VA Awards $8.5M Pest Control Contract to HAMHED LLC for 4 Years

Contract Overview

Contract Amount: $85,260 ($85.3K)

Contractor: Hamhed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-05-08

End Date: 2027-04-30

Contract Duration: 1,453 days

Daily Burn Rate: $59/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PEST CONTROL SERVICES

Place of Performance

Location: FORT HARRISON, LEWIS AND CLARK County, MONTANA, 59636

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $85,260 to HAMHED LLC for work described as: PEST CONTROL SERVICES Key points: 1. Contract Value: $8.5 million over approximately 4 years. 2. Competition: Competed under Simplified Acquisition Procedures (SAP). 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Facilities maintenance and support services.

Value Assessment

Rating: good

The contract value of $8.5 million over nearly four years appears reasonable for pest control services. Benchmarking against similar government contracts for similar scope and duration would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting it was likely awarded to a limited number of sources, possibly due to the contract value threshold. This method may not achieve the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayers are impacted by the cost of this essential service, with the price determined through a limited competition process.

Public Impact

Ensures sanitary conditions at VA facilities, protecting veteran health. Supports operational continuity by preventing pest-related disruptions. Provides employment opportunities through the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 59 / 10

Warning Flags

Limited competition may not yield the best price.
Contract duration extends over multiple fiscal years.
Potential for scope creep if not managed tightly.

Positive Signals

Essential service for facility maintenance.
Firm Fixed Price contract provides cost certainty.
Awarded to a single entity for streamlined service delivery.

Sector Analysis

Pest control services fall under facilities maintenance and support, a crucial sector for government operations. Spending benchmarks for this sector vary widely based on facility size, type, and geographic location.

Small Business Impact

The data does not indicate if this contract was specifically set aside for small businesses, nor does it provide information on subcontracting opportunities for small businesses. Further analysis would be needed to determine the impact on SMBs.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and proper execution of services.

Related Government Programs

Exterminating and Pest Control Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Contract duration
Potential for price increases in future renewals
Dependence on a single contractor for essential services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $85,260 to HAMHED LLC. PEST CONTROL SERVICES

Who is the contractor on this award?

The obligated recipient is HAMHED 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 $85,260.

What is the period of performance?

Start: 2023-05-08. End: 2027-04-30.

What is the specific scope of work included in this pest control contract?

The provided data identifies the contract as 'PEST CONTROL SERVICES' with NAICS code 561710 (Exterminating and Pest Control Services). However, the specific details of the scope of work, such as the types of pests targeted, frequency of service, and specific locations within VA facilities, are not detailed. A comprehensive understanding of the scope is crucial for evaluating value and effectiveness.

How does the awarded price compare to market rates for similar pest control services?

Without detailed information on the scope of work and specific service locations, a direct comparison to market rates is challenging. The contract's firm fixed price structure provides cost certainty for the VA. However, the limited competition aspect suggests that a more robust competitive process might have yielded a lower price point.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) established for this contract. Effective pest control relies on measurable outcomes, such as pest sighting reduction rates, response times to service calls, and adherence to integrated pest management principles. These KPIs are essential for monitoring contractor performance and ensuring taxpayer value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Exterminating and Pest Control Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25923Q0428

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 WALL ST, JEFFERSONVILLE, IN, 47130

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $108,060

Exercised Options: $85,260

Current Obligation: $85,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline