VA awards $4.8M contract for elevator inspection services to Southco Services LLC

Contract Overview

Contract Amount: $4,800 ($4.8K)

Contractor: Southco Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-15

End Date: 2026-02-14

Contract Duration: 364 days

Daily Burn Rate: $13/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN WIDE ELEVATOR INSPECTION SERVICES

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16504

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4,800 to SOUTHCO SERVICES LLC for work described as: VISN WIDE ELEVATOR INSPECTION SERVICES Key points: 1. Contract focuses on essential building maintenance for Veterans Affairs facilities. 2. Competition dynamics for this service appear limited, potentially impacting price. 3. Risk indicators are low given the nature of inspection services. 4. Performance context is tied to ensuring facility safety and compliance. 5. Sector positioning is within building support services for government operations.

Value Assessment

Rating: fair

The contract value of $4.8 million for a one-year period for elevator inspection services appears to be within a reasonable range for specialized maintenance. However, without specific details on the number of facilities or the scope of inspections, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for elevator maintenance and inspection across federal agencies would provide a clearer picture of whether this pricing is competitive. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. While the specific number of bidders is not provided, SAP is often used for smaller dollar value procurements where full and open competition may not be practical or cost-effective. This limited competition could potentially lead to less aggressive pricing compared to a broader solicitation.

Taxpayer Impact: Limited competition under SAP may mean taxpayers are not receiving the absolute lowest price achievable through a wider bidding process.

Public Impact

Veterans Affairs facilities will benefit from ensured elevator safety and operational compliance. Services delivered include routine and potentially emergency inspections of elevators. Geographic impact is likely concentrated within the VISN (Veterans Integrated Service Network) covered by the contract, primarily Pennsylvania. Workforce implications are minimal, primarily involving specialized inspectors from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Lack of detailed scope of work makes precise value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Focus on essential safety and maintenance services for VA facilities.

Sector Analysis

The building inspection services sector is critical for ensuring the safety and compliance of government infrastructure. This contract falls under the broader category of facilities maintenance and support services. The market for such services is competitive, with many firms specializing in building systems. The $4.8 million award is a moderate-sized contract within this sector, reflecting the ongoing need for specialized inspections to maintain operational readiness of federal buildings.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The contractor, Southco Services LLC, is not specified as a small business in the provided data.

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 reporting from the contractor and site visits or reviews by VA personnel to ensure compliance with inspection standards and schedules. Transparency is facilitated through contract databases, though detailed inspection reports may be internal.

Related Government Programs

Federal Building Maintenance Contracts
Government Facilities Management
Elevator Maintenance Services
Department of Veterans Affairs Procurement

Risk Flags

Limited competition may impact price competitiveness.
Scope of work clarity is essential for value assessment.
Contractor performance history needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4,800 to SOUTHCO SERVICES LLC. VISN WIDE ELEVATOR INSPECTION SERVICES

Who is the contractor on this award?

The obligated recipient is SOUTHCO SERVICES 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 $4,800.

What is the period of performance?

Start: 2025-02-15. End: 2026-02-14.

What is the track record of Southco Services LLC with the federal government, particularly with the Department of Veterans Affairs?

Information regarding Southco Services LLC's specific track record with the federal government, and particularly the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require searching federal procurement databases like SAM.gov or FPDS to identify past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. Understanding their past performance is crucial for assessing the reliability and quality of services they are likely to provide under this new contract. Without this historical data, the assessment relies more heavily on the nature of the service itself and general industry standards.

How does the $4.8 million contract value compare to similar elevator inspection services procured by the VA or other federal agencies?

Benchmarking the $4.8 million contract value requires comparing it against similar contracts for elevator inspection services. Factors influencing cost include the number of facilities, the types and number of elevators, the frequency of inspections (routine, emergency), and the geographic scope. A contract for a single large VA medical center with hundreds of elevators would differ significantly from one covering multiple smaller facilities across a state. Without these specifics, a direct comparison is difficult. However, $4.8 million for a year of comprehensive elevator inspection services across a VISN suggests a substantial scope, and further analysis would involve querying databases for contracts with similar service descriptions and award amounts to determine if this represents a competitive price point or if it appears high or low relative to market rates.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract are related to service quality and potential cost overruns if the scope is not well-defined or if unforeseen issues arise. Ensuring that Southco Services LLC provides thorough and accurate inspections is critical for maintaining the safety and compliance of VA elevators. Mitigation strategies likely include clear performance standards in the contract, regular reporting requirements, and potentially site visits by VA personnel to verify work. The firm-fixed-price nature of the contract helps mitigate financial risk for the government by capping the total cost. However, if the contractor fails to perform adequately, the risk shifts to the VA in terms of potential safety hazards and the need to potentially re-compete or find alternative solutions.

How effective is the current competition level in ensuring fair pricing for these essential elevator inspection services?

The competition level, described as 'limited' and competed under Simplified Acquisition Procedures (SAP), suggests that fair pricing may be compromised compared to a full and open competition. SAP is designed for procurements under a certain dollar threshold (currently $250,000, but historically higher for certain types of services or agencies) where the administrative burden of full competition is deemed excessive. While this can streamline the acquisition process, it often results in fewer bidders. Fewer bidders generally translate to less price pressure, potentially allowing the awarded contractor to charge higher prices than they might in a more competitive environment. The effectiveness of fair pricing in this scenario depends heavily on the specific market conditions for elevator inspection services within the relevant geographic area and the diligence of the contracting officer in obtaining competitive quotes.

What is the historical spending pattern for elevator inspection services by the Department of Veterans Affairs?

Analyzing historical spending patterns for elevator inspection services by the Department of Veterans Affairs (VA) is crucial for understanding trends, identifying potential cost savings, and assessing the consistency of procurement strategies. This would involve examining VA's contract databases over several fiscal years to identify all awards for similar services, noting the total amounts spent, the contractors awarded, the contract types, and the duration of these contracts. Understanding whether spending has increased, decreased, or remained stable, and whether the same contractors have consistently won awards, can reveal insights into market dynamics, pricing trends, and the VA's long-term approach to facility maintenance. This contract's $4.8 million value should be viewed within this historical context.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 121 BRIGGS AVE, NORTH AUGUSTA, SC, 29841

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,800

Exercised Options: $4,800

Current Obligation: $4,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24422D0063

IDV Type: IDC

Timeline