VA awards $1.18M for elevator inspections, highlighting need for specialized building maintenance services

Contract Overview

Contract Amount: $11,770 ($11.8K)

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: $32/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN WIDE ELEVATOR INSPECTION SERVICES

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18711

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11,770 to SOUTHCO SERVICES LLC for work described as: VISN WIDE ELEVATOR INSPECTION SERVICES Key points: 1. Contract focuses on essential safety and operational upkeep of critical infrastructure. 2. Competition dynamics for specialized inspection services can influence pricing and quality. 3. Performance period of one year suggests routine maintenance rather than major upgrades. 4. Geographic focus on Pennsylvania indicates localized service delivery. 5. Firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $1.18 million for a one-year elevator inspection service appears reasonable given the specialized nature of the work and the need for certified inspectors. Benchmarking against similar contracts for building inspection services across federal agencies would provide a clearer picture of value for money. The firm-fixed-price contract type suggests that the Department of Veterans Affairs has a clear understanding of the scope and aims to manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. While the specific number of bidders is not provided, the use of SAP generally encourages a reasonable level of competition. This approach allows for efficient procurement while still seeking competitive offers to ensure fair pricing and service quality.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, suggests that taxpayers are likely to benefit from a fair market price for these essential inspection services.

Public Impact

Veterans and staff at VA facilities in Pennsylvania will benefit from safe and reliable elevator operations. Ensures compliance with safety regulations and standards for vertical transportation systems. Supports the operational readiness of healthcare and administrative buildings. Maintains the physical infrastructure necessary for the delivery of VA services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data.
Potential for scope creep if additional inspection needs arise beyond the initial contract.
Dependence on a single contractor for a full year could pose continuity risks if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Competitive procurement process likely secured a fair market price.
Focus on essential safety inspections ensures critical infrastructure is maintained.

Sector Analysis

The building inspection services sector is crucial for ensuring the safety and compliance of commercial and government properties. This contract falls within the broader professional, scientific, and technical services industry, specifically focusing on specialized building systems maintenance. The market for such services is competitive, with numerous firms offering expertise in various inspection disciplines. Federal spending in this area is consistent, driven by the need to maintain a vast portfolio of government-owned facilities.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Given the specialized nature of elevator inspections, it's possible that larger, specialized firms were more likely to bid. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Veterans Affairs. Performance monitoring, invoice review, and ensuring compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Safety Inspections
Department of Veterans Affairs Infrastructure Support

Risk Flags

Potential for performance issues with a single contractor.
Lack of detailed performance metrics in the provided summary.
Dependence on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11,770 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 $11,770.

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 federal contracts?

A review of SOUTHCO SERVICES LLC's federal contracting history would be necessary to assess their performance on similar contracts. This would involve examining past awards, contract values, performance evaluations (if publicly available), and any reported disputes or terminations. Understanding their experience with government agencies, particularly the Department of Veterans Affairs, and their success in delivering elevator inspection or related building maintenance services is crucial for evaluating their capability and reliability for this current contract. Without specific historical data, it's difficult to definitively assess their track record.

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

To benchmark the value, the awarded price of $1.18 million for a one-year contract needs to be compared against industry standards and rates for similar elevator inspection services. This comparison should consider factors such as the number and type of elevators to be inspected, the geographic scope (Pennsylvania), and the specific requirements outlined in the contract's statement of work. Researching average hourly rates for certified elevator inspectors, typical project costs for multi-facility inspections, and analyzing pricing data from other federal or state government contracts for comparable services would provide a basis for assessing whether this contract represents good value for money.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The provided data does not specify the key performance indicators (KPIs) for this elevator inspection services contract. Typically, for such services, KPIs might include timeliness of inspections, accuracy of inspection reports, adherence to safety standards, responsiveness to identified issues, and overall compliance with the contract's statement of work. The Department of Veterans Affairs would likely have internal procedures for monitoring these aspects, potentially involving regular performance reviews with the contractor and analysis of inspection reports. Clear KPIs and measurement methods are essential for ensuring the contractor meets the required standards and for holding them accountable.

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

Analyzing historical spending data for elevator inspection services by the Department of Veterans Affairs (VA) would provide context for the current $1.18 million award. This involves examining VA's expenditures on similar contracts over the past several fiscal years, noting trends in contract values, durations, and the number of awards. Understanding whether this award represents an increase, decrease, or stable level of spending can indicate changes in the VA's maintenance strategy, facility needs, or market conditions. It also helps in identifying potential patterns of reliance on specific contractors or regions.

Are there any potential risks associated with relying on a single contractor for these services over a one-year period?

Relying on a single contractor, SOUTHCO SERVICES LLC, for elevator inspection services over a one-year period presents several potential risks. Firstly, there's a risk of contractor underperformance or failure to meet contractual obligations, which could lead to delays in inspections, inaccurate reporting, or non-compliance with safety standards, potentially impacting facility operations and safety. Secondly, a sole-source dependency for a year limits the VA's ability to leverage competitive pricing or introduce new service providers if performance issues arise. Finally, unforeseen circumstances affecting the contractor, such as financial instability or loss of key personnel, could disrupt service delivery.

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: $11,770

Exercised Options: $11,770

Current Obligation: $11,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24422D0063

IDV Type: IDC

Timeline