VA Awards $6.8M Laundry Services Contract to Wiregrass Rehabilitation Center Inc. for 3 Years

Contract Overview

Contract Amount: $6,840,400 ($6.8M)

Contractor: Wiregrass Rehabilitation Center Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-01

End Date: 2027-01-31

Contract Duration: 364 days

Daily Burn Rate: $18.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN 7 LAUNDRY AND LINEN SERVICES

Place of Performance

Location: DOTHAN, HOUSTON County, ALABAMA, 36303

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.8 million to WIREGRASS REHABILITATION CENTER INC for work described as: VISN 7 LAUNDRY AND LINEN SERVICES Key points: 1. Contract value of $6.84 million over 3 years. 2. Sole-source award to Wiregrass Rehabilitation Center Inc. 3. Potential risk due to limited competition. 4. Services fall under Industrial Launderers sector.

Value Assessment

Rating: fair

The contract price of $6.84 million over three years for laundry and linen services appears reasonable given the duration and scope. However, without comparable contract data or detailed service breakdowns, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.

Public Impact

Ensures essential laundry and linen services for VISN 7 facilities. Supports a specific provider, Wiregrass Rehabilitation Center Inc. Limited public visibility into the justification for sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of transparency in justification for sole-source.
Potential for overpayment due to no competition.

Positive Signals

Ensures service continuity for VISN 7.
Contract duration provides stability.

Sector Analysis

This contract falls within the Industrial Launderers sector, which provides essential services to various government agencies. Spending benchmarks for this sector are highly variable based on service volume and specific requirements.

Small Business Impact

The contract was awarded to Wiregrass Rehabilitation Center Inc. and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The justification for the sole-source award and adherence to service level agreements will be critical areas for accountability.

Related Government Programs

Industrial Launderers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.8 million to WIREGRASS REHABILITATION CENTER INC. VISN 7 LAUNDRY AND LINEN SERVICES

Who is the contractor on this award?

The obligated recipient is WIREGRASS REHABILITATION CENTER 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 $6.8 million.

What is the period of performance?

Start: 2026-02-01. End: 2027-01-31.

What is the specific justification for awarding this laundry and linen services contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. A detailed review of the contract file would be necessary to ascertain the precise rationale.

What are the risks associated with a sole-source contract for essential services like laundry?

Sole-source contracts carry risks of reduced price competition, potentially leading to higher costs for the government and taxpayers. They can also limit innovation and the opportunity to leverage new technologies or service providers. Furthermore, reliance on a single vendor can create vulnerability if that vendor experiences operational issues.

How does the fixed price contract structure impact value for money in this sole-source scenario?

A firm-fixed-price contract aims to establish a set price for the work, transferring some risk to the contractor. However, in a sole-source situation, the 'fixed' price is determined without competitive input, potentially inflating the baseline cost. While it provides cost certainty for the VA, the overall value for money is diminished without competitive benchmarking.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Industrial Launderers

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 795 ROSS CLARK CIR, DOTHAN, AL, 36303

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,920,625

Exercised Options: $6,840,821

Current Obligation: $6,840,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline