VA awards $3.45M landscaping contract to Veterans Elite Inc. for New Jersey facilities

Contract Overview

Contract Amount: $3,449,693 ($3.4M)

Contractor: Veterans Elite Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $1.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LANDSCAPING AND GROUNDS-KEEPING SERVICES (APPROXIMATELY 260 ACRES) FOR NEW JERSEY HCS (EAST ORANGE AND LYONS VAMC).

Place of Performance

Location: EAST ORANGE, ESSEX County, NEW JERSEY, 07018

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to VETERANS ELITE INC for work described as: LANDSCAPING AND GROUNDS-KEEPING SERVICES (APPROXIMATELY 260 ACRES) FOR NEW JERSEY HCS (EAST ORANGE AND LYONS VAMC). Key points: 1. Contract awarded through Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially leading to more predictable government spending. 3. A 5-year duration indicates a need for consistent, long-term grounds maintenance services. 4. The contract is for landscaping and grounds-keeping across approximately 260 acres at two VAMC locations. 5. The award to a single vendor, Veterans Elite Inc., warrants a review of competition and pricing.

Value Assessment

Rating: fair

The contract value of $3.45 million over five years averages to $690,000 annually. Benchmarking this against similar landscaping contracts for large federal facilities is challenging without more specific service scope details. However, given the acreage and multiple locations, the price appears within a reasonable range for comprehensive grounds maintenance. The firm-fixed-price nature provides cost certainty for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received isn't detailed, SAP is designed for procurements under a certain dollar threshold, often resulting in less robust competition. This can sometimes lead to higher prices than if a broader competition were pursued.

Taxpayer Impact: The use of SAP suggests an effort to streamline the procurement process for a contract of this value. However, taxpayers may not be receiving the absolute lowest price achievable through a wider bidding process.

Public Impact

Veterans receiving care at the East Orange and Lyons VAMC facilities will benefit from well-maintained grounds, contributing to a more pleasant and therapeutic environment. The contract ensures the provision of essential landscaping and grounds-keeping services, including mowing, trimming, pest control, and snow removal. Services will be delivered across approximately 260 acres at two key New Jersey VA medical centers. The contract supports local employment through the landscaping services provider, Veterans Elite Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may have resulted in a higher price than a full and open competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality beyond contract completion.
The firm-fixed-price contract could incentivize the contractor to cut corners on service quality if not adequately monitored.

Positive Signals

The firm-fixed-price contract provides budget certainty for the Department of Veterans Affairs.
A 5-year contract duration indicates a stable, long-term need for these essential grounds maintenance services.
The contract supports the operational needs of two significant VA medical facilities in New Jersey.

Sector Analysis

The landscaping and grounds-keeping sector for federal facilities is a consistent area of government spending. This contract falls within the broader facilities maintenance and management industry. Comparable spending benchmarks are difficult to establish without knowing the specific service requirements (e.g., horticultural expertise, specialized equipment). However, federal agencies often contract for these services to maintain large campuses and ensure a professional appearance and safe environment.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false) and does not specify any subcontracting requirements for small businesses (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Veterans Elite Inc. is the prime contractor, and its size status is not detailed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of Veterans Affairs. Performance monitoring would likely involve regular site inspections and review of service delivery against the contract's statement of work. Transparency is facilitated by public contract databases, but detailed performance reports are not usually publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Grounds Maintenance Contracts
Veterans Affairs Medical Facility Operations
Simplified Acquisition Procedures (SAP) Contracts
Facilities Support Services

Risk Flags

Limited competition may impact price.
Performance standards not detailed.
Contractor's past performance unknown.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to VETERANS ELITE INC. LANDSCAPING AND GROUNDS-KEEPING SERVICES (APPROXIMATELY 260 ACRES) FOR NEW JERSEY HCS (EAST ORANGE AND LYONS VAMC).

Who is the contractor on this award?

The obligated recipient is VETERANS ELITE 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 $3.4 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the track record of Veterans Elite Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding the specific track record of Veterans Elite Inc. with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any previous contract awards to this vendor, and their history of compliance and successful delivery. Without this data, it's difficult to assess their reliability and experience in fulfilling similar landscaping and grounds-keeping requirements for federal agencies.

How does the annual cost of this contract compare to similar landscaping services at other federal facilities of comparable size?

The annual cost of this contract is approximately $690,000 ($3.45 million / 5 years). Benchmarking this figure against similar landscaping contracts at other federal facilities requires detailed comparison of service scopes, geographic locations (which influence labor and material costs), and the specific acreage maintained. Without access to a database of comparable federal landscaping contracts with detailed service descriptions and pricing, a precise comparison is difficult. However, for managing approximately 260 acres across two major medical centers, this annual cost appears to be within a plausible range, assuming comprehensive services are required.

What are the specific performance metrics and quality standards outlined in the contract for Veterans Elite Inc.?

The provided data does not include the specific performance metrics or quality standards outlined in the contract for Veterans Elite Inc. Typically, a landscaping and grounds-keeping contract would detail requirements for mowing frequency, trimming standards, weed control, fertilization schedules, pest management, snow removal response times, and debris cleanup. The effectiveness of the contract hinges on these defined standards and the VA's ability to monitor and enforce them. A review of the full contract document would be necessary to ascertain these crucial details.

What was the rationale for using Simplified Acquisition Procedures (SAP) instead of full and open competition for this contract?

The rationale for using Simplified Acquisition Procedures (SAP) for this $3.45 million contract likely stems from the agency's determination that the procurement falls within the statutory thresholds for SAP, which are designed to streamline the acquisition process for smaller dollar value contracts. Agencies often use SAP to increase efficiency and reduce administrative burden. For contracts under $250,000 (the general SAP threshold, though specific agency policies and FAR clauses can adjust this), SAP is standard. For amounts above this, agencies must justify its use, often citing urgency, specific market conditions, or the nature of the services. In this case, the contract value is significantly above the standard SAP threshold, suggesting a specific justification or a higher internal SAP limit was applied, possibly related to the specialized nature of grounds-keeping or the desire for a rapid award.

Are there any known issues or disputes related to past landscaping contracts awarded by the Department of Veterans Affairs?

The provided data does not contain information about any known issues or disputes related to past landscaping contracts awarded by the Department of Veterans Affairs. Assessing such issues would require a review of public records, including contract dispute databases, Inspector General reports, and Government Accountability Office (GAO) bid protest decisions. Without this broader context, it is impossible to determine if there are systemic problems or specific vendor-related issues that might inform the risk assessment for this current contract. General knowledge of government contracting suggests that disputes can arise over performance, payment, or scope changes across various service contracts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24222Q0422

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 VETERAN MEMORIAL DR STE 2, POINT PLEASANT BEACH, NJ, 08742

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,449,693

Exercised Options: $3,449,693

Current Obligation: $3,449,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline