POULSBO — Paladin Data Systems is known for making software to help save companies and jurisdictions time and money. Soon, it may also be known for software that could help save lives.

Last week, Paladin announced that its proposal to the U.S. Department of Defense Peer Reviewed Medical Research Program (PRMRP), part of the U.S. Army Medical Research and Material Command, was recommended for funding in October. The proposal is for the Poulsbo-based software company to design, develop, deploy and manage a regional infectious disease tracking system for the Puget Sound area.

Gary Macy of Paladin Data Systems said work on the project will likely begin in December. The $4.3 million grant comprises $2.5 million in funding for fiscal year 2003 and $1.8 million in fiscal year 2004. Macy said there is the potential for funding for a third year but it is too soon to tell. Still, even the two-year project is a major accomplishment for the nearly 10-year-old company.

“We were elated. We’ve been working on this for two years,” Macy recalled of the company’s reaction to the proposal’s funding. “This is big. I would say this is our second largest single project. So for us, it is a really big deal.”

Paladin and the Foundation for Healthcare Quality, a non-profit, public-private partnership, jointly applied for the funding in April. Macy said the foundation will serve as a link between the company and the different health care organizations that will take part in the database.

“Paladin will do the system design and software, which is the bulk of the project,” he added.

The outcome will be similar to Paladin’s current Health Data Repository product, which allows users to search for health system information on a customized level. Macy said the current challenge is that organizations that keep and store public health information need a way to share their information in a format that all can use.

“All these counties and military are all doing these things on their own,” Macy explained. “Kitsap County has its system. Pierce County has one. King County has one but no one is doing the same thing.”

The new system should be especially valuable in detection and tracking of outbreaks of epidemic diseases. But it is meant to supplement, not replace, the software these jurisdictions are currently using. Macy said it will simply be a translation and adaptation tool, to allow these entities to communicate better.

“A single system for everybody wouldn’t meet everybody’s needs,” Macy commented.