VA awards $3.8M contract for Housekeeping Aides to SAYCARE LLC, a 2-year firm-fixed-price purchase order

Contract Overview

Contract Amount: $3,808,899 ($3.8M)

Contractor: Saycare LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-17

End Date: 2027-03-16

Contract Duration: 729 days

Daily Burn Rate: $5.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOUSEKEEPING AIDES - NWI

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.8 million to SAYCARE LLC for work described as: HOUSEKEEPING AIDES - NWI Key points: 1. Contract Value: $3.8 million over two years. 2. Competition: Competed under Simplified Acquisition Procedures (SAP). 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Services - Janitorial/Housekeeping.

Value Assessment

Rating: fair

The contract value of $3.8 million for two years of housekeeping services appears reasonable given the scope. Benchmarking against similar janitorial service contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a limited competition approach. While this can expedite the process, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance services. The price appears fair for the services rendered, but the limited competition could mean a slight premium.

Public Impact

Ensures clean and sanitary conditions within VA facilities. Supports the operational needs of the Department of Veterans Affairs. Provides employment opportunities through SAYCARE LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for higher pricing due to limited competition

Positive Signals

Firm Fixed Price contract
Clear contract duration and end date

Sector Analysis

This contract falls within the professional and commercial services sector, specifically janitorial and housekeeping. Spending in this area is generally stable, driven by the ongoing need for facility maintenance across government agencies.

Small Business Impact

The data does not indicate if SAYCARE LLC is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance.

Related Government Programs

Janitorial Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for price not being the absolute lowest
Contractor performance risk (standard for any contract)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.8 million to SAYCARE LLC. HOUSEKEEPING AIDES - NWI

Who is the contractor on this award?

The obligated recipient is SAYCARE 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 $3.8 million.

What is the period of performance?

Start: 2025-03-17. End: 2027-03-16.

What is the typical cost for similar housekeeping services in the Nebraska region?

Determining the typical cost for similar housekeeping services in Nebraska requires access to regional market data and specific contract details. Factors like square footage, frequency of service, and specialized cleaning needs influence pricing. Without this granular data, a precise benchmark is difficult, but contracts of this scale often range from $1.5 to $2.5 million annually for comprehensive services.

What are the risks associated with limited competition under SAP for this contract?

Limited competition under Simplified Acquisition Procedures (SAP) carries the risk of potentially higher prices compared to full and open competition, as fewer vendors are incentivized to offer their most competitive rates. There's also a reduced assurance that the government has secured the absolute best value. However, SAP is designed for efficiency in acquiring goods and services below certain thresholds, balancing cost with speed.

How effective is the Firm Fixed Price (FFP) contract type in managing costs for housekeeping services?

The Firm Fixed Price (FFP) contract type is highly effective in managing costs for predictable services like housekeeping. It shifts the risk of cost overruns to the contractor, SAYCARE LLC, ensuring the VA pays a set price regardless of the contractor's actual expenses. This provides budget certainty for the VA and incentivizes the contractor to control their own costs efficiently.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26325Q0386

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33 JODECO STATION DR, STOCKBRIDGE, GA, 30281

Business Categories: Black American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,808,899

Exercised Options: $3,808,899

Current Obligation: $3,808,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline