VA awards $186K contract for pest control services to CDS Services Inc

Contract Overview

Contract Amount: $186,210 ($186.2K)

Contractor: CDS Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-01

End Date: 2025-10-31

Contract Duration: 1,460 days

Daily Burn Rate: $128/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTEGRATED PEST MANAGEMENT SERVICES FOR THE IOWA CITY VA HEALTH CARE SYSTEM

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $186,210 to CDS SERVICES INC for work described as: INTEGRATED PEST MANAGEMENT SERVICES FOR THE IOWA CITY VA HEALTH CARE SYSTEM Key points: 1. Contract awarded for integrated pest management, indicating a focus on sustainable and environmentally sound pest control methods. 2. The contract duration of 1460 days (4 years) suggests a need for ongoing, consistent pest management services. 3. Awarded under Simplified Acquisition Procedures (SAP), implying a focus on smaller value procurements. 4. The contract is a Firm Fixed Price (FFP) type, providing cost certainty for the government. 5. The contractor, CDS Services Inc., is a single awardee for this requirement. 6. The service falls under the 'Exterminating and Pest Control Services' industry code (NAICS 561710).

Value Assessment

Rating: good

The contract value of $186,210 over four years averages to approximately $46,552 per year. This appears to be a reasonable amount for integrated pest management services for a healthcare system of the Iowa City VA's size. Benchmarking against similar contracts for pest control services at other VA facilities or federal agencies of comparable scope would provide a more precise value-for-money assessment. However, given the fixed-price nature and the duration, the pricing seems aligned with typical service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for procurements valued below a certain threshold. While the specific number of bids received is not detailed, SAP is designed to encourage competition among small businesses and other qualified vendors. The fact that it was competed suggests that multiple vendors had the opportunity to bid, which generally leads to better price discovery and value for the government.

Taxpayer Impact: Competing this contract, even under SAP, helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs for essential services like pest control.

Public Impact

The primary beneficiaries are the patients and staff of the Iowa City VA Health Care System, who will receive a safe and sanitary environment free from pest-related health risks. The services delivered include integrated pest management, which focuses on long-term prevention and control of pests. The geographic impact is localized to the Iowa City, Iowa area, specifically the VA Health Care System facilities. This contract supports the operational needs of the VA, ensuring a critical support service is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for a critical service over a long duration.
Need to ensure ongoing quality control and performance monitoring throughout the contract period.

Positive Signals

Awarded under a competitive process, suggesting potential for good value.
Firm Fixed Price contract provides cost predictability.
Focus on Integrated Pest Management aligns with modern, sustainable practices.

Sector Analysis

The pest control services market is a significant sector within the broader facilities management industry. Federal agencies, particularly healthcare systems like the VA, require specialized pest management to maintain sanitary conditions and prevent health hazards. The NAICS code 561710, 'Exterminating and Pest Control Services,' encompasses a wide range of activities from residential to commercial and industrial pest control. Federal spending in this area is consistent, driven by the need to maintain numerous facilities across the country. This contract represents a small but essential component of the VA's overall facilities maintenance budget.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP), which often favors small business participation. However, it is not explicitly stated as a small business set-aside. If CDS Services Inc. is a small business, this contract contributes to their revenue. If not, the subcontracting opportunities for small businesses are not detailed in the provided data, but are a common requirement in larger federal contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist within the Department of Veterans Affairs. Performance monitoring would likely involve regular site inspections and review of service reports to ensure compliance with the contract terms and the effectiveness of the pest management program. The VA has an established Inspector General's office that can investigate allegations of fraud, waste, or abuse related to any of its contracts.

Related Government Programs

VA Facilities Maintenance Contracts
Federal Pest Control Services
Healthcare Facility Support Services
Integrated Pest Management Contracts

Risk Flags

Long-term contract duration may limit flexibility.
Performance monitoring is crucial for ensuring service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $186,210 to CDS SERVICES INC. INTEGRATED PEST MANAGEMENT SERVICES FOR THE IOWA CITY VA HEALTH CARE SYSTEM

Who is the contractor on this award?

The obligated recipient is CDS SERVICES 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 $186,210.

What is the period of performance?

Start: 2021-11-01. End: 2025-10-31.

What is the track record of CDS Services Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess the track record of CDS Services Inc. This would involve examining past contract awards, performance evaluations (if available in systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Without access to this detailed historical data, it's difficult to provide a comprehensive assessment of their past performance, especially concerning their specific experience with the VA and pest control services. However, being awarded a multi-year contract suggests a level of confidence from the awarding agency.

How does the annual cost of this contract compare to similar pest control services at other federal facilities?

The annual cost for this contract is approximately $46,552 ($186,210 / 4 years). To benchmark this effectively, one would need to compare it against contracts for similar integrated pest management services at federal facilities of comparable size and complexity, particularly other VA medical centers or large federal buildings. Factors such as geographic location (cost of living, labor rates), specific pest pressures, and the scope of services (e.g., frequency of visits, types of treatments required) significantly influence pricing. A preliminary assessment suggests this figure is within a reasonable range for such services, but a detailed comparative analysis with specific contract data would be required for a definitive conclusion.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential service disruptions if the contractor fails to perform adequately, leading to pest infestations that could impact health and safety within the VA facility. Another risk is the potential for cost overruns if the fixed-price contract doesn't adequately account for unforeseen pest issues or price increases in materials. Mitigation strategies likely involve robust performance monitoring by the VA, clear contract terms defining service level expectations, and contingency planning. The long-term nature of the contract also poses a risk of contractor complacency, which can be managed through regular performance reviews and clear communication channels.

How effective is Integrated Pest Management (IPM) in a healthcare setting like the VA, and what are the expected outcomes of this contract?

Integrated Pest Management (IPM) is highly effective and recommended in healthcare settings. It emphasizes a holistic approach, combining biological controls, environmental modification, and targeted chemical applications only when necessary, minimizing risks to patients and staff. The expected outcomes of this contract are the consistent prevention and control of pests (insects, rodents, etc.) within the Iowa City VA Health Care System, thereby maintaining a sanitary environment, reducing the risk of disease transmission, preventing damage to facilities and equipment, and ensuring patient comfort and safety. Effective IPM contributes directly to the overall health and operational integrity of the facility.

What is the historical spending trend for pest control services at the Iowa City VA Health Care System or similar VA facilities?

Analyzing historical spending trends for pest control at the Iowa City VA or comparable facilities would provide valuable context. This would involve examining contract awards and expenditures over the past 5-10 years. Trends might reveal whether spending has been consistent, increasing, or decreasing, and whether contract values have fluctuated significantly. Such analysis could indicate changes in pest prevalence, shifts in service providers, or evolving procurement strategies. Without specific historical data for this facility, it's presumed that pest control is a recurring operational expense necessary for maintaining facility standards.

Are there any specific performance metrics or Key Performance Indicators (KPIs) defined in the contract for CDS Services Inc.?

The provided data does not specify the performance metrics or KPIs included in the contract. However, for a contract of this nature and duration, it is standard practice to include specific performance standards. These typically involve metrics related to response times for service calls, effectiveness of treatments (e.g., reduction in pest sightings below a certain threshold), adherence to safety protocols, proper documentation and reporting, and compliance with IPM principles. The VA contracting officer and technical representatives would be responsible for monitoring these KPIs to ensure satisfactory performance.

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: 36C26321Q0777

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CDS Services Inc.

Address: 26357 ALCOTT UNION DR, MURRIETA, CA, 92563

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

Financial Breakdown

Contract Ceiling: $227,604

Exercised Options: $186,210

Current Obligation: $186,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline