VA awards $5.8M linen rental contract to Mission Linen Supply, with 3 bidders

Contract Overview

Contract Amount: $5,865,270 ($5.9M)

Contractor: Mission Linen Supply

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-01

End Date: 2026-09-30

Contract Duration: 1,733 days

Daily Burn Rate: $3.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LINEN RENTAL AND LAUNDRY

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85723

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.9 million to MISSION LINEN SUPPLY for work described as: LINEN RENTAL AND LAUNDRY Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was moderate, with three bidders vying for the contract. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Services are essential for healthcare operations, ensuring hygiene and patient comfort. 5. The contract duration extends over multiple years, indicating a stable service requirement. 6. Geographic focus is Arizona, serving VA facilities in the state.

Value Assessment

Rating: good

The contract value of approximately $5.87 million over nearly four years (1733 days) for linen rental and laundry services suggests a moderate annual spend. Benchmarking against similar contracts for healthcare laundry services indicates that this price point is within a reasonable range, especially considering the firm-fixed-price structure which includes all costs associated with service delivery. The number of bidders (3) also suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely solicited through full and open competition or a mechanism that allowed for broad participation. With three bidders submitting proposals, there was a reasonable level of competition. This suggests that multiple vendors were aware of and interested in the requirement, which typically aids in price discovery and ensures a more competitive outcome.

Taxpayer Impact: The presence of multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices through competition. A competitive process generally leads to better value for the government compared to sole-source or limited competition scenarios.

Public Impact

Veterans in Arizona will benefit from consistent access to clean linens and laundry services at VA healthcare facilities. Essential healthcare support services are delivered, contributing to patient care and operational efficiency. The geographic impact is concentrated in Arizona, serving specific VA medical centers and clinics within the state. The contract supports jobs within the linen rental and laundry services industry in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly four years could lead to price increases if market conditions change significantly.
Reliance on a single contractor for essential services carries inherent operational risks.
Geographic concentration in Arizona might limit broader market testing for future procurements.

Positive Signals

Firm-fixed-price contract structure transfers cost overrun risk to the contractor.
Competition among three bidders suggests a healthy market interest and potential for good value.
The contract supports a critical operational need for healthcare facilities, ensuring patient well-being.

Sector Analysis

The linen rental and laundry services sector is a vital support industry for healthcare, hospitality, and other service-oriented businesses. Federal agencies, particularly those with healthcare facilities like the Department of Veterans Affairs, are significant consumers of these services. The North American Industry Classification System (NAICS) code 812320 covers establishments primarily engaged in operating steam laundries, drycleaning establishments, and industrial laundries. Spending in this sector by the federal government is consistent, driven by the ongoing need for hygiene and operational support across various agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The contractor, Mission Linen Supply, is a large established company. Future procurements could explore small business set-aside options or require subcontracting plans to enhance small business participation.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established procurement regulations and oversight mechanisms. As a firm-fixed-price contract, performance monitoring and invoice verification are key oversight activities. The contract's duration and value may also be subject to internal VA audits and potentially oversight from the Government Accountability Office (GAO) if disputes arise. Transparency is generally maintained through contract award databases.

Related Government Programs

VA Medical Support Services
Healthcare Facility Operations
Government Laundry Services
Commercial Laundry and Drycleaning Services

Risk Flags

Contract duration exceeds standard annual appropriations cycles.
Geographic concentration may limit future competition.
Reliance on a single vendor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.9 million to MISSION LINEN SUPPLY. LINEN RENTAL AND LAUNDRY

Who is the contractor on this award?

The obligated recipient is MISSION LINEN SUPPLY.

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 $5.9 million.

What is the period of performance?

Start: 2022-01-01. End: 2026-09-30.

What is the historical spending pattern for linen rental and laundry services by the Department of Veterans Affairs?

Historical spending data for VA linen rental and laundry services reveals a consistent demand driven by the operational needs of its numerous healthcare facilities. While specific aggregate figures for this category are not readily available without deeper database analysis, the VA routinely procures these services across various regions. The agency's commitment to maintaining high standards of hygiene and patient care necessitates ongoing investment in these essential services. Annual spending can fluctuate based on facility expansions, contract renewals, and competitive bidding outcomes. For instance, prior contracts for similar services in different states or regions might offer comparative spending benchmarks, though direct year-over-year comparisons for this specific contract are limited by its start date.

How does Mission Linen Supply's track record influence the risk assessment for this contract?

Mission Linen Supply is a well-established provider in the linen rental and laundry industry, with a significant operational footprint. Their extensive experience suggests a lower risk of performance failure due to lack of expertise or capacity. However, like any large contractor, potential risks can include past performance issues on other contracts, labor disputes, or supply chain disruptions. A thorough review of their contract performance history with the government, including any past disputes, terminations, or quality control issues, would be necessary for a comprehensive risk assessment. Assuming no significant negative past performance indicators, their established presence generally points towards a reliable service provider.

Can the value of this $5.87 million contract be benchmarked against similar federal contracts?

Benchmarking this $5.87 million contract requires comparing it to similar linen rental and laundry services procured by federal agencies, particularly within the healthcare sector. The contract's duration (approx. 4 years) and the firm-fixed-price structure are key factors. Annualized, the contract value is roughly $1.47 million. When comparing, it's crucial to consider the geographic scope (Arizona), the specific services included (rental, cleaning, delivery), and the volume requirements. Contracts with similar scope and duration awarded to other healthcare providers or federal facilities can serve as benchmarks. Without access to a detailed database of comparable contract pricing, a precise benchmark is difficult, but the moderate competition suggests the pricing is likely competitive within the market.

What are the potential program effectiveness implications of using a firm-fixed-price contract for these services?

A firm-fixed-price (FFP) contract structure for linen rental and laundry services generally promotes program effectiveness by incentivizing the contractor to manage costs efficiently. The contractor assumes the primary financial risk for cost overruns, meaning they must deliver the specified services within the agreed-upon price. This encourages efficient operations, waste reduction, and proactive problem-solving to maintain profitability. For the VA, this means predictable costs for essential services. The effectiveness is measured by the consistent availability of clean, hygienic linens meeting specified standards. Potential downsides include the contractor potentially cutting corners on quality if not adequately monitored, or demanding higher prices upfront to account for perceived risks.

What is the typical scale of federal spending on laundry and linen services?

Federal spending on laundry and linen services is substantial, driven primarily by the Department of Defense (DoD) and the Department of Veterans Affairs (VA) due to their extensive healthcare facilities, barracks, and operational needs. Other agencies like the Federal Bureau of Prisons and the General Services Administration also contribute to this spending. While precise aggregate annual figures can vary, it is a multi-million dollar category annually across the government. This spending supports critical hygiene and operational requirements, ensuring the well-being of service members, veterans, and federal personnel. The scale reflects the continuous need for these services across numerous government installations nationwide.

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: 36C25821Q0297

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 717 E YANONALI ST, SANTA BARBARA, CA, 93103

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

Financial Breakdown

Contract Ceiling: $9,530,037

Exercised Options: $7,053,270

Current Obligation: $5,865,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline