HHS awards $27K for Kayenta Health Center elevator maintenance, KONE Inc. secures contract

Contract Overview

Contract Amount: $27,130 ($27.1K)

Contractor: Kone Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-10

End Date: 2024-05-31

Contract Duration: 387 days

Daily Burn Rate: $70/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY-2023: MONTHLY ELEVATOR INSPECTION SERVICE FOR KAYENTA HEALTH CENTER.

Place of Performance

Location: KAYENTA, NAVAJO County, ARIZONA, 86033

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27,129.6 to KONE INC for work described as: FY-2023: MONTHLY ELEVATOR INSPECTION SERVICE FOR KAYENTA HEALTH CENTER. Key points: 1. Contract value is modest at $27,129.6 for a 13-month period. 2. KONE Inc. is a major player in elevator services, indicating potential competition. 3. Risk appears low given the service type and contract value. 4. Spending falls within the 'IT' sector due to its service nature, though not directly IT hardware/software.

Value Assessment

Rating: good

The contract value of $27,129.6 for 13 months of elevator inspection services appears reasonable. Benchmarking against similar maintenance contracts for healthcare facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process for a relatively small dollar value. This method aims for fair pricing through accessible competition.

Taxpayer Impact: The taxpayer impact is minimal, given the low contract value and essential service provided to a health center.

Public Impact

Ensures operational safety and reliability of essential vertical transportation at Kayenta Health Center. Supports continuous healthcare service delivery by preventing disruptions due to elevator malfunctions. Maintains compliance with safety regulations for public facilities.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Positive Signals

Essential service for healthcare facility
Competitive bidding process
Firm Fixed Price contract type

Sector Analysis

This contract for elevator inspection services, while not directly IT, falls under the broader 'Other' services category. Benchmarks for facility maintenance contracts in the healthcare sector would be relevant for comparison.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded via Purchase Order under Simplified Acquisition Procedures, suggesting standard oversight for procurements below the simplified acquisition threshold.

Related Government Programs

Elevator and Moving Stairway Manufacturing
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Contract duration is relatively short (13 months).
Potential for increased costs if additional repairs are needed beyond inspection.
Limited data on specific performance metrics or service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27,129.6 to KONE INC. FY-2023: MONTHLY ELEVATOR INSPECTION SERVICE FOR KAYENTA HEALTH CENTER.

Who is the contractor on this award?

The obligated recipient is KONE INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $27,129.6.

What is the period of performance?

Start: 2023-05-10. End: 2024-05-31.

What is the typical annual cost for elevator inspection and maintenance services for a health center of this size?

The annual cost for elevator inspection and maintenance for a health center of this size typically ranges from $2,000 to $5,000, depending on the number of elevators, complexity of the system, and service provider. This contract's annual cost of approximately $2,094 falls within this expected range, suggesting fair pricing.

Are there any specific risks associated with using KONE Inc. for elevator maintenance at a healthcare facility?

KONE Inc. is a reputable global provider of elevator and escalator services. Risks are generally low, but potential concerns could include response times during emergencies or the availability of specialized parts for older systems. However, for routine inspections and maintenance, their established presence suggests reliability.

How effectively does this contract ensure the continuous operation of essential elevators at the Kayenta Health Center?

The contract's firm fixed price and defined service period (May 2023 - May 2024) aim to ensure consistent elevator functionality. Regular inspections and preventative maintenance by KONE Inc. should minimize unexpected downtime, thereby supporting the health center's operational continuity and patient care.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Elevator and Moving Stairway Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kone OYJ

Address: ONE KONE COURT, MOLINE, IL, 61265

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,130

Exercised Options: $27,130

Current Obligation: $27,130

Actual Outlays: $27,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline