VA awards $5.7M contract for building maintenance, highlighting potential value in long-term facility upkeep

Contract Overview

Contract Amount: $5,712,050 ($5.7M)

Contractor: Industrial Maintenance Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-26

End Date: 2026-08-14

Contract Duration: 779 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CORRECT SAFETY DEFICIENCIES B14-B22

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.7 million to INDUSTRIAL MAINTENANCE SERVICES INC for work described as: CORRECT SAFETY DEFICIENCIES B14-B22 Key points: 1. Contract value suggests a significant investment in maintaining critical VA infrastructure. 2. The award was made under full and open competition, indicating a potentially competitive pricing environment. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract points to a need for sustained, reliable maintenance services. 5. Focus on safety deficiencies suggests a proactive approach to facility management. 6. The contractor's specialization in industrial maintenance is a positive indicator for service quality.

Value Assessment

Rating: good

The contract value of $5.7 million for a period of approximately 2.5 years appears reasonable for comprehensive industrial maintenance services. Benchmarking against similar contracts for facility maintenance at federal installations of comparable size and complexity would provide a more precise value assessment. The firm fixed-price structure is generally favorable for the government, locking in costs and reducing the risk of unexpected increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting that multiple vendors had the opportunity to bid. The presence of at least two bidders (indicated by 'no': 2) is a positive sign for price discovery. However, the 'exclusion of sources' aspect warrants further investigation to understand if any specific capabilities or limitations were imposed that might have narrowed the competitive pool.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.

Public Impact

Veterans and VA staff will benefit from well-maintained and safe facilities. Essential building maintenance services will be delivered to ensure operational continuity. The geographic impact is primarily focused on the facility located in Michigan. The contract supports jobs within the industrial maintenance and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type needs clarification to ensure no undue restrictions limited potential bidders.
While safety deficiencies are being addressed, ongoing monitoring is crucial to ensure sustained compliance.

Positive Signals

The award to a specialized industrial maintenance provider suggests a focus on quality service delivery.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration indicates a commitment to long-term facility upkeep.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on maintenance services. The North American Industry Classification System (NAICS) code 236220 covers commercial and institutional building construction. Spending in this sector for federal facility maintenance is substantial, driven by the need to preserve government assets across various agencies. Comparable spending benchmarks would involve analyzing maintenance contracts for other large federal facilities.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information provided regarding subcontracting plans for small businesses. This means opportunities for small business participation may be limited unless the prime contractor voluntarily includes them in their supply chain.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for oversight of this contract. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Facility Maintenance Contracts
Federal Building Operations and Maintenance
Industrial Maintenance Services
Commercial Building Construction and Repair

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Need to verify contractor's past performance and experience with similar complex maintenance tasks.
Severity and scope of 'safety deficiencies' require detailed understanding for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.7 million to INDUSTRIAL MAINTENANCE SERVICES INC. CORRECT SAFETY DEFICIENCIES B14-B22

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL MAINTENANCE 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 $5.7 million.

What is the period of performance?

Start: 2024-06-26. End: 2026-08-14.

What is the track record of Industrial Maintenance Services Inc. with the Department of Veterans Affairs and other federal agencies?

A thorough review of federal procurement databases (like SAM.gov and FPDS) would be necessary to assess Industrial Maintenance Services Inc.'s past performance. This would involve examining the number and value of previous contracts awarded to the company, the agencies they have served, and any performance evaluations or past performance questionnaires on record. Understanding their history with the VA specifically is crucial, given this new award. A lack of significant federal contract history might indicate a higher risk, while a strong record of successful, on-time, and within-budget performance would be a positive indicator.

How does the awarded price compare to market rates for similar industrial maintenance services in Michigan?

To benchmark the value, one would need to compare the contract's total value ($5.7 million) and its duration (779 days) against industry data for similar services in the Michigan region. This involves researching average hourly rates for maintenance technicians, supervisors, and specialized labor, as well as typical markups for materials and equipment. Analyzing pricing from recent, publicly available solicitations for comparable services from other federal or state agencies in the same geographic area would also be informative. The firm fixed-price nature of this contract suggests the contractor has already factored in their costs and profit margins, making direct comparison of the overall contract value against market rates essential.

What specific safety deficiencies (B14-B22) were identified, and what is the plan to address them under this contract?

The data provided only references 'CORRECT SAFETY DEFICIENCIES B14-B22' as the contract's purpose. To fully assess the risk and value, the specific nature of these deficiencies would need to be detailed. Were they minor code violations, or did they pose significant risks to occupants or structural integrity? The contract's scope of work should outline the corrective actions, timelines, and associated costs for addressing each deficiency. Understanding the severity and complexity of these issues is key to evaluating whether the $5.7 million award is adequate and if the contractor possesses the necessary expertise to resolve them effectively and prevent recurrence.

What is the expected impact of this contract on the operational effectiveness and safety of the VA facility in Michigan?

This contract is expected to significantly enhance the operational effectiveness and safety of the VA facility by ensuring that critical building systems are maintained and that identified safety deficiencies are rectified. Reliable maintenance reduces the likelihood of equipment failures, power outages, or HVAC disruptions, all of which can impede healthcare delivery and patient comfort. Addressing safety deficiencies directly mitigates risks associated with building code violations or potential hazards, creating a safer environment for veterans, staff, and visitors. The long-term nature of the contract suggests a commitment to sustained facility integrity, contributing to the overall mission readiness of the VA.

What has been the historical spending by the VA on industrial maintenance services in Michigan over the past five years?

To determine historical spending patterns, a detailed analysis of federal procurement data (e.g., FPDS) for the Department of Veterans Affairs in Michigan over the last five fiscal years would be required. This analysis should specifically filter for contracts categorized under NAICS code 236220 (Commercial and Institutional Building Construction) and related maintenance service codes. It would involve summing the total value of all such contracts awarded within Michigan to understand the VA's typical investment in facility upkeep in that region. Comparing this new $5.7 million award against that historical average would indicate whether this contract represents a typical, increased, or decreased level of spending for such services.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25023B0048

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1920 20TH AVE N, ESCANABA, MI, 49829

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

Financial Breakdown

Contract Ceiling: $5,712,050

Exercised Options: $5,712,050

Current Obligation: $5,712,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline