VA awards $2.3M for Lovell FHCC elevator maintenance to Elevated Technologies, Inc

Contract Overview

Contract Amount: $2,331,480 ($2.3M)

Contractor: Elevated Technologies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-01

End Date: 2027-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR MAINTENANCE SERVICES FOR THE LOVELL FEDERAL HEALTH CARE CENTER (FHCC), NAVAL STATION GREAT LAKES, NORTH CHICAGO, ILLINOIS

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to ELEVATED TECHNOLOGIES, INC for work described as: ELEVATOR MAINTENANCE SERVICES FOR THE LOVELL FEDERAL HEALTH CARE CENTER (FHCC), NAVAL STATION GREAT LAKES, NORTH CHICAGO, ILLINOIS Key points: 1. Contract value of $2.33M over 5 years for essential facility maintenance. 2. Competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value contracts. 3. Risk of service disruption if maintenance is inadequate, impacting critical healthcare operations. 4. Sector: Other Building Equipment Contractors, essential for facility upkeep.

Value Assessment

Rating: good

The contract value of $2.33M over five years appears reasonable for specialized elevator maintenance services at a large federal health care center. Benchmarking against similar contracts for facility maintenance in the region would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of offers. While this can lead to efficient procurement for smaller dollar amounts, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The use of SAP suggests an effort to streamline the acquisition process for a contract of this value, potentially saving administrative costs. However, the ultimate taxpayer impact depends on the price discovery achieved through the limited competition.

Public Impact

Ensures continued safe and reliable operation of elevators at a critical healthcare facility. Supports patient access and staff mobility within the Lovell Federal Health Care Center. Maintains infrastructure integrity, preventing costly emergency repairs and downtime.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not guarantee the best price.
Dependence on a single vendor for critical maintenance.

Positive Signals

Contract supports essential healthcare operations.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the 'Other Building Equipment Contractors' sector, which encompasses services for maintaining specialized building systems like elevators. Spending in this area is crucial for the operational readiness of federal facilities, particularly healthcare centers where downtime can have significant consequences.

Small Business Impact

The contract was competed under SAP, which can sometimes favor small businesses. However, the data does not explicitly state if small businesses participated or were awarded portions of this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should be in place to ensure performance and value for money. The use of a Purchase Order indicates a standard transactional award mechanism.

Related Government Programs

Other Building Equipment Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for higher costs due to limited competition.
Reliance on a single vendor for critical infrastructure maintenance.
Need for robust oversight to ensure service quality and prevent service disruptions.
Lack of transparency on specific performance metrics and vendor qualifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to ELEVATED TECHNOLOGIES, INC. ELEVATOR MAINTENANCE SERVICES FOR THE LOVELL FEDERAL HEALTH CARE CENTER (FHCC), NAVAL STATION GREAT LAKES, NORTH CHICAGO, ILLINOIS

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 $2.3 million.

What is the period of performance?

Start: 2022-06-01. End: 2027-05-31.

What is the benchmark cost for elevator maintenance services at comparable federal healthcare facilities?

Benchmarking elevator maintenance costs requires detailed analysis of contract scope, facility size, elevator type, and service level agreements. Without specific comparable contracts, it's difficult to provide an exact figure. However, contracts for similar services at large federal facilities can range from tens of thousands to hundreds of thousands of dollars annually, depending on the complexity and number of elevators.

What are the potential risks associated with limited competition under SAP for this critical service?

Limited competition under SAP could lead to higher prices than if the contract were fully competed, as there may be less incentive for the awarded vendor to offer their most competitive rate. Additionally, it might restrict the pool of potential vendors, potentially overlooking innovative solutions or specialized expertise available from a broader market.

How effectively does this contract ensure the continuous and safe operation of essential elevators?

The firm fixed price structure provides cost certainty for the VA. However, the effectiveness hinges on the vendor's performance and the VA's oversight. Regular inspections, performance reviews, and clear service level agreements are crucial to ensure the continuous and safe operation of elevators, especially in a healthcare setting where reliability is paramount.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25222Q0471

Offers Received: 2

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: $2,331,480

Exercised Options: $2,331,480

Current Obligation: $2,331,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline