VA awards $6.3M contract for building equipment renovation, with 4 bids received

Contract Overview

Contract Amount: $6,305,748 ($6.3M)

Contractor: Armstrong Elevator Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-30

End Date: 2026-05-23

Contract Duration: 966 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE AND RENOVATE TRANSPORTATION EQUIPMENT IN BLDG.1

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.3 million to ARMSTRONG ELEVATOR COMPANY for work described as: REPLACE AND RENOVATE TRANSPORTATION EQUIPMENT IN BLDG.1 Key points: 1. Contract value appears reasonable given the scope of renovating transportation equipment. 2. Full and open competition suggests a competitive bidding environment. 3. The definitive contract type may indicate a need for flexibility during execution. 4. Performance period spans over two years, allowing for phased implementation. 5. This contract falls within the 'Other Building Equipment Contractors' NAICS code. 6. The award was made by the Department of Veterans Affairs to Armstrong Elevator Company.

Value Assessment

Rating: good

The contract value of $6.3 million for renovating transportation equipment in Building 1 seems within a reasonable range for such specialized work. Benchmarking against similar VA or other federal agency contracts for elevator and transportation system upgrades would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the initial pricing is intended to cover all costs, with the contractor bearing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the agency initially considered excluding certain sources but ultimately opened the competition. Four bids were received, suggesting a moderate level of competition. While four bidders is a decent number, a higher number could potentially drive prices lower. The agency's decision to exclude sources initially warrants further review to understand if it limited the competitive landscape.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there may be an opportunity for even greater savings with broader outreach in future procurements.

Public Impact

Veterans and VA staff will benefit from improved and reliable transportation equipment within Building 1. The services delivered include the renovation and upgrade of critical building transportation systems. The geographic impact is localized to the specific VA facility in Florida where Building 1 is located. The contract supports skilled labor in the building equipment maintenance and renovation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type could potentially limit the breadth of competition if not fully justified.
The definitive contract type, while offering flexibility, might lead to scope creep if not managed tightly.

Positive Signals

The contract was awarded under full and open competition, indicating a commitment to leveraging the broadest possible market.
A firm fixed-price contract provides cost certainty for the government.
The award to a single contractor suggests a clear selection based on defined criteria.

Sector Analysis

This contract falls under the 'Other Building Equipment Contractors' sector, which includes companies specializing in the installation, maintenance, and repair of various building systems like elevators, escalators, and other vertical transportation. The federal market for building equipment services is substantial, driven by the need to maintain aging infrastructure across numerous government facilities. This specific award represents a small portion of that overall spending, focusing on a critical renovation project within a VA facility.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Armstrong Elevator Company engages them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified renovations within the agreed budget and timeframe. Transparency is generally maintained through federal contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance Contracts
VA Facilities Management
Elevator and Escalator Repair Services
Building Infrastructure Modernization

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Risk of scope creep with a definitive contract type.
Dependence on contractor's ability to manage supply chain for specialized parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.3 million to ARMSTRONG ELEVATOR COMPANY. REPLACE AND RENOVATE TRANSPORTATION EQUIPMENT IN BLDG.1

Who is the contractor on this award?

The obligated recipient is ARMSTRONG ELEVATOR COMPANY.

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 $6.3 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-05-23.

What is the track record of Armstrong Elevator Company with federal contracts, particularly with the Department of Veterans Affairs?

Armstrong Elevator Company has a history of receiving federal contracts, primarily from agencies like the Department of Veterans Affairs and the General Services Administration. Analysis of their past performance indicates a focus on elevator maintenance, repair, and modernization projects. While specific details on contract values and performance ratings would require a deeper dive into contract databases, their consistent awards suggest a satisfactory performance history. However, a thorough review would involve examining past performance evaluations, any documented disputes or contract modifications, and the timeliness of their project completions to fully assess their reliability and capability for this specific renovation.

How does the awarded price of $6.3 million compare to similar renovation projects for transportation equipment in federal buildings?

Benchmarking the $6.3 million award requires comparing it to contracts of similar scope, size, and complexity for elevator and transportation equipment renovation within federal facilities. Factors such as the age and type of equipment, the extent of the renovation (e.g., modernization vs. replacement), and the specific location can significantly influence costs. Without access to a detailed breakdown of the renovation scope and specific equipment involved, a precise comparison is challenging. However, for a comprehensive renovation of critical transportation systems in a federal building, a multi-million dollar figure is not uncommon. A more granular analysis would involve looking at cost per elevator, per floor served, or per square foot of building area renovated, compared to similar federal projects over the last 3-5 years.

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

Key risks for this contract include potential delays in renovation due to unforeseen site conditions or supply chain issues for specialized parts, and the possibility of cost overruns if the scope expands beyond the initial fixed-price agreement. Mitigation strategies likely involve the VA's robust project management and oversight, detailed inspection protocols, and the firm fixed-price contract structure which places the financial risk on the contractor. Armstrong Elevator Company's own risk mitigation would involve thorough site assessments, detailed planning, and securing necessary materials and labor in advance. The two-year performance period also allows for phased execution, potentially reducing the impact of any single disruption.

What is the expected effectiveness of the renovated transportation equipment in improving VA facility operations?

The renovation of transportation equipment is expected to significantly improve the reliability, safety, and efficiency of vertical movement within Building 1. Modernized systems typically experience fewer breakdowns, reducing downtime and maintenance costs. Enhanced safety features will contribute to a more secure environment for veterans and staff. Improved efficiency can lead to faster transit times between floors, optimizing workflow for personnel and enhancing the overall experience for visitors. The effectiveness will be measured by reduced service calls, improved uptime statistics, and positive feedback from facility users post-renovation.

What have been the historical spending patterns for 'Other Building Equipment Contractors' by the Department of Veterans Affairs?

The Department of Veterans Affairs historically spends significant amounts on building maintenance, repair, and renovation, including services provided by 'Other Building Equipment Contractors.' This category often encompasses contracts for elevators, HVAC systems, and other essential building infrastructure. VA spending in this area tends to be consistent, driven by the large footprint of its medical centers and administrative facilities, many of which require ongoing upgrades and maintenance. Annual spending can fluctuate based on major capital improvement projects and the lifecycle of existing equipment across its portfolio. Analyzing historical data would reveal trends in contract types, average award values, and the distribution of spending across different types of building equipment services.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24823R0186

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9225 ULMERTON ROAD, LARGO, FL, 33771

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

Financial Breakdown

Contract Ceiling: $6,388,272

Exercised Options: $6,388,272

Current Obligation: $6,305,748

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline