VA laundry services contract awarded to CW Resources, Inc. for nearly $500K over five years

Contract Overview

Contract Amount: $485,607 ($485.6K)

Contractor: CW Resources, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-01

End Date: 2025-07-31

Contract Duration: 364 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042 LAUNDRY SERVICES IDIQ CONTRACT VA NEBRASKA WESTERN IOWA HEALTH CARE SYSTEM PERIOD OF PERFORMANCE: 08-01-2021 TO 07-31-2026

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $485,606.79 to CW RESOURCES, INC. for work described as: EO14042 LAUNDRY SERVICES IDIQ CONTRACT VA NEBRASKA WESTERN IOWA HEALTH CARE SYSTEM PERIOD OF PERFORMANCE: 08-01-2021 TO 07-31-2026 Key points: 1. Contract provides essential laundry and drycleaning services for VA facilities. 2. Awarded as a delivery order under an IDIQ contract. 3. CW Resources, Inc. is the sole awardee for this specific delivery order. 4. Performance period spans from August 2021 to July 2026. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. Services are essential for maintaining hygiene and operational standards within healthcare settings.

Value Assessment

Rating: fair

The contract value of approximately $485,606.79 over a 5-year period (2021-2026) for laundry services appears reasonable for a healthcare system. Benchmarking against similar contracts is challenging without more specific service details (e.g., volume, types of laundry). However, the firm-fixed-price structure suggests cost predictability for the VA. The award to CW Resources, Inc., a known provider of services through government contracts, indicates a level of established capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a delivery order under an IDIQ. The data indicates it was a sole-source award for this specific delivery order, meaning only one contractor was solicited or considered. While the IDIQ itself may have had competition, this particular order was not openly competed. This approach can streamline acquisition but may limit price discovery and potentially lead to higher costs compared to a fully competed scenario.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the most competitive pricing achievable through open competition. The VA relies on the contractor's proposed pricing without the pressure of multiple bids to drive down costs.

Public Impact

Veterans receiving care at the VA Nebraska Western Iowa Health Care System benefit from clean and hygienic facilities. The contract ensures the consistent availability of laundry and drycleaning services critical for healthcare operations. This contract supports the operational needs of a specific VA healthcare system in Nebraska. CW Resources, Inc., as the contractor, likely utilizes its workforce to fulfill these service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of open competition for this specific delivery order limits price discovery and potential taxpayer savings.
Sole-source awards can sometimes indicate a lack of market research or a reliance on incumbent contractors without exploring alternatives.
The contract value, while not excessively high, could be subject to cost efficiencies if more competitive bidding were pursued.

Positive Signals

Award to CW Resources, Inc. suggests a contractor with existing experience in government service provision.
Firm Fixed Price contract type provides cost certainty for the VA and taxpayers.
The contract ensures a critical support service for a VA healthcare facility, contributing to patient care quality.

Sector Analysis

The laundry and drycleaning services sector is a mature market with established providers. Government contracts for these services are common, particularly within healthcare and institutional settings where hygiene is paramount. The National Industry Classification (NAICS) code 812320 covers Drycleaning and Laundry Services. While specific market size data for federal laundry services is not readily available, it represents a consistent need across various agencies. This contract fits within the broader category of facility support services for the Department of Veterans Affairs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem stemming from this particular award. The focus appears to be on fulfilling the service requirement, rather than using it as a vehicle for small business development.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under an IDIQ, the initial IDIQ contract likely underwent a review process. Specific oversight mechanisms for this delivery order would involve monitoring contractor performance against the terms and conditions, ensuring timely delivery of services, and verifying invoice accuracy. Transparency is generally maintained through contract databases like SAM.gov, where award details are published. There is no explicit mention of an Inspector General's jurisdiction for this specific award, but the VA OIG oversees VA programs and contracts generally.

Related Government Programs

VA Medical Support Contracts
Federal Facilities Support Services
Healthcare Laundry Services
Department of Veterans Affairs IDIQ Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics in provided data.
Potential for service disruption if contractor fails.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $485,606.79 to CW RESOURCES, INC.. EO14042 LAUNDRY SERVICES IDIQ CONTRACT VA NEBRASKA WESTERN IOWA HEALTH CARE SYSTEM PERIOD OF PERFORMANCE: 08-01-2021 TO 07-31-2026

Who is the contractor on this award?

The obligated recipient is CW RESOURCES, 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 $485,606.79.

What is the period of performance?

Start: 2024-08-01. End: 2025-07-31.

What is the track record of CW Resources, Inc. with the Department of Veterans Affairs?

CW Resources, Inc. has a history of receiving contracts from the Department of Veterans Affairs. While this specific data point does not detail their entire VA portfolio, their ability to secure this IDIQ delivery order suggests prior experience and a demonstrated capacity to meet VA requirements. Further analysis would involve examining their performance history on other VA contracts, including any past performance evaluations, contract modifications, or disputes. Understanding their broader relationship with the VA can provide context for their reliability and value proposition on this current laundry services contract.

How does the pricing of this contract compare to similar laundry services contracts awarded by the VA or other federal agencies?

Direct comparison of pricing for this contract is difficult without detailed service volume and specific service level agreements. The total value of approximately $485,606.79 over five years averages to roughly $97,121 per year. This figure needs to be contextualized by the scale of the VA Nebraska Western Iowa Health Care System and the volume of laundry processed. Benchmarking against other federal laundry contracts would require identifying awards with comparable service scopes, geographic locations, and contract types (e.g., firm-fixed-price). Without such granular data, it's challenging to definitively state if this contract represents excellent, fair, or questionable value purely on price.

What are the primary risks associated with this sole-source laundry services contract?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the VA may not be achieving the most economical pricing available in the market. Another risk is contractor performance; if CW Resources, Inc. underperforms or faces operational issues, it could disrupt essential services at the healthcare facility, impacting patient care and facility operations. Dependency on a single provider also presents a risk if the contractor experiences financial instability or decides to exit the market. Finally, the absence of a competitive process might reduce the incentive for the contractor to innovate or offer cost-saving efficiencies.

How effective is the VA in ensuring value for money through its IDIQ and sole-source delivery order awards for support services?

The effectiveness of the VA in ensuring value for money through IDIQ and sole-source delivery orders can vary significantly. IDIQ contracts, when properly competed initially, can establish a baseline of competitive pricing. However, subsequent sole-source delivery orders under these IDIQs bypass further competition for specific taskings. While this can be justified for specific needs or when only one vendor can meet requirements, it inherently reduces the VA's leverage to secure the best possible price. The VA's effectiveness hinges on robust initial IDIQ competition, thorough justification for sole-source awards, and diligent performance monitoring to ensure services meet quality standards at a reasonable cost. Without transparency into the justification for this specific sole-source award, assessing its value-for-money effectiveness is limited.

What is the historical spending trend for laundry and drycleaning services by the Department of Veterans Affairs?

Historical spending data for laundry and drycleaning services by the Department of Veterans Affairs indicates a consistent and significant investment in these essential support functions. The VA operates numerous healthcare facilities nationwide, each requiring robust laundry services to maintain hygiene and operational standards. While specific aggregate figures for laundry services alone are not always easily isolated within broader facilities maintenance or medical support categories, the overall trend shows sustained expenditure. This is driven by the continuous need for these services across the VA's extensive network of hospitals, clinics, and long-term care facilities. The recurring nature of these contracts suggests a stable demand and ongoing budget allocation for such services.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Drycleaning and Laundry Services (except Coin-Operated)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 MYRTLE ST, NEW BRITAIN, CT, 06053

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $485,607

Exercised Options: $485,607

Current Obligation: $485,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26321D0056

IDV Type: IDC

Timeline