VA awards $23.7M contract for moving services to SDV OFFICE SYSTEMS LLC, a BPA Call under SAP

Contract Overview

Contract Amount: $23,684 ($23.7K)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-15

End Date: 2025-08-14

Contract Duration: 364 days

Daily Burn Rate: $65/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40206

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,684.04 to SDV OFFICE SYSTEMS LLC for work described as: EO14042 Key points: 1. Contract awarded via BPA Call under SAP, suggesting a streamlined procurement process for a relatively small dollar amount. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. The contract duration of 364 days is standard for this type of service. 4. The award to SDV OFFICE SYSTEMS LLC indicates a specific capability or existing relationship leveraged by the VA. 5. The geographic scope is limited to Kentucky, suggesting localized service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of 'Used Household and Office Goods Moving' and the volume of services required. However, the $23.7 million award for a one-year duration suggests a significant operational need for moving services within the Department of Veterans Affairs. Comparing this to similar contracts for large-scale office relocations or household goods movement for federal employees would provide better context for value assessment. The firm-fixed-price structure is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and is used for acquisitions below certain thresholds. While the exact number of bids received is not provided, 'COMPETED UNDER SAP' implies that it was not a full and open competition. This approach is intended to be efficient but may limit the breadth of competition and potentially impact price discovery compared to larger, more open solicitations.

Taxpayer Impact: For taxpayers, competition under SAP can lead to faster contract awards and potentially competitive pricing if multiple qualified vendors are aware of and participate in the solicitation. However, the limited scope of competition means there's a reduced assurance that the absolute lowest price was achieved.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs, which will receive essential moving services for its operations. The services delivered include the relocation of used household and office goods, supporting VA facilities and personnel. The geographic impact is focused on Kentucky (ST: KY, SN: KENTUCKY), indicating services will be performed within this state. Workforce implications may include employment opportunities for movers, packers, and logistics personnel employed by SDV OFFICE SYSTEMS LLC and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not guarantee the best possible pricing for taxpayers.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality and efficiency.
The specific nature of 'Used Household and Office Goods Moving' could encompass a wide range of services, making direct comparisons difficult.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
Awarding to a specific company (SDV OFFICE SYSTEMS LLC) may indicate a proven track record or specialized capability for VA needs.
Streamlined procurement via BPA Call under SAP can lead to faster service delivery.

Sector Analysis

The office and household goods moving services sector is a critical component of logistics and facilities management for government agencies. This contract falls within the broader professional, scientific, and technical services category, specifically focusing on moving and relocation. The market includes numerous small and large businesses specializing in commercial and residential moving, often requiring specific certifications and insurance for government contracts. Federal spending in this area supports the operational continuity of agencies by facilitating moves of equipment, furniture, and personal property.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, the primary contractor, SDV OFFICE SYSTEMS LLC, is not identified as a small business in this context. There is no explicit information regarding subcontracting plans for small businesses. This means that opportunities for small business participation may be limited unless the prime contractor voluntarily includes them in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a firm-fixed-price contract, the focus of oversight would be on ensuring the delivery of services as specified in the contract terms and conditions, adherence to the schedule, and proper invoicing. Transparency is facilitated through contract databases like FPDS-NG (where this data originates). Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Moving Services Contracts
Logistics and Transportation Services
Department of Veterans Affairs Procurement
Simplified Acquisition Procedures (SAP) Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Limited competition
Potential for unoptimized pricing due to SAP
Scope definition critical for FFP success

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,684.04 to SDV OFFICE SYSTEMS LLC. EO14042

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS LLC.

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 $23,684.04.

What is the period of performance?

Start: 2024-08-15. End: 2025-08-14.

What is the typical cost range for similar used household and office goods moving contracts awarded by the federal government?

Determining a precise cost range for 'Used Household and Office Goods Moving' is complex due to the variability in scope, volume, distance, and service level agreements. However, federal contracts for large-scale office relocations or household goods shipments can range from tens of thousands to millions of dollars, depending on the scale. For instance, contracts involving the relocation of entire office floors or multiple residences could easily reach into the high six or seven figures annually. The $23.7 million awarded to SDV OFFICE SYSTEMS LLC for a one-year period suggests a substantial and ongoing requirement, potentially involving numerous moves across various VA facilities within Kentucky. Benchmarking would require detailed analysis of contract line item details, service requirements, and geographic coverage of comparable awards.

What is the track record of SDV OFFICE SYSTEMS LLC in performing federal moving contracts?

Information regarding the specific track record of SDV OFFICE SYSTEMS LLC in performing federal moving contracts is not detailed in the provided data snippet. However, the award of a $23.7 million contract, even if through a BPA Call under SAP, suggests a level of capability and past performance that met the Department of Veterans Affairs' requirements. To fully assess their track record, one would need to review their contract history, including past performance evaluations, any reported issues or disputes, and the types and values of previous federal awards. Companies that successfully secure significant federal contracts often have demonstrated experience in meeting government standards for reliability, security, and service delivery.

How does the 'COMPETED UNDER SAP' designation impact the potential for cost savings for the government?

Competing a contract under Simplified Acquisition Procedures (SAP) is designed for efficiency and speed for acquisitions below certain dollar thresholds (typically $250,000, though exceptions exist). While SAP aims for competitive pricing through streamlined processes, it generally involves fewer bidders and less extensive documentation than full and open competition. This can lead to quicker awards and potentially good prices if the market is responsive. However, it may not always yield the absolute lowest price achievable through a broader, more formal solicitation process. The effectiveness of SAP in achieving cost savings depends on the specific market dynamics, the number of qualified vendors aware of and participating in the solicitation, and the clarity of the requirements.

What are the potential risks associated with a firm-fixed-price contract for moving services?

Firm-fixed-price (FFP) contracts are generally preferred by the government for their cost certainty. For moving services, the primary risk for the government under an FFP contract is ensuring that the price accurately reflects the scope and volume of work. If the contractor underestimates the effort required (e.g., due to unforeseen complexities in packing, access issues, or extended service times), they bear the loss. Conversely, if the contractor overestimates, the government may pay a premium. The risk for the government is primarily related to ensuring the scope is well-defined to prevent the contractor from cutting corners on service quality to maintain profitability, or conversely, from overcharging for a scope that proves less demanding than anticipated.

What is the significance of the contract being a 'BPA CALL'?

A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services. A 'BPA Call' refers to an individual order placed against an existing BPA. This means that SDV OFFICE SYSTEMS LLC likely has a pre-established BPA with the VA, allowing for quick and efficient issuance of task orders like this one. The significance is that the foundational agreement (the BPA) has already undergone some level of vetting and competition, and this call represents a specific, defined need being fulfilled under that umbrella. It streamlines the procurement process, reduces administrative burden, and can lead to faster delivery of services compared to initiating a new contract from scratch.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Used Household and Office Goods Moving

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26 MACALLAN LN, ASHEVILLE, NC, 28805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,684

Exercised Options: $23,684

Current Obligation: $23,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24921A0031

IDV Type: BPA

Timeline