VA awards $2.5M elevator maintenance contract to Centric Elevator Corporation of Oregon, Inc

Contract Overview

Contract Amount: $2,504,952 ($2.5M)

Contractor: Centric Elevator Corporation of Oregon, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-04-01

End Date: 2026-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR MAINTENANCE

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to CENTRIC ELEVATOR CORPORATION OF OREGON, INC. for work described as: ELEVATOR MAINTENANCE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for elevator maintenance services, a critical component of facility management. 3. The duration of the contract spans over five years, indicating a long-term need. 4. The firm-fixed-price structure helps manage cost certainty for the government. 5. The awardee has been in business since at least 2008, suggesting some level of experience. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The contract value of $2.5 million over five years averages to $500,000 annually. Without specific details on the number of elevators, their complexity, or the scope of maintenance required, a direct value-for-money assessment is challenging. However, for a federal agency like the VA, maintaining critical infrastructure like elevators is essential. Benchmarking against similar contracts for elevator maintenance services across federal agencies would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment. The number of bidders is not specified, but the use of full and open competition generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: A competitive bidding process like full and open competition is generally favorable for taxpayers as it is expected to drive down prices and ensure the government receives services at a fair market rate.

Public Impact

Veterans and VA staff benefit from reliable elevator functionality at facilities in Oregon. Ensures the safe and efficient operation of elevators within VA facilities. Supports the ongoing operations and accessibility of healthcare services provided by the VA. The contract supports local jobs through the maintenance services provided by Centric Elevator Corporation of Oregon, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements in the provided data.
The provided data does not detail the specific scope of work for elevator maintenance, making it difficult to assess the adequacy of the award.
The contract's duration and value could be subject to change if it's a delivery order under a broader IDIQ contract with fluctuating needs.

Positive Signals

Awarded through full and open competition, indicating a fair and competitive process.
The contractor has been in business since at least 2008, suggesting established operational capacity.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a critical operational need for facility maintenance within the VA.

Sector Analysis

Elevator maintenance falls under the broader Facilities Support Services sector, which is a significant part of the government's operational spending. This sector includes a wide range of services necessary for the upkeep and functioning of federal buildings and infrastructure. The market for elevator maintenance is typically characterized by specialized service providers, with competition varying based on geographic location and the complexity of the equipment.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor engages in significant subcontracting with small businesses, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of Veterans Affairs. Performance monitoring and quality assurance would be key oversight mechanisms to ensure the contractor meets the terms of the firm-fixed-price agreement. Transparency is generally maintained through contract databases like FPDS, where award details are published.

Related Government Programs

Facilities Maintenance Services
Building Operations Support
General Services Administration (GSA) Schedules for Facilities Maintenance
Department of Defense Facilities Management Contracts

Risk Flags

Potential for service disruption if contractor performance is inadequate.
Risk of cost escalation if scope is not fully defined or unforeseen issues arise.
Dependence on a single vendor for critical infrastructure maintenance.
Lack of detailed performance metrics in the provided data makes oversight assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to CENTRIC ELEVATOR CORPORATION OF OREGON, INC.. ELEVATOR MAINTENANCE

Who is the contractor on this award?

The obligated recipient is CENTRIC ELEVATOR CORPORATION OF OREGON, 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: 2021-04-01. End: 2026-09-30.

What is the track record of Centric Elevator Corporation of Oregon, Inc. with federal contracts?

Centric Elevator Corporation of Oregon, Inc. has been in business since at least 2008, as indicated by the contract duration data (dur: 2008). While the provided data shows this specific award from the VA, a comprehensive review of their federal contracting history would require accessing databases like the Federal Procurement Data System (FPDS) or SAM.gov. This would reveal the number of previous federal awards, their values, agencies involved, and performance history. Without this broader context, it's difficult to fully assess their established track record specifically within the federal space beyond their longevity in business.

How does the annual cost of this contract compare to similar federal elevator maintenance contracts?

This contract has an approximate annual value of $500,000 ($2.5 million over 5 years). To benchmark this effectively, one would need to compare it against similar elevator maintenance contracts awarded by federal agencies. Key comparison factors include the number and type of elevators serviced, the geographic location (which impacts labor and operational costs), the scope of services (preventive maintenance, repairs, emergency services), and the contract type. For instance, a contract for maintaining a large complex of high-rise buildings with advanced elevator systems would naturally be more expensive than one for a smaller facility with fewer, simpler elevators. A detailed analysis would involve querying FPDS for comparable contracts and normalizing for these variables.

What are the primary risks associated with this elevator maintenance contract?

Primary risks include potential service disruptions if the contractor fails to perform adequately, leading to elevator downtime which impacts facility operations and accessibility. There's also a risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen maintenance needs or price escalations, though this is mitigated by the contract type. Performance risk is also present, as the quality of maintenance directly affects safety and reliability. Given it's a delivery order, there's a risk related to the underlying IDIQ contract's terms and potential for task orders to be modified or cancelled. Finally, reliance on a single contractor for a critical service introduces vendor dependency risk.

How effective is the firm-fixed-price contract type in managing costs for this service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services like elevator maintenance where the scope of work can be clearly defined. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. The contractor is incentivized to perform efficiently to maintain profitability. However, if the scope of work is underestimated or unforeseen issues arise, the contractor may be less willing to perform additional work without a modification, or the quality of service could be impacted if the contractor tries to cut corners to maintain profit margins. For routine maintenance, FFP is usually a good choice for cost control.

What is the historical spending pattern for elevator maintenance by the Department of Veterans Affairs?

Historical spending patterns for elevator maintenance by the Department of Veterans Affairs (VA) would reveal the agency's consistent investment in facility upkeep. Analyzing past VA contracts for similar services would show trends in contract values, awardees, and competition levels over time. This data can indicate whether spending has increased, decreased, or remained stable, and whether the VA has historically relied on full and open competition or other methods. Understanding these patterns helps in assessing the current contract's place within the VA's broader facilities management budget and procurement strategy.

What are the implications of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) implies that it is a task order issued under a larger, pre-existing contract, likely an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar framework agreement. This means the terms, conditions, and pricing structure were likely established when the parent contract was awarded. Delivery orders are used to procure specific quantities of supplies or services over a period. The implications include that the competition for the underlying IDIQ contract may have occurred previously, and this specific order represents a call against that established agreement. It also means the total value and duration are subject to the terms of the parent contract.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C26021Q0342

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Centric Elevator Corporation

Address: 2855 SE 9TH AVE, PORTLAND, OR, 97202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,504,952

Exercised Options: $2,504,952

Current Obligation: $2,504,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F0053X

IDV Type: FSS

Timeline