VA awards $4.1M for elevator maintenance, with 2 bids received

Contract Overview

Contract Amount: $4,127,207 ($4.1M)

Contractor: Elevated Technologies, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-01-01

End Date: 2025-02-28

Contract Duration: 1,885 days

Daily Burn Rate: $2.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR MAINTENANCE AND INSPECTION SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.1 million to ELEVATED TECHNOLOGIES, INC for work described as: ELEVATOR MAINTENANCE AND INSPECTION SERVICES Key points: 1. Contract awarded to Elevated Technologies, Inc. for elevator maintenance and inspection. 2. Spending is relatively low for this type of service. 3. Limited competition suggests potential for higher pricing. 4. The sector is dominated by specialized building equipment contractors.

Value Assessment

Rating: fair

The contract value of $4.1M over 5 years is moderate. Benchmarking against similar elevator maintenance contracts is difficult without more specific service details, but the number of bids suggests pricing may not be fully optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a focus on smaller dollar values. With only two bids, the price discovery mechanism may be less robust than in a fully open competition, potentially leading to less competitive pricing.

Taxpayer Impact: Taxpayers may be paying a premium due to the limited competition, although the overall contract value is not excessively high.

Public Impact

Ensures operational safety and accessibility of VA facilities. Supports essential infrastructure for veteran healthcare services. Potential for increased costs due to limited vendor pool.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for price creep

Positive Signals

Essential service for VA operations
Fixed price contract

Sector Analysis

This contract falls under building equipment maintenance, a niche within the broader construction and facilities management sector. Spending benchmarks for elevator maintenance vary significantly based on facility size and complexity, but this award appears within a reasonable range for the duration.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is not identified as a small business. There is no indication of small business participation in this procurement.

Oversight & Accountability

The contract was awarded via Purchase Order under SAP, suggesting a streamlined acquisition process. Oversight would focus on service delivery and adherence to contract terms by the VA.

Related Government Programs

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

Risk Flags

Limited competition
Potential for price inflation
Lack of small business participation
Contract duration is long

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.1 million to ELEVATED TECHNOLOGIES, INC. ELEVATOR MAINTENANCE AND INSPECTION SERVICES

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 $4.1 million.

What is the period of performance?

Start: 2020-01-01. End: 2025-02-28.

What is the benchmark cost per elevator for this type of maintenance contract?

Benchmarking the cost per elevator is challenging without knowing the exact number and type of elevators covered under this contract. However, typical costs can range from $500 to $2,000 per elevator per year for comprehensive maintenance, depending on age, usage, and service level agreements. The total contract value suggests a significant number of elevators or a higher per-unit cost.

What are the risks associated with limited competition in elevator maintenance contracts?

Limited competition, as seen with only two bids, increases the risk of inflated pricing and reduced service quality. The incumbent contractor may have an advantage, and potential bidders might be deterred by the effort required for a small chance of winning. This can lead to taxpayers overpaying for services and potentially receiving suboptimal maintenance.

How effective is a fixed-price contract for ensuring value in elevator maintenance?

A firm-fixed-price contract is generally effective in controlling costs for predictable services like routine elevator maintenance and inspections. It shifts the risk of cost overruns to the contractor. However, for unforeseen repairs or complex issues, a fixed-price contract might incentivize the contractor to perform only the minimum required, potentially impacting long-term equipment health if not carefully monitored.

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: 36C25720Q0038

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: $4,127,207

Exercised Options: $4,127,207

Current Obligation: $4,127,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline