VA awards $30.2M for RTLS implementation, with 6 bidders competing

Contract Overview

Contract Amount: $30,229,429 ($30.2M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-02-28

End Date: 2016-11-04

Contract Duration: 1,345 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF. VISN 1 REAL TIME LOCATION SYSTEM IMPLEMENTATION.

Place of Performance

Location: LEEDS, HAMPSHIRE County, MASSACHUSETTS, 01053

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.2 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF. VISN 1 REAL TIME LOCATION SYSTEM IMPLEMENTATION. Key points: 1. Contract value of $30.2M for RTLS implementation appears reasonable given the scope. 2. Full and open competition suggests a healthy market for RTLS solutions. 3. Fixed-price contract type mitigates cost overrun risks for the VA. 4. Performance period of over three years indicates a substantial project. 5. Contract awarded to Peraton Enterprise Solutions LLC, a known entity in the sector. 6. The contract falls under 'Other Computer Peripheral Equipment Manufacturing' NAICS code.

Value Assessment

Rating: good

The contract value of $30.2 million for a Real Time Location System (RTLS) implementation by the Department of Veterans Affairs (VA) seems within a reasonable range for such a project. Benchmarking against similar large-scale RTLS deployments in healthcare or large facilities suggests that this figure is competitive. The firm fixed-price contract type further supports value for money by shifting cost risk to the contractor. Without specific details on the system's capabilities and scale, a precise per-unit cost comparison is difficult, but the overall award amount appears justified for a multi-year, comprehensive implementation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the VA sought proposals from all responsible sources. Six bidders submitted proposals, suggesting a competitive environment for this RTLS implementation. The presence of multiple bidders generally leads to better price discovery and encourages contractors to offer more competitive terms and innovative solutions. This level of competition is a positive sign for the government and taxpayers, as it likely resulted in a more favorable outcome than a sole-source or limited competition award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and ensured the VA received a high-quality solution at a fair market value. It also signals that the market has multiple capable providers, preventing reliance on a single vendor and fostering ongoing cost control.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs and its healthcare facilities, which will gain improved asset and personnel tracking capabilities. The services delivered include the implementation of a Real Time Location System, likely encompassing hardware, software, and integration services. The geographic impact is focused on VA facilities within the VISN 1 network, primarily in Massachusetts. Workforce implications may include training for VA staff on the new system and potential integration with existing IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Integration challenges with existing VA IT infrastructure could lead to delays or increased costs.
Ensuring adequate training and user adoption across all affected VA personnel.

Positive Signals

Firm fixed-price contract structure limits financial risk for the government.
Full and open competition suggests a competitive market and potentially better pricing.
Award to an established vendor with potential experience in similar systems.

Sector Analysis

The contract falls under the IT services sector, specifically focusing on location-based services and asset tracking. The market for RTLS solutions is growing, driven by needs in healthcare, logistics, and manufacturing for improved operational efficiency and visibility. Comparable spending benchmarks for large-scale RTLS implementations in healthcare facilities can range from several million to tens of millions of dollars, depending on the size and complexity of the deployment.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale and nature of the RTLS implementation, it is likely that the prime contractor, Peraton Enterprise Solutions LLC, would manage the majority of the work. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified system within budget. Transparency is generally maintained through contract award databases and public reporting, although specific performance metrics might be internal. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Electronic Health Record (EHR) Modernization
VA Asset Management Systems
Healthcare IT Infrastructure Upgrades
Federal Real Time Location Systems

Risk Flags

Potential for integration challenges with legacy systems.
User adoption and training effectiveness.
Long-term maintenance and support costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.2 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF. VISN 1 REAL TIME LOCATION SYSTEM IMPLEMENTATION.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

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 $30.2 million.

What is the period of performance?

Start: 2013-02-28. End: 2016-11-04.

What specific capabilities does the Real Time Location System (RTLS) provide to the VA, and how do these align with the agency's strategic goals?

The Real Time Location System (RTLS) implemented under this contract is designed to provide enhanced visibility and tracking of assets, equipment, and potentially personnel within VA facilities. This typically includes features such as real-time location monitoring, historical movement tracking, geofencing alerts, and inventory management. For the VA, these capabilities are crucial for improving operational efficiency, reducing asset loss or misplacement, optimizing resource utilization (e.g., medical equipment), and potentially enhancing patient safety by ensuring critical equipment is readily available. These align with broader VA strategic goals related to modernizing healthcare infrastructure, improving patient care delivery, and ensuring efficient use of taxpayer funds by managing valuable assets effectively.

How does the $30.2 million contract value compare to other large-scale RTLS implementations in the federal government or healthcare sector?

The $30.2 million contract value for this RTLS implementation appears to be within the expected range for a large-scale deployment within a major federal agency like the VA. Similar projects in large hospital systems or federal facilities can range from $10 million to over $50 million, depending on the scope, technology chosen, number of locations, and integration requirements. Factors influencing the cost include the type of RTLS technology (e.g., RFID, Wi-Fi, UWB), the number of tags or sensors deployed, the complexity of the software platform, and the extent of integration with existing IT systems. Given that this contract covers a multi-year implementation (2013-2016), the total award amount seems commensurate with the project's scale and duration, especially considering the competitive bidding process which likely helped optimize pricing.

What are the primary risks associated with this RTLS implementation contract, and what mitigation strategies were likely employed?

Primary risks associated with this RTLS implementation contract include technical integration challenges with existing VA IT infrastructure, potential scope creep if requirements are not well-defined, and ensuring adequate user adoption and training across diverse VA staff. There's also a risk of vendor lock-in if the chosen system is proprietary and difficult to replace. Mitigation strategies likely employed by the VA and Peraton Enterprise Solutions include a detailed requirements gathering phase, a phased implementation approach, robust testing protocols, and comprehensive training programs. The firm fixed-price contract structure itself acts as a risk mitigation tool by capping the government's financial exposure. Furthermore, the full and open competition with six bidders suggests a mature market, reducing the risk of relying on a single, potentially underperforming vendor.

What was the historical spending pattern for RTLS or similar asset tracking solutions within the VA prior to this contract?

Analyzing historical spending patterns for RTLS or similar asset tracking solutions within the VA prior to this $30.2 million contract (awarded in 2013) is crucial for context. Without specific historical data readily available in this dataset, we can infer that the VA likely had various, possibly disparate, systems for asset tracking across its numerous facilities. Spending may have been fragmented across different VISNs or departments, potentially using less sophisticated methods like manual inventory or basic barcode systems. The decision to award a large, consolidated contract like this suggests a strategic move towards a more unified, modern, and efficient RTLS solution, indicating a potential increase in centralized investment in this technology area. Understanding prior spending would help assess if this $30.2M represents a significant escalation or a consolidation of efforts.

How does the performance of Peraton Enterprise Solutions LLC on this contract inform their suitability for future VA or federal IT projects?

The performance of Peraton Enterprise Solutions LLC on this specific $30.2 million RTLS implementation contract (2013-2016) provides valuable insights into their capabilities. As the contract was awarded under full and open competition with six bidders and was a firm fixed-price delivery order, successful completion would indicate Peraton's ability to manage complex IT projects, meet defined requirements within budget, and deliver on schedule. Positive performance metrics, such as timely delivery, system functionality meeting specifications, and effective integration, would bolster their reputation and suitability for future VA or federal IT projects. Conversely, any significant issues, cost overruns (though less likely with FFP), or performance deficiencies would raise concerns. A thorough review of contract performance reports, user feedback, and any contract modifications or disputes would be necessary for a comprehensive assessment of their track record.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Other Computer Peripheral Equipment Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO (UEI: 079834910)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,229,429

Exercised Options: $30,229,429

Current Obligation: $30,229,429

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $238,974

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA118A12D0025

IDV Type: IDC

Timeline