VA awards $3.1M contract for elevator modernization at Fresno VAMC, highlighting building equipment needs

Contract Overview

Contract Amount: $3,137,886 ($3.1M)

Contractor: Armstrong Elevator Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-31

End Date: 2026-07-04

Contract Duration: 611 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MODERNIZE ELEVATORS P1, P2, S3, AND S4, BLDG. 1 AT VAMC - FRESNO

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93703

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to ARMSTRONG ELEVATOR COMPANY for work described as: MODERNIZE ELEVATORS P1, P2, S3, AND S4, BLDG. 1 AT VAMC - FRESNO Key points: 1. Contract focuses on essential infrastructure upgrades for a key healthcare facility. 2. The award represents a significant investment in maintaining operational capacity. 3. Competition dynamics suggest a potentially competitive bidding process for this specialized service. 4. Performance risks may include potential delays in construction or unforeseen structural issues. 5. This contract aligns with broader federal efforts to modernize aging government facilities. 6. The chosen contractor has experience in elevator services, indicating relevant expertise.

Value Assessment

Rating: good

The contract value of approximately $3.1 million for elevator modernization appears reasonable given the scope of work involving multiple building sections (P1, P2, S3, S4) at a VAMC facility. Benchmarking against similar large-scale elevator modernization projects in healthcare settings would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. The award to Armstrong Elevator Company, a known entity in the sector, suggests a potentially competitive pricing strategy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific sources were initially excluded. This suggests a potential limitation in the number of bidders compared to a truly unrestricted full and open competition. The presence of 3 bidders, as indicated by the data, shows some level of competition, but the 'after exclusion of sources' clause warrants further investigation into the reasons for exclusion and its impact on the final price.

Taxpayer Impact: While some competition was present, the exclusion of certain sources may have limited the potential for the most competitive pricing, potentially impacting taxpayer value.

Public Impact

Veterans receiving care at the VAMC - Fresno will benefit from improved accessibility and safety through modernized elevators. The project ensures the continued operational efficiency of Building 1 at the VAMC. The geographic impact is localized to Fresno, California, serving the veteran population in that region. The contract supports skilled labor in the construction and elevator maintenance sectors during the performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays due to unforeseen structural issues during modernization.
Risk of cost increases if the firm-fixed-price contract encounters significant scope changes.
Dependence on a limited number of bidders due to the 'exclusion of sources' clause.

Positive Signals

Award to an established contractor with relevant experience in elevator services.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Modernization addresses critical infrastructure needs, enhancing facility reliability.

Sector Analysis

This contract falls within the Building Equipment Contractors sector, specifically focusing on elevator modernization. This is a critical sub-sector for maintaining the functionality and safety of large public and private facilities. The market for elevator maintenance and modernization is characterized by specialized expertise and established players. Federal spending in this area is often driven by the need to upgrade aging infrastructure across government buildings, ensuring compliance with safety standards and improving operational efficiency.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside or explicit subcontracting requirements for small businesses in the provided information. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem may be indirect, potentially through the prime contractor's own supply chain if they engage small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs (VA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through federal procurement databases like FPDS, where contract details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Building Modernization Programs
Veterans Affairs Capital Asset and Business Development Management
Infrastructure Improvement Contracts
Building Equipment Maintenance Services

Risk Flags

Limited competition due to source exclusion
Potential for construction delays in an active healthcare facility
Firm-fixed-price contract risk if scope changes significantly

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to ARMSTRONG ELEVATOR COMPANY. MODERNIZE ELEVATORS P1, P2, S3, AND S4, BLDG. 1 AT VAMC - FRESNO

Who is the contractor on this award?

The obligated recipient is ARMSTRONG ELEVATOR COMPANY.

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 $3.1 million.

What is the period of performance?

Start: 2024-10-31. End: 2026-07-04.

What is the historical spending pattern of the Department of Veterans Affairs on elevator modernization and maintenance contracts?

The Department of Veterans Affairs (VA) consistently allocates significant funds towards the maintenance and modernization of its vast portfolio of healthcare facilities. Historical spending data reveals a recurring need for elevator upgrades and repairs due to the aging infrastructure across numerous VAMC sites nationwide. While specific figures for elevator modernization fluctuate annually based on project prioritization and available funding, the VA's overall budget for facilities management and capital investments runs into billions of dollars. Analyzing past contracts for similar modernization projects, including their scope, duration, and final cost, can provide a benchmark for evaluating current spending. For instance, prior years may show multiple smaller contracts for individual elevator repairs or phased modernization efforts at different VAMCs, alongside larger, multi-building upgrade initiatives similar to the Fresno VAMC project. This consistent investment underscores the critical role of reliable vertical transportation systems in ensuring patient access and operational continuity within the VA healthcare system.

How does the per-unit cost of this elevator modernization compare to similar projects at other VA facilities or federal buildings?

A precise per-unit cost comparison for this $3.1 million elevator modernization contract is challenging without detailed breakdowns of the work performed per elevator or per building section. The contract covers modernization of elevators in Buildings P1, P2, S3, and S4 at the VAMC - Fresno. To benchmark effectively, one would need to identify comparable VA or federal contracts that involved modernizing a similar number of elevators within buildings of comparable size and complexity, and over a similar timeframe. Factors such as the age and condition of the existing elevator systems, the specific modernization technologies employed (e.g., controls, motors, safety features), and site-specific logistical challenges (e.g., accessibility for construction, working hours) significantly influence per-unit costs. Generally, modernization projects can range from tens of thousands to hundreds of thousands of dollars per elevator, depending on these variables. Without such granular data, this contract's value is assessed as 'good' based on the firm-fixed-price structure and the contractor's experience, but a definitive per-unit cost comparison remains elusive.

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

The primary risks associated with this elevator modernization contract include potential construction delays, unforeseen site conditions, and scope creep. Delays can arise from logistical challenges within an active hospital environment, availability of specialized parts, or labor shortages. Unforeseen structural issues discovered during the modernization process could necessitate additional work and increase costs, despite the firm-fixed-price nature of the contract. Scope creep, where the requirements expand beyond the original agreement, is another risk. Mitigation strategies include the firm-fixed-price contract type itself, which places the financial risk of cost overruns on the contractor, Armstrong Elevator Company. The contract's defined performance period (ending July 2026) and the 'after exclusion of sources' competition, which may have involved pre-qualification, could also imply a degree of risk assessment during the procurement phase. Clear contract terms, regular progress monitoring by the VA, and a defined change order process are standard mechanisms to manage these risks.

What is the track record of Armstrong Elevator Company in performing similar federal contracts, particularly for the Department of Veterans Affairs?

Armstrong Elevator Company has a history of performing elevator maintenance and modernization services. While specific details on their track record with the Department of Veterans Affairs (VA) for large-scale modernization projects like the one in Fresno are not explicitly detailed in the provided data, their selection suggests they possess relevant experience and qualifications. Federal procurement databases often contain performance records for contractors on past awards. A deeper analysis would involve reviewing past VA contracts awarded to Armstrong Elevator Company, examining their performance ratings, any past issues or disputes, and the scale and complexity of previously completed projects. Their ability to secure this $3.1 million contract indicates a level of trust and demonstrated capability by the VA, likely based on prior successful engagements or a strong proposal that met the agency's technical and financial requirements.

How does the competition level ('Full and Open Competition After Exclusion of Sources') impact the potential value for taxpayers on this contract?

The competition level, described as 'Full and Open Competition After Exclusion of Sources,' presents a nuanced impact on taxpayer value. Ideally, 'full and open competition' maximizes the number of potential bidders, driving down prices through robust market forces. However, the 'exclusion of sources' clause indicates that certain potential bidders were not considered, which could limit the competitive pressure. While three bidders participated, which is a reasonable number, the exclusion might have prevented even more competitive bids from entering the process. The impact on taxpayers is therefore potentially mixed: some competitive benefit was realized, but the full potential for price discovery might not have been achieved. The firm-fixed-price nature of the contract helps mitigate some of this risk by capping the government's financial exposure, but the initial pricing could have been lower with broader, unrestricted competition.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26124R0060

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9225 ULMERTON RD STE 318, LARGO, FL, 33771

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,137,886

Exercised Options: $3,137,886

Current Obligation: $3,137,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline