VA awards $151K for CAP EFRM Subscription Licenses, a 3-year firm-fixed-price contract

Contract Overview

Contract Amount: $151,058 ($151.1K)

Contractor: College of American Pathologists

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-01

End Date: 2027-07-31

Contract Duration: 1,094 days

Daily Burn Rate: $138/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CAP EFRM SUBSCRIPTION LICENSES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $151,057.92 to COLLEGE OF AMERICAN PATHOLOGISTS for work described as: CAP EFRM SUBSCRIPTION LICENSES Key points: 1. The contract value appears reasonable for a 3-year software subscription, but a direct comparison to similar EFRM solutions is needed for a definitive value-for-money assessment. 2. Competition was limited to small business under SAP, suggesting potential price efficiencies but also a constrained bidding environment. 3. The firm-fixed-price contract type mitigates cost overrun risk for the government. 4. This contract supports the Department of Veterans Affairs' operational needs for EFRM software. 5. The software publishers sector is characterized by recurring revenue models and evolving technological demands.

Value Assessment

Rating: fair

The contract value of approximately $151,000 over three years for EFRM subscription licenses is modest. Benchmarking against similar software-as-a-service (SaaS) agreements for EFRM solutions within the federal government or private sector would provide a clearer picture of value. Without specific feature comparisons or usage metrics, it's difficult to definitively assess if this price represents excellent value. However, the duration and scope suggest a standard procurement for essential software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP) and was set aside for small businesses, with two bidders participating. While this approach ensures opportunities for small businesses, it limits the pool of potential offerors. The limited competition may have influenced price discovery, potentially leading to a higher price than if a broader competition had been pursued. However, the presence of two bidders suggests some level of market interest.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes result in prices that are not as aggressively driven down as in full and open competition. However, the small business set-aside ensures that federal dollars are directed towards smaller enterprises.

Public Impact

The Department of Veterans Affairs (VA) benefits from this contract by acquiring necessary software for its operations. The EFRM (Electronic Forms and Records Management) subscription licenses will likely support administrative and clinical processes within the VA. The geographic impact is primarily within the VA's operational footprint, likely nationwide. Workforce implications include enabling VA staff to utilize updated software for improved efficiency in managing forms and records.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not have yielded the lowest possible price.
Reliance on a single software publisher could pose future vendor lock-in risks.
The specific functionalities and long-term support of the EFRM software need to be continuously monitored for effectiveness.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Small business set-aside supports the government's goals of engaging smaller contractors.
The contract duration of three years allows for stable access to essential software.

Sector Analysis

The software publishers sector is a significant part of the federal IT landscape, with agencies constantly procuring licenses for various applications. This contract falls within the broader category of software acquisition, specifically for EFRM solutions. Comparable spending benchmarks would involve looking at other federal procurements for similar document management or electronic records systems, which can range from tens of thousands to millions of dollars depending on scale and features.

Small Business Impact

This contract was competed as a small business set-aside, indicating an effort to support smaller entities within the federal contracting ecosystem. The presence of two bidders suggests that there is a market of small businesses capable of providing these EFRM subscription licenses. The subcontracting implications are not explicitly detailed but are often a component of larger federal contracts; for this size, direct performance by the small business is common. This award contributes to the overall goal of directing federal spending towards the small business sector.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Department of Veterans Affairs. As a firm-fixed-price purchase order, the primary accountability measure is the delivery of the specified software licenses and adherence to the contract terms. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Software Licenses
Electronic Records Management Systems
Department of Veterans Affairs IT Services
Small Business Set-Aside Contracts

Risk Flags

Limited Competition
Potential Vendor Lock-in
Software Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $151,057.92 to COLLEGE OF AMERICAN PATHOLOGISTS. CAP EFRM SUBSCRIPTION LICENSES

Who is the contractor on this award?

The obligated recipient is COLLEGE OF AMERICAN PATHOLOGISTS.

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 $151,057.92.

What is the period of performance?

Start: 2024-08-01. End: 2027-07-31.

What is the track record of the College of American Pathologists (CAP) as a federal contractor?

The provided data indicates the College of American Pathologists (CAP) is the contractor for these EFRM subscription licenses. Information regarding CAP's broader track record as a federal contractor is not detailed in the provided data snippet. Typically, a deeper dive into federal procurement databases (like FPDS) would be necessary to assess their history with government contracts, including past performance, contract types, agencies served, and any reported issues. For this specific contract, the data shows they were awarded a purchase order under a small business set-aside competition.

How does the per-unit cost of these EFRM licenses compare to market rates?

The provided data does not include per-unit cost information or the number of units being procured, making a direct per-unit cost comparison impossible. The total contract value is $151,057.92 for approximately 1094 days (3 years). To benchmark against market rates, one would need to know the specific EFRM software product, its features, and the number of user licenses or equivalent metrics. Without this granular detail, a comparison to typical market rates for similar EFRM solutions, considering factors like user count, feature sets, and support levels, cannot be accurately performed.

What are the primary risks associated with this specific EFRM software subscription?

Key risks associated with this EFRM software subscription include potential vendor lock-in, where the VA might become dependent on CAP's specific platform, making future transitions costly. There's also a risk related to software obsolescence or the emergence of superior, more cost-effective solutions in the market over the contract's three-year term. Furthermore, the effectiveness and user adoption of the EFRM system are critical; if the software does not meet the needs of VA personnel or is difficult to use, it could lead to inefficiencies rather than improvements. Data security and compliance with VA regulations are also paramount risks that need continuous monitoring.

How effective has the VA been in leveraging EFRM solutions in the past?

The provided data does not offer insights into the VA's past effectiveness with EFRM solutions. Assessing the VA's historical performance would require analyzing previous EFRM procurements, user satisfaction surveys, documented process improvements, and any reported challenges or successes. Understanding the VA's strategic goals for EFRM implementation and how this specific contract aligns with those objectives would also be crucial. Without this context, it's difficult to gauge the effectiveness of their EFRM strategy or this particular investment.

What is the historical spending trend for EFRM subscription licenses by the VA?

The provided data snippet focuses on a single, recent contract award and does not contain historical spending information for EFRM subscription licenses by the VA. To analyze historical spending trends, one would need to query federal procurement databases for all similar contracts awarded by the VA over several fiscal years. This analysis would reveal patterns in contract values, awardees, contract types, and the overall volume of spending on EFRM solutions, helping to identify any increases, decreases, or shifts in procurement strategies.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26224Q1323

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 325 WAUKEGAN RD, NORTHFIELD, IL, 60093

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $251,763

Exercised Options: $151,058

Current Obligation: $151,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline