VA awards $2.7M for water system maintenance, with 2 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $270,453 ($270.5K)

Contractor: Ashberry Acquisition Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-07

End Date: 2027-04-06

Contract Duration: 1,460 days

Daily Burn Rate: $185/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATER PROCESSING SYSTEMS MAINTENANCE SERVICES

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $270,452.52 to ASHBERRY ACQUISITION COMPANY for work described as: WATER PROCESSING SYSTEMS MAINTENANCE SERVICES Key points: 1. The contract value of $2.7 million over four years suggests a moderate annual spend for specialized maintenance. 2. Competition was present, with two bidders vying for the contract, indicating some level of market interest. 3. The firm-fixed-price structure shifts performance risk to the contractor, potentially stabilizing costs. 4. The contract is categorized under Electronic and Precision Equipment Repair and Maintenance, suggesting a focus on technical systems. 5. Awarded to Ashberry Acquisition Company, this contract contributes to the VA's infrastructure support in Florida. 6. The duration of 1460 days (4 years) provides a stable period for service delivery and planning.

Value Assessment

Rating: good

The contract value of approximately $676,000 annually for water processing systems maintenance appears reasonable given the specialized nature of the services and the four-year duration. Benchmarking against similar VA contracts for facility maintenance and repair of complex systems would provide a more precise value assessment. However, the firm-fixed-price award type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for broader competition among qualified vendors. The presence of two bidders indicates that the opportunity attracted at least some market interest. While two bidders are better than one, a higher number of bidders would generally lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The competition level suggests a moderate benefit to taxpayers, as some price pressure was likely exerted. However, further competition could have potentially yielded greater savings.

Public Impact

Veterans receiving care at VA facilities in Florida will benefit from reliable water processing systems. Essential maintenance and repair services for critical water processing infrastructure will be delivered. The contract's geographic impact is focused on Florida, supporting VA operations within the state. The contract supports specialized technical roles within the maintenance and repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only two bidders participated in a broader market.
Risk of price escalation if market conditions change significantly over the four-year term.
Dependence on a single contractor for critical infrastructure maintenance.

Positive Signals

Firm-fixed-price contract mitigates cost uncertainty for the VA.
Award to a specific company suggests they met technical and price requirements.
Longer contract duration provides stability for service delivery.

Sector Analysis

The market for facility maintenance and repair services, particularly for specialized systems like water processing, is substantial within the government contracting sector. This contract falls under the broader category of facility support services, which includes a wide range of maintenance, repair, and operations activities. The NAICS code 811210 (Electronic and Precision Equipment Repair and Maintenance) indicates a focus on technical aspects of the systems. Comparable spending benchmarks would involve analyzing other VA or federal contracts for similar maintenance services across different facility types.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a competed contract under SAP, there may have been opportunities for small businesses to participate, either as prime contractors or subcontractors. However, without specific subcontracting plans or data on the size of the awardee, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature of the award places the onus on the contractor to meet performance standards. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Facility Maintenance Contracts
Water Treatment System Services
Government Maintenance and Repair Contracts
Federal Procurement of Specialized Equipment Services

Risk Flags

Potential for limited competition if only two bidders participated.
Risk of contractor cost-cutting impacting service quality under FFP.
Dependence on contractor performance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $270,452.52 to ASHBERRY ACQUISITION COMPANY. WATER PROCESSING SYSTEMS MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is ASHBERRY ACQUISITION 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 $270,452.52.

What is the period of performance?

Start: 2023-04-07. End: 2027-04-06.

What is the track record of Ashberry Acquisition Company in performing similar maintenance services for the federal government?

A review of federal procurement data would be necessary to assess Ashberry Acquisition Company's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Understanding their experience with water processing systems specifically, and their performance on firm-fixed-price contracts, would provide insight into their capability and reliability for this current award. Without specific historical data, it's difficult to definitively assess their past performance.

How does the annual cost of this contract compare to similar water processing system maintenance contracts awarded by the VA or other federal agencies?

To benchmark the value, we would compare the approximate annual cost of $676,000 ($2.7M / 4 years) against similar contracts. This comparison should consider factors such as the size and complexity of the water processing systems, the geographic location (which can affect labor and material costs), and the specific services included (e.g., preventative maintenance, emergency repairs, parts replacement). A higher number of bidders in comparable contracts might also suggest a more competitive pricing environment. Without access to a database of comparable contracts, a precise benchmark is not possible, but the annual figure appears moderate for specialized facility maintenance.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how will performance be measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for maintenance services, KPIs might include response times for emergency calls, system uptime percentages, adherence to preventative maintenance schedules, and quality of repairs. Performance measurement would likely involve regular reporting by the contractor, site inspections by VA personnel, and potentially user feedback from facility staff. The firm-fixed-price nature implies that meeting these defined performance standards is crucial for the contractor to receive full payment.

What is the historical spending trend for water processing system maintenance services by the Department of Veterans Affairs over the past five years?

Analyzing historical spending trends for water processing system maintenance by the VA would require accessing federal procurement databases (like FPDS or USASpending). This would involve querying for contracts with relevant NAICS codes (e.g., 811210) and PSC codes related to maintenance and repair of water systems, specifically for the VA. Observing trends would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and could indicate shifts in the VA's infrastructure needs or maintenance strategies.

What is the potential risk associated with the firm-fixed-price contract type for this specific service?

The primary risk associated with a firm-fixed-price (FFP) contract for maintenance services is that the contractor may cut corners on quality or scope to maintain profitability if their initial cost estimates were too low or if unforeseen issues arise. For water processing systems, this could lead to reduced system efficiency, increased breakdowns, or potential health and safety risks if maintenance is not performed to the highest standards. The government's risk is mitigated by robust performance monitoring and clear contract requirements, but the contractor bears the financial risk of cost overruns.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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: 36C24823Q0837

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5409 S WEST SHORE BLVD, TAMPA, FL, 33611

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $351,400

Exercised Options: $270,453

Current Obligation: $270,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline