Agriculture Dept. Awards $138K for East Freight Elevator Upgrade by Veren Industries LLC

Contract Overview

Contract Amount: $138,000 ($138.0K)

Contractor: Veren Industries LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-09-30

End Date: 2026-05-15

Contract Duration: 592 days

Daily Burn Rate: $233/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE THE EXISTING COMPONENTS OF THE EAST ELEVATOR (FREIGHT ELEVATOR), A HYDRAULIC ELEVATOR SYSTEM WITH UPGRADED PARTS TO ENHANCE ITS FUNCTIONALITY, SAFETY, AND EFFICIENCY. THE ELEVATOR CURRENTLY HAS A CAPACITY OF 3000LBS, SERVES 4 STOPS, AND OPERA

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53705

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $138,000 to VEREN INDUSTRIES LLC for work described as: REPLACE THE EXISTING COMPONENTS OF THE EAST ELEVATOR (FREIGHT ELEVATOR), A HYDRAULIC ELEVATOR SYSTEM WITH UPGRADED PARTS TO ENHANCE ITS FUNCTIONALITY, SAFETY, AND EFFICIENCY. THE ELEVATOR CURRENTLY HAS A CAPACITY OF 3000LBS, SERVES 4 STOPS, AND OPERA Key points: 1. The contract focuses on upgrading a hydraulic elevator system to improve functionality, safety, and efficiency. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The award is a Purchase Order, a common instrument for goods and services under a certain value threshold. 4. The project is located in Wisconsin and managed by the Agricultural Research Service. 5. The firm fixed price contract type provides cost certainty for the government.

Value Assessment

Rating: fair

The $138,000 award for a 4-stop, 3000lb capacity freight elevator upgrade appears reasonable given the scope. Benchmarking against similar elevator modernization projects would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves limited competition or pre-qualified vendors. This method may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The cost of $138,000 for an elevator upgrade is a direct expenditure. Ensuring competitive pricing through the SAP process is key to maximizing taxpayer value.

Public Impact

Enhances operational efficiency for the Agricultural Research Service by improving a critical piece of infrastructure. Increases safety standards for personnel and equipment using the freight elevator. Modernizes facilities, potentially reducing future maintenance costs and downtime. Supports a contractor for building equipment services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have secured the best possible price.
Lack of detailed specifications in the provided data makes a thorough value assessment challenging.

Positive Signals

Firm fixed price contract provides cost certainty.
Upgrade addresses safety and efficiency, improving operational capabilities.
Project duration aligns with the contract period.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically related to building equipment. Spending benchmarks for elevator modernization vary widely based on complexity, but $138,000 for a 4-stop freight elevator upgrade seems within a typical range for such projects.

Small Business Impact

The use of Simplified Acquisition Procedures (SAP) often favors small businesses, although the provided data does not specify if Veren Industries LLC is an SMB. Further investigation into the contractor's size status would clarify the impact on small business participation.

Oversight & Accountability

The award is a Purchase Order, which is a standard procurement instrument. Oversight would involve monitoring contract performance, adherence to schedule, and quality of work by the Agricultural Research Service.

Related Government Programs

Other Building Equipment Contractors
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Potential for higher costs due to limited competition.
Lack of detailed technical specifications hinders thorough analysis.
Reliance on SAP may not always yield the most cost-effective solution.
Contract duration extends beyond the award date, requiring careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $138,000 to VEREN INDUSTRIES LLC. REPLACE THE EXISTING COMPONENTS OF THE EAST ELEVATOR (FREIGHT ELEVATOR), A HYDRAULIC ELEVATOR SYSTEM WITH UPGRADED PARTS TO ENHANCE ITS FUNCTIONALITY, SAFETY, AND EFFICIENCY. THE ELEVATOR CURRENTLY HAS A CAPACITY OF 3000LBS, SERVES 4 STOPS, AND OPERA

Who is the contractor on this award?

The obligated recipient is VEREN INDUSTRIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $138,000.

What is the period of performance?

Start: 2024-09-30. End: 2026-05-15.

What specific upgrades are included in the elevator enhancement, and how do they directly contribute to improved safety and efficiency?

The provided data indicates upgrades to enhance functionality, safety, and efficiency. Specific details on the nature of these upgrades (e.g., motor replacement, control system modernization, safety brake installation) are not available. Understanding these specifics is crucial to validating the claimed improvements and assessing the overall value proposition of the $138,000 investment.

Could a more competitive bidding process under full and open competition have resulted in significant cost savings for this elevator upgrade?

While SAP is designed for efficiency in smaller procurements, it inherently limits the pool of potential bidders compared to full and open competition. It is plausible that a broader solicitation could have attracted more competitive bids, potentially leading to cost savings for the government. However, the administrative cost savings of SAP must also be considered.

How will the success of this elevator upgrade be measured, and what metrics will be used to evaluate its long-term effectiveness and return on investment?

Success measurement would likely involve post-installation testing to confirm functionality and safety compliance. Long-term effectiveness could be gauged by reduced maintenance calls, decreased downtime, and user feedback. Quantifying the return on investment might involve comparing the upgrade cost against projected savings from reduced repairs and improved operational continuity.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12505B24Q0186

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4711 12TH AVE APT C6, BROOKLYN, NY, 11219

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $138,000

Exercised Options: $138,000

Current Obligation: $138,000

Actual Outlays: $120,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline