VA awards $2.59M for elevator maintenance in CT, with KONE Inc. securing the contract
Contract Overview
Contract Amount: $2,594,913 ($2.6M)
Contractor: Kone Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-06-01
End Date: 2024-05-31
Contract Duration: 1,826 days
Daily Burn Rate: $1.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELEVATOR PREVENTIVE MAINTENANCE AND REPAIR WEST HAVEN, CT
Place of Performance
Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516
Plain-Language Summary
Department of Veterans Affairs obligated $2.6 million to KONE INC for work described as: ELEVATOR PREVENTIVE MAINTENANCE AND REPAIR WEST HAVEN, CT Key points: 1. Contract value of $2.59 million over five years. 2. KONE Inc. is a major player in the elevator industry. 3. Potential risk of vendor lock-in for specialized maintenance. 4. Spending falls under 'Other Building Equipment Contractors' sector.
Value Assessment
Rating: fair
The contract's price of $2.59 million over five years for elevator maintenance appears reasonable given the duration and scope. Benchmarking against similar government contracts for building equipment maintenance would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services like facility maintenance.
Public Impact
Ensures operational readiness of VA facilities in West Haven, CT. Supports critical infrastructure for veteran healthcare services. Impacts local employment through maintenance and repair services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for critical maintenance.
Positive Signals
- Long-term contract provides budget stability.
- Full and open competition suggests fair pricing.
- Contract duration aligns with facility needs.
Sector Analysis
This contract falls within the 'Other Building Equipment Contractors' sector, which includes maintenance and repair of various building systems. Spending benchmarks for this sector can vary widely based on the specific equipment and service level agreements.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to compete or participate as subcontractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure contractor performance and adherence to terms.
Related Government Programs
- Other Building Equipment Contractors
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for sole-source reliance in future if competition is not maintained.
- Risk of escalating costs if contract terms are not tightly managed.
- Dependence on vendor expertise for critical safety equipment.
- Limited visibility into specific performance metrics from provided data.
Tags
other-building-equipment-contractors, department-of-veterans-affairs, ct, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.6 million to KONE INC. ELEVATOR PREVENTIVE MAINTENANCE AND REPAIR WEST HAVEN, CT
Who is the contractor on this award?
The obligated recipient is KONE 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 $2.6 million.
What is the period of performance?
Start: 2019-06-01. End: 2024-05-31.
What is the specific scope of services included in the elevator preventive maintenance and repair contract?
The provided data does not detail the specific scope of services. Typically, preventive maintenance includes regular inspections, lubrication, and minor adjustments, while repair services cover addressing malfunctions and component replacements. A detailed statement of work would clarify the exact deliverables and service level agreements.
How does the cost per year compare to industry averages for similar elevator maintenance contracts?
The contract averages approximately $518,982 per year ($2.59M / 5 years). Without specific details on the number and type of elevators, location, and service level, a direct comparison to industry averages is difficult. However, this figure can be benchmarked against similar government or commercial contracts for elevator maintenance in the region.
What mechanisms are in place to ensure the quality and timeliness of KONE Inc.'s maintenance and repair services?
Quality and timeliness are typically ensured through contract performance standards, service level agreements (SLAs), and regular performance reviews by the contracting officer's representative. The contract likely includes provisions for penalties for non-performance and requirements for response times to service calls.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kone OYJ
Address: 1 KONE CT, MOLINE, IL, 61265
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,643,703
Exercised Options: $2,624,613
Current Obligation: $2,594,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0002N
IDV Type: FSS
Timeline
Start Date: 2019-06-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2026-01-06
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