VA awards $395K for kitchen hood cleaning, with 5 option years extending service potential

Contract Overview

Contract Amount: $39,500 ($39.5K)

Contractor: AIR FLO Cleaning Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-04

End Date: 2027-07-31

Contract Duration: 695 days

Daily Burn Rate: $57/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOR THE KITCHEN HOOD & DUCT WORK CLEANING SERVICES THE TOMAH VA MEDICAL CENTER (TOMAH VAMC) LOCATED AT 500 E. VETERANS STREET TOMAH, WI 54660-3105. THIS IS A BASE YEAR PLUS FOUR (4) OPTION YEARS SERVICE CONTRACT

Place of Performance

Location: TOMAH, MONROE County, WISCONSIN, 54660

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39,500 to AIR FLO CLEANING SYSTEMS LLC for work described as: FOR THE KITCHEN HOOD & DUCT WORK CLEANING SERVICES THE TOMAH VA MEDICAL CENTER (TOMAH VAMC) LOCATED AT 500 E. VETERANS STREET TOMAH, WI 54660-3105. THIS IS A BASE YEAR PLUS FOUR (4) OPTION YEARS SERVICE CONTRACT Key points: 1. The contract value appears reasonable for specialized cleaning services, considering the duration and scope. 2. Competition dynamics for this service contract need further examination to ensure optimal pricing. 3. Potential risks include service quality consistency and contractor performance over the contract term. 4. This contract supports essential facility maintenance at the Tomah VA Medical Center. 5. The service falls under building maintenance, a common need for federal facilities.

Value Assessment

Rating: good

The awarded amount of $395,000 for a base year plus four option years for kitchen hood and duct cleaning services seems within a reasonable range for specialized facility maintenance. Benchmarking against similar contracts for medical facilities of this size would provide a clearer picture of value for money. The firm-fixed-price structure helps manage cost certainty for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While the specific number of bidders is not provided, SAP is typically used for procurements under a certain dollar threshold, often resulting in fewer offers than full and open competition. This approach can expedite the acquisition process but may not always yield the most competitive pricing.

Taxpayer Impact: Limited competition under SAP may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement.

Public Impact

Benefits the Tomah VA Medical Center by ensuring a safe and sanitary kitchen environment for staff and patients. Delivers essential cleaning services for kitchen exhaust systems, mitigating fire hazards and maintaining operational efficiency. Geographic impact is localized to Tomah, Wisconsin, supporting a key federal healthcare facility. Workforce implications are primarily for the contractor's cleaning crew, with potential for local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality across the option years if performance is not closely monitored.
Limited competition may have resulted in a higher price than a fully competed contract.
Reliance on a single contractor for a critical facility service.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Contract duration allows for stable service provision and relationship building.
Essential service for maintaining health and safety standards at a medical facility.

Sector Analysis

This contract falls within the building maintenance and cleaning services sector, a segment of the broader facilities management industry. Federal agencies, particularly healthcare facilities like VA Medical Centers, require specialized cleaning for critical areas such as kitchen exhaust systems to comply with health codes and safety regulations. Spending in this area is consistent across government, with numerous contracts awarded annually for similar services.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the service and the competition method (SAP), it's possible small businesses participated, but it was not a primary objective of the procurement strategy.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) at the Tomah VA Medical Center, responsible for monitoring service delivery and contractor performance. The firm-fixed-price nature of the contract provides a degree of accountability. Transparency is facilitated through contract databases, though detailed performance metrics are not publicly available.

Related Government Programs

VA Facility Maintenance Contracts
Healthcare Facility Cleaning Services
Building Services Contracts
Commercial Kitchen Cleaning

Risk Flags

Limited Competition
Potential for Service Quality Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39,500 to AIR FLO CLEANING SYSTEMS LLC. FOR THE KITCHEN HOOD & DUCT WORK CLEANING SERVICES THE TOMAH VA MEDICAL CENTER (TOMAH VAMC) LOCATED AT 500 E. VETERANS STREET TOMAH, WI 54660-3105. THIS IS A BASE YEAR PLUS FOUR (4) OPTION YEARS SERVICE CONTRACT

Who is the contractor on this award?

The obligated recipient is AIR FLO CLEANING 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 $39,500.

What is the period of performance?

Start: 2025-09-04. End: 2027-07-31.

What is the track record of AIR FLO CLEANING SYSTEMS LLC with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding the specific track record of AIR FLO CLEANING SYSTEMS LLC with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to analyze past performance, past performance evaluations, and any history of contract awards or disputes. Understanding their experience with similar services and their performance history is crucial for assessing reliability and value.

How does the $395,000 contract value compare to similar kitchen hood and duct cleaning services at other VA Medical Centers?

Without specific data on comparable contracts, a direct value comparison is difficult. However, $395,000 over a potential five-year period (base plus four options) suggests an average annual cost of approximately $79,000. This figure needs to be contextualized by the size of the facility, the frequency of cleaning required, and the specific scope of work (e.g., number of hoods, complexity of ductwork). Benchmarking against contracts for similarly sized VA facilities or other federal healthcare institutions would be necessary for a robust assessment of value for money.

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

Key risks include potential lapses in service quality, contractor non-performance, or unexpected cost increases if the firm-fixed-price structure is not adequately managed. Mitigation strategies typically involve clear performance standards in the contract, regular inspections by a Contracting Officer's Representative (COR), and defined remedies for non-compliance. The limited competition aspect also presents a risk of suboptimal pricing, which could be mitigated by thorough market research prior to solicitation.

How effective is the Simplified Acquisition Procedures (SAP) competition method in ensuring fair pricing for this type of service?

SAP is designed for efficiency and speed in acquiring goods and services below certain thresholds. While it can lead to quicker contract awards, it often involves fewer bidders than full and open competition. This can sometimes result in less aggressive pricing. The effectiveness in ensuring fair pricing depends heavily on the quality of the market research conducted beforehand and the number of capable vendors that respond. For a service like kitchen hood cleaning, where specialized knowledge is required, a limited number of qualified bidders might be expected even under broader competition.

What is the historical spending pattern for kitchen hood and duct cleaning services at the Tomah VA Medical Center?

The provided data does not include historical spending patterns for this specific service at the Tomah VA Medical Center. To analyze this, one would need to review past contract awards for similar services at this facility over several fiscal years. Understanding historical spending can reveal trends in pricing, contractor stability, and the overall investment in facility maintenance, helping to contextualize the current award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

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: 36C25225Q0531

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12015 TELEGRAPH RD, CARLETON, MI, 48117

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $98,750

Exercised Options: $39,500

Current Obligation: $39,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline