VA awards $34.8M for UPTODATE subscription, a sole-source contract for medical information
Contract Overview
Contract Amount: $34,801,078 ($34.8M)
Contractor: Uptodate, Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2018-09-01
End Date: 2023-09-29
Contract Duration: 1,854 days
Daily Burn Rate: $18.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF POINT OF CARE SUBSCRIPTION TO UPTODATE
Place of Performance
Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451
Plain-Language Summary
Department of Veterans Affairs obligated $34.8 million to UPTODATE, INC for work described as: IGF::OT::IGF POINT OF CARE SUBSCRIPTION TO UPTODATE Key points: 1. The VA is spending $34.8 million on a subscription to UPTODATE, a medical information resource. 2. This contract was awarded sole-source to UPTODATE, INC. 3. The contract duration is 1854 days, ending in September 2023. 4. The primary sector for this spending is Information Technology (IT) due to the nature of the subscription service.
Value Assessment
Rating: fair
The total award is $34.8 million over approximately 5 years. Without comparable contract data for similar medical information subscriptions, it's difficult to definitively assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, meaning there was no competition. This limits price discovery and potentially leads to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayers are potentially overpaying due to the lack of competition for this essential medical information resource.
Public Impact
Ensures healthcare providers have access to up-to-date medical information for patient care. Supports clinical decision-making and potentially improves patient outcomes. The sole-source nature raises questions about cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing benchmarks.
- Potential for overspending without competitive bidding.
Positive Signals
- Provides critical medical information to VA healthcare professionals.
- Supports evidence-based medicine and patient care quality.
Sector Analysis
This spending falls within the IT sector, specifically for digital information resources and subscription services. Benchmarks for similar large-scale medical information subscriptions are not readily available, making direct comparison difficult.
Small Business Impact
The contract was awarded to UPTODATE, INC., a single entity. There is no indication that small businesses were involved in this sole-source award, limiting opportunities for them.
Oversight & Accountability
The sole-source justification and lack of competition warrant further oversight to ensure the VA is obtaining fair value for taxpayer dollars. Transparency in the procurement process is crucial.
Related Government Programs
- Internet Publishing and Broadcasting and Web Search Portals
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price justification
Tags
internet-publishing-and-broadcasting-and, department-of-veterans-affairs, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $34.8 million to UPTODATE, INC. IGF::OT::IGF POINT OF CARE SUBSCRIPTION TO UPTODATE
Who is the contractor on this award?
The obligated recipient is UPTODATE, 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 $34.8 million.
What is the period of performance?
Start: 2018-09-01. End: 2023-09-29.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves a unique capability or lack of viable alternatives. For this contract, the VA would need to demonstrate that UPTODATE, INC. is the only source capable of providing the required service. Steps to ensure fair and reasonable pricing might include historical pricing analysis, comparison to commercial sales, or independent cost estimates, though these are less effective without competition.
What is the potential financial risk to taxpayers given the sole-source nature of this contract?
The primary financial risk is the potential for overpayment. Without competitive bidding, UPTODATE, INC. may not have been incentivized to offer the lowest possible price. This could result in taxpayers bearing a higher cost than if multiple vendors had competed for the contract, potentially by a significant margin.
How does the availability of UPTODATE impact the effectiveness of VA healthcare providers and patient care?
UPTODATE is a widely recognized and respected clinical decision support tool. Its availability provides VA healthcare providers with rapid access to evidence-based medical information, guidelines, and treatment options. This can enhance diagnostic accuracy, improve treatment planning, and ultimately contribute to better patient outcomes and more efficient care delivery.
Industry Classification
NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wolters Kluwer Health Inc.
Address: 230 THIRD AVE, WALTHAM, MA, 02451
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: $35,525,483
Exercised Options: $34,801,078
Current Obligation: $34,801,078
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-01
Current End Date: 2023-09-29
Potential End Date: 2023-09-29 00:00:00
Last Modified: 2023-09-22
More Contracts from Uptodate, Inc
- Simplfi 797 USP Compliance Services — $88.2K (Department of Veterans Affairs)
- Simplifi 797 Software Subscription — $49.2K (Department of Veterans Affairs)
- HSB114 C 6256. Uptodate Contract — $33.2K (Department of Health and Human Services)
- Simplifi 797 Do/To FY26 — $9.3K (Department of Veterans Affairs)
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)