VA Awards $958K for St. Louis VAMC Elevator Maintenance to KONE Inc

Contract Overview

Contract Amount: $958,335 ($958.3K)

Contractor: Kone Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-03

End Date: 2026-10-31

Contract Duration: 1,823 days

Daily Burn Rate: $526/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ST LOUIS VAMC JC DIVISION ELEVATOR MAINT.

Place of Performance

Location: MOLINE, ROCK ISLAND County, ILLINOIS, 61265

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $958,335.21 to KONE INC for work described as: ST LOUIS VAMC JC DIVISION ELEVATOR MAINT. Key points: 1. Contract awarded to KONE Inc. for elevator maintenance at St. Louis VAMC. 2. Total contract value is $958,335.21 over approximately 5 years. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. This falls under the 'Other Building Equipment Contractors' NAICS code. 5. The award was a Purchase Order with a Firm Fixed Price.

Value Assessment

Rating: good

The contract value of $958,335.21 for a 5-year elevator maintenance agreement appears reasonable. Benchmarking against similar VAMC maintenance contracts would provide a more precise assessment, but the price seems within expected ranges for specialized building equipment services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP, suggesting a competitive process for awards below certain thresholds. The specific competition method and the number of bids received are not detailed, but SAP aims for fair pricing through competition.

Taxpayer Impact: Taxpayer funds are being used for essential building maintenance, ensuring the operational integrity of a VA facility. The competitive nature, even under SAP, aims to secure value for money.

Public Impact

Ensures continued safe and reliable elevator operation for veterans and staff at the St. Louis VAMC. Supports critical infrastructure maintenance within a federal healthcare facility. Provides employment and revenue for KONE Inc., a significant player in the elevator industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information under SAP.
Potential for price creep in future contract renewals if competition is not robust.

Positive Signals

Essential service for a healthcare facility.
Firm Fixed Price contract provides cost certainty.
Long-term contract provides stability for service provider.

Sector Analysis

This contract falls under the 'Other Building Equipment Contractors' sector, which includes maintenance and repair of various building systems. Spending in this sector is crucial for maintaining federal facilities and ensuring operational continuity.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure KONE Inc. meets all maintenance requirements and service level agreements. Standard procurement regulations and oversight mechanisms apply.

Related Government Programs

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

Risk Flags

Limited visibility into the specific competitive process.
Potential for reliance on a single vendor for critical maintenance.
Contract duration could lead to vendor lock-in if not managed carefully.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $958,335.21 to KONE INC. ST LOUIS VAMC JC DIVISION ELEVATOR MAINT.

Who is the contractor on this award?

The obligated recipient is KONE 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 $958,335.21.

What is the period of performance?

Start: 2021-11-03. End: 2026-10-31.

What was the specific competitive process used under SAP for this contract, and how many bids were received?

While the data states the contract was 'COMPETED UNDER SAP,' it does not provide specifics on the number of bids or the exact solicitation method. Simplified Acquisition Procedures (SAP) allow for various methods like RFQs or simplified solicitations, aiming for efficiency while still encouraging competition for contracts under the SAP threshold.

Are there any performance metrics or service level agreements tied to this elevator maintenance contract?

The provided data does not explicitly list performance metrics or service level agreements (SLAs). However, standard government contracts, especially for critical infrastructure like hospital elevators, typically include detailed SLAs and performance standards that the contractor must meet to ensure timely and effective service.

How does the awarded price compare to industry benchmarks for similar elevator maintenance contracts in the St. Louis region?

Without access to specific industry benchmark data for elevator maintenance in the St. Louis area, a precise comparison is difficult. However, the total value of $958,335.21 over nearly five years suggests an average annual cost of approximately $191,667, which seems plausible for maintaining multiple elevators in a large facility.

Industry Classification

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

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: 36C25522Q0032

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kone OYJ

Address: ONE KONE COURT, MOLINE, IL, 61265

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $961,407

Exercised Options: $961,407

Current Obligation: $958,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline