VA awards $2.68M contract for hospital linen services to Economy Linen & Towel Service of Zanesville, Inc

Contract Overview

Contract Amount: $2,685,477 ($2.7M)

Contractor: Economy Linen & Towel Service of Zanesville, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-01

End Date: 2025-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HOSPITAL LINEN SERVICES

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45402

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.7 million to ECONOMY LINEN & TOWEL SERVICE OF ZANESVILLE, INC for work described as: HOSPITAL LINEN SERVICES Key points: 1. Contract Value: $2.68 million over three years. 2. Competition: Competed under Simplified Acquisition Procedures (SAP), indicating a potentially limited but competitive process. 3. Risk: Firm Fixed Price contract mitigates cost overrun risk for the VA. 4. Sector: Healthcare support services, essential for hospital operations.

Value Assessment

Rating: good

The contract price appears reasonable for specialized hospital linen services, especially considering the firm fixed-price structure which provides cost certainty. Benchmarking against similar contracts would offer further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a streamlined process for smaller value procurements. While competed, the specific number of bidders and the price discovery mechanism are not detailed, which could impact the final price achieved.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if under SAP, which aims to secure fair pricing for essential healthcare support services.

Public Impact

Ensures continuous availability of clean linens for patient care at VA facilities. Supports the operational efficiency of healthcare services by outsourcing a non-core function. Contributes to hygiene and infection control standards within medical environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details under SAP.
Potential for price optimization if broader competition was explored.

Positive Signals

Firm Fixed Price contract.
Essential service for healthcare operations.
Defined contract duration with clear end date.

Sector Analysis

This contract falls within the healthcare support services sector, specifically focusing on linen supply. Spending in this area is critical for hospital functionality and patient well-being. Benchmarks for similar services vary widely based on facility size and service scope.

Small Business Impact

The awardee, Economy Linen & Towel Service of Zanesville, Inc., is a small business. This award demonstrates the government's commitment to supporting small businesses in providing essential services.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of a Purchase Order under SAP suggests a standard procurement process, but detailed oversight reports are not provided.

Related Government Programs

Linen Supply
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition details.
Potential vendor capacity constraints.
Dependence on a single small business.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.7 million to ECONOMY LINEN & TOWEL SERVICE OF ZANESVILLE, INC. HOSPITAL LINEN SERVICES

Who is the contractor on this award?

The obligated recipient is ECONOMY LINEN & TOWEL SERVICE OF ZANESVILLE, 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 $2.7 million.

What is the period of performance?

Start: 2022-08-01. End: 2025-07-31.

What was the specific pricing strategy used during the SAP competition to ensure value for money?

While the contract is Firm Fixed Price, the specific pricing strategy during the Simplified Acquisition Procedures (SAP) competition is not detailed. Typically, agencies may use historical pricing, market research, or request detailed quotes to ensure value. Further information on the number of offers received and the price analysis performed would clarify the value achieved.

What are the potential risks associated with relying on a single small business for such a critical service?

Relying on a single small business for critical hospital linen services carries risks such as potential service disruptions due to the vendor's capacity limitations, financial instability, or unforeseen operational issues. The VA should have contingency plans in place and monitor the vendor's performance closely to mitigate these risks.

How does the quality of linen services impact patient outcomes and hospital efficiency?

Consistent access to clean, high-quality linens is crucial for patient comfort, hygiene, and infection control, directly impacting patient outcomes. Efficient linen services also reduce the burden on hospital staff, allowing them to focus on direct patient care and improving overall operational efficiency.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Linen Supply

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25022Q0373

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Economy Linen & Towel Service of Zanesville Inc

Address: 508 HOWARD ST, ZANESVILLE, OH, 43701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,436,659

Exercised Options: $2,685,477

Current Obligation: $2,685,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline