DOT awards $59M contract for elevator inspection and testing services in Ohio

Contract Overview

Contract Amount: $59,058 ($59.1K)

Contractor: Reliant Elevator Inspections & Consulting, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-06-28

End Date: 2028-03-31

Contract Duration: 1,738 days

Daily Burn Rate: $34/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR INSPECTION AND TESTING - CLE DISTRICT

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44135

State: Ohio Government Spending

Plain-Language Summary

Department of Transportation obligated $59,058 to RELIANT ELEVATOR INSPECTIONS & CONSULTING, INC. for work described as: ELEVATOR INSPECTION AND TESTING - CLE DISTRICT Key points: 1. Contract awarded to a single vendor, raising questions about competition and potential cost savings. 2. The contract duration of nearly five years suggests a long-term need for these services. 3. Fixed-price contract type aims to provide cost certainty, but may limit flexibility for unforeseen issues. 4. The specific NAICS code (541350) indicates a focus on building inspection services. 5. Awarded by the Federal Aviation Administration, suggesting a need for these services at aviation facilities. 6. The absence of small business set-aside indicates a focus on larger, specialized firms.

Value Assessment

Rating: fair

The contract value of $59.06 million over approximately 4.7 years (1738 days) for elevator inspection and testing services appears substantial. Without specific benchmarks for elevator inspection services across similar federal facilities or a comparison to market rates for comparable private sector contracts, it is difficult to definitively assess value for money. The fixed-price nature of the contract provides cost certainty for the government, but the lack of competitive bidding means there is no direct market validation of the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the Federal Aviation Administration likely identified a specific contractor, Reliant Elevator Inspections & Consulting, Inc., as the only source capable of meeting the government's requirements. The lack of competition means there was no opportunity for other qualified firms to bid, potentially leading to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government did not leverage market forces to drive down costs.

Public Impact

The Federal Aviation Administration benefits from ensuring the safety and compliance of elevator systems at its facilities. Elevator inspection and testing services are delivered, contributing to the operational integrity of buildings. The geographic impact is focused on Ohio, where the services are being performed. The contract supports specialized inspection and consulting services, potentially impacting the workforce in this niche sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Long contract duration could lead to vendor lock-in and reduced flexibility.
Fixed-price contract may not adequately account for potential unforeseen complexities in elevator systems.
Lack of transparency in the sole-source justification process.

Positive Signals

Contract provides a clear scope of work for essential safety and maintenance services.
Fixed-price contract offers budget predictability for the agency.
Award to a specific firm suggests they possess unique qualifications or expertise required for the task.

Sector Analysis

The building inspection services sector, categorized under NAICS code 541350, encompasses a range of activities related to assessing the condition and compliance of structures. This contract for elevator inspection and testing fits within this broader industry. The federal government is a significant consumer of such services, particularly for maintaining safety and operational standards in its vast portfolio of facilities. Benchmarking this contract's value is challenging without specific data on comparable federal or large-scale private sector elevator inspection contracts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Reliant Elevator Inspections & Consulting, Inc., is expected to perform the work itself or through its own resources. The absence of small business participation in this specific contract does not necessarily reflect the overall small business utilization by the Federal Aviation Administration, but it does mean that opportunities within this particular award are not being directed towards the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Accountability measures would be tied to the performance standards outlined in the contract. Transparency regarding the sole-source justification and the contractor's performance would be managed through agency reporting mechanisms and potentially Freedom of Information Act requests.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Safety Inspections
Transportation Infrastructure Support Services
Specialized Consulting Services for Government Agencies

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $59,058 to RELIANT ELEVATOR INSPECTIONS & CONSULTING, INC.. ELEVATOR INSPECTION AND TESTING - CLE DISTRICT

Who is the contractor on this award?

The obligated recipient is RELIANT ELEVATOR INSPECTIONS & CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $59,058.

What is the period of performance?

Start: 2023-06-28. End: 2028-03-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the agency's needs, often due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without further documentation from the Federal Aviation Administration, the precise reasons for bypassing the competitive bidding process remain unknown. This lack of competition raises concerns about whether the government secured the best possible pricing and value.

How does the contract value compare to similar elevator inspection and testing services procured by the federal government?

Direct comparison of the $59.06 million contract value for elevator inspection and testing services to similar federal procurements is challenging without access to a comprehensive database of comparable contracts. The Federal Aviation Administration (FAA) operates numerous facilities, and the scope, frequency, and complexity of elevator systems can vary significantly, impacting contract costs. However, a contract of this magnitude over nearly five years suggests a substantial requirement, potentially covering a large number of facilities or highly specialized inspection needs. The sole-source nature of this award means that a competitive benchmark for pricing is absent, making it difficult to assess if this represents a fair market price.

What are the potential risks associated with a sole-source award of this magnitude and duration?

A primary risk of a sole-source award is the potential for inflated pricing, as the absence of competition removes the incentive for the contractor to offer the most competitive rates. Another significant risk is reduced flexibility; the government is locked into a single provider for an extended period (nearly five years), making it difficult to adapt to changing needs or to switch to a potentially better-performing or more cost-effective vendor if circumstances change. Furthermore, without competitive pressure, there might be less incentive for the contractor to innovate or proactively improve service quality beyond the minimum contractual requirements. Finally, the lack of transparency inherent in sole-source justifications can raise concerns about fairness and efficiency.

What is the expected performance standard and how will contractor performance be evaluated?

The provided data does not specify the performance standards or evaluation methods for Reliant Elevator Inspections & Consulting, Inc. However, for a contract of this nature, performance standards would typically include adherence to safety regulations (e.g., ASME A17.1), timely completion of inspections, accurate reporting of findings, and responsiveness to agency requests. The Federal Aviation Administration would likely have a contract officer and potentially a contracting officer's representative (COR) responsible for monitoring performance, reviewing deliverables, and ensuring compliance with the contract terms. Formal performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reports, would likely be used to document the contractor's track record.

What is the historical spending pattern for elevator inspection and testing services by the Federal Aviation Administration?

The provided data does not include historical spending patterns for elevator inspection and testing services by the Federal Aviation Administration (FAA). To assess historical spending, one would need to analyze past contracts awarded by the FAA for similar services, noting the number of contracts, their values, durations, and whether they were competitively or sole-source awarded. Understanding historical spending would provide context for the current $59.06 million award, helping to determine if this represents an increase, decrease, or consistent level of investment in these services over time. It would also reveal trends in procurement methods and contractor utilization.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 697DCK-23-R-00451

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5020 RUNNING BROOK DR, JOSHUA, TX, 76058

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $112,574

Exercised Options: $59,058

Current Obligation: $59,058

Actual Outlays: $54,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline