VA awards $900K for building monitoring services to Cleanroom Design LLC, a sole-source contract

Contract Overview

Contract Amount: $90,000 ($90.0K)

Contractor: Cleanroom Design LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-05-30

End Date: 2027-05-29

Contract Duration: 1,825 days

Daily Burn Rate: $49/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLDG T1OOA MONITORING SYSTEM SERVICE

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $90,000 to CLEANROOM DESIGN LLC for work described as: BLDG T1OOA MONITORING SYSTEM SERVICE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. The duration of the contract (5 years) suggests a need for ongoing services. 3. Fixed-price contract type aims to control costs, but initial pricing needs benchmarking. 4. The service category 'Other Services to Buildings and Dwellings' is broad. 5. Awarded by the Department of Veterans Affairs, indicating a focus on facilities management. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract value of $900,000 over five years for building monitoring services appears moderate. Without specific details on the scope of services, it is difficult to benchmark against similar contracts. The firm fixed-price nature suggests cost certainty for the government, but the absence of competition means there's no direct market comparison to assess optimal value. Further analysis would require understanding the specific monitoring technology and service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor is capable of providing the required service or product, or in specific emergency situations. The lack of competition limits the government's ability to explore alternative solutions or secure the most competitive pricing through a bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The Department of Veterans Affairs benefits from this contract through the provision of building monitoring services. This service likely ensures the proper functioning and maintenance of VA facilities. The contract's geographic impact is centered in California, where the services are delivered. The contract supports the operational efficiency of VA healthcare facilities and administrative buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award raises concerns about market research and vendor lock-in.
The broad service description could lead to scope creep or unfulfilled expectations.

Positive Signals

Firm fixed-price contract type helps manage cost certainty.
Award to a single vendor may indicate specialized expertise required for the service.
Long-term contract duration suggests a stable and ongoing need for the service.

Sector Analysis

The building monitoring systems and services sector is a critical component of facilities management across various industries, including government. This contract falls under the broader 'Other Services to Buildings and Dwellings' NAICS code. The market for such services is driven by the need for operational efficiency, security, and compliance. Comparable spending benchmarks would depend on the specific technologies and scale of facilities being monitored.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award to Cleanroom Design LLC, without further information on its size, means that opportunities for small businesses to participate in this specific contract are limited. This could represent a missed opportunity to leverage the small business industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency is limited due to the sole-source nature. There is no explicit mention of an Inspector General's jurisdiction for this specific award, though the VA OIG generally oversees all VA spending.

Related Government Programs

Facilities Maintenance Services
Building Operations Support
Real Property Maintenance

Risk Flags

Sole-source award lacks competitive pricing.
Potential for vendor lock-in.
Limited transparency on service specifics.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $90,000 to CLEANROOM DESIGN LLC. BLDG T1OOA MONITORING SYSTEM SERVICE

Who is the contractor on this award?

The obligated recipient is CLEANROOM DESIGN 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 $90,000.

What is the period of performance?

Start: 2022-05-30. End: 2027-05-29.

What specific building monitoring services are being provided under this contract?

The provided data indicates the contract is for 'BLDG T1OOA MONITORING SYSTEM SERVICE' under NAICS code 561790 (Other Services to Buildings and Dwellings). However, the exact nature of the monitoring system and the specific services rendered are not detailed. This could range from HVAC monitoring, security system monitoring, environmental controls, or a combination thereof. A deeper dive into the contract's statement of work (SOW) would be necessary to understand the precise deliverables and technological components involved in the monitoring system.

Can the pricing of $900,000 over five years be considered competitive for building monitoring services?

Without a competitive bidding process, it is impossible to definitively state if the $900,000 price is competitive. As a sole-source award, there was no direct comparison against other vendors' proposals. To assess competitiveness, one would need to benchmark this against similar contracts awarded by the VA or other federal agencies for comparable services, considering factors like facility size, type of monitoring, and service level agreements. The firm fixed-price structure provides cost certainty but does not inherently guarantee value for money in the absence of competition.

What are the risks associated with awarding a sole-source contract for building monitoring services?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, making future transitions difficult or costly. Furthermore, without competition, the government may not be exposed to potentially more innovative or cost-effective solutions offered by other vendors. Thorough justification and documentation are crucial for sole-source awards to mitigate these risks.

How does this contract align with the Department of Veterans Affairs' broader facilities management strategy?

This contract supports the VA's operational needs by ensuring the monitoring and potentially the maintenance of its facilities. Effective building monitoring is crucial for maintaining a safe and functional environment for veterans and staff, as well as for managing energy consumption and operational costs. The long-term nature of the contract suggests it's part of a sustained strategy for facility upkeep. However, the sole-source nature might indicate a gap in strategic sourcing or market research for this particular service category.

What is the historical spending pattern for building monitoring services by the Department of Veterans Affairs?

The provided data only pertains to this single contract award. To understand historical spending patterns, a broader analysis of VA contracts under NAICS code 561790 or related service categories would be required. This would involve examining past awards, contract values, competition levels, and vendor performance over several fiscal years to identify trends, significant shifts in spending, or recurring reliance on specific vendors or contract types.

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, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4830 W KENNEDY BLVD STE 600, TAMPA, FL, 33609

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $180,000

Exercised Options: $90,000

Current Obligation: $90,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline