VA awards $2.6M for flood cleanup at Hines VA Hospital, with 2 bids received

Contract Overview

Contract Amount: $2,629,212 ($2.6M)

Contractor: PRO Fire and Water Restoration Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-28

End Date: 2024-08-13

Contract Duration: 594 days

Daily Burn Rate: $4.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FLOOD CLEANUP, MITIGATION, AND REMEDIATION SERVICES FOR THE HINES VA HOSPITAL, HINES, ILLINOIS.

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to PRO FIRE AND WATER RESTORATION COMPANY for work described as: FLOOD CLEANUP, MITIGATION, AND REMEDIATION SERVICES FOR THE HINES VA HOSPITAL, HINES, ILLINOIS. Key points: 1. Contract awarded for essential flood cleanup and remediation services. 2. Competition was limited, with only two bids submitted. 3. The contract type is Firm Fixed Price, indicating defined costs. 4. Performance period extends over 594 days, suggesting a substantial scope. 5. The awardee, PRO FIRE AND WATER RESTORATION COMPANY, will provide these critical services. 6. Services are geographically focused on Hines, Illinois.

Value Assessment

Rating: good

The contract value of $2.6 million for flood cleanup and remediation services appears reasonable given the scope and duration. While direct comparisons are difficult without more specific service details, the price per day is approximately $4,426. This figure should be benchmarked against similar disaster recovery and remediation contracts to ensure optimal value for money. The firm fixed-price nature of the award provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. With only two bids received, the level of competition was restricted. While SAP aims for efficiency for smaller procurements, a low number of bids can sometimes indicate potential limitations in market awareness or a lack of broader interest from qualified vendors, which could impact price discovery.

Taxpayer Impact: A limited competition may result in less competitive pricing compared to full and open competition, potentially leading to higher costs for taxpayers. However, for smaller procurements under SAP, this level of competition is not uncommon.

Public Impact

Veterans receiving care at the Hines VA Hospital will benefit from a safe and functional environment. Essential flood cleanup, mitigation, and remediation services will be delivered. The geographic impact is localized to the Hines VA Hospital in Illinois. The contract supports the operational continuity of a key federal healthcare facility. Local workforce may be engaged for remediation tasks, depending on the contractor's staffing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the most cost-effective outcome.
The duration of the contract (594 days) suggests a significant and potentially complex remediation effort.

Positive Signals

Awarded to a specific company for a defined scope of work.
Firm Fixed Price contract provides cost certainty.
Addresses critical infrastructure needs for a VA hospital.

Sector Analysis

The remediation services sector is crucial for maintaining infrastructure integrity, particularly for government facilities. This contract falls under NAICS code 562910 (Remediation Services). The market for such services can be specialized, involving companies with specific expertise in water damage, hazardous material removal, and structural repair. The spending benchmark for similar remediation projects can vary widely based on the scale of the disaster and the complexity of the cleanup required.

Small Business Impact

This contract was not set aside for small businesses and the awardee is not identified as a small business. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order under SAP, it is subject to internal VA procurement regulations and oversight. The firm fixed-price nature of the contract helps in accountability for the delivered services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Facilities Maintenance
Disaster Recovery Services
Environmental Remediation Contracts
Healthcare Infrastructure Support

Risk Flags

Limited competition
Potential for cost overruns if scope expands
Ensuring thoroughness of remediation work

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to PRO FIRE AND WATER RESTORATION COMPANY. FLOOD CLEANUP, MITIGATION, AND REMEDIATION SERVICES FOR THE HINES VA HOSPITAL, HINES, ILLINOIS.

Who is the contractor on this award?

The obligated recipient is PRO FIRE AND WATER RESTORATION 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 $2.6 million.

What is the period of performance?

Start: 2022-12-28. End: 2024-08-13.

What is the track record of PRO FIRE AND WATER RESTORATION COMPANY with federal contracts, particularly for remediation services?

Information regarding PRO FIRE AND WATER RESTORATION COMPANY's specific track record with federal contracts, especially for remediation services, is not detailed in the provided data. A comprehensive review would require accessing the Federal Procurement Data System (FPDS) or similar databases to analyze past performance, contract types, values, and any reported issues or successes. Understanding their experience with government agencies, particularly the VA, and their performance on similar-sized or complex remediation projects would be crucial for assessing their capability and reliability for this Hines VA Hospital contract.

How does the awarded amount of $2.6 million compare to the typical cost of similar flood cleanup and remediation projects at federal facilities?

The awarded amount of $2.6 million for flood cleanup, mitigation, and remediation services at the Hines VA Hospital is a significant sum, reflecting the potential scale and complexity of such an undertaking. Benchmarking this against similar projects requires detailed comparison of scope, duration, specific remediation needs (e.g., mold, water damage, structural repair), and geographic location. The contract's duration of 594 days suggests an extended period of work. Without specific comparable contract data, it's challenging to definitively state if this represents optimal value. However, the price per day of approximately $4,426 provides a metric for future comparisons.

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

Key risks for this flood cleanup contract include potential cost overruns if unforeseen issues arise (though mitigated by the firm fixed-price structure), delays in project completion impacting hospital operations, and ensuring the quality and thoroughness of the remediation to prevent future issues. The limited competition (2 bidders) also presents a risk of not securing the best possible price or vendor. Mitigation strategies would involve robust project management by the VA, clear performance standards, regular site inspections, and potentially contingency planning for unexpected discoveries during the remediation process. The firm fixed-price contract shifts some cost risk to the contractor.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for contracts of this value range?

The Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in procuring goods and services below certain dollar thresholds (currently $250,000, but historically higher thresholds have applied, and specific agency rules can vary). While SAP can streamline the acquisition process, its effectiveness in ensuring competitive pricing for contracts nearing or exceeding these thresholds can be variable. For a contract valued at $2.6 million, which is significantly above the standard SAP threshold, the use of SAP might indicate specific circumstances or older regulations. The fact that only two bids were received suggests that the competition, even within the SAP framework, was limited, potentially impacting price competitiveness.

What is the historical spending pattern for flood cleanup and remediation services at the Hines VA Hospital or similar VA facilities?

Historical spending data for flood cleanup and remediation services at the Hines VA Hospital or other VA facilities is not provided in the current data. To assess historical patterns, one would need to analyze past contracts awarded for similar services to the Hines VA or other VA medical centers. This analysis would involve looking at the frequency, value, duration, and awardees of previous remediation contracts. Understanding this history could reveal trends in spending, identify recurring needs, and provide a baseline for evaluating the current $2.6 million award in the context of long-term facility maintenance and disaster preparedness budgets.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25223Q0360

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4100 W 76TH ST STE M, CHICAGO, IL, 60652

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

Financial Breakdown

Contract Ceiling: $2,629,212

Exercised Options: $2,629,212

Current Obligation: $2,629,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline