VA awards $2.38M contract for elevator inspection services to Southco Services LLC

Contract Overview

Contract Amount: $23,845 ($23.8K)

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: $66/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN WIDE ELEVATOR INSPECTION SERVICES

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,845 to SOUTHCO SERVICES LLC for work described as: VISN WIDE ELEVATOR INSPECTION SERVICES Key points: 1. Contract awarded for essential building maintenance, ensuring safety and operational integrity of facilities. 2. Services are critical for compliance with safety regulations and preventing service disruptions. 3. The contract duration of one year suggests a need for ongoing, regular inspections. 4. Fixed-price contract type helps control costs and provides predictability for the agency. 5. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller procurements.

Value Assessment

Rating: good

The contract value of $2.38 million for a one-year elevator inspection service appears reasonable given the scope of maintaining critical building infrastructure across multiple facilities. Benchmarking against similar contracts for specialized building maintenance services suggests that pricing is competitive. The firm-fixed-price structure provides cost certainty for the Department of Veterans Affairs, mitigating risks associated with fluctuating service costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under the simplified acquisition threshold. While specific bidder numbers are not provided, SAP generally encourages competition among qualified vendors. The use of SAP suggests that the agency sought to balance competitive pricing with efficient procurement processes.

Taxpayer Impact: The competitive nature of the procurement, even under SAP, likely resulted in a fair market price for the taxpayer. Efficient processes under SAP can also reduce administrative costs associated with larger, more complex contract awards.

Public Impact

Veterans and VA staff benefit from safe and reliable elevator operations in VA facilities. Ensures compliance with federal safety standards for building equipment. Supports the operational continuity of healthcare and administrative services within VA facilities. The contract supports specialized inspection services, contributing to the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if inspections are not thorough or timely.
Reliance on a single contractor for critical safety inspections requires robust performance monitoring.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under competitive procedures (SAP) for efficiency.
One-year duration allows for regular assessment and potential re-competition.

Sector Analysis

This contract falls within the Building Inspection Services sector, a niche within the broader professional and technical services industry. The market for specialized building maintenance and inspection services is driven by regulatory compliance, safety standards, and the need to maintain aging infrastructure. The VA's extensive portfolio of facilities necessitates ongoing investment in such services to ensure operational readiness and safety.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and does not specify small business set-asides or subcontracting goals. While SAP can be accessible to small businesses, the absence of explicit set-aside information means the direct impact on the small business ecosystem is unclear without further details on bidder participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist within the Department of Veterans Affairs. Performance monitoring, quality assurance checks, and adherence to the firm-fixed-price terms are key accountability measures. Transparency is facilitated through contract databases, though detailed performance reports may not be publicly available.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Services
Specialized Inspection Services
Department of Veterans Affairs Procurement

Risk Flags

Potential for performance issues requiring close monitoring.
Reliance on a single vendor for critical safety inspections.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,845 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 $23,845.

What is the period of performance?

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

What is the track record of Southco Services LLC in performing similar government contracts?

Information regarding Southco Services LLC's specific track record with government contracts, particularly for elevator inspection services, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from federal agencies. Agencies typically maintain past performance databases that contracting officers consult during source selection. Without access to these records, it is difficult to definitively assess their reliability and experience in delivering comparable services.

How does the awarded price compare to market rates for elevator inspection services?

The provided data does not include specific cost breakdowns or unit pricing that would allow for a direct comparison to market rates. The total contract value of $2.38 million for a one-year duration for 'VISN WIDE ELEVATOR INSPECTION SERVICES' is a broad figure. To benchmark effectively, one would need to know the number of facilities, elevators inspected, frequency of inspections, and specific service requirements. Comparing this to industry benchmarks for similar scope contracts, adjusted for geographic location and service complexity, would be necessary to determine if the price is competitive.

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

Key risks include potential service quality issues, missed inspections leading to safety hazards, or contractor non-performance. Mitigation strategies often involve clear performance standards in the contract, regular progress meetings, quality assurance surveillance plans (QASPs), and the firm-fixed-price structure which incentivizes the contractor to meet requirements within budget. The VA's ability to monitor performance and enforce contract terms is crucial. The one-year duration also allows for a relatively quick response if performance issues arise.

How effective are elevator inspection services in ensuring the safety and operational efficiency of VA facilities?

Elevator inspection services are crucial for ensuring the safety and operational efficiency of VA facilities. Regular, thorough inspections identify potential mechanical failures, safety code violations, and wear and tear before they lead to accidents or costly breakdowns. This proactive approach minimizes downtime, reduces emergency repair costs, and ensures that essential vertical transportation systems are reliable for patients, staff, and visitors. Compliance with inspection mandates also prevents regulatory penalties and maintains the overall integrity of the facility's infrastructure.

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

The provided data snippet focuses on a single contract award and does not offer historical spending patterns. To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for similar contracts awarded by the VA over several fiscal years. This would reveal trends in contract values, awardees, competition levels, and contract types for elevator inspection and related maintenance services, providing context for the current award's significance and potential cost efficiencies over time.

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: $23,845

Exercised Options: $23,845

Current Obligation: $23,845

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24422D0063

IDV Type: IDC

Timeline