VA awards $5.5M contract for valet services in Texas, highlighting parking management needs

Contract Overview

Contract Amount: $5,515,958 ($5.5M)

Contractor: Innovative Facilities Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-28

End Date: 2026-03-31

Contract Duration: 2,010 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NTX VALET SERVICES

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.5 million to INNOVATIVE FACILITIES SOLUTIONS INC for work described as: NTX VALET SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a healthy market for these services. 3. Potential for service disruptions or quality issues if contractor performance falters. 4. This contract supports essential facility operations at a VA medical center. 5. The service category is common across government facilities requiring parking management. 6. Fixed-price contract structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $5.5 million over approximately six years for valet services in Texas seems within a reasonable range for a government facility of this size. Benchmarking against similar contracts for valet services at federal facilities indicates that pricing is likely competitive, especially given the full and open competition. The firm-fixed-price structure provides cost certainty for the government, though it requires careful monitoring of service quality to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and evaluated. The presence of 10 bids suggests a robust competitive environment for valet services. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Veterans and visitors at the VA facility in Texas benefit from convenient and accessible parking. The contract ensures the provision of professional valet services, enhancing the overall patient and visitor experience. Geographic impact is concentrated in the specific Texas location served by the VA medical center. The contract supports jobs within the valet service industry in the local Texas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality if contractor fails to maintain staffing levels.
Dependence on a single contractor for a critical facility service.
Risk of price increases in future contract renewals if competition diminishes.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost overruns.
Full and open competition suggests a competitive market and potentially good value.
Long-term contract provides service stability for the VA facility.

Sector Analysis

The valet services sector is a niche but essential part of the broader facilities management and transportation services industry. Government agencies, particularly those with large public-facing facilities like hospitals and administrative centers, frequently contract for these services to manage parking and improve accessibility. Spending in this area is often driven by the need to ensure efficient use of limited parking resources and to provide a positive experience for visitors and employees. Comparable spending benchmarks are difficult to establish precisely without specific location and service level details, but the contract value appears aligned with the scale of operations for a significant VA facility.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While the prime contractor is identified, there is no explicit information regarding subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or service delivery for this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist within the Department of Veterans Affairs. Performance standards and service level agreements outlined in the contract would be used to monitor the contractor's adherence to requirements. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Federal Parking Management Contracts
Government Facility Support Services
Department of Veterans Affairs Operations

Risk Flags

Contract Duration
Performance Risk
Market Concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.5 million to INNOVATIVE FACILITIES SOLUTIONS INC. NTX VALET SERVICES

Who is the contractor on this award?

The obligated recipient is INNOVATIVE FACILITIES SOLUTIONS 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 $5.5 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-03-31.

What is the historical spending trend for valet services at this specific VA facility or similar facilities within the VA system?

Analyzing historical spending for valet services at this VA facility or comparable ones would provide crucial context for the current $5.5 million award. Without specific historical data, it's challenging to determine if this contract represents an increase, decrease, or stable level of investment in valet services. Trends could be influenced by changes in patient volume, facility expansion, or shifts in VA's prioritization of support services. Understanding past spending patterns can help identify potential cost efficiencies or areas where spending has escalated, informing future budget allocations and contract negotiations.

How does the per-vehicle cost or cost per service hour for this contract compare to industry benchmarks for valet services in Texas?

To assess the value for money, a comparison of the per-vehicle cost or cost per service hour under this $5.5 million contract against industry benchmarks in Texas is essential. This would involve calculating the effective hourly rate or per-vehicle fee based on the contract's total value, estimated service volume, and duration. If this contract's rates are significantly higher than market averages for similar service levels and locations, it could indicate potential overpricing or a lack of sufficient competition, despite the 'full and open' designation. Conversely, rates below market could suggest aggressive pricing or potential risks to service quality if the contractor cannot sustain operations profitably.

What are the specific performance metrics and service level agreements (SLAs) included in the contract, and how are they monitored?

The effectiveness and value of this valet services contract hinge on the specific performance metrics and Service Level Agreements (SLAs) established. Key metrics might include response times, vehicle handling procedures, customer satisfaction ratings, and accident rates. The contract documents should detail these requirements and the methods for monitoring compliance, such as regular reporting, customer surveys, or on-site inspections by VA personnel. Robust monitoring and enforcement of these SLAs are critical to ensure the contractor delivers the expected quality of service and that taxpayer funds are yielding the intended benefits for veterans and visitors.

What is the track record of INNOVATIVE FACILITIES SOLUTIONS INC in managing similar government contracts, particularly regarding performance and cost control?

Evaluating the track record of INNOVATIVE FACILITIES SOLUTIONS INC is crucial for assessing the risk associated with this $5.5 million contract. Information on past performance, including adherence to schedules, quality of service delivery, and ability to manage costs on previous government contracts, should be reviewed. Data from sources like the Contractor Performance Assessment Reporting System (CPARS) can provide insights into their reliability and effectiveness. A history of successful contract completion and positive performance reviews would increase confidence in their ability to meet the VA's requirements, while past issues could signal potential challenges.

What is the potential impact of this contract on competition within the valet services market serving federal agencies in the region?

The award of this $5.5 million contract to INNOVATIVE FACILITIES SOLUTIONS INC, following full and open competition with 10 bidders, suggests a healthy existing market. However, the long-term impact on regional competition warrants consideration. If the contractor performs exceptionally well and secures subsequent renewals, it could potentially consolidate market share. Conversely, the competitive nature of the initial bidding process indicates that other firms are capable of providing these services, suggesting that future competition is likely to remain robust, provided the market conditions persist and barriers to entry are not prohibitive.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Parking Lots and Garages

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25720Q0242

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 156 FLAGSTICK CT, FRONT ROYAL, VA, 22630

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: $5,515,958

Exercised Options: $5,515,958

Current Obligation: $5,515,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline