DoD's $15.9M Pharmacy Automation Contract Awarded to CareFusion Solutions, LLC
Contract Overview
Contract Amount: $15,917,940 ($15.9M)
Contractor: Carefusion Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-01
End Date: 2026-03-31
Contract Duration: 638 days
Daily Burn Rate: $24.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PHARMACY INPATIENT AUTOMATION SUPPORT - ENTERPRISE MAINTENANCE AND SUPPORT SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to CAREFUSION SOLUTIONS, LLC for work described as: PHARMACY INPATIENT AUTOMATION SUPPORT - ENTERPRISE MAINTENANCE AND SUPPORT SERVICES Key points: 1. Contract awarded to CareFusion Solutions, LLC for pharmacy automation support. 2. The contract is a definitive contract with a firm fixed price. 3. This contract falls under the Electronic and Precision Equipment Repair and Maintenance NAICS code. 4. The contract duration is 638 days. 5. The award was not competed.
Value Assessment
Rating: fair
The contract value of $15.9M over approximately 21 months suggests a significant investment in pharmacy automation. Without specific per-unit cost data or benchmarks for similar enterprise-level maintenance, a precise value assessment is difficult. However, the firm fixed price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive process. The rationale for not competing is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services, as market forces are not fully leveraged to ensure the best possible price.
Public Impact
Ensures continued operation of critical pharmacy automation systems within the Defense Health Agency. Potential for increased healthcare efficiency and patient safety through reliable automation. Limited transparency on cost-effectiveness due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
- Limited visibility into performance metrics
Positive Signals
- Supports critical healthcare infrastructure
- Firm fixed price contract provides cost certainty
- Long-term support for essential systems
Sector Analysis
This contract falls within the IT and Healthcare sectors, specifically focusing on maintenance and support for electronic equipment used in pharmacies. Spending benchmarks for enterprise-level pharmacy automation maintenance can vary widely based on system complexity and scale.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to a single, likely large, entity.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the government received fair value. Accountability for the decision to not compete and the pricing structure should be clearly documented.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for inflated costs due to non-competitive nature.
- Limited transparency on cost-effectiveness.
- Dependence on a single vendor for critical system maintenance.
Tags
electronic-and-precision-equipment-repai, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to CAREFUSION SOLUTIONS, LLC. PHARMACY INPATIENT AUTOMATION SUPPORT - ENTERPRISE MAINTENANCE AND SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is CAREFUSION SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $15.9 million.
What is the period of performance?
Start: 2024-07-01. End: 2026-03-31.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is typically based on factors like unique capabilities, urgent need, or lack of market availability. Without this specific justification, it's difficult to assess the necessity. Fair and reasonable pricing in sole-source contracts often relies on historical pricing, cost analysis, or comparison to similar commercial items, but the effectiveness of these measures depends on the rigor of the government's negotiation and oversight.
How does the per-unit cost of this pharmacy automation maintenance compare to industry benchmarks or previous contracts for similar services?
Without specific per-unit cost data or detailed breakdowns of the services provided, a direct comparison to industry benchmarks or previous contracts is not possible. The total contract value of $15.9M for 638 days provides a general sense of scale, but the actual value for money hinges on the efficiency and effectiveness of the maintenance provided relative to the cost.
What is the potential impact on patient care and pharmacy operations if these automation systems experience downtime during the contract period?
Downtime in pharmacy automation systems can significantly disrupt medication dispensing, inventory management, and overall pharmacy workflow, potentially leading to delays in patient care and increased risk of errors. The reliability of CareFusion Solutions, LLC's maintenance services is therefore critical to ensuring the continuous and safe operation of these essential healthcare functions.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001124R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Becton, Dickinson and CO
Address: 3750 TORREY VIEW CT, SAN DIEGO, CA, 92130
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,172,367
Exercised Options: $15,917,940
Current Obligation: $15,917,940
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-01
Current End Date: 2026-03-31
Potential End Date: 2029-01-31 00:00:00
Last Modified: 2025-12-02
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