VA awards $4.45M fire safety services contract to Encore Holdings LLC, a sole-source purchase order

Contract Overview

Contract Amount: $4,453,552 ($4.5M)

Contractor: Encore Holdings LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-01

End Date: 2024-12-31

Contract Duration: 365 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRE SAFETY SERVICES

Place of Performance

Location: BROCKTON, PLYMOUTH County, MASSACHUSETTS, 02301

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to ENCORE HOLDINGS LLC for work described as: FIRE SAFETY SERVICES Key points: 1. Contract focuses on essential fire safety services, crucial for maintaining safe facilities. 2. Sole-source award raises questions about potential cost efficiencies and market exploration. 3. The firm-fixed-price structure aims to control costs, but competition dynamics are absent. 4. Performance period of one year with a 365-day duration indicates a short-term need. 5. The contract falls under 'Computer Facilities Management Services' NAICS code, which seems unusual for fire safety. 6. Geographic focus on Massachusetts is noted.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and the unusual NAICS code classification. Without comparable bids or market analysis, it's difficult to ascertain if the $4.45 million price represents fair market value for fire safety services. The firm-fixed-price nature provides cost certainty, but the absence of competition prevents a robust assessment of cost-effectiveness against potential alternatives.

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 among multiple vendors. This approach bypasses the standard procurement process designed to foster competition and identify the best value. The lack of bidders means there's no direct comparison to gauge pricing or service quality against other market participants, potentially limiting price discovery and innovation.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution as the absence of competition means the government could be paying a premium without the benefit of market forces driving down prices.

Public Impact

The primary beneficiaries are likely the facilities managed by the Department of Veterans Affairs in Massachusetts, ensuring their safety. The services delivered are critical for fire prevention, detection, and suppression systems maintenance. The geographic impact is concentrated within Massachusetts, serving VA facilities in that state. Workforce implications are tied to the personnel at Encore Holdings LLC performing these specialized fire safety tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and transparency.
Unusual NAICS code classification (Computer Facilities Management Services) for fire safety services raises concerns about contract scope accuracy.
Lack of performance metrics or detailed service descriptions makes it difficult to assess effectiveness.
Short contract duration (1 year) may lead to recurring administrative costs for re-procurement.

Positive Signals

Firm-fixed-price contract provides cost certainty for the awarded amount.
Contract addresses essential safety requirements for VA facilities.
Encore Holdings LLC is the awarded contractor, implying some level of vetting or prior relationship.

Sector Analysis

The fire safety services market is a critical component of facility management across various sectors, including government. While specific market size data for federal fire safety services is not readily available, it is a substantial industry driven by regulatory compliance and risk mitigation. This contract, valued at $4.45 million, represents a significant investment by the VA in ensuring the safety of its installations. Comparable spending benchmarks are difficult to establish due to the sole-source nature and the unusual NAICS code.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. As a sole-source award to Encore Holdings LLC, the direct impact on the broader small business ecosystem for fire safety services is limited, as opportunities for subcontracting or direct competition are not explicitly facilitated by this procurement method.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services for the agreed price. Transparency is limited due to the sole-source nature of the award, making it harder for the public to scrutinize the procurement process and pricing. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Fire Safety Programs
Department of Veterans Affairs Facility Management
Sole-Source Procurement Contracts
Computer Facilities Management Services (NAICS 541513)

Risk Flags

Sole-source award
Unusual NAICS code classification
Lack of competitive bidding
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to ENCORE HOLDINGS LLC. FIRE SAFETY SERVICES

Who is the contractor on this award?

The obligated recipient is ENCORE HOLDINGS 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 $4.5 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-12-31.

What is the specific justification for awarding this fire safety services contract on a sole-source basis to Encore Holdings LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as only one responsible source being available, or an urgent and compelling need that would be compromised by competitive bidding. Without this justification, it is impossible to assess the validity of bypassing the competitive process. Further investigation into the contract file or agency justifications would be required to understand the rationale behind this decision and its implications for fair pricing and market fairness.

How does the NAICS code '541513 - Computer Facilities Management Services' align with 'FIRE SAFETY SERVICES'?

The classification of 'FIRE SAFETY SERVICES' under NAICS code '541513 - Computer Facilities Management Services' appears to be a significant mismatch. NAICS 541513 typically covers establishments primarily engaged in providing on-site management and support of clients' computer systems and/or data processing facilities. Fire safety services usually fall under categories related to building maintenance, security, or specialized technical services. This discrepancy raises concerns about the accuracy of the contract's classification, potentially indicating an administrative error, a misunderstanding of the service scope, or an attempt to fit the service under an existing contract vehicle. It complicates benchmarking and understanding the true nature of the services procured.

What are the potential risks associated with a sole-source award for essential services like fire safety?

Sole-source awards for essential services like fire safety carry several risks. Primarily, the absence of competition can lead to inflated prices, as the contractor faces no market pressure to offer competitive rates. This can result in a loss of taxpayer value. Furthermore, it limits the government's ability to explore innovative solutions or leverage the expertise of a wider range of qualified vendors. There's also a risk that the chosen contractor may not be the most capable or efficient provider, as their selection was not validated through a competitive process. This can impact service quality and reliability over the contract's duration.

Can the firm-fixed-price (FFP) contract type mitigate the risks of a sole-source award?

A firm-fixed-price (FFP) contract type can mitigate some, but not all, risks associated with a sole-source award. FFP provides cost certainty for the government, as the price is set and generally not subject to adjustment based on the contractor's cost experience. This protects against cost overruns if the contractor's actual expenses are higher than anticipated. However, it does not address the fundamental risk of paying a potentially non-competitive price due to the lack of competition. While the government knows the total cost, that total cost might still be higher than what could have been achieved through a competitive bidding process. The FFP structure primarily manages cost risk for the buyer, not price competition risk.

What is the historical spending pattern for fire safety services at the Department of Veterans Affairs, and how does this contract compare?

Without access to historical spending data specifically for fire safety services at the Department of Veterans Affairs (VA), a direct comparison is not possible. This $4.45 million award for a one-year period represents a significant expenditure. If this is a recurring need, understanding past contract values, durations, and competition levels would be crucial for assessing whether this award is consistent with historical patterns or represents a deviation. The current sole-source nature and the unusual NAICS code make it difficult to draw parallels to previous procurements unless they were similarly structured.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 70 BACON ST, PAWTUCKET, RI, 02860

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,626,549

Exercised Options: $4,456,652

Current Obligation: $4,453,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline