VA awards $154K generator maintenance contract to Butler Machinery Co. for 5 years

Contract Overview

Contract Amount: $154,195 ($154.2K)

Contractor: Butler Machinery CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-05-13

End Date: 2027-05-12

Contract Duration: 1,825 days

Daily Burn Rate: $84/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FARGO VAMC GENERATOR INSPECTION AND MAINTENANCE

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58102

State: North Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $154,195 to BUTLER MACHINERY CO for work described as: FARGO VAMC GENERATOR INSPECTION AND MAINTENANCE Key points: 1. Contract value appears reasonable for a 5-year generator maintenance agreement. 2. Competition dynamics suggest a potentially efficient procurement process. 3. Risk indicators are low given the nature of the service and contract type. 4. Performance context is essential to evaluate long-term value beyond initial cost. 5. This contract fits within the broader category of facilities maintenance for government installations.

Value Assessment

Rating: good

The contract value of $154,195 over five years for generator inspection and maintenance appears to be within a reasonable range for such services. Benchmarking against similar contracts for generator maintenance at other VA facilities or federal sites would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the total expenditure will depend on the actual services rendered and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below certain thresholds. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation suggests that multiple offers were likely solicited and considered. This level of competition generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competed award under SAP suggests that taxpayer funds were used efficiently by seeking competitive bids, which typically results in better pricing than a sole-source procurement.

Public Impact

The primary beneficiaries are the patients and staff at the Fargo VA Medical Center, who rely on consistent power. The service delivered is critical infrastructure maintenance, ensuring operational continuity. The geographic impact is localized to Fargo, North Dakota. Workforce implications are minimal, likely involving specialized technicians from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on contractor responsiveness for emergency repairs.
Ensuring consistent quality of service over the 5-year period.

Positive Signals

Firm-fixed-price contract limits cost uncertainty.
Competition under SAP suggests a potentially efficient procurement.
Long-term contract allows for predictable budgeting for maintenance.

Sector Analysis

This contract falls within the facilities maintenance and repair sector, specifically for industrial machinery and equipment. The market for such services is substantial, encompassing numerous government agencies and private sector entities requiring reliable backup power solutions. Comparable spending benchmarks would involve analyzing other government contracts for generator maintenance, which can vary significantly based on generator size, type, and service level agreements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities exist within the performance of this contract.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) at the Fargo VA Medical Center. Accountability measures are embedded in the firm-fixed-price contract terms, requiring specific inspection and maintenance tasks to be completed. Transparency is generally maintained through contract award databases, though detailed performance reports may not be publicly accessible.

Related Government Programs

VA Facilities Management Contracts
Generator Maintenance Services
Emergency Power Systems Contracts
Commercial and Industrial Machinery Repair

Risk Flags

Contract duration exceeds typical maintenance cycles.
Potential for under-service if contractor prioritizes other clients.
Lack of detailed performance metrics in award summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $154,195 to BUTLER MACHINERY CO. FARGO VAMC GENERATOR INSPECTION AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BUTLER MACHINERY CO.

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 $154,195.

What is the period of performance?

Start: 2022-05-13. End: 2027-05-12.

What is the track record of Butler Machinery Co. with federal contracts, particularly for generator maintenance?

A review of federal procurement data would be necessary to fully assess Butler Machinery Co.'s track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar government entities and the scale of previous generator maintenance contracts would provide insight into their capability and reliability. Without specific performance data, it's difficult to definitively assess their past performance in a federal context.

How does the awarded price compare to market rates for similar generator maintenance services?

Benchmarking the $154,195 contract value against market rates requires detailed information about the specific generator models, the scope of services included (e.g., preventative maintenance, emergency response, parts replacement), and the geographic location. Industry reports and pricing guides for generator maintenance can offer general benchmarks. However, a precise comparison would necessitate analyzing recent, comparable federal or commercial contracts for similar services in the North Dakota region. The firm-fixed-price nature suggests a defined scope, but the actual value realization depends on the contractor's efficiency and the actual need for services over the contract term.

What are the key performance indicators (KPIs) for this generator maintenance contract, and how will they be measured?

Key performance indicators for a generator maintenance contract typically include response time for service calls, uptime of the generator, completion rate of scheduled preventative maintenance, and adherence to manufacturer specifications. The contract documents should outline these KPIs and the methods for measuring performance. The Contracting Officer's Representative (COR) is usually responsible for monitoring these metrics and ensuring the contractor meets the required standards. Regular performance reviews and service reports from the contractor are essential for tracking progress and ensuring the facility's power reliability.

What is the historical spending pattern for generator maintenance at the Fargo VA Medical Center?

To determine historical spending patterns, one would need to access and analyze past contract awards for generator maintenance at the Fargo VA Medical Center over several preceding years. This analysis would reveal the average annual expenditure, the number of contracts awarded, and the contractors involved. Comparing the current $154,195 award over five years ($30,839 annually) to previous spending would indicate whether this contract represents an increase, decrease, or stable level of investment in generator maintenance. Understanding historical trends can help assess the long-term cost-effectiveness and identify any significant shifts in maintenance strategy or costs.

Are there any specific risks associated with Butler Machinery Co. as a contractor for this type of service?

Assessing specific risks associated with Butler Machinery Co. would require a review of their performance history, financial stability, and any past issues with federal contracts. General risks for generator maintenance contracts include potential delays in service, inadequate repair quality, or unexpected equipment failures. For this specific contract, the risk level is likely mitigated by the firm-fixed-price structure and the competitive bidding process. However, a thorough due diligence check on the contractor's background, including any past performance issues or litigation, would provide a more comprehensive risk assessment.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) 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: 36C26322Q0417

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Butler Machinery Company

Address: 3402 36TH ST SW, FARGO, ND, 58104

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $161,835

Exercised Options: $154,195

Current Obligation: $154,195

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline