VA awards $13.1M elevator maintenance contract to Skyline Elevator Works, Inc. for Florida facilities

Contract Overview

Contract Amount: $13,115,875 ($13.1M)

Contractor: Skyline Elevator Works, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-15

End Date: 2026-11-14

Contract Duration: 1,095 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN 8 ELEVATOR MAINTENANCE SERVICES

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.1 million to SKYLINE ELEVATOR WORKS, INC for work described as: VISN 8 ELEVATOR MAINTENANCE SERVICES Key points: 1. Contract value of $13.1 million over three years suggests a significant investment in facility upkeep. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The contract duration of 1095 days (3 years) provides a stable period for service delivery. 5. The primary service area is Florida, impacting multiple Veterans Affairs facilities within the state. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services.

Value Assessment

Rating: good

The contract value of $13.1 million for three years of elevator maintenance services appears reasonable given the scope of supporting multiple facilities. Benchmarking against similar large-scale maintenance contracts for federal buildings would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope of work was well-defined to prevent scope creep and subsequent change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, though a higher number of bidders would typically lead to more robust price discovery and potentially lower prices for the government. The agency's decision to use full and open competition is generally a positive sign for achieving competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple companies vie for the contract, driving down costs through competitive bidding and ensuring the government receives fair market value.

Public Impact

Veterans utilizing VA facilities in Florida will benefit from reliable and safe elevator operations. The contract ensures the continued maintenance and operational readiness of essential vertical transportation systems. Facilities support services are critical for the day-to-day functioning of healthcare and administrative operations within VA. The contract supports the workforce of Skyline Elevator Works, Inc., potentially including technicians and administrative staff in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical elevator maintenance could pose a risk if performance issues emerge.
The limited number of bids (2) might suggest less intense competition than ideal, potentially impacting the final price.

Positive Signals

The use of full and open competition is a positive signal for market engagement and potential cost savings.
The firm fixed-price contract type helps to lock in costs and provides budget certainty.
The contract duration allows for consistent service delivery and relationship building with the provider.

Sector Analysis

The facilities support services sector, encompassing maintenance and repair of buildings and infrastructure, is a significant component of the federal contracting landscape. This contract falls within the broader category of building operations and maintenance, which is essential for government agencies to function. Spending in this sector is often driven by the need to maintain aging infrastructure and ensure operational continuity across diverse government facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the awardee, Skyline Elevator Works, Inc., is not explicitly identified as a small business in the provided details. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The absence of a set-aside means larger businesses competed for this contract, which may limit opportunities for small businesses to participate directly.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officer and contract specialists. Performance monitoring would likely involve regular site inspections, review of maintenance logs, and adherence to service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

General Services Administration (GSA) Building Operations and Maintenance Contracts
Department of Defense Facilities Maintenance
Public Buildings Service (PBS) Maintenance Contracts
Federal Buildings Fund Spending

Risk Flags

Potential for cost overruns if unforeseen maintenance issues arise.
Risk of service quality degradation if contractor prioritizes cost-cutting.
Dependence on a single vendor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.1 million to SKYLINE ELEVATOR WORKS, INC. VISN 8 ELEVATOR MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is SKYLINE ELEVATOR WORKS, 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 $13.1 million.

What is the period of performance?

Start: 2023-11-15. End: 2026-11-14.

What is the historical spending pattern for elevator maintenance services by the Department of Veterans Affairs, particularly within VISN 8?

Analyzing historical spending for elevator maintenance within VISN 8 and across the VA is crucial for context. While specific historical data for VISN 8 is not provided here, the VA, as a large federal agency with numerous facilities, consistently spends significant amounts on maintaining its infrastructure. This includes elevators, HVAC, and other critical systems. Past contracts for similar services can reveal trends in pricing, contractor performance, and the frequency of maintenance. Understanding these patterns helps in assessing whether the current $13.1 million award represents an increase, decrease, or stable level of investment compared to previous periods and whether it aligns with inflation and operational needs.

How does the per-unit cost of elevator maintenance for this contract compare to industry benchmarks or similar federal contracts?

A detailed per-unit cost comparison is challenging without specific data on the number of elevators, their types, and the exact scope of maintenance included in the $13.1 million contract. However, the contract value suggests a substantial investment. Industry benchmarks for elevator maintenance vary widely based on elevator type, age, usage, and service level (e.g., preventive vs. comprehensive). For federal contracts, the General Services Administration (GSA) often publishes data or has established schedules that can serve as benchmarks. Comparing the estimated annual cost per elevator or per facility against these benchmarks would reveal if Skyline Elevator Works' pricing is competitive. A higher-than-average cost might indicate a more complex maintenance requirement or potentially less competitive pricing.

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

The contract likely includes specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) to ensure the quality and timeliness of elevator maintenance. These could include metrics such as response time for emergency calls, maximum allowable downtime for repairs, preventive maintenance completion rates, and adherence to safety standards. Performance monitoring by the Department of Veterans Affairs would involve regular reporting from Skyline Elevator Works, site inspections by VA facility managers or technical representatives, and potentially the use of performance tracking software. Failure to meet these KPIs and SLAs could result in penalties, contract modifications, or even termination, underscoring the importance of robust oversight.

What is the track record of Skyline Elevator Works, Inc. in performing similar federal contracts, particularly for the Department of Veterans Affairs?

The track record of Skyline Elevator Works, Inc. is a critical factor in assessing the risk and potential success of this contract. Information from federal procurement databases (like FPDS or SAM.gov) would detail their past performance on federal contracts, including contract values, agencies served, and any performance ratings or past performance reviews. Examining their history with the VA, and specifically with VISN 8 if possible, would provide insight into their reliability, quality of service, and ability to manage complex maintenance agreements. A history of successful, on-time, and within-budget performance on similar contracts would increase confidence in their ability to meet the requirements of this new award.

What are the potential risks associated with a firm fixed-price contract for elevator maintenance over a three-year period?

While firm fixed-price contracts offer cost certainty, they also carry risks, especially for long-term service agreements like elevator maintenance. A primary risk is that the contractor may underestimate the true cost of services or encounter unforeseen issues (e.g., aging equipment failures, increased parts costs, labor shortages) that erode their profit margin. This could incentivize the contractor to cut corners on maintenance quality or delay necessary repairs to control costs, potentially impacting elevator reliability and safety. Conversely, if the contractor significantly overestimates costs, taxpayers may end up paying a premium. The VA's robust oversight and clear definition of scope are essential to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 583 JUNIPER SPRINGS DR, GROVELAND, FL, 34736

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: $22,370,851

Exercised Options: $13,115,875

Current Obligation: $13,115,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA22D0029

IDV Type: FSS

Timeline