VA awards $17.1M contract for Tablet Capsule Automation upgrade to Knapp Inc
Contract Overview
Contract Amount: $17,135,869 ($17.1M)
Contractor: Knapp Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-09-30
End Date: 2026-06-30
Contract Duration: 1,734 days
Daily Burn Rate: $9.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UPGRADE OF TABLET CAPSULE AUTOMATION (TCA) AND UNIT OF USE AUTOMATION (UUA)
Place of Performance
Location: KENNESAW, COBB County, GEORGIA, 30144
State: Georgia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $17.1 million to KNAPP INC for work described as: UPGRADE OF TABLET CAPSULE AUTOMATION (TCA) AND UNIT OF USE AUTOMATION (UUA) Key points: 1. The contract focuses on upgrading automation systems for pharmaceutical packaging. 2. Knapp Inc. is the sole awardee, raising questions about competition. 3. The firm-fixed-price contract aims to improve efficiency in VA pharmacies. 4. This spending falls under the Conveyor and Conveying Equipment Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $17.1M for automation upgrades appears reasonable given the scope. Benchmarking against similar pharmaceutical automation contracts is difficult without more specific details on the technology and scale of the upgrade.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Improved efficiency in VA pharmacy operations, potentially leading to faster prescription fulfillment. Modernization of critical automation systems within the Department of Veterans Affairs. Potential for enhanced accuracy and reduced errors in medication dispensing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of clear justification for sole-source award.
- Potential for cost overruns due to lack of competitive pressure.
Positive Signals
- Addresses critical infrastructure needs for VA pharmacies.
- Aims to improve operational efficiency and patient care.
- Firm-fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the Conveyor and Conveying Equipment Manufacturing sector, specifically related to pharmaceutical automation. Spending in this niche area can vary significantly based on technological advancements and agency needs.
Small Business Impact
The contract was not competed and there is no indication of small business participation. This award does not appear to support small business goals.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price is fair and reasonable and that the VA has a clear justification for not pursuing competition.
Related Government Programs
- Conveyor and Conveying Equipment Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- No small business participation
Tags
conveyor-and-conveying-equipment-manufac, department-of-veterans-affairs, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $17.1 million to KNAPP INC. UPGRADE OF TABLET CAPSULE AUTOMATION (TCA) AND UNIT OF USE AUTOMATION (UUA)
Who is the contractor on this award?
The obligated recipient is KNAPP 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 $17.1 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-06-30.
What is the specific justification for awarding this contract sole-source, and what steps were taken to ensure the price is fair and reasonable?
The provided data indicates the contract was 'NOT COMPETED' but does not offer a specific justification. Typically, sole-source awards require detailed documentation explaining why competition is not feasible or advantageous. Agencies must conduct market research and price analysis to ensure the negotiated price is fair and reasonable, often relying on historical data, commercial pricing, or independent cost estimates.
What are the key performance metrics for the TCA and UUA upgrades, and how will their effectiveness be measured?
The data does not specify the key performance metrics for the Tablet Capsule Automation (TCA) and Unit of Use Automation (UUA) upgrades. Effectiveness measurement would likely involve tracking improvements in throughput, accuracy rates, reduction in manual labor, system uptime, and overall operational cost savings within the VA pharmacy facilities.
How does the $17.1M investment in automation align with the VA's broader strategy for modernizing its healthcare supply chain and pharmacy services?
This $17.1M investment in automation appears to align with a broader strategy of modernizing VA healthcare services by improving the efficiency and reliability of pharmaceutical dispensing. Such upgrades are crucial for managing increasing prescription volumes, ensuring medication safety, and potentially freeing up clinical staff for patient-facing duties.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Conveyor and Conveying Equipment Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 36C77021R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2124 BARRETT PARK DR STE 100, KENNESAW, GA, 30144
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,135,869
Exercised Options: $17,135,869
Current Obligation: $17,135,869
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-10
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