VA awards $645K for PICIS ENVISION software, a sole-source contract for clinical solutions

Contract Overview

Contract Amount: $645,294 ($645.3K)

Contractor: Picis Clinical Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-30

End Date: 2024-09-29

Contract Duration: 365 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PICIS ENVISION

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85723

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $645,294.07 to PICIS CLINICAL SOLUTIONS, INC. for work described as: PICIS ENVISION Key points: 1. The contract was awarded on a sole-source basis, limiting competitive opportunities and potentially impacting price discovery. 2. The fixed-price contract type provides cost certainty for the government, but the absence of competition raises value-for-money questions. 3. The contract is for custom computer programming services, indicating a need for specialized software development or modification. 4. The single award and lack of competition suggest a potential reliance on a specific vendor's capabilities. 5. The contract duration of one year with a firm fixed price suggests a defined scope of work for the period. 6. The geographic location of the contractor in Arizona may have implications for local economic impact or support.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of custom computer programming. Without competitive bids, it's difficult to ascertain if the $645,294.07 price reflects a fair market value for the PICIS ENVISION software and associated services. Comparisons to similar custom software development contracts would be necessary, but the unique requirements of clinical solutions software may limit direct parallels. The firm fixed-price structure offers predictability, but the lack of competition prevents leveraging market forces to drive down costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures and was awarded on a sole-source basis. This indicates that the Department of Veterans Affairs likely determined that only one vendor, PICIS CLINICAL SOLUTIONS, INC., could provide the required services or software. The absence of multiple bidders means there was no opportunity for price competition, which could lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the lack of competitive bidding. The sole-source award limits the government's ability to negotiate favorable terms based on market alternatives.

Public Impact

The primary beneficiaries are likely the Department of Veterans Affairs healthcare facilities that will utilize the PICIS ENVISION software. The services delivered involve custom computer programming, presumably to support or enhance clinical operations and patient care systems. The geographic impact is primarily within the VA's healthcare network, potentially across multiple facilities depending on the software's deployment. Workforce implications may include training for VA staff on the new or updated software, and potential reliance on the contractor for ongoing support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in with specialized clinical software.
Limited visibility into the specific functionalities and impact of PICIS ENVISION without further details.

Positive Signals

Firm fixed-price contract provides budget certainty.
Contract addresses a specific need for custom computer programming in a critical sector (healthcare).
Award to a specialized vendor may ensure tailored solutions for complex clinical needs.

Sector Analysis

The healthcare information technology sector is characterized by specialized software solutions designed to manage patient data, streamline clinical workflows, and improve healthcare delivery. Contracts for custom computer programming in this area often involve significant investment due to the complexity of healthcare regulations, data security requirements, and the need for interoperability. The market includes a range of vendors, from large enterprise solution providers to niche developers like PICIS CLINICAL SOLUTIONS, INC. Spending benchmarks for custom clinical software can vary widely based on scope, features, and integration needs.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. The sole-source nature of the award further reduces the likelihood of subcontracting opportunities for small businesses unless explicitly mandated by the prime contractor. The impact on the small business ecosystem is minimal in this specific instance, as the focus is on a specialized, sole-source procurement.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are typically embedded in the contract terms, including performance standards and delivery schedules. Transparency regarding the sole-source justification and the specific use of the PICIS ENVISION software would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
Clinical Information Systems
Healthcare IT Services
Custom Software Development Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $645,294.07 to PICIS CLINICAL SOLUTIONS, INC.. PICIS ENVISION

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 $645,294.07.

What is the period of performance?

Start: 2023-09-30. End: 2024-09-29.

What is the specific functionality and purpose of the PICIS ENVISION software being procured?

The provided data indicates that PICIS ENVISION is related to custom computer programming services within the healthcare sector, specifically for the Department of Veterans Affairs. While the exact functionalities are not detailed, PICIS CLINICAL SOLUTIONS, INC. typically offers software solutions focused on perioperative and critical care management. This could include modules for surgical scheduling, patient tracking, anesthesia information management, and resource allocation within operating rooms and intensive care units. The contract's purpose is likely to implement, customize, or enhance these clinical workflow management capabilities to meet specific VA operational needs, aiming to improve efficiency, patient safety, and data accuracy in critical care settings.

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

The justification for a sole-source award typically stems from a determination that only one responsible source can provide the required supplies or services. For PICIS ENVISION, this could be due to proprietary software, unique technical capabilities, or a requirement for seamless integration with existing systems where only the original developer can provide the necessary expertise. The Department of Veterans Affairs would have had to document this justification, often citing reasons such as the need for compatibility, specialized knowledge, or the unavailability of alternatives that meet the stringent requirements of clinical healthcare IT. Without access to the specific justification document, the precise reasons remain speculative but are generally tied to the unique nature of the software or the vendor's exclusive ability to support it.

How does the $645,294.07 contract value compare to similar custom clinical software development contracts?

Comparing the $645,294.07 contract value for PICIS ENVISION to similar custom clinical software development contracts is challenging without more specific details on the scope of work, duration, and features. However, for a one-year contract involving custom programming for specialized clinical solutions, this amount falls within a plausible range, particularly if it includes significant customization, integration, or support services. Larger, multi-year implementations of comprehensive clinical systems can run into tens or hundreds of millions of dollars. Smaller, targeted enhancements or specific module developments might be in the hundreds of thousands. The sole-source nature, however, prevents a direct value-for-money assessment against competitive bids, making it difficult to definitively state if it's high or low relative to market alternatives.

What are the potential risks associated with a sole-source contract for critical clinical software?

Sole-source contracts for critical clinical software carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. Secondly, there's a risk of vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors in the future. This dependence can also reduce the vendor's incentive to innovate or provide exceptional service. Thirdly, without competitive pressure, the quality of service or the pace of development might be slower. Finally, the justification for a sole-source award needs rigorous scrutiny to ensure it is truly warranted and not a result of poor planning or an unwillingness to explore alternatives.

What is the track record of PICIS CLINICAL SOLUTIONS, INC. with the Department of Veterans Affairs or similar agencies?

PICIS CLINICAL SOLUTIONS, INC. has a history of providing clinical information systems, particularly in perioperative and critical care. Their track record with the Department of Veterans Affairs (VA) specifically would need to be examined through contract databases and performance reviews. Generally, vendors in this niche market often secure contracts with large healthcare systems, including government entities, due to the specialized nature of their offerings. A thorough review would involve looking at past performance evaluations, any disputes or contract terminations, and the overall success of previous implementations. Without specific performance data for this contractor within the VA, it's difficult to provide a definitive assessment, but their continued presence in the market suggests a level of established capability.

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 - APLLICATIONS

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: $645,294

Exercised Options: $645,294

Current Obligation: $645,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10G21A0007

IDV Type: BPA

Timeline