VA awards $3M for elevator maintenance, with 4 bids received under simplified acquisition procedures

Contract Overview

Contract Amount: $2,997,646 ($3.0M)

Contractor: Elevated Technologies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-02-01

End Date: 2024-09-30

Contract Duration: 1,337 days

Daily Burn Rate: $2.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR PREVENTATIVE MAINTENANCE AND REPAIR SERVICE

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to ELEVATED TECHNOLOGIES, INC for work described as: ELEVATOR PREVENTATIVE MAINTENANCE AND REPAIR SERVICE Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was present but limited due to the simplified acquisition threshold. 3. Risk indicators are low, with a firm-fixed-price contract type. 4. Performance context is preventative maintenance and repair, crucial for facility operations. 5. Sector positioning is within building equipment maintenance, a common government need.

Value Assessment

Rating: good

The contract value of approximately $3 million over 32 months for elevator maintenance and repair services seems within a reasonable range for a federal agency. While specific benchmarks for this exact service in North Carolina are not readily available, the firm-fixed-price structure suggests cost control. The number of bids (4) indicates some level of market interest, which generally supports fair pricing. Further analysis would require comparing per-incident repair costs or hourly rates against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for streamlined procurement for purchases below the threshold for full and open competition. Four bids were received, indicating a degree of competition. However, SAP procurements often involve fewer bidders and less extensive market research than larger, full-and-open competitions, potentially limiting price discovery.

Taxpayer Impact: The use of SAP suggests an effort to procure efficiently for a lower-value contract. While four bids provide some competition, taxpayers may not benefit from the most aggressive pricing achievable through broader market outreach.

Public Impact

Veterans and staff at VA facilities in North Carolina benefit from reliable elevator operations. Essential building equipment maintenance services are delivered, ensuring facility functionality. The geographic impact is concentrated in North Carolina, where the VA facilities are located. The contract supports the workforce of Elevated Technologies, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP threshold
Reliance on a single vendor for a critical service over an extended period

Positive Signals

Firm-fixed-price contract limits cost overrun risk for the government
Multiple bids received indicate some level of market engagement
Preventative maintenance focus can reduce costly emergency repairs

Sector Analysis

This contract falls within the broader building operations and maintenance sector, specifically focusing on elevator systems. The market for elevator maintenance is competitive, with numerous specialized firms. Federal agencies are significant consumers of these services due to their extensive real estate holdings. Comparable spending benchmarks would typically involve analyzing other federal or state contracts for similar elevator maintenance services in the region.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Elevated Technologies, Inc. is the prime contractor. There is no explicit information on subcontracting plans or performance related to small businesses within this data. The impact on the small business ecosystem is neutral unless subcontracting opportunities were pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and facility managers. As a purchase order under SAP, it likely falls under standard procurement regulations and agency-specific policies. Transparency is generally provided through contract databases like FPDS. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Operations and Maintenance Contracts
Elevator and Escalator Maintenance Services
Department of Veterans Affairs Facility Management

Risk Flags

Potential for limited competition due to SAP
Contract duration extends over multiple fiscal years

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to ELEVATED TECHNOLOGIES, INC. ELEVATOR PREVENTATIVE MAINTENANCE AND REPAIR SERVICE

Who is the contractor on this award?

The obligated recipient is ELEVATED TECHNOLOGIES, 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 $3.0 million.

What is the period of performance?

Start: 2021-02-01. End: 2024-09-30.

What is the track record of Elevated Technologies, Inc. with federal contracts?

Elevated Technologies, Inc. has been awarded federal contracts primarily through the General Services Administration (GSA) and the Department of Veterans Affairs (VA). The provided data shows this specific contract is a purchase order valued at approximately $3 million for elevator maintenance and repair services in North Carolina, running from February 2021 to September 2024. Analysis of broader federal procurement databases would reveal the full extent of their federal contract history, including past performance ratings, types of services rendered, and total contract values across different agencies. Understanding their history with similar preventative maintenance contracts and their performance on previous VA contracts would provide further insight into their reliability and capability.

How does the pricing of this contract compare to similar federal elevator maintenance contracts?

Benchmarking the pricing of this $3 million contract for elevator maintenance and repair against similar federal contracts requires access to a broader dataset of comparable procurements. Factors such as geographic location, type and number of elevators, service level agreements (preventative vs. on-demand), and contract duration significantly influence pricing. Given this is a firm-fixed-price contract awarded under Simplified Acquisition Procedures (SAP) with four bids, the pricing is likely competitive within its specific parameters. However, without direct comparisons of per-elevator maintenance costs or hourly rates for technicians on similar contracts in North Carolina or comparable regions, a definitive value-for-money assessment is challenging. The duration of over three years suggests a stable, predictable cost structure.

What are the primary risks associated with this elevator maintenance contract?

The primary risks associated with this elevator maintenance contract are relatively low due to its firm-fixed-price nature and the focus on preventative maintenance. However, potential risks include: 1) Contractor performance failure: If Elevated Technologies, Inc. fails to perform maintenance adequately, it could lead to elevator downtime, impacting facility operations and potentially causing safety issues. 2) Limited competition: As it was competed under SAP, there's a possibility that a broader competition could have yielded better pricing or terms. 3) Unforeseen repair costs: While preventative maintenance aims to minimize major issues, unexpected and costly repairs could arise that strain the contract budget if not adequately managed or if scope changes are needed. 4) Contractor viability: The long-term financial stability and operational capacity of the contractor over the contract's duration are always a consideration.

How effective is preventative maintenance in ensuring reliable elevator service for the VA?

Preventative maintenance is highly effective in ensuring reliable elevator service for the VA and other federal agencies. By scheduling regular inspections, lubrication, adjustments, and minor repairs, it significantly reduces the likelihood of unexpected breakdowns and emergency service calls. This proactive approach helps extend the lifespan of elevator equipment, maintains safety standards, and minimizes disruptions to building occupants, including veterans and staff. Consistent preventative maintenance also helps in identifying potential issues before they become major, costly problems, thereby contributing to better long-term cost management compared to a purely reactive repair strategy. The firm-fixed-price nature of this contract further incentivizes the contractor to perform diligent preventative work to avoid costly emergency interventions.

What is the historical spending pattern for elevator maintenance at this specific VA facility or region?

The provided data focuses on a single contract awarded in February 2021. To understand historical spending patterns for elevator maintenance at this specific VA facility or region, a comprehensive review of past contracts awarded by the Department of Veterans Affairs in North Carolina would be necessary. This would involve analyzing contract databases for previous awards to Elevated Technologies, Inc. or other vendors for similar services, noting contract values, durations, and the number of bids received. Examining spending trends over the last 5-10 years would reveal whether this $3 million contract represents an increase, decrease, or stable level of investment in elevator maintenance for the relevant VA facilities. It would also highlight any shifts in contracting strategies or vendor relationships.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24620Q0241

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 817 OTTAWA AVE NW, GRAND RAPIDS, MI, 49503

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,381,457

Exercised Options: $2,997,646

Current Obligation: $2,997,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline