VA awards $3.1M contract for laundry services to Crothall Laundry Services Inc

Contract Overview

Contract Amount: $3,102,162 ($3.1M)

Contractor: Crothall Laundry Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-01

End Date: 2026-03-31

Contract Duration: 423 days

Daily Burn Rate: $7.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAUNDRY AND LINEN SERVICES

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29203

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to CROTHALL LAUNDRY SERVICES INC for work described as: LAUNDRY AND LINEN SERVICES Key points: 1. Contract awarded for industrial laundry services to support VA facilities. 2. Crothall Laundry Services Inc. is the sole awardee. 3. The contract is for a firm fixed price, with a duration of 423 days. 4. The North American Industry Classification System (NAICS) code is 812332.

Value Assessment

Rating: fair

The award amount of $3.1M for 423 days suggests a monthly cost of approximately $733,400. Benchmarking this against similar contracts for laundry services is difficult without more specific details on volume and service levels. However, the provided benchmark of $7334 (likely per month or a smaller unit) seems high if it represents a monthly cost.

Cost Per Unit: $7334

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may not yield the best price discovery compared to full and open competition.

Taxpayer Impact: Taxpayers may be paying a premium due to the limited competition, potentially leading to less efficient use of funds.

Public Impact

Ensures essential laundry and linen services for VA healthcare facilities. Supports patient care and hygiene standards within the VA system. Provides employment opportunities within the industrial laundry sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Lack of detailed service level agreements makes cost benchmarking difficult.

Positive Signals

Ensures continuity of essential services.
Utilizes a firm fixed price contract, providing cost certainty.

Sector Analysis

The industrial laundry services sector is characterized by established players providing essential services to various institutions. Spending benchmarks can vary significantly based on the scale of operations, geographic location, and specific service requirements.

Small Business Impact

This contract was awarded to a single entity and there is no indication of small business participation or subcontracting. The focus appears to be on a larger, established provider.

Oversight & Accountability

The award was made via a Purchase Order, which is a standard procurement instrument. Oversight would typically involve monitoring contract performance and adherence to terms by the VA contracting officer.

Related Government Programs

Industrial Launderers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may result in higher costs.
Lack of detailed service volume makes cost-effectiveness assessment difficult.
Potential for price increases in future contract renewals without full competition.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to CROTHALL LAUNDRY SERVICES INC. LAUNDRY AND LINEN SERVICES

Who is the contractor on this award?

The obligated recipient is CROTHALL LAUNDRY SERVICES 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 $3.1 million.

What is the period of performance?

Start: 2025-02-01. End: 2026-03-31.

What is the specific volume of laundry and linen services required under this contract to justify the $3.1M cost?

The provided data does not specify the exact volume of laundry and linen services. To accurately assess value, details on the number of beds served, types of linens, frequency of service, and specific processing requirements (e.g., specialized cleaning for medical items) would be necessary. Without this, it's challenging to determine if the $3.1M represents a fair price for the services rendered.

What were the specific reasons for limiting competition on this contract?

The data states the contract was 'NOT COMPETED UNDER SAP,' which implies a limited competition strategy. Potential reasons could include urgency, specific technical requirements only met by one vendor, or a previous contract that was not set to expire in time for a full solicitation. Understanding the justification is crucial for assessing potential risks to price and performance.

How does the performance of Crothall Laundry Services Inc. on previous contracts compare, and what are the key performance indicators for this contract?

Information on Crothall's past performance is not included in the provided data. Key performance indicators (KPIs) for this contract would typically include on-time delivery, quality of cleaning, linen replacement rates, and customer satisfaction. Monitoring these KPIs will be essential for ensuring the VA receives the expected value and service quality.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Industrial Launderers

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 140 CORT RD, COLUMBIA, SC, 29203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,102,162

Exercised Options: $3,102,162

Current Obligation: $3,102,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline