VA Awards $228K Laundry Services Contract to American Linen Supply in Texas
Contract Overview
Contract Amount: $22,835 ($22.8K)
Contractor: American Linen Supply of NEW Mexico Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2026-04-01
End Date: 2027-03-31
Contract Duration: 364 days
Daily Burn Rate: $63/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EMS LAUNDRY SERVICES
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79930
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $22,834.7 to AMERICAN LINEN SUPPLY OF NEW MEXICO INC for work described as: EMS LAUNDRY SERVICES Key points: 1. Contract awarded to American Linen Supply of New Mexico Inc. 2. Service category is Drycleaning and Laundry Services (except Coin-Operated). 3. Contract duration is 364 days. 4. The contract is firm fixed price. 5. The award is for the Department of Veterans Affairs.
Value Assessment
Rating: fair
The contract value of $228,347 over approximately one year for laundry services appears reasonable for the scope. Benchmarking against similar government contracts for laundry services is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment. This method may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: The total taxpayer impact is the contract value of $228,347. The use of SAP may mean slightly higher costs than a fully competed large contract.
Public Impact
Veterans in Texas will receive essential laundry services. The contract supports a small business in the service sector. The Department of Veterans Affairs ensures operational needs are met.
Waste & Efficiency Indicators
Waste Risk Score: 63 / 10
Warning Flags
- Limited competition under SAP
- Potential for higher pricing due to limited competition
Positive Signals
- Supports a business in Texas
- Firm fixed price contract provides cost certainty
Sector Analysis
This contract falls within the commercial services sector, specifically laundry and drycleaning. Government spending in this area typically focuses on operational support for agencies like the VA, with pricing influenced by local labor costs and service volume.
Small Business Impact
The contract was awarded to American Linen Supply of New Mexico Inc., which may be a small business. Further verification is needed, but supporting small businesses is a common government objective.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and performance.
Related Government Programs
- Drycleaning and Laundry Services (except Coin-Operated)
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for higher costs due to limited competition
- Need for detailed performance metrics to ensure service quality
- Reliance on SAP may limit vendor pool
- Contract duration is just under one year, requiring potential re-competition soon
Tags
drycleaning-and-laundry-services-except-, department-of-veterans-affairs, tx, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $22,834.7 to AMERICAN LINEN SUPPLY OF NEW MEXICO INC. EMS LAUNDRY SERVICES
Who is the contractor on this award?
The obligated recipient is AMERICAN LINEN SUPPLY OF NEW MEXICO 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 $22,834.7.
What is the period of performance?
Start: 2026-04-01. End: 2027-03-31.
What is the typical cost per pound or per service for similar laundry contracts awarded by the VA or other federal agencies?
Benchmarking per-unit costs for laundry services is challenging due to variations in service scope, volume, and location. However, typical government contracts might range from $0.50 to $2.00 per pound, depending on factors like specialized cleaning, turnaround time, and delivery logistics. A detailed analysis of this contract's pricing against comparable solicitations is necessary for a precise comparison.
What specific factors limited the competition to SAP, and could full and open competition have yielded better pricing?
Simplified Acquisition Procedures (SAP) are typically used for purchases below a certain threshold (currently $250,000). The contract value of $228,347 falls within this range. While SAP allows for faster procurement, it often involves fewer bidders than full and open competition. It's plausible that a broader solicitation could have attracted more vendors and potentially led to more competitive pricing, though the administrative cost savings of SAP might offset some of this.
How will the effectiveness of the laundry services be measured to ensure quality for veterans?
The effectiveness of the laundry services will likely be measured through performance standards outlined in the purchase order. These standards typically include criteria such as cleanliness, timely delivery, proper handling of linens, and adherence to specific hygiene protocols. The VA contracting officer's representative (COR) will be responsible for monitoring performance, addressing any deficiencies, and ensuring the contractor meets all contractual obligations to maintain service quality for veterans.
Industry Classification
NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Drycleaning and Laundry Services (except Coin-Operated)
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C25726Q0288
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 550 N CHURCH ST, LAS CRUCES, NM, 88001
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $121,233
Exercised Options: $22,835
Current Obligation: $22,835
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2027-03-31
Potential End Date: 2031-03-31 00:00:00
Last Modified: 2026-04-09
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