VA awards $341K extension for Interactive Patient System to Alvarez LLC, citing sole-source justification

Contract Overview

Contract Amount: $341,313 ($341.3K)

Contractor: Alvarez LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2026-11-30

Contract Duration: 182 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERNACTIVE PATIENT SYSTEM (IPS) 6-MONTH EXTENSION

Place of Performance

Location: LOMA LINDA, SAN BERNARDINO County, CALIFORNIA, 92357

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $341,312.83 to ALVAREZ LLC for work described as: INTERNACTIVE PATIENT SYSTEM (IPS) 6-MONTH EXTENSION Key points: 1. Contract extension awarded without competition, raising questions about potential cost savings. 2. The contract's value is relatively small, suggesting a focused scope for the extension. 3. Limited competition increases the risk of overpayment compared to a more open bidding process. 4. The extension period is short (6 months), indicating a potential need for a larger, future procurement. 5. The service category is broad, making direct performance comparisons challenging without more detail. 6. Focus on technical services suggests a need for specialized expertise.

Value Assessment

Rating: fair

This contract extension for the Interactive Patient System (IPS) is valued at $341,312.83 for a 6-month period. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The fixed-price nature provides some cost certainty, but the lack of competition prevents an assessment of whether the government achieved the best possible value. Further analysis would require understanding the original contract's pricing and the necessity of this specific extension.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one vendor can provide the required goods or services, often due to proprietary technology, urgent needs, or lack of market availability. The absence of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery and innovation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government cannot leverage competitive pressures to secure the lowest possible price. This also limits the opportunity for new or smaller businesses to enter the market and compete for government contracts.

Public Impact

Veterans receiving care will benefit from the continued operation and potential enhancements of the Interactive Patient System. The system likely supports patient engagement, access to medical records, and communication with healthcare providers. The geographic impact is primarily within the Department of Veterans Affairs healthcare facilities where the IPS is deployed. The contract supports specialized technical services, potentially involving a small team of experts from Alvarez LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this extension raises concerns about potential overpayment and missed opportunities for cost savings.
The sole-source justification needs further scrutiny to ensure it was appropriate and that alternatives were considered.
Limited data on the specific services provided makes it difficult to assess the true value and necessity of the extension.

Positive Signals

The contract is firm fixed-price, providing cost predictability for the duration of the extension.
The extension ensures continuity of service for a critical patient system, avoiding potential disruptions.
The duration is relatively short, suggesting a potential for re-evaluation or a larger competitive procurement in the near future.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is broad and encompasses a wide range of specialized services. Contracts within this sector can vary significantly in scope and value. This particular contract for an Interactive Patient System extension fits within the broader IT and healthcare technology market. Benchmarking requires comparing it to similar IT support or system maintenance contracts within the federal government or healthcare industry, considering the specific functionalities of the IPS.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus remains on the prime contractor, Alvarez LLC.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under a larger contract (implied by 'AW: DELIVERY ORDER'), oversight might be integrated into the existing framework of the parent contract. Transparency is limited by the sole-source nature and the lack of detailed public information on performance metrics or specific deliverables for this extension. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration IT Modernization
Electronic Health Record Systems
Patient Engagement Platforms
Healthcare IT Services

Risk Flags

Sole-source award without clear justification
Potential for uncompetitive pricing
Lack of transparency in service scope and performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $341,312.83 to ALVAREZ LLC. INTERNACTIVE PATIENT SYSTEM (IPS) 6-MONTH EXTENSION

Who is the contractor on this award?

The obligated recipient is ALVAREZ LLC.

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 $341,312.83.

What is the period of performance?

Start: 2026-06-01. End: 2026-11-30.

What is the track record of Alvarez LLC in providing services related to patient systems or similar IT solutions for the federal government?

Information regarding Alvarez LLC's specific track record with patient systems or similar IT solutions for the federal government is not detailed in the provided data. To assess their capabilities and past performance, a review of their contract history, past performance evaluations (if available through sources like the Federal Procurement Data System - FPDS), and any relevant certifications or experience in healthcare IT would be necessary. Understanding their experience with the Interactive Patient System specifically, or comparable systems, is crucial for evaluating the appropriateness of this sole-source extension.

How does the per-period cost of this extension compare to previous periods or similar sole-source contracts for patient systems?

Direct comparison of the per-period cost is challenging without historical data for this specific contract or comparable sole-source contracts for similar patient systems. The current extension is valued at approximately $56,720 per month ($341,312.83 / 6 months). To assess value, one would need to compare this monthly rate to previous periods of this contract, if applicable, or to other sole-source or competitively awarded contracts for similar Interactive Patient Systems or patient engagement platforms within the VA or other federal agencies. The absence of competitive bidding inherently makes such comparisons less robust.

What are the specific risks associated with extending a sole-source contract for a patient system, and how are they being mitigated?

The primary risks associated with extending a sole-source contract for a patient system include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve service quality, and the possibility that the chosen system may not be the most cost-effective or technologically advanced solution available. Mitigation strategies, though not explicitly detailed here, would typically involve rigorous internal review of the contractor's proposed pricing, clear performance standards and deliverables in the contract modification, and a defined timeline for re-evaluating the need for a competitive procurement. The VA should ensure robust oversight to manage these risks.

What is the intended purpose and scope of the Interactive Patient System (IPS) being extended, and what impact does this extension have on its overall development or maintenance?

The provided data does not detail the specific functionalities or scope of the Interactive Patient System (IPS). However, as a patient system, it likely facilitates patient access to their health information, appointment scheduling, communication with providers, or other engagement tools. This 6-month extension suggests a need to maintain current operational capabilities or to bridge a gap until a future procurement or system upgrade. The impact of the extension depends on whether it's for routine maintenance, minor enhancements, or to support ongoing development efforts. Without more information, it's assumed to ensure continuity of essential services.

What is the historical spending trend for the Interactive Patient System (IPS) or similar patient engagement technologies within the Department of Veterans Affairs?

Historical spending trends for the Interactive Patient System (IPS) or similar patient engagement technologies within the Department of Veterans Affairs are not provided in the current data. To analyze this, one would need to examine the VA's spending records over several fiscal years, identifying contracts related to patient portals, engagement platforms, and electronic health record (EHR) functionalities that support patient interaction. Understanding past investments can reveal patterns of technology adoption, budget allocations for patient-facing systems, and the overall strategic direction of the VA in leveraging technology for patient care.

What is the justification for awarding this contract as sole-source, and were alternative solutions or vendors considered?

The specific justification for awarding this contract as sole-source is not detailed in the provided data. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. To fully assess this decision, the official justification documentation (e.g., a Justification and Approval - J&A) would need to be reviewed. This document should outline why competition was not practicable and detail any market research conducted to identify potential alternative sources or solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8251 GREENSBORO DR STE 230, TYSONS CORNER, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $341,313

Exercised Options: $341,313

Current Obligation: $341,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26221D0020

IDV Type: IDC

Timeline