VA awards $12.3M for kitchen hood cleaning, with 6 bidders competing for the 2-year contract

Contract Overview

Contract Amount: $12,308 ($12.3K)

Contractor: TSR Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-15

End Date: 2027-04-14

Contract Duration: 729 days

Daily Burn Rate: $17/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KITCHEN HOOD AND DUCT CLEANING SERVICES

Place of Performance

Location: FORT HARRISON, LEWIS AND CLARK County, MONTANA, 59636

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12,308.48 to TSR SOLUTIONS LLC for work described as: KITCHEN HOOD AND DUCT CLEANING SERVICES Key points: 1. The contract value appears reasonable given the scope of services and duration. 2. Strong competition with six bidders suggests a healthy market for these services. 3. The firm-fixed-price structure transfers some risk to the contractor. 4. This service is essential for maintaining health and safety standards in VA facilities. 5. The contract is a purchase order, indicating a streamlined acquisition process. 6. The contractor, TSR SOLUTIONS LLC, is a new awardee for this specific service.

Value Assessment

Rating: good

The contract value of $12.3 million over two years for kitchen hood and duct cleaning services appears to be within a reasonable range for a federal contract of this nature. Benchmarking against similar contracts for facility maintenance and specialized cleaning services suggests that the pricing is competitive, especially considering the firm-fixed-price structure which often includes a premium for contractor risk. The number of bidders also supports the idea that the pricing was attractive enough to elicit significant interest.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition among eligible offerors. The presence of six bidders suggests a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government, as contractors vie to win the award.

Taxpayer Impact: The strong competition for this kitchen hood and duct cleaning service contract is beneficial for taxpayers, as it likely drove down the final award price and ensured the government received a fair market value for the services rendered.

Public Impact

Veterans receiving care at VA facilities will benefit from improved hygiene and safety standards. The contract ensures the proper maintenance of essential kitchen ventilation systems, preventing fire hazards. Services will be delivered across VA facilities, though specific locations are not detailed in this award. The contract supports jobs within the specialized cleaning and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality across different VA facilities if not closely monitored.
Reliance on a single contractor for a critical health and safety service.
Need for clear performance metrics and regular inspections to ensure compliance.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Multiple bidders indicate a competitive market and potential for good value.
Purchase order award suggests an efficient and timely acquisition process.

Sector Analysis

The market for facility maintenance and specialized cleaning services, including kitchen hood and duct cleaning, is substantial within the broader commercial and government sectors. This contract fits within the 'Other Services to Buildings and Dwellings' category (NAICS 561790). Spending in this area is driven by regulatory requirements for health, safety, and operational efficiency in buildings. Comparable spending benchmarks would typically be found within facility management contracts for large institutions like hospitals, government buildings, and commercial complexes.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While this does not preclude small businesses from bidding, it means the competition was open to all eligible sources. There is no explicit information on subcontracting plans, but the prime contractor, TSR SOLUTIONS LLC, will be responsible for fulfilling the service requirements.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officer and potentially facility managers at the sites where services are performed. Performance will be monitored against the terms of the firm-fixed-price purchase order. While specific Inspector General (IG) jurisdiction is not detailed, the VA OIG has broad authority over VA contracts, and significant issues could trigger an IG review.

Related Government Programs

Facility Maintenance Services
Commercial Cleaning Services
Health and Safety Compliance Contracts
Building Operations Support

Risk Flags

Contractor performance history for this specific service is not detailed.
Geographic scope of service delivery is not explicitly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12,308.48 to TSR SOLUTIONS LLC. KITCHEN HOOD AND DUCT CLEANING SERVICES

Who is the contractor on this award?

The obligated recipient is TSR SOLUTIONS LLC.

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 $12,308.48.

What is the period of performance?

Start: 2025-04-15. End: 2027-04-14.

What is the track record of TSR SOLUTIONS LLC in providing kitchen hood and duct cleaning services to the federal government?

Based on the provided data, TSR SOLUTIONS LLC is a new awardee for this specific kitchen hood and duct cleaning service contract with the Department of Veterans Affairs. There is no immediate information available regarding their prior experience or track record with this particular service for the federal government through this data snippet alone. Further investigation into contract databases and contractor performance systems would be necessary to ascertain their historical performance, past performance ratings, and any previous federal contracts held for similar services. This lack of immediate historical data for this specific service necessitates careful monitoring of their performance on this new award.

How does the awarded price compare to industry benchmarks for similar services?

The awarded price of approximately $12.3 million over two years for kitchen hood and duct cleaning services needs to be benchmarked against industry standards. While a precise per-unit cost comparison is not available without more detailed service requirements (e.g., number of facilities, size of kitchens, frequency of cleaning), the fact that six companies competed suggests the pricing was competitive. Generally, firm-fixed-price contracts for specialized maintenance services can range significantly based on scope. Industry reports and government cost-estimating tools would provide more granular data, but the competitive bidding process implies the price is likely aligned with market rates. The VA would have conducted its own price analysis during the procurement.

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

The primary risks associated with this kitchen hood and duct cleaning contract include potential inconsistencies in service quality across different locations, contractor failure to meet performance standards, and unforeseen operational issues. The firm-fixed-price (FFP) contract structure mitigates financial risk for the government by fixing the cost, transferring performance risk to the contractor. Mitigation of service quality risk relies on the VA's contract administration, including clear performance work statements, regular inspections, and performance monitoring. The competitive nature of the award also incentivizes the contractor to perform well to maintain a positive performance record for future opportunities.

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

The competition level, with six bidders, is generally considered effective in ensuring value for taxpayers for this contract. A higher number of bids typically leads to a more robust price discovery process, where contractors are incentivized to offer competitive pricing to win the award. This competitive pressure helps to drive down costs and ensures that the government is not overpaying for the services. Furthermore, competition can foster innovation and encourage contractors to provide higher quality services to differentiate themselves. The VA's use of Simplified Acquisition Procedures (SAP) for this procurement also suggests an efficient process that balances competition with administrative ease.

What is the historical spending pattern for kitchen hood and duct cleaning services at the VA?

The provided data does not include historical spending patterns for kitchen hood and duct cleaning services at the VA. This award represents a new contract action for TSR SOLUTIONS LLC for this specific service. To understand historical spending, one would need to analyze past contracts awarded by the VA for similar services, looking at previous award amounts, contract durations, and the number of contractors involved over time. This would reveal trends in pricing, market concentration, and the overall investment the VA makes in maintaining its facilities' kitchen ventilation systems.

What are the potential implications of this contract on the broader facility maintenance market?

This contract award to TSR SOLUTIONS LLC for kitchen hood and duct cleaning services contributes to the overall activity within the facility maintenance and specialized cleaning market. The $12.3 million value indicates a significant service requirement, potentially signaling demand for such specialized services within government agencies. The competitive nature of the bid, with six participants, suggests a healthy market with multiple providers capable of meeting federal standards. This award could influence other companies in the sector by highlighting the VA as a potential client and setting a benchmark for pricing and service expectations within this niche of facility management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

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: 36C25925Q0174

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8709 N 125TH EAST AVE, OWASSO, OK, 74055

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $50,000

Exercised Options: $12,398

Current Obligation: $12,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline