VA awards $831.6K for lab refrigerators and freezers to Nexus Group, LLC

Contract Overview

Contract Amount: $83,160 ($83.2K)

Contractor: Nexus Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-15

End Date: 2027-04-14

Contract Duration: 1,094 days

Daily Burn Rate: $76/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: QUARTERLY PM FOR LABORATORY REFRIGERATORS AND FREEZERS

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90822

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $83,160 to NEXUS GROUP, LLC for work described as: QUARTERLY PM FOR LABORATORY REFRIGERATORS AND FREEZERS Key points: 1. Contract awarded for essential laboratory equipment maintenance. 2. Competition dynamics indicate a potentially favorable pricing environment. 3. Firm Fixed Price contract type suggests predictable costs. 4. Performance period spans nearly three years, ensuring continuity. 5. Small business participation was not a specific set-aside for this award. 6. Geographic focus on California for service delivery.

Value Assessment

Rating: good

The total award amount of $831.6K for laboratory refrigerators and freezers over approximately three years appears reasonable given the scope of maintaining critical equipment. Benchmarking against similar contracts for repair and maintenance services for specialized equipment is necessary for a definitive value assessment. However, the firm fixed-price structure suggests that the VA has secured predictable costs for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for awards below certain thresholds. With 7 bidders participating, the competition level suggests a healthy market interest for this type of service. This level of competition is generally conducive to achieving fair market prices.

Taxpayer Impact: The multiple bids received indicate that taxpayer dollars were likely used efficiently, as competitive pressure tends to drive down costs and improve service quality.

Public Impact

Veterans receiving care at VA facilities will benefit from reliable laboratory equipment. Essential diagnostic and research services within VA laboratories will be maintained. Services are geographically focused within California. Supports the operational readiness of VA medical centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs arise beyond the scope of standard maintenance.
Dependence on a single contractor for critical equipment maintenance could pose a risk if performance issues emerge.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
Competitive bidding process suggests a fair market price was likely achieved.
Longer performance period ensures continuity of essential services.

Sector Analysis

The contract falls within the broader category of electronic and precision equipment repair and maintenance, specifically serving the healthcare sector's laboratory needs. The North American Industry Classification System (NAICS) code 811210 covers this type of service. Spending in this area is critical for the operational efficiency of medical research and diagnostic facilities within government agencies.

Small Business Impact

While this contract was competed under SAP, there is no explicit mention of a small business set-aside. Further analysis would be needed to determine if small businesses were encouraged to bid or if subcontracting opportunities exist for them within this award. The absence of a set-aside does not preclude small business participation.

Oversight & Accountability

The contract is a Purchase Order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs responsible for laboratory equipment. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Federal Laboratory Equipment Procurement
Healthcare Facility Support Services

Risk Flags

Performance Risk
Cost Overrun Potential
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $83,160 to NEXUS GROUP, LLC. QUARTERLY PM FOR LABORATORY REFRIGERATORS AND FREEZERS

Who is the contractor on this award?

The obligated recipient is NEXUS GROUP, 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 $83,160.

What is the period of performance?

Start: 2024-04-15. End: 2027-04-14.

What is the track record of Nexus Group, LLC with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data would be necessary to fully assess Nexus Group, LLC's track record. This would involve examining past performance on similar contracts, including on-time delivery, quality of service, and any reported disputes or contract terminations. Understanding their history with the VA specifically, and other agencies, can provide insights into their reliability and capability to fulfill the current contract requirements. Without specific historical data, it's difficult to provide a detailed assessment of their past performance.

How does the awarded price compare to market rates for similar laboratory refrigerator and freezer maintenance services?

To benchmark the value, the awarded amount of $831.6K needs to be compared against industry data for the maintenance of laboratory refrigerators and freezers. This comparison should consider factors such as the types of equipment, service level agreements, geographic location, and the duration of the contract. Without access to proprietary market research or detailed cost breakdowns, a precise comparison is challenging. However, the competitive nature of the bidding process suggests the price is likely aligned with fair market value.

What are the primary risks associated with this contract for the Department of Veterans Affairs?

Key risks for the VA include potential performance failures by Nexus Group, LLC, leading to disruptions in laboratory operations. Another risk is the possibility of unforeseen repair needs exceeding the scope of the firm-fixed-price contract, potentially leading to cost overruns if not managed carefully. Dependence on a single contractor for critical equipment maintenance also presents a risk if the contractor experiences financial instability or operational issues. Ensuring robust contract management and clear performance metrics are crucial to mitigate these risks.

How effective is the current contract in ensuring the operational readiness of VA laboratories in California?

The effectiveness of this contract in ensuring operational readiness hinges on the quality and timeliness of the maintenance services provided by Nexus Group, LLC. The three-year duration suggests a commitment to sustained support. Success will be measured by the uptime of laboratory equipment, the speed of response to maintenance requests, and the overall reliability of the services. Regular performance reviews and feedback from VA laboratory staff will be essential to gauge the contract's effectiveness in practice.

What are the historical spending patterns for laboratory refrigerator and freezer maintenance by the Department of Veterans Affairs?

Analyzing historical spending patterns for similar services by the VA would provide context for the current $831.6K award. This would involve examining expenditure trends over the past several fiscal years, identifying the average contract values, the number of awards, and the primary contractors. Understanding these patterns can reveal fluctuations in demand, changes in pricing, and the VA's strategic approach to procuring such maintenance services. Without access to historical spending data, it is difficult to place the current award within a broader financial context.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26224Q0803

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 SARDIS RD N STE 205, CHARLOTTE, NC, 28227

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $138,600

Exercised Options: $83,160

Current Obligation: $83,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline