VA awards $604K contract for sterilizer chamber cleaning to Steelcobelimed Inc

Contract Overview

Contract Amount: $60,400 ($60.4K)

Contractor: Steelcobelimed Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-15

End Date: 2027-04-14

Contract Duration: 1,460 days

Daily Burn Rate: $41/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STERILIZER CHAMBER CLEANING SERVICE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $60,400 to STEELCOBELIMED INC. for work described as: STERILIZER CHAMBER CLEANING SERVICE Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The service falls under Electronic and Precision Equipment Repair and Maintenance. 3. A firm-fixed-price contract suggests predictable costs, but competition is key for value. 4. The contract duration is four years, indicating a long-term need.

Value Assessment

Rating: questionable

The contract value of $604,000 over four years is difficult to assess without a per-unit cost or comparison to similar services. The lack of competition makes it challenging to determine if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for this service, impacting taxpayer funds.

Public Impact

Veterans in California will continue to receive essential medical services supported by this cleaning contract. The Department of Veterans Affairs ensures the proper functioning of critical medical equipment. The long-term nature of the contract suggests a consistent need for sterilizer maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 41 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpayment

Positive Signals

Essential service for healthcare
Firm-fixed-price contract provides cost certainty

Sector Analysis

The Electronic and Precision Equipment Repair and Maintenance sector is crucial for government operations, particularly in healthcare. Benchmarks for sterilizer cleaning services are highly variable based on equipment type and service scope.

Small Business Impact

There is no indication that small businesses were considered or involved in this sole-source award, which is a missed opportunity for small business participation.

Oversight & Accountability

Oversight is needed to ensure the VA is receiving adequate value for this sole-source contract and to explore competitive options for future requirements.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $60,400 to STEELCOBELIMED INC.. STERILIZER CHAMBER CLEANING SERVICE

Who is the contractor on this award?

The obligated recipient is STEELCOBELIMED 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 $60,400.

What is the period of performance?

Start: 2023-04-15. End: 2027-04-14.

What is the specific scope of work for sterilizer chamber cleaning, and how does it compare to industry standards?

The specific scope of work is not detailed in the provided data. Understanding the exact tasks, frequency, and materials used is crucial for assessing value. Comparing this to industry standards for similar sterilizer models and facility types would help determine if the $604,000 price is justified and if the service meets necessary quality benchmarks.

What is the justification for awarding this contract on a sole-source basis, and were any market research efforts conducted?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts require extensive market research to demonstrate that no other responsible sources can meet the government's needs. Without this justification, it's difficult to ascertain if the VA explored all viable options or if this award was truly necessary.

How will the VA ensure the effectiveness and quality of the sterilizer cleaning service under this contract?

The VA will likely rely on contract performance monitoring and quality assurance surveillance plans to ensure the effectiveness of the sterilizer cleaning. This includes verifying that the contractor meets all specified requirements, adheres to cleaning protocols, and maintains the necessary certifications. Regular inspections and feedback mechanisms are essential for accountability.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: 8351 PALMETTO COMMERCE PARKWAY, LADSON, SC, 29456

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $75,500

Exercised Options: $60,400

Current Obligation: $60,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline