VA awards $900K contract for security X-ray maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $9,000 ($9.0K)

Contractor: Autoclear LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2027-04-08

Contract Duration: 364 days

Daily Burn Rate: $25/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE SERVICES FOR SECURITY XRAY

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9,000 to AUTOCLEAR LLC for work described as: MAINTENANCE SERVICES FOR SECURITY XRAY Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Limited competition may lead to suboptimal pricing for taxpayers. 3. The contract duration of one year is relatively short, suggesting potential for future re-competition. 4. The service falls under security systems maintenance, a critical but potentially commoditized sector. 5. The fixed-price contract type shifts performance risk to the contractor. 6. Awarded to Autoclear LLC, a single vendor, without a clear justification for sole-source.

Value Assessment

Rating: questionable

The contract value of $900,000 for one year of maintenance services for security X-ray equipment appears high given the lack of competitive bidding. Without benchmark data or comparison to similar contracts awarded through full and open competition, it is difficult to definitively assess value for money. The absence of multiple bids suggests that the government may not have secured the most favorable pricing. Further analysis would be needed to compare this rate to industry standards for similar maintenance agreements.

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 sole-source purchase order. The data indicates no other bidders were considered. This lack of competition means that Autoclear LLC was the only provider evaluated, and there was no opportunity to solicit or compare offers from other qualified vendors. This approach limits the government's ability to leverage market forces to achieve the best possible price and service.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium, as there was no competitive pressure to drive down costs. The absence of competing bids prevents verification of whether the price reflects fair market value.

Public Impact

Veterans Affairs facilities in Arizona will benefit from maintained security X-ray equipment. Ensures the continued operational readiness of critical security screening technology. Supports the safety and security of VA personnel and visitors. The contract supports a single vendor, Autoclear LLC, in providing specialized maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Absence of a competitive process hinders objective assessment of contractor performance.
The specific justification for sole-source award is not provided, increasing risk.
Limited transparency into the pricing structure and cost breakdown.

Positive Signals

The contract is firm-fixed-price, which caps the government's financial exposure.
The award is for a defined period, allowing for future re-evaluation and potential competition.
The service addresses a critical need for operational security at VA facilities.

Sector Analysis

The security systems services sector, particularly for specialized equipment like X-ray machines, involves a niche market. While specific market size data for X-ray maintenance is not readily available, the broader security systems industry is substantial. This contract fits within the government's ongoing need for operational security and equipment maintenance across various agencies. Comparable spending benchmarks for similar maintenance contracts are difficult to establish without more detailed service scope and competitive data.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans or opportunities for small businesses. Therefore, this award does not directly contribute to the government's small business utilization goals and may not foster subcontracting relationships within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to internal VA procurement regulations and oversight. Transparency is limited due to the sole-source nature and lack of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Security Equipment Maintenance
Federal Security Systems Procurement
Non-Competitive Federal Contracts
Purchase Orders for Services

Risk Flags

Non-competitive award
Lack of price competition
Potential for inflated pricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9,000 to AUTOCLEAR LLC. MAINTENANCE SERVICES FOR SECURITY XRAY

Who is the contractor on this award?

The obligated recipient is AUTOCLEAR LLC.

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 $9,000.

What is the period of performance?

Start: 2026-04-09. End: 2027-04-08.

What is Autoclear LLC's track record with the federal government, particularly with the VA?

Autoclear LLC has received federal contracts, but specific details regarding their performance history, especially with the Department of Veterans Affairs, are not readily available in this data snippet. A deeper dive into contract databases like FPDS or SAM.gov would be necessary to assess their past performance, any reported issues, and their overall reliability as a government contractor. Understanding their experience with similar security equipment maintenance contracts is crucial for evaluating the risk associated with this award.

How does the $900,000 value compare to market rates for similar security X-ray maintenance services?

Without specific details on the scope of services, the type of X-ray equipment, and the service level agreements, it is challenging to provide a precise market rate comparison for the $900,000 contract value. However, given that this was a sole-source award, there is a significant risk that the price is not optimized. Industry benchmarks for maintenance contracts often vary widely based on equipment age, complexity, and required response times. A thorough market research report or a review of competitively awarded contracts for similar services would be needed to establish a reliable benchmark and assess if this price is fair and reasonable.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis include potential overpayment due to the lack of competitive pricing, reduced incentive for the contractor to provide optimal service or innovation, and a lack of transparency in the procurement process. It also raises questions about whether the government adequately explored all available sources or if there were specific, documented justifications for bypassing competition. This approach can also set a precedent for future non-competitive awards, potentially eroding overall procurement efficiency and value for taxpayer dollars.

What is the expected effectiveness of the security X-ray maintenance services provided under this contract?

The expected effectiveness hinges on Autoclear LLC's ability to deliver timely and competent maintenance as per the contract's terms. The firm-fixed-price structure implies the contractor is responsible for ensuring the X-ray equipment remains operational. The effectiveness will be measured by the uptime of the equipment, the quality of repairs, and adherence to service response times. However, without a competitive baseline or performance metrics clearly defined in the award details, assessing the *degree* of expected effectiveness is speculative. The VA's internal quality assurance and oversight will be critical.

What are the historical spending patterns for security X-ray maintenance services at the VA or similar agencies?

Historical spending patterns for security X-ray maintenance services at the VA or similar agencies are not provided in this data. To understand these patterns, one would need to analyze past contract awards for similar services, looking at contract values, durations, competition levels, and the contractors involved over several fiscal years. This analysis could reveal trends in pricing, identify frequently used vendors, and highlight whether maintenance services have historically been procured competitively or through non-competitive means, providing context for the current award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NOT APPLICABLE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10A BLOOMFIELD AVE, PINE BROOK, NJ, 07058

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,000

Exercised Options: $9,000

Current Obligation: $9,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline