VA awards $2.5M laundry services contract to Core Linen Services Inc. in Arizona

Contract Overview

Contract Amount: $2,498,627 ($2.5M)

Contractor: Core Linen Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $6.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PVAHS COMPLETE LAUNDRY SERVICES

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to CORE LINEN SERVICES INC for work described as: PVAHS COMPLETE LAUNDRY SERVICES Key points: 1. Contract value of $2.5M for one year of laundry services. 2. Awarded to a single vendor, Core Linen Services Inc. 3. Competition was conducted under Simplified Acquisition Procedures (SAP). 4. The contract is a Firm Fixed Price type. 5. Service is for laundry and drycleaning, excluding coin-operated. 6. The contract is for a duration of 364 days. 7. The vendor is located in Arizona, serving the VA there.

Value Assessment

Rating: fair

The contract value of $2.5 million for a single year of laundry services appears to be within a reasonable range for a large federal facility. However, without specific details on the volume of laundry processed, the types of services required (e.g., specialized medical linens), and the geographic location's cost of living, a precise value-for-money assessment is challenging. Benchmarking against similar VA laundry contracts or large-scale commercial laundry services would provide a clearer picture of whether this price represents competitive value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves smaller dollar value procurements and may have less extensive competition than full and open competition. While the specific number of bidders is not provided, SAP awards often involve a limited number of solicitations or quotes. This approach can expedite the acquisition process but may not always yield the lowest possible price due to reduced market reach.

Taxpayer Impact: The use of SAP suggests a focus on efficiency for a contract of this size. Taxpayers benefit from a potentially faster award, but the limited competition might mean a slightly higher price than could be achieved through a broader solicitation.

Public Impact

Veterans receiving care at VA facilities in Arizona will benefit from clean linens and laundry services. Ensures the availability of essential laundry and drycleaning services for the Department of Veterans Affairs. Supports the operational readiness of VA medical centers and related facilities in Arizona. Potentially impacts the local workforce in Arizona through employment opportunities with Core Linen Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
Lack of detailed performance metrics makes assessing service quality difficult.
Dependence on a single vendor for a critical service introduces supply chain risk.

Positive Signals

Firm Fixed Price contract provides cost certainty for the VA.
Contract duration of one year allows for periodic re-evaluation of needs.
Vendor is established and likely familiar with VA service requirements.

Sector Analysis

The federal spending on laundry and drycleaning services falls within the broader facilities support and operational services sector. This sector is characterized by a mix of large commercial providers and specialized service companies. The market size for federal laundry services is substantial, driven by the needs of military bases, hospitals, and government agencies. This contract represents a typical procurement for essential operational support within the healthcare services sub-sector.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Core Linen Services Inc. suggests that the primary contractor is likely a larger entity or that small business participation was not a specific focus of this procurement. This may limit opportunities for small businesses to participate in this specific contract's value chain.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through a contracting officer and contract specialist. Performance will be monitored against the terms of the Firm Fixed Price contract. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are internal to the VA and may involve quality assurance personnel. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Support Services
Federal Laundry and Drycleaning Contracts
Healthcare Operational Support Services
Department of Veterans Affairs Procurement

Risk Flags

Limited competition
Potential for price escalation
Dependence on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to CORE LINEN SERVICES INC. PVAHS COMPLETE LAUNDRY SERVICES

Who is the contractor on this award?

The obligated recipient is CORE LINEN SERVICES 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 $2.5 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

What is the historical spending pattern for laundry services at this specific VA facility or within the Arizona region?

Analyzing historical spending data for laundry services at the specific VA facility or across the Arizona region would provide crucial context for the current $2.5 million award. If previous contracts were significantly lower or higher, it would indicate potential changes in service scope, volume, inflation, or market pricing. For instance, if past contracts were consistently around $1.5 million annually, this $2.5 million award might warrant closer scrutiny regarding justification for the increase. Conversely, if previous awards were in a similar range or higher, it could suggest that the current price is aligned with historical trends and market conditions. Without this historical data, it is difficult to definitively assess if the current contract represents a fair and reasonable price or if there has been a significant escalation in costs.

How does the per-unit cost of laundry services under this contract compare to industry benchmarks or similar federal contracts?

A key aspect of assessing value for money is comparing the per-unit cost of laundry services to established benchmarks. This would involve calculating metrics such as cost per pound of laundry processed, cost per linen item cleaned, or cost per patient day served. These calculated rates would then be compared against industry averages for commercial laundry providers of similar scale and service complexity, as well as against per-unit costs from other federal laundry contracts, particularly those with the VA or other healthcare providers. If the per-unit costs under this contract are significantly higher than benchmarks, it could indicate potential overpricing or inefficiencies. Conversely, costs that are in line with or below benchmarks would suggest competitive pricing and good value for the taxpayer.

What specific performance standards and quality metrics are included in the contract, and how will they be monitored?

The effectiveness and value of this laundry services contract are heavily dependent on the specific performance standards and quality metrics defined within the contract document. These metrics should address critical aspects such as turnaround time for laundry, cleanliness standards (e.g., absence of stains, odors, or damage), proper handling and delivery of linens, and adherence to infection control protocols, especially important for healthcare settings. The contract should also clearly outline the methods for monitoring these standards, which could include regular inspections, customer satisfaction surveys, defect tracking, and reporting requirements. Robust monitoring mechanisms, coupled with clear remedies for non-performance, are essential to ensure the VA receives the quality of service required and that taxpayer funds are used effectively.

What is the track record of Core Linen Services Inc. in fulfilling federal contracts, particularly for the Department of Veterans Affairs?

Evaluating the track record of Core Linen Services Inc. is crucial for understanding the potential risks and reliability associated with this contract. Information regarding their past performance on federal contracts, especially those with the VA, can be found in sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). Key areas to examine include their history of on-time delivery, quality of services rendered, compliance with contract terms, and any history of disputes, penalties, or contract terminations. A strong performance history suggests a lower risk of issues and a higher likelihood of successful contract execution. Conversely, a history of poor performance or unresolved issues would raise concerns about the contractor's ability to meet the current contract's requirements effectively.

What is the potential impact of this contract on the local small business ecosystem in Arizona, given it was not a small business set-aside?

The award of this $2.5 million laundry services contract to Core Linen Services Inc., which was not a small business set-aside and competed under SAP, has implications for the local small business ecosystem in Arizona. While the primary contract may not directly benefit small businesses, the extent of subcontracting opportunities is a critical factor. If Core Linen Services Inc. is required or chooses to subcontract portions of the work to local small businesses (e.g., for specialized cleaning, transportation, or maintenance), it could provide valuable revenue streams and business development opportunities. However, if there are no significant subcontracting plans, the direct economic impact on the small business community from this specific contract may be limited, potentially concentrating the benefits among larger firms or the prime contractor's own workforce.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Drycleaning and Laundry Services (except Coin-Operated)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 644-25-2-241-0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Boosted Commerce Inc.

Address: 8936 N POINTE EXECUTIVE PARK DR STE 100, HUNTERSVILLE, NC, 28078

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,961,683

Exercised Options: $2,498,627

Current Obligation: $2,498,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline