation of the PICIS CIS ARK system, crucial for clinical information management. The Department of Veterans Affairs ensures continuity of essential IT services for its healthcare operations. The contract supports the IT infrastructure within the VA's healthcare system. Maintenance services ensure the system remains operational and secure, supporting patient care delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of competition may result in higher costs for taxpayers.
Dependence on a single vendor for critical system maintenance poses a risk.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term contract (5 years) ensures service continuity.
Awarded to a known entity for a specific system, suggesting specialized knowledge.

Sector Analysis

This contract falls within the Healthcare IT sector, specifically focusing on clinical information systems (CIS) maintenance. The market for specialized healthcare IT maintenance is often characterized by proprietary software and vendor-specific expertise, which can lead to sole-source or limited competition awards. Comparable spending benchmarks would involve analyzing other maintenance contracts for similar critical healthcare IT systems across federal agencies, which often represent significant investments due to the sensitive and vital nature of the data they manage.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature of the award to PICIS CLINICAL SOLUTIONS, INC., it is unlikely that subcontracting opportunities for small businesses were actively pursued or mandated through a competitive process. The focus is on the incumbent provider's specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified maintenance services. Transparency is limited due to the sole-source nature, but contract award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Health Administration IT Services
Clinical Information System Maintenance Contracts
Healthcare IT Infrastructure Support
Department of Veterans Affairs IT Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.8 million to PICIS CLINICAL SOLUTIONS, INC.. PICIS CIS - ARK SYSTEM MAINTENANCE

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 $5.8 million.

What is the period of performance?

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

What is the historical spending pattern for PICIS CIS ARK System Maintenance with the VA?

Historical spending data for this specific contract indicates a total award value of $5,832,406.82. The contract duration is from October 1, 2021, to September 30, 2026, spanning five years. This suggests an average annual spending of approximately $1.17 million for the maintenance of the PICIS CIS ARK system. Without prior contract history for this exact system or vendor, it's difficult to establish a long-term trend. However, the current award represents a significant, multi-year commitment to maintaining this specific clinical information system.

How does the cost of this contract compare to similar IT maintenance contracts within the VA or other federal agencies?

Benchmarking this contract's cost is challenging without specific details on the scope of services and the criticality of the PICIS CIS ARK system. However, IT maintenance contracts for specialized systems within federal agencies can range widely. A $5.83 million award over five years, averaging over $1 million annually, is not unusual for mission-critical software maintenance, especially for proprietary systems where vendor lock-in is common. To provide a more precise comparison, one would need data on contracts for similar clinical information systems, considering factors like user base, system complexity, and required service levels.

What are the primary risks associated with a sole-source award for critical IT system maintenance?

The primary risks associated with a sole-source award for critical IT system maintenance include a lack of competitive pricing, potentially leading to inflated costs for the government and taxpayers. There is also a reduced incentive for the sole provider to innovate or improve services, as there is no direct competition. Furthermore, the government becomes heavily reliant on a single vendor, creating potential vulnerabilities if the vendor experiences financial instability, changes strategic direction, or faces operational issues. This dependence can also make future transitions to alternative systems or vendors more complex and costly.

What is the track record of PICIS CLINICAL SOLUTIONS, INC. in providing IT services to the federal government?

PICIS CLINICAL SOLUTIONS, INC. has been awarded this contract by the Department of Veterans Affairs. While this specific award is for $5.83 million over five years, further investigation into the company's broader federal contracting history would be necessary to fully assess their track record. This would involve examining past performance on other government contracts, including their success in meeting delivery timelines, quality standards, and budget constraints. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) could provide more detailed insights into their past performance.

What is the criticality of the PICIS CIS ARK system to the VA's operations?

The PICIS CIS ARK system is identified as a Clinical Information System (CIS), which is fundamental to the operations of healthcare providers like the Department of Veterans Affairs. These systems are designed to manage patient data, track medical histories, schedule appointments, and support clinical decision-making. Therefore, the reliable maintenance of such a system is critical for ensuring the continuity of patient care, maintaining accurate health records, and supporting the overall efficiency of VA healthcare facilities. Disruptions or failures in a CIS can have significant negative impacts on patient safety and operational effectiveness.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

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: $5,832,407

Exercised Options: $5,832,407

Current Obligation: $5,832,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10G21A0007

IDV Type: BPA

Timeline