DoD's $12.1M Blood Management System Contract Awarded to Planned Systems International Inc

Contract Overview

Contract Amount: $12,071,293 ($12.1M)

Contractor: Planned Systems International Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANNUAL ENTERPRISE BLOOD MANAGEMENT SYSTEM DONOR SUSTAINMENT.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to PLANNED SYSTEMS INTERNATIONAL INC for work described as: ANNUAL ENTERPRISE BLOOD MANAGEMENT SYSTEM DONOR SUSTAINMENT. Key points: 1. The contract focuses on sustaining an enterprise blood management system, crucial for military medical operations. 2. Awarded via full and open competition, suggesting a broad market search for the best solution. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of the contract (1095 days) indicates a need for long-term system support and development. 5. The specific NAICS code (541511) points to custom computer programming services, highlighting the technical nature of the requirement. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a previously awarded contract.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without access to the full IDIQ details or comparable sustainment contracts for similar enterprise systems. However, the firm-fixed-price structure is a positive indicator for cost control. The annual value of approximately $4 million for sustaining a complex enterprise system like blood management is within a reasonable range, considering the specialized nature of military healthcare IT. Further analysis would require comparing the scope of services and system complexity to other DoD IT sustainment contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the open competition suggests a robust process was followed to identify the most capable and cost-effective solution for the Defense Health Agency.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value by allowing a wide range of contractors to bid, thereby promoting competitive pricing and potentially leading to lower overall costs for the government.

Public Impact

The primary beneficiaries are the Department of Defense and its medical personnel, who will utilize the sustained blood management system. The system supports critical medical services, including blood donation, inventory management, and transfusion processes within military healthcare facilities. The geographic impact is likely global, supporting deployed forces and military treatment facilities worldwide. Workforce implications include the need for skilled IT professionals to maintain and enhance the system, potentially supporting jobs in custom computer programming and IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly proprietary and difficult to transition away from.
Dependence on a single contractor for sustainment could lead to reduced leverage in future negotiations.
The long-term sustainment cost needs careful monitoring to ensure it remains competitive over the contract's life.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Award through full and open competition suggests a thorough evaluation process and potential for competitive pricing.
The contract's focus on sustainment indicates a commitment to maintaining and improving a critical operational system.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls within the broader category of health IT, a rapidly growing segment driven by the need for efficient data management and operational support in healthcare. The Department of Defense is a major investor in IT solutions to support its global operations. Comparable spending benchmarks would involve analyzing other large-scale IT sustainment contracts within the federal government, especially those focused on specialized healthcare or logistics systems.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor is there an explicit indication of significant subcontracting opportunities for small businesses within this delivery order. Further investigation into the parent IDIQ contract, if applicable, would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. As a delivery order under a larger contract, oversight mechanisms would be tied to the parent contract's structure. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

DoD Enterprise Software Maintenance
Defense Health Information Technology
Military Health System IT Services
Blood Donation and Management Systems
Custom Computer Programming Services

Risk Flags

Potential for cost overruns if scope creep occurs.
Risk of vendor lock-in due to specialized system knowledge.
Dependency on contractor's cybersecurity practices.
Technological obsolescence over the contract's life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to PLANNED SYSTEMS INTERNATIONAL INC. ANNUAL ENTERPRISE BLOOD MANAGEMENT SYSTEM DONOR SUSTAINMENT.

Who is the contractor on this award?

The obligated recipient is PLANNED SYSTEMS INTERNATIONAL INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of Planned Systems International Inc. with the Department of Defense and specifically the Defense Health Agency?

Planned Systems International Inc. (PSI) has a history of contracting with the Department of Defense and various federal agencies. A review of federal procurement data indicates PSI has been awarded numerous contracts, including those related to IT services, software development, and system sustainment. For the Defense Health Agency (DHA), PSI has likely provided support for various health IT systems. Specific details on past performance, including any awards, penalties, or significant issues, would require a deeper dive into contract databases and performance reviews. However, their continued awards suggest a generally satisfactory performance history in meeting government requirements for IT services.

How does the annual cost of this contract compare to similar enterprise blood management system sustainment efforts in the federal government?

Directly comparing the annual cost of $4 million for this specific contract is difficult without detailed scope-of-work and service level agreement (SLA) comparisons. Enterprise blood management systems are highly specialized, and their sustainment costs can vary significantly based on system complexity, user base size, integration requirements with other DoD systems, and the level of ongoing development versus pure maintenance. Generally, IT sustainment for complex enterprise systems can represent a substantial portion of the total lifecycle cost. To benchmark effectively, one would need to identify comparable contracts for similar-sized healthcare IT systems within other federal agencies or even large private healthcare organizations, considering factors like the number of users, data volume, and required uptime.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how is performance monitored?

While specific KPIs are not detailed in the provided data, contracts for IT system sustainment typically include metrics related to system availability, response times for issue resolution, patch management timeliness, security compliance, and user satisfaction. Performance monitoring is usually conducted through regular progress reports submitted by the contractor, joint performance reviews between the contractor and the Defense Health Agency (DHA) contracting officer's representative (COR), and potentially through automated system monitoring tools. The firm-fixed-price nature of the contract incentivizes the contractor to meet these performance standards efficiently to maximize profit.

What is the potential risk associated with the long duration (1095 days) of this contract for the government?

The primary risk associated with a long contract duration, such as 1095 days (3 years), is the potential for technological obsolescence and escalating costs if market rates for similar services decrease over time. While the firm-fixed-price structure provides cost certainty for the base period, there's a risk that the government might be locked into a price that becomes uncompetitive if market conditions change significantly. Additionally, long-term reliance on a single vendor for sustainment can sometimes reduce flexibility and bargaining power for future contract renewals or modifications. Effective contract management and regular market analysis are crucial to mitigate these risks.

How does this contract fit into the broader strategy of the Defense Health Agency for managing its IT infrastructure?

This contract for sustaining the enterprise blood management system is a component of the Defense Health Agency's (DHA) larger strategy to modernize and maintain its IT infrastructure, which is critical for supporting military readiness and healthcare delivery. The DHA aims to provide a seamless, integrated health information environment for service members, veterans, and their families. Contracts like this ensure the operational continuity and effectiveness of specialized systems that underpin essential medical functions. By focusing on sustainment, the DHA ensures that vital systems remain functional, secure, and capable of meeting evolving operational demands, contributing to the overall efficiency and reliability of military healthcare IT.

Are there any known issues or challenges with the current enterprise blood management system that this contract aims to address?

The provided data does not specify known issues or challenges with the current enterprise blood management system. However, the contract's description as 'Donor Sustainment' implies a focus on maintaining the system's operational readiness, ensuring its continued functionality, and potentially implementing necessary updates or enhancements to meet current requirements. Sustainment contracts are typically awarded to ensure the ongoing performance, security, and compliance of critical systems, addressing any degradation or evolving needs that may arise over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001123R0038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10632 LITTLE PATUXENT PKWY, COLUMBIA, MD, 21044

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,182,609

Exercised Options: $12,071,293

Current Obligation: $12,071,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F598GA

IDV Type: FSS

Timeline