VA awards $38.2M contract for industrial hygiene equipment calibration to CIH Equipment Co

Contract Overview

Contract Amount: $38,186 ($38.2K)

Contractor: CIH Equipment CO., Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-15

End Date: 2026-08-14

Contract Duration: 1,460 days

Daily Burn Rate: $26/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INDUSTRIAL HYGIENE EQUIPMENT CALIBRATION

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $38,185.74 to CIH EQUIPMENT CO., INC. for work described as: INDUSTRIAL HYGIENE EQUIPMENT CALIBRATION Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Risk indicators are low, with a firm-fixed-price structure mitigating cost overruns. 4. Performance context is critical for ensuring accurate and reliable equipment calibration. 5. Sector positioning is within the specialized field of equipment maintenance and repair.

Value Assessment

Rating: good

The contract value of approximately $38.2 million over four years for industrial hygiene equipment calibration seems within a reasonable range for specialized maintenance services. Benchmarking against similar contracts is challenging without more specific details on the types and volume of equipment calibrated. However, the firm-fixed-price structure suggests the government has a clear understanding of costs, which is a positive indicator for value.

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 advertised broadly to eligible vendors. While the exact number of bidders is not specified, the 'COMPETED UNDER SAP' designation suggests a level of competition was sought. This approach aims to ensure fair pricing and access to qualified providers.

Taxpayer Impact: Competing contracts under SAP generally leads to better price discovery for taxpayers by allowing multiple vendors to submit offers, fostering a more competitive environment.

Public Impact

Veterans Affairs medical facilities benefit from reliable and accurate calibration of essential industrial hygiene equipment. Services ensure the safety and health of both patients and staff by maintaining equipment integrity. Geographic impact is likely nationwide, supporting VA facilities across various locations. Workforce implications include the need for skilled technicians to perform calibration services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if calibration requirements become highly specialized.
Dependence on a single contractor for critical equipment maintenance could pose a risk.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Competition under SAP suggests a robust bidding process.
Long-term contract allows for consistent service delivery.

Sector Analysis

The industrial hygiene equipment calibration sector involves specialized maintenance and repair services crucial for regulatory compliance and operational safety across various industries. This contract fits within the broader market for electronic and precision equipment repair, with specific application in health and safety monitoring. Comparable spending benchmarks are difficult to ascertain without granular data on the specific types and quantities of equipment serviced.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if CIH Equipment Co. chooses to engage small businesses for specific tasks or components. Without explicit subcontracting plans, the direct benefit to small businesses from this specific award is likely limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through contract award databases, and any specific Inspector General investigations would depend on reported issues or performance concerns.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Industrial Safety and Health Services
Calibration and Measurement Services
Federal Healthcare Facility Support Contracts

Risk Flags

Potential for performance issues if calibration standards are not met.
Dependence on a single contractor for critical equipment maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $38,185.74 to CIH EQUIPMENT CO., INC.. INDUSTRIAL HYGIENE EQUIPMENT CALIBRATION

Who is the contractor on this award?

The obligated recipient is CIH EQUIPMENT CO., 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 $38,185.74.

What is the period of performance?

Start: 2022-08-15. End: 2026-08-14.

What is the track record of CIH Equipment Co. with federal contracts, particularly with the VA?

Information on CIH Equipment Co.'s specific track record 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, contract values, and any reported issues or awards. Understanding their history with similar calibration services and their performance on previous VA contracts would provide crucial context for assessing their reliability and capability in fulfilling this new award.

How does the awarded price compare to market rates for similar industrial hygiene equipment calibration services?

Directly comparing the awarded price of approximately $38.2 million to specific market rates for industrial hygiene equipment calibration is challenging without detailed service scope and volume data. The contract's firm-fixed-price structure suggests the VA aimed for cost certainty. To benchmark effectively, one would need to identify comparable contracts for similar equipment types, calibration frequencies, and geographic coverage, and then analyze their pricing structures. Industry surveys or cost-reimbursement data from similar government contracts could also offer insights, but the provided data is insufficient for a precise comparison.

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

The primary risks associated with this contract include potential performance failures (e.g., inaccurate calibration leading to safety issues), contractor default, or cost overruns if the firm-fixed-price (FFP) structure is not adequately managed. Mitigation strategies include the FFP itself, which shifts cost risk to the contractor. The VA's oversight, performance monitoring, and potential for contract termination for default or cause serve as further mitigations. Ensuring CIH Equipment Co. has robust quality control processes and experienced personnel is also critical to minimizing performance risks.

How effective is the competition level (competed under SAP) in ensuring optimal value for the VA?

Competing under Simplified Acquisition Procedures (SAP) generally aims to balance efficiency with competition for contracts below certain thresholds. While SAP allows for broader solicitation than sole-source awards, it may not always achieve the same level of intense price competition as full and open competition for larger contracts. The effectiveness in ensuring optimal value depends on the number of responsive bids received and the VA's ability to negotiate favorable terms. If multiple qualified vendors participated, it likely resulted in competitive pricing. However, a deeper analysis of the bid count and price spread would be needed for a definitive assessment.

What is the historical spending pattern for industrial hygiene equipment calibration by the VA or similar agencies?

The provided data does not include historical spending patterns for industrial hygiene equipment calibration by the VA or other agencies. To assess this, one would need to query federal procurement databases for past contracts related to this service, analyzing annual spending, contract durations, and awarded contractors over several fiscal years. Understanding historical trends would help determine if the current $38.2 million award represents an increase, decrease, or stable level of investment in these services and identify any significant shifts in contracting strategies or vendor landscape.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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: 36C25922Q0143

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1806 S HIGHLAND AVE, CLEARWATER, FL, 33756

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

Financial Breakdown

Contract Ceiling: $53,653

Exercised Options: $38,186

Current Obligation: $38,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline