VA awards $12M for Elevator Maintenance to Elevate Technologies, Inc. under SAP
Contract Overview
Contract Amount: $12,056,719 ($12.1M)
Contractor: Elevated Technologies, Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-02-01
End Date: 2026-07-31
Contract Duration: 2,006 days
Daily Burn Rate: $6.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ELEVATOR MAINTENANCE SERVICE
Place of Performance
Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304
Plain-Language Summary
Department of Veterans Affairs obligated $12.1 million to ELEVATED TECHNOLOGIES, INC for work described as: ELEVATOR MAINTENANCE SERVICE Key points: 1. Contract awarded to a single vendor, Elevate Technologies, Inc. 2. Spending is categorized under 'Other Building Equipment Contractors'. 3. The contract duration is over 5 years, ending in July 2026. 4. The award was made under the Simplified Acquisition Procedures (SAP).
Value Assessment
Rating: fair
The contract value of $12M over 5 years averages $2.4M annually. Benchmarking against similar elevator maintenance contracts is difficult without more specific service details and location.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, suggesting it was likely a limited competition. This method may not yield the best price discovery compared to full and open competition.
Taxpayer Impact: The use of SAP for a $12M contract raises questions about potential missed savings if broader competition was feasible.
Public Impact
Ensures operational elevators for veterans at VA facilities. Supports a specific contractor, Elevate Technologies, Inc. Potential for higher costs due to limited competition under SAP.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP for a significant contract value.
- Lack of detailed service scope for robust benchmarking.
- Contract duration extends over five years.
Positive Signals
- Provides essential maintenance services for VA facilities.
- Utilizes a firm-fixed-price contract type.
Sector Analysis
This contract falls under building equipment maintenance, a sector crucial for facility operations. Spending benchmarks for elevator maintenance vary widely based on building size, complexity, and service level agreements.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were offered or utilized.
Oversight & Accountability
The use of SAP for a $12M contract warrants review to ensure appropriate justification and adherence to procurement regulations for limited competition.
Related Government Programs
- Other Building Equipment Contractors
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for overpayment due to limited competition.
- Lack of transparency in the procurement process.
- Long contract duration may not reflect evolving market prices.
- Insufficient detail for robust independent cost analysis.
Tags
other-building-equipment-contractors, department-of-veterans-affairs, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $12.1 million to ELEVATED TECHNOLOGIES, INC. ELEVATOR MAINTENANCE SERVICE
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 $12.1 million.
What is the period of performance?
Start: 2021-02-01. End: 2026-07-31.
What was the justification for using SAP for a $12M contract, and was full and open competition considered?
The justification for using Simplified Acquisition Procedures (SAP) for a contract valued at $12 million needs to be thoroughly documented by the Department of Veterans Affairs. Typically, SAP is intended for acquisitions below certain thresholds, unless specific exceptions apply. A review should confirm if broader competition was explored or if specific regulatory allowances permitted this approach, ensuring taxpayer value was maximized.
How does the pricing of this elevator maintenance contract compare to industry benchmarks for similar services, considering the limited competition?
Without detailed service scope and location specifics, direct price comparison is challenging. However, given the limited competition under SAP, there's a risk that the pricing may be higher than what could be achieved through full and open competition. A post-award analysis comparing the per-unit costs of specific services against market rates would be beneficial.
What is the long-term effectiveness and value proposition of this contract for the VA, given its duration and procurement method?
The effectiveness hinges on reliable elevator maintenance ensuring facility functionality for veterans. The value proposition is questionable due to the limited competition potentially inflating costs over the five-year duration. The VA should monitor performance closely and consider market research for future procurements to ensure optimal value and cost-efficiency.
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: 36C26120Q0719
Offers Received: 3
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: $12,056,719
Exercised Options: $12,056,719
Current Obligation: $12,056,719
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-02-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-09
More Contracts from Elevated Technologies, Inc
- Project 668-18-109 Refurbish and Upgrade Elevators in Bldg. 1 and 27 AT Mann-Grandstaff VA Medical Center in Spokane, Washington — $12.5M (Department of Veterans Affairs)
- 631-21-011 Modernize, Replace, or Install Elevators in 8 Buildings — $11.5M (Department of Veterans Affairs)
- Project 537-21-101, Rehab. Ogden Elevators AT the Jesse Brown VA Medical Center — $5.9M (Department of Veterans Affairs)
- Modernize 6 Elevators — $4.9M (Department of Veterans Affairs)
- Elevator Maintenance and Inspection Services — $4.1M (Department of Veterans Affairs)
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