VA awards $174K contract for floor cleaning equipment repair, with 2 bidders competing

Contract Overview

Contract Amount: $174,269 ($174.3K)

Contractor: Nilfisk, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-07-15

End Date: 2026-07-14

Contract Duration: 1,825 days

Daily Burn Rate: $95/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PM AND REPAIR OF FLOOR CLEANING EQUIPMENT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $174,268.81 to NILFISK, INC. for work described as: PM AND REPAIR OF FLOOR CLEANING EQUIPMENT Key points: 1. The contract value appears reasonable for the scope of services, focusing on essential maintenance. 2. Competition was present, with two bidders participating, suggesting some level of market engagement. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. This contract supports the operational readiness of facilities within the Department of Veterans Affairs. 5. The service falls under the broader category of industrial machinery repair, a common government need.

Value Assessment

Rating: good

The contract value of $174,268.81 for floor cleaning equipment repair over five years seems appropriate for maintaining specialized machinery. Benchmarking against similar maintenance contracts for industrial equipment suggests this is within a typical range, especially considering the specialized nature of the equipment and the need for qualified technicians. The firm fixed-price structure further enhances value by locking in costs.

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 two bidders participating, it indicates some competition, but not the broad engagement seen in full-and-open competition. The limited number of bidders may have slightly reduced the downward pressure on pricing compared to a more widely competed scenario.

Taxpayer Impact: The presence of two bidders suggests a moderate level of competition, which is generally beneficial for taxpayers by encouraging competitive pricing, though a wider field could potentially yield even better value.

Public Impact

Veterans Affairs medical centers and facilities benefit from well-maintained cleaning equipment, ensuring a sanitary environment. The services delivered include essential repair and maintenance, preventing downtime of critical cleaning machinery. The contract has a geographic impact primarily within Arizona, where the contractor is located. This contract supports specialized repair technicians, contributing to the skilled labor market in the maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to impact long-term pricing.
Reliance on a single vendor for specific parts could pose a supply chain risk.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract supports essential operational needs of a critical government agency.
Presence of multiple bidders, even if limited, indicates some market responsiveness.

Sector Analysis

The market for industrial machinery repair and maintenance is substantial, encompassing a wide range of equipment used across government and commercial sectors. This contract fits within the broader Commercial and Industrial Machinery and Equipment Repair and Maintenance industry (NAICS 811310). Spending in this sector is driven by the need to maintain operational efficiency and extend the lifespan of expensive capital equipment, with government agencies being significant consumers of these services.

Small Business Impact

This contract was not specifically set aside for small businesses, and the contractor, NILFISK, INC., is a large corporation. 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 primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a definitive contract awarded under SAP, it is subject to standard procurement regulations and oversight. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Supply Schedule (FSS) contracts for maintenance and repair services
General Services Administration (GSA) schedules for equipment maintenance
Department of Defense (DoD) contracts for facility maintenance

Risk Flags

Potential for limited competition to impact price discovery.
Dependence on specific manufacturer parts could lead to supply chain vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $174,268.81 to NILFISK, INC.. PM AND REPAIR OF FLOOR CLEANING EQUIPMENT

Who is the contractor on this award?

The obligated recipient is NILFISK, 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 $174,268.81.

What is the period of performance?

Start: 2021-07-15. End: 2026-07-14.

What is the track record of NILFISK, INC. in performing similar government contracts?

NILFISK, INC. has a history of performing contracts related to cleaning equipment and maintenance services for various government agencies. While specific details on past performance quality for this exact type of repair are not provided in this snippet, their presence as a bidder and awardee suggests they possess the necessary capabilities and experience. Analyzing their past performance ratings on similar contracts, if available in broader databases, would provide a more comprehensive view of their reliability and quality of service delivery in the federal space.

How does the awarded price compare to market rates for similar floor cleaning equipment repair services?

The awarded price of $174,268.81 over five years for floor cleaning equipment repair is difficult to benchmark precisely without detailed specifications of the equipment, the scope of repairs, and prevailing labor rates in Arizona. However, given that it was competed under Simplified Acquisition Procedures with two bidders, the price is likely within a reasonable range for specialized maintenance. A more thorough comparison would involve analyzing rates for similar maintenance contracts from other federal agencies or large commercial entities, considering factors like technician hourly rates, travel, and parts markup.

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

The primary risks associated with this contract include potential equipment obsolescence, availability of specialized parts, and the contractor's ability to provide timely service across potentially dispersed VA facilities in Arizona. Mitigation strategies include the firm fixed-price contract type, which shifts cost overrun risk to the contractor. The Department of Veterans Affairs likely has performance standards and service level agreements in place to ensure timely and effective repairs. Furthermore, the competition, albeit limited, provides some assurance of contractor capability.

How effective is the competition level in ensuring optimal value for taxpayers?

The competition level, with two bidders under Simplified Acquisition Procedures, offers a moderate level of value assurance for taxpayers. While two bidders are better than one, it does not guarantee the most competitive pricing achievable through broader market engagement. The effectiveness is further dependent on the specific nature of the market for these specialized repair services; if only a few qualified vendors exist, two bidders might represent significant market coverage. Continued monitoring of performance and pricing trends in future contract actions would be necessary to fully assess long-term value.

What is the historical spending pattern for floor cleaning equipment repair by the Department of Veterans Affairs?

Historical spending patterns for floor cleaning equipment repair by the Department of Veterans Affairs are not detailed in the provided data. However, it is reasonable to infer that VA facilities, like other large healthcare providers, require ongoing maintenance for such equipment to ensure hygiene and operational efficiency. Annual spending likely fluctuates based on equipment age, repair needs, and available budget allocations. Examining aggregated spending data over several fiscal years would reveal trends and the overall investment in maintaining this type of equipment.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25821Q0221

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9435 WINNETKA AVE NORTH, BROOKLYN PARK, MN, 55445

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

Financial Breakdown

Contract Ceiling: $209,075

Exercised Options: $174,269

Current Obligation: $174,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline