VA awards $322K pest control contract to Orkin, LLC for services in New York

Contract Overview

Contract Amount: $322,663 ($322.7K)

Contractor: Orkin, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-06

End Date: 2027-02-28

Contract Duration: 1,455 days

Daily Burn Rate: $222/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PEST CONTROL SERVICES

Place of Performance

Location: CANANDAIGUA, ONTARIO County, NEW YORK, 14424

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $322,663.03 to ORKIN, LLC for work described as: PEST CONTROL SERVICES Key points: 1. Contract awarded via Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract duration of nearly four years indicates a need for sustained pest control services. 3. A firm-fixed-price structure helps manage cost certainty for the government. 4. The award to a single vendor, Orkin, LLC, warrants a review of competition and pricing. 5. Geographic focus on New York (NY) suggests localized service delivery.

Value Assessment

Rating: fair

The contract value of $322,663.03 over approximately four years appears reasonable for specialized pest control services. However, without specific benchmarks for similar VA facilities or government-wide pest control contracts, a definitive value-for-money assessment is challenging. The firm-fixed-price nature provides cost predictability. Further analysis would require comparing unit costs for services rendered against industry standards or other government contracts for similar scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for procurements under the simplified acquisition threshold. While the data indicates it was competed, the number of bids received (3) is on the lower side, suggesting potential limitations in the outreach or the number of qualified vendors actively participating in this specific solicitation. This level of competition may not fully leverage market dynamics to drive down prices.

Taxpayer Impact: A limited number of bidders, even under SAP, could mean taxpayers did not benefit from the most competitive pricing achievable through a wider bidding process.

Public Impact

Veterans in New York will benefit from a healthier and safer living and working environment. Essential pest control services will be delivered to VA facilities in the New York area. The contract supports the operational continuity of VA healthcare and administrative functions. Potential for indirect workforce implications for the contractor's service personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) may have resulted in a higher price than a more robustly competed contract.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality and effectiveness.
The long contract duration could lead to vendor complacency if not actively managed.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Award to an established vendor like Orkin, LLC suggests a degree of confidence in their capability.
The contract addresses a critical need for health and safety at VA facilities.

Sector Analysis

Pest control services represent a niche but essential segment within the broader facilities management and professional services sector. Government agencies, particularly those with large physical footprints like the VA, frequently contract for these services to maintain health, safety, and operational integrity. Spending in this area is driven by regulatory compliance, public health concerns, and the need to protect infrastructure from damage. Benchmarking would involve comparing this contract's value and duration against similar pest control contracts awarded by other federal agencies or state/local governments.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if Orkin, LLC is a small business. Therefore, the direct impact on the small business ecosystem is unknown from this data alone. Further investigation would be needed to determine if subcontracting opportunities were mandated or utilized, and if small businesses were involved in the bidding process.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a Purchase Order awarded under SAP, it is likely subject to internal VA procurement policies and oversight. Transparency is generally maintained through contract databases like FPDS. Specific accountability measures would be detailed in the contract's terms and conditions, focusing on service delivery and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Pest Management Services
Department of Veterans Affairs Healthcare Support Services

Risk Flags

Limited Competition
Potential for Price Undiscovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $322,663.03 to ORKIN, LLC. PEST CONTROL SERVICES

Who is the contractor on this award?

The obligated recipient is ORKIN, 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 $322,663.03.

What is the period of performance?

Start: 2023-03-06. End: 2027-02-28.

What is the historical spending pattern for pest control services at this specific VA facility or within the New York region?

Analyzing historical spending data for pest control at the relevant VA facility or within the New York region would provide crucial context for the current $322,663.03 award. If previous contracts were significantly lower or higher, it could indicate changes in service needs, market prices, or competition levels. For instance, a consistent increase in spending might suggest inflation or expanding service requirements, while a sudden jump could warrant scrutiny of the current procurement process. Conversely, a decrease might reflect improved efficiency or reduced pest issues. Without this historical data, it's difficult to ascertain if the current contract represents a fair market price or a deviation from established spending trends.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar pest control services?

A detailed comparison of per-unit costs (e.g., cost per service visit, cost per square foot treated, cost per specific pest eradication) against industry benchmarks is essential for assessing value for money. If Orkin, LLC's pricing is significantly higher than average market rates for comparable services (considering factors like frequency, scope, and geographic location), it could indicate potential overpricing or suboptimal competition. Conversely, if the pricing is at or below market rates, it suggests a potentially good deal for the government. Accessing industry reports, consulting with subject matter experts, or analyzing pricing data from other government contracts would be necessary to establish these benchmarks and perform a robust comparison.

What specific pest control services are included in this contract, and have the requirements changed significantly from previous contracts?

Understanding the precise scope of services is critical for evaluating the contract's value and appropriateness. This includes identifying the types of pests targeted (e.g., rodents, insects, birds), the frequency and methods of treatment (e.g., inspections, baiting, spraying, trapping), and any specialized requirements (e.g., integrated pest management, eco-friendly solutions). If the current contract includes a broader or more intensive scope of services compared to previous agreements, a higher cost would be justifiable. However, if the requirements are similar or reduced, and the cost has increased, it warrants further investigation into pricing and competition. Clarity on service requirements ensures that the awarded price accurately reflects the work being performed.

What is Orkin, LLC's performance record on previous government contracts, particularly those with the VA or for similar services?

Evaluating Orkin, LLC's past performance on federal contracts is a key indicator of their reliability and capability. Reviewing contract databases (like FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or disputes can provide valuable insights. A history of successful, timely, and satisfactory performance suggests a lower risk for this current contract. Conversely, a record marred by performance failures, missed deadlines, or unresolved complaints would raise concerns about the contractor's ability to meet the VA's needs effectively and could indicate a higher risk of future issues, potentially impacting service delivery and cost.

Given the contract was competed under SAP with 3 bidders, what is the likelihood that a more extensive competition could have yielded better pricing or terms?

Simplified Acquisition Procedures (SAP) are designed for efficiency in procuring goods and services below a certain threshold, but they may not always elicit the maximum possible competition. With only three bidders, there's a reasonable possibility that a broader solicitation, perhaps utilizing full and open competition or more extensive outreach, could have attracted more vendors. This increased competition could have driven down prices through aggressive bidding or led to more favorable contract terms (e.g., better service level agreements, innovative solutions). While SAP is appropriate for this contract value, the limited number of bids suggests that exploring wider competition in the future, where feasible, might be beneficial for taxpayer value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Exterminating and Pest Control Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24223Q0272

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2170 PIEDMONT RD NE, ATLANTA, GA, 30324

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

Financial Breakdown

Contract Ceiling: $405,759

Exercised Options: $322,663

Current Obligation: $322,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline