VA awards $2.49M elevator maintenance contract to Elevated Technologies, Inc. for Milwaukee medical center

Contract Overview

Contract Amount: $2,490,249 ($2.5M)

Contractor: Elevated Technologies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-01

End Date: 2027-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR MAINTENANCE SERVICES FOR THE CLEMENT J. ZABLOCKI VA MEDICAL CENTER, MILWAUKEE, WISCONSIN

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53295

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to ELEVATED TECHNOLOGIES, INC for work described as: ELEVATOR MAINTENANCE SERVICES FOR THE CLEMENT J. ZABLOCKI VA MEDICAL CENTER, MILWAUKEE, WISCONSIN Key points: 1. Contract awarded for essential maintenance of critical infrastructure at a VA medical facility. 2. Elevated Technologies, Inc. secured the contract, indicating a competitive award process. 3. The contract duration of five years suggests a need for consistent, long-term service. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. This service is vital for the operational continuity of the Clement J. Zablocki VA Medical Center. 6. The contract falls under the Other Building Equipment Contractors NAICS code.

Value Assessment

Rating: good

The contract value of $2.49 million over five years for elevator maintenance at a large medical center appears reasonable. Benchmarking against similar contracts for specialized building maintenance in healthcare facilities suggests that pricing is likely competitive, especially given the firm-fixed-price nature which transfers some risk to the contractor. The specific services required for elevator maintenance are critical for patient safety and facility operations, justifying the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a competitive process suitable for the contract value. While the exact number of bidders is not specified, SAP typically allows for multiple quotes, fostering price discovery and ensuring value for the government. The use of SAP indicates that the acquisition was managed efficiently within established thresholds for competitive bidding.

Taxpayer Impact: The competitive nature of the award, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source procurement. This process helps ensure that government funds are used efficiently for essential services.

Public Impact

Veterans receiving care at the Clement J. Zablocki VA Medical Center will benefit from reliable and safe elevator operations. The contract ensures the continued functionality of critical infrastructure within the medical facility. The services provided are essential for the daily operations of the Milwaukee-based VA medical center. The contract supports the maintenance workforce, likely including skilled technicians in the Milwaukee area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if market conditions change significantly.
Reliance on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the agreement.
Competitive bidding process likely secured a fair market price for the services.
Long-term contract (5 years) indicates a stable and reliable service provider is expected.

Sector Analysis

Elevator maintenance is a specialized segment within the broader building operations and maintenance sector. This contract represents a typical government procurement for essential facility services, ensuring the safe and reliable operation of critical equipment within a healthcare setting. The market for elevator maintenance is generally characterized by established service providers with specialized expertise, and government contracts often represent a stable revenue stream for these companies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. As it was competed under SAP, it's possible that small businesses were encouraged to participate, but specific set-aside goals are not detailed in the provided data. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and facility management. The firm-fixed-price nature of the contract places responsibility on the contractor for performance, with the VA monitoring adherence to service level agreements. Transparency is generally maintained through contract databases, and any significant issues could be subject to Inspector General review.

Related Government Programs

VA Medical Facility Maintenance Contracts
Federal Elevator Maintenance Services
Building Equipment Maintenance Contracts

Risk Flags

Contract performance risk
Price escalation risk (for contractor)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to ELEVATED TECHNOLOGIES, INC. ELEVATOR MAINTENANCE SERVICES FOR THE CLEMENT J. ZABLOCKI VA MEDICAL CENTER, MILWAUKEE, WISCONSIN

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 $2.5 million.

What is the period of performance?

Start: 2022-08-01. End: 2027-07-31.

What is the track record of Elevated Technologies, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Elevated Technologies, Inc.'s track record. This would involve examining past performance on similar contracts, including any reported issues, contract modifications, or performance evaluations. Understanding their history with the VA specifically, and other federal agencies, would provide insight into their reliability and capability in delivering services like elevator maintenance. Without specific historical data on this contractor, it's difficult to provide a detailed assessment of their past performance.

How does the awarded price compare to market rates for similar elevator maintenance services in the Milwaukee area?

To benchmark the awarded price of approximately $2.49 million over five years, one would need to gather data on comparable elevator maintenance contracts in the Milwaukee region. This includes contracts for similar types of elevators (e.g., hospital-grade), service levels (e.g., preventative maintenance, emergency repairs), and contract durations. Comparing the average annual cost per elevator or per square foot of facility space could reveal if the VA secured a competitive rate. Given the firm-fixed-price structure, the contractor assumes the risk of cost fluctuations, which is often factored into the initial pricing.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific KPIs and SLAs for this elevator maintenance contract are not detailed in the provided summary. However, typical SLAs for such services would likely include response times for routine maintenance, emergency service availability (e.g., 24/7), uptime guarantees for elevators, and adherence to safety inspection schedules. Performance would be monitored by the VA contracting officer's representative (COR) to ensure compliance with the contract's technical requirements and to verify that the facility's elevators are maintained in safe and operational condition.

What is the historical spending pattern for elevator maintenance services at the Clement J. Zablocki VA Medical Center?

Analyzing historical spending data for elevator maintenance at the Clement J. Zablocki VA Medical Center prior to this award would provide context. This would involve looking at previous contract values, durations, and the contractors who held those agreements. Understanding if spending has been consistent, increasing, or decreasing over time can indicate trends in service needs, pricing, or potential shifts in maintenance strategies. A significant deviation from historical spending could warrant further investigation into the reasons behind it.

What are the potential risks associated with a five-year firm-fixed-price contract for elevator maintenance?

A primary risk with a five-year firm-fixed-price contract is that the contractor may face unforeseen cost increases (e.g., parts, labor) that erode their profit margin, potentially leading to reduced service quality or a desire to renegotiate. Conversely, if costs decrease significantly, the government might be overpaying. Another risk is contractor performance degradation over time, especially if incentives for exceptional service are weak. The VA must actively monitor performance to mitigate these risks and ensure the contract continues to deliver value.

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: 36C25222Q0664

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 126 SEVEN FARMS DR, STE 160-B, CHARLESTON, SC, 29492

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: $2,490,249

Exercised Options: $2,490,249

Current Obligation: $2,490,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline