VA awards $220K for generator maintenance at New Orleans VAMC and CBOCs to RJY GROUP LLC

Contract Overview

Contract Amount: $220,545 ($220.5K)

Contractor: RJY Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-01

End Date: 2024-04-30

Contract Duration: 365 days

Daily Burn Rate: $604/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GENERATOR MAINTENANCE AT THE NEW ORLEANS, LA VAMC, AND SURROUNDING CBOCS.

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70119

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $220,544.94 to RJY GROUP LLC for work described as: GENERATOR MAINTENANCE AT THE NEW ORLEANS, LA VAMC, AND SURROUNDING CBOCS. Key points: 1. Contract awarded for essential generator maintenance services, ensuring operational continuity for critical healthcare facilities. 2. The award was made under Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller dollar amounts. 3. RJY GROUP LLC, the contractor, will provide services for one year, indicating a short-term need. 4. The contract type is Firm Fixed Price, which transfers risk to the contractor and provides cost certainty. 5. The services are categorized under Commercial and Industrial Machinery and Equipment Repair and Maintenance. 6. The geographic focus is Louisiana, specifically the New Orleans VAMC and surrounding Community-Based Outpatient Clinics (CBOCs).

Value Assessment

Rating: good

The contract value of approximately $220,545 for a one-year generator maintenance service appears reasonable given the critical nature of the equipment and the number of facilities covered. While specific benchmarks for generator maintenance at VAMCs are not readily available, the price is within the expected range for specialized industrial maintenance. The firm fixed-price structure provides cost predictability for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for acquisitions below the simplified acquisition threshold. The data indicates there were 7 bidders, suggesting a healthy level of competition for this service. The use of SAP aims to streamline the acquisition process while still encouraging multiple offers.

Taxpayer Impact: The multiple bids received under SAP indicate that taxpayers likely benefited from competitive pricing, as vendors vied for the contract. This process helps ensure the government obtains fair market value for the services rendered.

Public Impact

Veterans in the New Orleans area will benefit from uninterrupted access to healthcare services due to reliable generator power. The contract ensures the operational readiness of the New Orleans VAMC and surrounding CBOCs. The services delivered are critical for maintaining the infrastructure necessary for patient care. The geographic impact is localized to the New Orleans metropolitan area and its associated outpatient clinics within Louisiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent performance and response times from the contractor throughout the contract period will be key.
Verifying the contractor's adherence to all maintenance schedules and reporting requirements is important for oversight.

Positive Signals

The contract was competed, indicating a proactive approach to sourcing vendors.
The firm fixed-price contract type provides budget certainty for the agency.
Multiple bidders participated, suggesting a competitive marketplace for these services.

Sector Analysis

The market for industrial machinery and equipment repair and maintenance is substantial, encompassing a wide range of services for critical infrastructure. Federal agencies, particularly those operating facilities like hospitals and clinics, represent a significant segment of this market. The Department of Veterans Affairs, with its extensive network of medical centers and clinics, is a consistent purchaser of such services to ensure operational continuity. This contract fits within the broader category of facilities maintenance and support services, a vital sector for government operations.

Small Business Impact

The contract was competed under Simplified Acquisition Procedures (SAP), which often includes opportunities for small businesses. However, the provided data does not specify if this was a small business set-aside or if small businesses were among the bidders. Further analysis would be needed to determine the extent of small business participation or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Veterans Affairs contracting officer and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract shifts some performance risk to the contractor, but the agency retains responsibility for oversight and ensuring the services meet required standards.

Related Government Programs

VA Facilities Maintenance Contracts
Generator Maintenance Services
Commercial and Industrial Machinery Repair

Risk Flags

Potential for service disruption if contractor fails to perform adequately.
Ensuring contractor maintains qualified personnel and appropriate equipment.
Verification of adherence to maintenance schedules and reporting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $220,544.94 to RJY GROUP LLC. GENERATOR MAINTENANCE AT THE NEW ORLEANS, LA VAMC, AND SURROUNDING CBOCS.

Who is the contractor on this award?

The obligated recipient is RJY GROUP LLC.

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 $220,544.94.

What is the period of performance?

Start: 2023-05-01. End: 2024-04-30.

What is the track record of RJY GROUP LLC with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that RJY GROUP LLC has been awarded multiple contracts, primarily with the Department of Veterans Affairs. These contracts often fall within the scope of maintenance, repair, and facilities support services. While specific details on past performance quality are not provided in this summary, the recurring awards suggest a level of established capability and a working relationship with the agency. Further investigation into past performance reviews and any documented issues would be necessary for a comprehensive assessment of their track record.

How does the awarded price compare to similar generator maintenance contracts within the federal government?

Benchmarking this specific contract's price against similar federal generator maintenance contracts is challenging without access to a broader dataset of comparable services, locations, and contract scopes. However, the total award of approximately $220,545 for a one-year period for multiple facilities suggests a monthly expenditure of roughly $18,378. This figure needs to be evaluated in the context of the specific generator types, maintenance schedules, emergency response requirements, and the number of units serviced. Generally, firm-fixed-price contracts for specialized maintenance can range significantly based on these factors.

What are the primary risks associated with this generator maintenance contract for the VA?

The primary risks for the VA in this contract revolve around potential contractor underperformance, which could lead to generator failures and disruptions in healthcare services. This includes risks related to inadequate or untimely maintenance, use of substandard parts, or failure to respond effectively during emergencies. Another risk is potential cost overruns if the firm-fixed-price contract does not adequately account for unforeseen complexities or if change orders become necessary. Ensuring the contractor maintains appropriate staffing levels and technical expertise is also crucial.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring value for money for contracts of this size?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below the simplified acquisition threshold, aiming for efficiency and speed. For contracts of this approximate value ($220,545), SAP can be effective in reducing administrative burden and accelerating award timelines. The requirement for multiple bids (7 in this case) helps maintain price competition. However, the effectiveness in ensuring the absolute best value for money can depend on the thoroughness of the market research conducted and the clarity of the performance work statement. While SAP promotes competition, it may not always achieve the same level of detailed scrutiny as larger, more complex procurements.

What is the historical spending trend for generator maintenance services by the Department of Veterans Affairs?

The Department of Veterans Affairs historically spends significant amounts on facilities maintenance, including generator maintenance, due to its large portfolio of medical centers and clinics nationwide. Annual spending on such services can run into tens or hundreds of millions of dollars across the entire agency. This specific contract represents a localized expenditure within that broader spending pattern. Analyzing historical VA spending data would reveal trends in contract values, types of services procured, and the distribution of awards across different regions and contractors.

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: 36C25623Q0640

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9040 KIRBY DRIVE, HOUSTON, TX, 77054

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $220,545

Exercised Options: $220,545

Current Obligation: $220,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline