VA awards $72.4M contract for Automated Prescription Fulfillment System to Innovation Associates, Inc
Contract Overview
Contract Amount: $72,447,038 ($72.4M)
Contractor: Innovation Associates, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2017-07-14
End Date: 2026-08-25
Contract Duration: 3,329 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AUTOMATED PRESCRIPTION FULFILLMENT SYSTEM
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Veterans Affairs obligated $72.4 million to INNOVATION ASSOCIATES, INC. for work described as: AUTOMATED PRESCRIPTION FULFILLMENT SYSTEM Key points: 1. The contract value of $72.4M is significant for a specialized system. 2. Innovation Associates, Inc. is the sole awardee, raising questions about competition. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests limited initial competition. 4. The sector is 'All Other Miscellaneous Fabricated Metal Product Manufacturing', which may not directly align with a software/system focus.
Value Assessment
Rating: fair
The contract value of $72.4M over its period of performance (2017-2026) suggests a substantial investment. Benchmarking is difficult without specific system details, but the price appears reasonable for a large-scale automated system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating that while competition was sought, certain sources were excluded. This method can limit price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayers may be impacted by potentially higher costs due to limited competition, though the system's efficiency could offer long-term savings.
Public Impact
Improved efficiency and accuracy in prescription fulfillment for veterans. Potential for reduced medication errors and improved patient safety. Modernization of VA pharmacy operations. Impact on pharmaceutical supply chain management within the VA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation.
- Potential misalignment between awarded NAICS code and system nature.
- Sole awardee raises concerns about market research and alternatives.
Positive Signals
- Addresses a critical need for prescription fulfillment.
- Long-term contract provides stability for system development and deployment.
Sector Analysis
The contract falls under 'All Other Miscellaneous Fabricated Metal Product Manufacturing' (NAICS 332999). This sector typically involves manufacturing metal parts and components. The application of this to an 'Automated Prescription Fulfillment System' suggests the system may have significant hardware or mechanical components, or the classification may be a broad fit.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or feasible for this requirement.
Oversight & Accountability
The contract's duration and value warrant robust oversight to ensure performance, cost control, and adherence to specifications. The VA's contracting office is responsible for monitoring this award.
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 NAICS code misalignment.
- Sole awardee raises concerns.
- Lack of transparency in source exclusion.
Tags
all-other-miscellaneous-fabricated-metal, department-of-veterans-affairs, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $72.4 million to INNOVATION ASSOCIATES, INC.. AUTOMATED PRESCRIPTION FULFILLMENT SYSTEM
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 $72.4 million.
What is the period of performance?
Start: 2017-07-14. End: 2026-08-25.
What specific technological capabilities does the Automated Prescription Fulfillment System provide, and how do they align with the awarded NAICS code?
The system likely automates the process of dispensing and managing prescription medications. This could involve robotics, software for inventory management, and tracking. The alignment with NAICS 332999 is unusual, suggesting the system might incorporate significant fabricated metal components or that the classification is a broad catch-all for complex machinery not fitting other categories. Further details on the system's architecture are needed.
How was the 'exclusion of sources' justified, and what impact did it have on the final contract price?
The justification for excluding sources is critical. If specific vendors or technologies were deemed essential, it could limit competition. This exclusion needs to be thoroughly documented to ensure it was necessary and not arbitrary. Without this documentation, it's difficult to assess if the price reflects true market value or if the exclusion led to a higher cost for taxpayers.
What are the key performance indicators (KPIs) for this system, and how will their achievement be measured to ensure effectiveness and value for money?
Key performance indicators should focus on metrics like prescription fulfillment time, accuracy rates, reduction in errors, system uptime, and cost savings. The VA must have a clear framework for measuring these KPIs throughout the contract's life. Regular performance reviews and audits are essential to ensure the system is delivering the expected benefits and that taxpayer funds are being used effectively.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: VA770-16-R-0207
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 530 COLUMBIA DR STE 101, JOHNSON CITY, NY, 13790
Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,447,038
Exercised Options: $72,447,038
Current Obligation: $72,447,038
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-07-14
Current End Date: 2026-08-25
Potential End Date: 2026-08-25 00:00:00
Last Modified: 2023-08-25
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