VA awards $676K for grease trap cleaning, highlighting a need for consistent waste management services

Contract Overview

Contract Amount: $67,600 ($67.6K)

Contractor: W Squared Property Management LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-04-01

End Date: 2021-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $53/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF GREASE TRAP CLEANING

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67,599.72 to W SQUARED PROPERTY MANAGEMENT LLC for work described as: IGF::OT::IGF GREASE TRAP CLEANING Key points: 1. Contract value appears reasonable for specialized waste management services over a multi-year period. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract duration of over three years indicates a sustained need for ongoing maintenance. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The service category is essential for maintaining facility hygiene and operational integrity. 6. Geographic focus on Maryland suggests localized service delivery.

Value Assessment

Rating: good

The contract value of approximately $676,000 over 3.8 years for grease trap cleaning services appears to be within a reasonable range for a federal agency. While specific per-incident costs are not detailed, the overall award suggests a consistent need for maintenance. Benchmarking against similar contracts for waste management services at federal facilities would provide a more precise value assessment, but the fixed-price nature of this contract indicates a defined cost for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With 8 bidders participating, the level of competition was robust. This suggests that the Department of Veterans Affairs was able to solicit a wide range of potential providers, which typically fosters price discovery and encourages contractors to offer competitive terms to secure the award.

Taxpayer Impact: A competitive bidding process for essential services like waste management helps ensure that taxpayer dollars are used efficiently, preventing overpayment and promoting cost-effectiveness.

Public Impact

Benefits the Department of Veterans Affairs by ensuring the proper functioning and sanitation of its facilities. Provides essential waste management services, specifically grease trap cleaning, to prevent clogs and maintain plumbing systems. Services are geographically focused within Maryland, impacting local operations of the VA. Supports the operational workforce at the VA facility by ensuring a clean and functional environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters, despite fixed-price terms.
Dependence on a single contractor for a critical facility maintenance function.
Limited visibility into the specific frequency and quality of cleaning without detailed performance metrics.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially good value.
Fixed-price contract type provides cost certainty for the agency.
Contract duration of over three years indicates a stable, long-term need being met.

Sector Analysis

Grease trap cleaning falls under the broader waste management services sector, which is crucial for public health and environmental protection. This contract represents a small but vital component of the federal government's facility maintenance spending. The market for such services is typically localized, with numerous small to medium-sized businesses capable of providing specialized cleaning. Federal contracts in this space often utilize NAICS code 562998 (All Other Miscellaneous Waste Management Services).

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements. The award to W SQUARED PROPERTY MANAGEMENT LLC does not provide specific information on whether they are a small or large business. Further analysis would be needed to determine the impact on the small business ecosystem, but the lack of a set-aside suggests it was competed broadly.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Veterans Affairs, implying standard oversight procedures for federal procurement. Performance is likely monitored by the contracting officer's representative (COR) to ensure compliance with the firm fixed-price terms. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Facility Maintenance Contracts
Commercial Waste Management Services
Environmental Services Contracts
Department of Veterans Affairs Operations Support

Risk Flags

Contract duration exceeds 3 years, requiring careful monitoring of sustained performance.
Fixed-price contract shifts risk to contractor; performance quality must be actively managed.
Limited data on specific service metrics and quality assurance protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67,599.72 to W SQUARED PROPERTY MANAGEMENT LLC. IGF::OT::IGF GREASE TRAP CLEANING

Who is the contractor on this award?

The obligated recipient is W SQUARED PROPERTY MANAGEMENT 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 $67,599.72.

What is the period of performance?

Start: 2018-04-01. End: 2021-09-30.

What is the track record of W SQUARED PROPERTY MANAGEMENT LLC with federal contracts, particularly for waste management services?

Based on the provided data, W SQUARED PROPERTY MANAGEMENT LLC was awarded this definitive contract by the Department of Veterans Affairs. Further investigation into federal procurement databases (like FPDS or SAM.gov) would be necessary to ascertain the company's complete federal contract history. This would include details on other contracts awarded, their values, performance ratings, and the types of services provided. Understanding their past performance, especially in similar waste management or facility maintenance roles, is crucial for assessing their reliability and capability in fulfilling this current contract effectively.

How does the awarded amount compare to market rates for similar grease trap cleaning services in Maryland?

The total award of $675,997.72 over approximately 3.8 years (April 1, 2018, to September 30, 2021) averages to roughly $177,894 per year. To benchmark this against market rates, one would need to analyze comparable contracts for grease trap cleaning services awarded to commercial entities or other government agencies in the Maryland region during the same period. Factors such as the volume of grease traps, frequency of cleaning, and specific service requirements (e.g., reporting, emergency services) would influence pricing. Without access to a detailed market analysis or a database of comparable service contracts, it is difficult to definitively state if this price is high or low, though the full and open competition suggests it was likely competitive.

What are the specific performance risks associated with this contract, given it's a firm fixed-price type?

With a firm fixed-price (FFP) contract, the primary risk lies in the contractor's ability to perform the required services within the agreed-upon price. If W SQUARED PROPERTY MANAGEMENT LLC underestimates the costs associated with cleaning, labor, or disposal, they may face financial losses, potentially impacting service quality or leading to contract termination. Conversely, the government's risk is minimized in terms of cost overrun, but there's a risk of receiving substandard services if the contractor prioritizes profit over quality. Effective oversight by the VA's contracting officer's representative (COR) is essential to monitor performance and ensure compliance with the contract's scope of work and service standards.

What is the historical spending pattern for grease trap cleaning services by the Department of Veterans Affairs?

The provided data represents a single contract award from 2018-2021. To understand the historical spending pattern, one would need to aggregate data for similar services across multiple fiscal years and potentially across different VA facilities or regions. Analyzing past contracts for grease trap cleaning, waste management, or related facility maintenance services would reveal trends in spending levels, average contract values, and the number of contracts awarded annually. This broader view helps in identifying whether spending on these services is increasing, decreasing, or remaining stable, and whether the VA relies on a consistent set of vendors or frequently re-competes these services.

How does the number of bidders (8) influence the perceived value for money in this contract?

A total of 8 bidders participating in a full and open competition generally indicates a healthy level of market interest and competition for the services required. A higher number of bidders typically suggests that the contract requirements were well-defined and accessible to a range of qualified companies. This increased competition often drives down prices as contractors vie for the award, leading to better value for the government and, by extension, taxpayers. While 8 bidders is a solid number, the ultimate value for money also depends on the quality of the bids received and the contractor's subsequent performance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › All Other Miscellaneous Waste Management Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24518Q0089

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9452 CHARLOTTES LN, OWINGS MILLS, MD, 21117

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $141,733

Exercised Options: $141,733

Current Obligation: $67,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline