VA awards $28M contract for Weight-Based Inventory System to SDV OFFICE SYSTEMS LLC
Contract Overview
Contract Amount: $28,029,105 ($28.0M)
Contractor: SDV Office Systems LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-09-16
End Date: 2025-03-31
Contract Duration: 927 days
Daily Burn Rate: $30.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WEIGHT-BASED INVENTORY SYSTEM - VISN (WBIS)
Place of Performance
Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28805
Plain-Language Summary
Department of Veterans Affairs obligated $28.0 million to SDV OFFICE SYSTEMS LLC for work described as: WEIGHT-BASED INVENTORY SYSTEM - VISN (WBIS) Key points: 1. Contract Value: $28.03 million over its period of performance. 2. Contractor: SDV OFFICE SYSTEMS LLC. 3. Agency: Department of Veterans Affairs (VA). 4. Service Type: All Other Professional, Scientific, and Technical Services (NAICS 541990). 5. Contract Type: Firm Fixed Price, Definitive Contract.
Value Assessment
Rating: fair
The contract value of $28.03 million for a period of 927 days suggests a moderate per-day cost. Benchmarking against similar professional services contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the required services.
Public Impact
Ensures efficient inventory management within the VA. Supports the operational needs of the Department of Veterans Affairs. Potential impact on healthcare logistics and supply chain efficiency. Contract duration extends into March 2025.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for cost overruns if scope expands.
- Dependence on a single contractor for a critical system.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Clear period of performance defined.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to inventory systems. Spending in this sector often focuses on efficiency gains and technological solutions for government operations.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SB: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Department of Veterans Affairs. Oversight would typically involve contract officers, program managers, and potentially agency-level review boards to ensure performance and compliance.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Contract duration is relatively long (927 days).
- No small business set-aside.
- Specific performance metrics not detailed in the provided data.
- Potential for integration complexities with existing VA systems.
Tags
all-other-professional-scientific-and-te, department-of-veterans-affairs, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $28.0 million to SDV OFFICE SYSTEMS LLC. WEIGHT-BASED INVENTORY SYSTEM - VISN (WBIS)
Who is the contractor on this award?
The obligated recipient is SDV OFFICE SYSTEMS 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 $28.0 million.
What is the period of performance?
Start: 2022-09-16. End: 2025-03-31.
What specific functionalities does the Weight-Based Inventory System (WBIS) provide to the VA?
The WBIS is designed to manage and track inventory based on weight, likely for medical supplies, pharmaceuticals, or equipment. Its specific functionalities would include real-time tracking, automated reordering triggers, weight-based stock level monitoring, and integration with existing VA logistics and financial systems to ensure accurate inventory counts and reduce waste.
What are the primary risks associated with this contract for the VA?
Key risks include potential vendor lock-in if the system is highly proprietary, performance issues if the system does not meet operational demands, and integration challenges with other VA IT infrastructure. There's also a risk of scope creep leading to cost increases, despite the firm fixed price structure, if requirements are not clearly defined and managed.
How does this contract contribute to the VA's overall mission effectiveness?
By improving inventory management, this contract contributes to the VA's mission by ensuring that necessary medical supplies and equipment are available when and where needed, reducing waste, and potentially lowering operational costs. Efficient supply chain management is critical for delivering timely and effective healthcare services to veterans.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C26322Q0523
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 26 MACALLAN LN, ASHEVILLE, NC, 28805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $28,029,105
Exercised Options: $28,029,105
Current Obligation: $28,029,105
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-16
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-12-12
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