VA awards $1.3M for water system maintenance, highlighting need for specialized equipment repair

Contract Overview

Contract Amount: $1,318,549 ($1.3M)

Contractor: R & M Government Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-01

End Date: 2023-08-31

Contract Duration: 364 days

Daily Burn Rate: $3.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REVERSE OSMOSIS WATER SYSTEM MAINTENANCE.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.3 million to R & M GOVERNMENT SERVICES INC for work described as: REVERSE OSMOSIS WATER SYSTEM MAINTENANCE. Key points: 1. Contract value appears reasonable for specialized industrial equipment maintenance. 2. Competition was limited, suggesting potential for price optimization. 3. Risk indicators are low given the nature of the service. 4. Performance context is essential for evaluating long-term equipment reliability. 5. Sector positioning is within industrial machinery repair, a critical support function.

Value Assessment

Rating: good

The contract value of approximately $1.3 million for a one-year period for reverse osmosis water system maintenance seems aligned with specialized industrial equipment repair services. Benchmarking against similar contracts for complex machinery maintenance would provide a clearer picture of value for money. However, given the specific nature of water purification systems, pricing is likely influenced by the technical expertise and parts required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. While the specific number of bids is not provided, SAP is designed for smaller value procurements and may not always yield the most competitive pricing compared to full and open competition. The limited competition could mean less downward pressure on price.

Taxpayer Impact: Limited competition under SAP may result in taxpayers paying a premium compared to a more broadly competed contract, though it offers efficiency for smaller dollar amounts.

Public Impact

Veterans Affairs medical facilities benefit from reliable water purification systems. Essential services for patient care and facility operations are maintained. The contract supports specialized maintenance technicians and their employers. Geographic impact is focused on the facility in Florida where the service is provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to limited competition.
Dependence on a single contractor for critical system maintenance.

Positive Signals

Ensures operational continuity of essential water systems.
Addresses a specific, technical maintenance need.

Sector Analysis

The industrial machinery repair and maintenance sector is vital for supporting government operations, including healthcare facilities. This contract falls under NAICS code 811310, covering commercial and industrial machinery repair. Spending in this area is often driven by the need to maintain specialized equipment, such as water purification systems, ensuring compliance with health and safety standards and operational efficiency.

Small Business Impact

The contract was competed under SAP and does not indicate a small business set-aside. Therefore, the direct impact on small businesses through this specific award is not evident. However, the prime contractor, R & M Government Services Inc., may utilize small businesses for subcontracting, which would need further investigation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability is ensured through the terms of the purchase order and performance standards. Transparency is facilitated by contract databases, though detailed performance metrics are not publicly available.

Related Government Programs

Facility Maintenance Services
Medical Equipment Maintenance
Water Treatment Services
Government Contracting

Risk Flags

Limited competition may impact price.
Reliance on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.3 million to R & M GOVERNMENT SERVICES INC. REVERSE OSMOSIS WATER SYSTEM MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is R & M GOVERNMENT SERVICES 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 $1.3 million.

What is the period of performance?

Start: 2022-09-01. End: 2023-08-31.

What is the track record of R & M Government Services Inc. in performing similar maintenance contracts?

Information regarding R & M Government Services Inc.'s specific track record for reverse osmosis water system maintenance is not detailed in the provided data. A thorough review would involve examining past performance evaluations, contract history with the VA and other agencies, and any reported issues or successes on similar projects. Understanding their experience with specialized water purification equipment is crucial for assessing their capability to fulfill this contract effectively and reliably.

How does the $1.3 million contract value compare to market rates for similar specialized maintenance services?

The $1.3 million contract value for a one-year term for reverse osmosis water system maintenance needs to be benchmarked against industry standards and comparable contracts. Factors influencing this value include the complexity of the systems, the frequency of maintenance, required response times, and the specific geographic location. Without access to detailed service level agreements and market surveys for specialized industrial equipment maintenance, a precise comparison is difficult. However, the value suggests a significant scope of work or highly specialized technical requirements.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if the contractor fails to perform adequately, leading to compromised water quality or system downtime. Another risk is price escalation in future contract renewals due to the limited competition under SAP. Mitigation strategies typically involve clear performance standards in the contract, regular monitoring by the VA, and contingency planning for emergency repairs. The VA may also conduct market research to ensure future competition is viable.

How effective has the VA been in ensuring the reliability of its water systems through such maintenance contracts?

The effectiveness of the VA's water system maintenance contracts is best assessed through performance metrics and historical data on system reliability and water quality compliance. This specific contract aims to ensure the reliability of reverse osmosis systems, which are critical for providing safe and purified water. Success would be measured by the absence of system failures, adherence to maintenance schedules, and positive outcomes in water quality testing. Long-term effectiveness depends on consistent oversight and appropriate contract structuring.

What are the historical spending patterns for reverse osmosis water system maintenance at this VA facility or similar facilities?

Historical spending data for reverse osmosis water system maintenance at this specific VA facility or comparable ones would provide valuable context. Analyzing past contract values, durations, and the number of competitors over several years can reveal trends in cost, service scope, and contractor stability. Significant year-over-year increases or decreases, or a consistent reliance on a single vendor, could indicate potential issues or efficiencies. This data helps in evaluating whether the current $1.3 million award is consistent with historical investment in this critical infrastructure.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

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: 36C24822Q0751

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 650 MONTANA AVE, LAS CRUCES, NM, 88001

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $1,701,165

Exercised Options: $1,318,549

Current Obligation: $1,318,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline