VA awards $6.2M contract for IV prep workflow management, with 1 bidder and a 2026 end date

Contract Overview

Contract Amount: $620,501 ($620.5K)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2026-06-30

Contract Duration: 394 days

Daily Burn Rate: $1.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IV PREP WORKFLOW MANAGEMENT SOLUTION.

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $620,501.08 to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: IV PREP WORKFLOW MANAGEMENT SOLUTION. Key points: 1. Contract awarded under Special Acquisition Procedures (SAP), suggesting a streamlined process. 2. The contract is a firm-fixed-price definitive contract, providing cost certainty. 3. The duration of the contract is 394 days, indicating a medium-term need. 4. The contract is for a workflow management solution, likely to improve efficiency in pharmaceutical preparation. 5. The awardee, Four Points Technology, L.L.C., will deliver services by June 2026. 6. The North American Industry Classification System (NAICS) code 325412 points to pharmaceutical preparation manufacturing.

Value Assessment

Rating: fair

The contract value of $6.2 million for a workflow management solution appears to be within a reasonable range for specialized IT and process improvement services within the healthcare sector. Benchmarking against similar contracts for pharmaceutical preparation workflow systems is difficult without more specific details on the scope and features of the 'IV PREP WORKFLOW MANAGEMENT SOLUTION'. However, given the single bidder and the nature of the service, a thorough review of the contractor's proposed costs against industry standards for software development and implementation would be prudent to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Special Acquisition Procedures (SAP), which typically involves a limited number of bidders or a simplified acquisition process. The data indicates only one bid was received. While SAP can expedite procurement, a single bidder raises concerns about the extent of competition and whether the government received the best possible pricing and solution. Further investigation into the pre-solicitation market research and outreach conducted would be necessary to understand why more vendors did not participate.

Taxpayer Impact: A limited competition with a single bidder may result in higher costs for taxpayers compared to a fully open and competitive process, as there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are likely healthcare providers within the Department of Veterans Affairs (VA) who will utilize the IV preparation workflow management solution. The service delivered is a technological solution aimed at improving the efficiency and potentially the safety of intravenous medication preparation. The geographic impact is likely concentrated within VA facilities where the solution is implemented, potentially across multiple states. Workforce implications could include training for pharmacy technicians and pharmacists on the new system, and potential changes to existing workflows.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bidder may indicate potential market limitations or insufficient outreach, possibly leading to suboptimal pricing.
The specific nature of the 'IV PREP WORKFLOW MANAGEMENT SOLUTION' is not detailed, making it difficult to assess its full capabilities and potential risks.
Reliance on a single vendor for a critical workflow management system could pose a risk if the vendor experiences financial difficulties or fails to meet performance expectations.

Positive Signals

The contract is firm-fixed-price, which provides cost certainty for the VA and limits the government's exposure to cost overruns.
The award is for a workflow management solution, suggesting an effort to modernize and improve operational efficiency within VA pharmacies.
The contract is awarded to Four Points Technology, L.L.C., indicating a known entity is undertaking the work.

Sector Analysis

The healthcare IT sector, particularly solutions for pharmacy automation and workflow management, is a growing market driven by the need for increased efficiency, accuracy, and compliance. The Department of Veterans Affairs, as a large healthcare provider, represents a significant customer for such specialized systems. Comparable spending benchmarks for similar workflow management solutions can vary widely based on the complexity of the software, integration requirements, and the scale of implementation. However, contracts in this space often range from hundreds of thousands to several million dollars, depending on the scope.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if there are subcontracting requirements for small businesses. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, larger IT and specialized service contracts may include provisions for small business participation, either through direct set-asides or subcontracting goals, to foster growth and competition within the small business sector.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be defined in the contract's performance work statement and terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Pharmacy Modernization Initiatives
Healthcare IT Solutions
Workflow Automation Software
Pharmaceutical Preparation Systems

Risk Flags

Limited competition (single bidder)
Potential for non-optimal pricing due to lack of competition
Need for detailed performance assessment of the awarded contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $620,501.08 to FOUR POINTS TECHNOLOGY, L.L.C.. IV PREP WORKFLOW MANAGEMENT SOLUTION.

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 $620,501.08.

What is the period of performance?

Start: 2025-06-01. End: 2026-06-30.

What is the specific functionality and scope of the 'IV PREP WORKFLOW MANAGEMENT SOLUTION' being procured?

The provided data does not detail the specific functionalities of the 'IV PREP WORKFLOW MANAGEMENT SOLUTION'. However, based on the description and the NAICS code (325412 - Pharmaceutical Preparation Manufacturing), it is likely a software system designed to manage, track, and optimize the process of preparing intravenous medications. This could include features such as order entry, inventory management of IV components, preparation scheduling, compounding guidance, labeling, and final verification steps. The goal is typically to enhance efficiency, reduce errors, improve patient safety, and ensure regulatory compliance within hospital or clinical pharmacy settings. Further details would be found in the contract's Performance Work Statement (PWS).

How does the $6.2 million contract value compare to similar IV preparation workflow management systems in the federal market?

Direct comparison of the $6.2 million contract value for this specific 'IV PREP WORKFLOW MANAGEMENT SOLUTION' is challenging without more granular data on the system's features, scale of deployment, and duration. However, the value appears to be within the mid-range for specialized healthcare IT solutions. Larger, enterprise-wide systems or those involving extensive hardware integration could cost significantly more, while simpler, single-facility software licenses might be less. The fact that this is a definitive contract with a 394-day duration suggests a comprehensive implementation or service period. Benchmarking would ideally involve analyzing contracts with similar NAICS codes and service descriptions, considering factors like user licenses, integration complexity, and ongoing support.

What are the potential risks associated with a single-bidder competition for this contract?

A single-bidder scenario presents several potential risks. Firstly, it significantly reduces the government's leverage in price negotiation, potentially leading to a higher-than-market price. The absence of competition means the contractor faces less pressure to innovate or offer the most cost-effective solution. Secondly, it raises questions about the adequacy of the government's market research and outreach efforts; perhaps potential competitors were unaware of the opportunity, or the requirements were overly restrictive. Thirdly, if the single bidder fails to perform adequately or encounters issues, the government has limited alternative options without initiating a new, lengthy procurement process. This could lead to project delays and disruptions.

What is the track record of Four Points Technology, L.L.C. in providing similar workflow management solutions to the federal government?

Information regarding the specific track record of Four Points Technology, L.L.C. in providing 'IV PREP WORKFLOW MANAGEMENT SOLUTIONS' is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on federal contracts, particularly those involving healthcare IT, pharmacy systems, or workflow automation. Databases like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be valuable resources to evaluate their history of successful project delivery, adherence to schedules and budgets, and overall client satisfaction. Without this specific performance history, it's difficult to gauge their expertise in this niche area.

How does this contract align with the Department of Veterans Affairs' broader goals for healthcare modernization and efficiency?

This contract aligns with the Department of Veterans Affairs' (VA) broader goals for healthcare modernization and efficiency by focusing on improving a critical operational process within its pharmacies. The implementation of an 'IV PREP WORKFLOW MANAGEMENT SOLUTION' is expected to streamline the complex and sensitive task of preparing intravenous medications. This can lead to reduced medication errors, improved patient safety, faster turnaround times for prescriptions, and better inventory control. Such technological enhancements are key components of the VA's ongoing efforts to modernize its healthcare infrastructure, leverage data for better decision-making, and ultimately provide higher quality care to veterans.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26225Q0720

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: $929,886

Exercised Options: $620,501

Current Obligation: $620,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline