VA awards $15.07M contract for UPS maintenance and service to Power Edge, Inc

Contract Overview

Contract Amount: $15,074 ($15.1K)

Contractor: Power Edge, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-20

End Date: 2024-04-19

Contract Duration: 365 days

Daily Burn Rate: $41/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPS MAINTENANCE AND SERVICE

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15,074.09 to POWER EDGE, INC. for work described as: UPS MAINTENANCE AND SERVICE Key points: 1. Contract awarded through simplified acquisition procedures, suggesting a focus on efficiency for smaller procurements. 2. The firm-fixed-price structure shifts risk to the contractor, ensuring predictable costs for the VA. 3. Limited public data on Power Edge, Inc. necessitates careful monitoring of performance and value. 4. The contract duration of one year with a single award indicates a focused approach to immediate needs. 5. Service location in North Carolina suggests a localized support requirement for VA facilities.

Value Assessment

Rating: fair

The contract value of $15.07 million for one year of UPS maintenance and service appears substantial for a single award. Benchmarking against similar contracts for UPS maintenance across federal agencies is difficult without more detailed service scope. However, the firm-fixed-price nature provides cost certainty. Further analysis would require understanding the specific types and quantities of UPS units covered and the criticality of the supported facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than sole-source but is typically less extensive than full and open competition for larger contracts. The number of bidders is not specified, but SAP aims to encourage competition among qualified vendors. This method is generally used for procurements under the simplified acquisition threshold, suggesting a balance between competition and administrative efficiency.

Taxpayer Impact: Using SAP for this contract value aims to streamline the procurement process, potentially leading to faster delivery of essential services. While it encourages competition, the level of competition might be less intense than for larger, more complex procurements, which could impact the ultimate price savings for taxpayers.

Public Impact

The Department of Veterans Affairs (VA) benefits from this contract by ensuring the reliable operation of critical Uninterruptible Power Supply (UPS) systems. This contract delivers essential maintenance and service for UPS units, crucial for maintaining power continuity in VA facilities. The geographic impact is primarily focused on North Carolina, where the services will be rendered. Workforce implications are likely to involve skilled technicians employed by Power Edge, Inc. for the maintenance and repair of UPS equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance history for Power Edge, Inc. in the public domain.
The specific scope of services and the number/type of UPS units covered are not detailed, making value assessment challenging.
Reliance on Simplified Acquisition Procedures may limit the breadth of competition compared to larger contract vehicles.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Contract was competed, indicating an effort to secure competitive pricing.
Awarded to a single vendor, potentially simplifying management and oversight for this specific requirement.

Sector Analysis

The market for UPS maintenance and service is a critical component of the broader electrical equipment and infrastructure sector. Federal agencies, particularly those with extensive facilities like the VA, rely heavily on these services to ensure operational continuity. While specific market size data for federal UPS maintenance is not readily available, it is a significant sub-segment driven by the need for reliable power in sensitive environments. This contract fits within the general category of facilities maintenance and support services, a consistent area of federal spending.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. The award to Power Edge, Inc. does not appear to be a small business based on the contract value, though their size classification is not explicitly stated. Further investigation would be needed to determine if small business participation is a factor through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order awarded under SAP, it is likely subject to internal VA procurement regulations and oversight. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing oversight mechanisms are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Facilities Maintenance Contracts
Critical Infrastructure Support Services
Electrical Equipment Maintenance
Department of Veterans Affairs Procurement

Risk Flags

Limited Contractor Performance Data
Unclear Scope of Services
Potential for Price Competition Limitations under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15,074.09 to POWER EDGE, INC.. UPS MAINTENANCE AND SERVICE

Who is the contractor on this award?

The obligated recipient is POWER EDGE, INC..

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 $15,074.09.

What is the period of performance?

Start: 2023-04-20. End: 2024-04-19.

What is the track record of Power Edge, Inc. in performing similar federal contracts?

Publicly available data on Power Edge, Inc.'s track record with federal contracts is limited. While they were awarded this $15.07 million contract by the VA, detailed information regarding past performance, client satisfaction, or experience with similar UPS maintenance and service agreements across other federal agencies is not readily accessible through standard federal procurement databases. Further due diligence would be required to assess their historical performance, including any past issues, commendations, or the scale of previous contracts they have managed. This lack of readily available historical data presents a potential risk that requires careful monitoring of their performance on this current contract.

How does the awarded price compare to market rates for similar UPS maintenance services?

Directly comparing the awarded price of $15.07 million for one year of UPS maintenance and service to specific market rates is challenging without a detailed breakdown of the services provided, the number and types of UPS units covered, and the geographic service area. Federal contracts often include specific service level agreements (SLAs) and maintenance schedules that can differ from commercial offerings. However, the firm-fixed-price nature suggests the contractor has factored in all anticipated costs and risks. A comprehensive benchmark would require analyzing comparable federal contracts for similar scope and scale, as well as consulting industry pricing guides for UPS maintenance, adjusted for the specific requirements outlined in the VA's contract.

What are the primary risks associated with this contract award?

The primary risks associated with this contract award include the limited public information available on the contractor's (Power Edge, Inc.) past performance and track record, making it difficult to fully assess their capability and reliability. The scope of services, while related to UPS maintenance, is not detailed in the provided data, which could lead to potential disputes over service delivery or unforeseen costs if not clearly defined. Additionally, reliance on Simplified Acquisition Procedures, while efficient, may not always yield the most competitive pricing compared to larger, more extensively competed contracts. Finally, the single-year duration might necessitate a new procurement process soon, introducing continuity risks if not managed proactively.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for the VA in this scenario?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for the VA by shifting the risk of cost overruns to the contractor, Power Edge, Inc. This means the VA knows the exact cost of the service upfront, which aids in budget predictability and prevents unexpected increases in expenditure. For routine maintenance and services where the scope is well-defined, FFP is an excellent choice for cost control. However, if unforeseen issues arise that require extensive repairs beyond the standard maintenance scope, the contractor may be less incentivized to absorb those costs, potentially leading to change orders or a less proactive approach to complex problem-solving compared to other contract types. Overall, for predictable maintenance needs, FFP provides strong value through cost certainty.

What is the historical spending pattern for UPS maintenance and service by the Department of Veterans Affairs?

Analyzing the historical spending patterns of the Department of Veterans Affairs (VA) for UPS maintenance and service reveals a consistent need for such support across its numerous healthcare facilities and administrative buildings. While the specific total annual spend fluctuates based on infrastructure upgrades, equipment lifecycles, and contract renewals, the VA regularly procures these services. Past awards often involve multiple contracts distributed across different regions and facilities, reflecting the decentralized nature of VA operations. The value of individual contracts can range significantly, from smaller, localized agreements to larger, multi-year commitments similar in scale to this recent award. Understanding these patterns helps contextualize the current $15.07 million award as part of an ongoing commitment to maintaining critical power infrastructure.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24623Q0429

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 TERRY DR, BETHEL, CT, 06801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $187,675

Exercised Options: $69,601

Current Obligation: $15,074

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline