VA awards $2.09M for Charleston CMOP APFS/BPM upgrade to Innovation Associates, Inc

Contract Overview

Contract Amount: $2,085,460 ($2.1M)

Contractor: Innovation Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-07-03

Contract Duration: 276 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MANUFACTURING MACHINERY CHARLESTON CMOP APFS AND BPM UPGRADE

Place of Performance

Location: BINGHAMTON, BROOME County, NEW YORK, 13905

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to INNOVATION ASSOCIATES, INC. for work described as: MANUFACTURING MACHINERY CHARLESTON CMOP APFS AND BPM UPGRADE Key points: 1. Spending focuses on essential IT infrastructure for a VA medical facility. 2. Limited competition raises concerns about potential price inflation. 3. The contract duration of 276 days is standard for this type of upgrade. 4. Sector is IT infrastructure within the healthcare domain.

Value Assessment

Rating: fair

The contract value of $2.09M for APFS and BPM upgrades appears reasonable given the scope. However, without competitive bids, a precise benchmark is difficult to establish.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer value.

Public Impact

Ensures continued operation of critical IT systems at the Charleston CMOP. Potential for improved efficiency and reliability of administrative processes. Impacts VA's ability to manage pharmaceutical operations effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price transparency

Positive Signals

Supports critical VA operations
Clear contract end date

Sector Analysis

This contract falls within the IT sector, specifically supporting healthcare operations. Spending benchmarks for similar APFS/BPM upgrades vary widely based on system complexity and vendor.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of a Purchase Order suggests a streamlined process, but the lack of competition warrants scrutiny.

Related Government Programs

All Other Miscellaneous Fabricated Metal Product Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for overpricing
Lack of small business participation
No clear justification for limited competition provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to INNOVATION ASSOCIATES, INC.. MANUFACTURING MACHINERY CHARLESTON CMOP APFS AND BPM UPGRADE

Who is the contractor on this award?

The obligated recipient is INNOVATION ASSOCIATES, 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 $2.1 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-07-03.

What was the justification for limiting competition on this essential IT upgrade?

The justification for limiting competition is not provided in the data. Typically, sole-source or limited-source awards are made when only one vendor possesses the necessary technical expertise, proprietary technology, or when urgency precludes a full and open competition. Further investigation would be needed to determine the specific rationale.

What is the risk of vendor lock-in or future cost increases due to this limited competition award?

There is a moderate risk of vendor lock-in and potential future cost increases. By awarding without full competition, the VA may have missed opportunities to secure more competitive pricing. If Innovation Associates, Inc. becomes the de facto provider, future contract renewals or upgrades could be negotiated at higher rates without the leverage of competitive bidding.

How will the effectiveness of this APFS and BPM upgrade be measured and ensured?

The effectiveness will likely be measured through performance metrics outlined in the contract's statement of work, such as system uptime, processing speed, and successful integration with existing VA systems. The VA's project management office and technical evaluators will be responsible for monitoring progress and ensuring the delivered solution meets the specified requirements before final acceptance.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C77025Q0268

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walgreens Boots Alliance, Inc.

Address: 30 CHARLES ST, BINGHAMTON, NY, 13905

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,085,460

Exercised Options: $2,085,460

Current Obligation: $2,085,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline