VA awards $3.2M for van repairs, with limited competition and potential for cost overruns

Contract Overview

Contract Amount: $3,240 ($3.2K)

Contractor: Mobility Enterprises, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-12

End Date: 2026-04-03

Contract Duration: 507 days

Daily Burn Rate: $6/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VAN REPAIRS

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3,239.85 to MOBILITY ENTERPRISES, INC. for work described as: VAN REPAIRS Key points: 1. Value for money is questionable due to lack of competitive bidding and a high per-unit cost. 2. Competition dynamics are limited, with a sole-source award raising concerns about price discovery. 3. Risk indicators include a lack of historical performance data for this specific contract and a high per-unit cost. 4. Performance context is difficult to assess without clear benchmarks or comparative data. 5. Sector positioning is within the general automotive repair services for federal agencies.

Value Assessment

Rating: questionable

The total award of $3.24 million for van repairs appears high, especially given the lack of competitive bidding. Without comparable contract data or a clear breakdown of services, it's difficult to definitively assess value. The per-unit cost, if calculated based on the total award and the number of vehicles or repairs, could be significantly higher than market rates for standard automotive services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, Mobility Enterprises, Inc., was solicited. This significantly limits competition and raises concerns about whether the government received the best possible pricing and terms. The absence of multiple bids prevents a robust price discovery process.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to higher overall expenditures for these van repair services.

Public Impact

Veterans will benefit from reliable transportation services due to the maintenance of their vehicles. Essential van repair and maintenance services will be delivered to support the Department of Veterans Affairs' operations. The geographic impact is primarily within Nebraska, where the contractor is located and services are likely performed. Workforce implications are minimal, as this contract focuses on service provision rather than direct federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Limited transparency in the sole-source award process.
Potential for cost overruns if pricing is not rigorously managed.
Absence of performance metrics makes value assessment difficult.

Positive Signals

Ensures continued operational capability for VA transportation.
Addresses a necessary maintenance requirement for government vehicles.

Sector Analysis

The automotive repair and maintenance sector is a mature market with numerous providers. Federal spending in this area typically involves routine maintenance, emergency repairs, and specialized services for government fleets. Benchmarks for such services vary widely based on vehicle type, complexity of repair, and geographic location. This contract falls within the general services category for fleet management.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses. The award to a single, likely larger, entity suggests that small business participation in this specific contract is unlikely.

Oversight & Accountability

Oversight will primarily fall to the contracting officer and the Department of Veterans Affairs' procurement and fleet management divisions. Transparency is limited due to the sole-source nature of the award. Accountability measures would rely on the contractor's adherence to the purchase order terms and conditions, with potential for Inspector General involvement if performance issues or fraud are suspected.

Related Government Programs

General Automotive Repair
Vehicle Maintenance Services
Federal Fleet Management

Risk Flags

Sole-source award limits competition and price discovery.
Lack of performance data makes value assessment difficult.
Potential for above-market pricing due to limited competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3,239.85 to MOBILITY ENTERPRISES, INC.. VAN REPAIRS

Who is the contractor on this award?

The obligated recipient is MOBILITY ENTERPRISES, 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 $3,239.85.

What is the period of performance?

Start: 2024-11-12. End: 2026-04-03.

What is the historical spending pattern for van repairs by the Department of Veterans Affairs?

Analyzing historical spending patterns for van repairs by the Department of Veterans Affairs (VA) is crucial for context. Without specific data for this analysis, we can infer that the VA, like other large federal agencies, maintains a fleet of vehicles that require regular maintenance and occasional repairs. Past spending would likely show a mix of competitive and non-competitive awards, depending on urgency, specialized needs, and market availability. A trend of increasing costs or a higher proportion of sole-source awards over time could indicate potential issues with procurement strategies or market conditions. Understanding the volume and cost of similar repairs in previous years would provide a baseline against which the current $3.24 million award can be better evaluated for reasonableness and efficiency.

How does the per-unit cost of these van repairs compare to market rates?

Determining the per-unit cost for these van repairs and comparing it to market rates is challenging without a detailed breakdown of the services provided and the number of units (vehicles or repair instances) covered by the $3.24 million award. If we assume the award covers a significant number of repairs or vehicles over its duration, the implied per-unit cost could be substantial. Market rates for general automotive repair vary greatly by location and the specific service required (e.g., oil change vs. engine overhaul). Given the sole-source nature of this award, there's a heightened risk that the per-unit cost may exceed what could have been achieved through competitive bidding. A thorough analysis would require obtaining itemized repair costs and benchmarking them against regional or national averages for similar services.

What are the specific risks associated with a sole-source award for essential vehicle maintenance?

Sole-source awards for essential vehicle maintenance, such as this $3.24 million contract for van repairs, carry several significant risks. Firstly, the lack of competition means the government is likely paying a premium, as the contractor faces no pressure to offer the lowest possible price. This can lead to inefficient use of taxpayer funds. Secondly, there's a reduced incentive for the sole-source provider to innovate or improve service quality, as there are no competitors to outperform. Thirdly, it limits the government's flexibility; if the contractor's performance deteriorates or prices increase unexpectedly, switching providers is difficult and costly. Finally, sole-source awards can create an appearance of impropriety or favoritism, even if awarded legitimately, potentially undermining public trust in the procurement process.

What is the track record of Mobility Enterprises, Inc. with federal contracts?

Information regarding the specific track record of Mobility Enterprises, Inc. with federal contracts is not provided in the data. To assess this contractor's reliability and past performance, a review of their contract history, including past performance evaluations, any disputes or terminations, and the types and values of previous awards, would be necessary. A positive track record with similar services could offer some assurance, while a history of issues might raise red flags regarding the suitability of this sole-source award. Without this data, the assessment of risk associated with the contractor's performance is incomplete.

How does this contract align with the VA's overall fleet management strategy?

The alignment of this $3.24 million van repair contract with the VA's overall fleet management strategy is not explicitly detailed. Effective fleet management typically involves optimizing vehicle acquisition, maintenance, utilization, and disposal to ensure operational readiness while controlling costs. A sole-source award for a significant portion of repair services might indicate a strategic decision to consolidate maintenance with a specific provider, perhaps due to specialized needs or existing relationships. However, it could also suggest a gap in competitive sourcing strategies or a failure to adequately plan for routine maintenance needs through more competitive means. Understanding the VA's broader goals for its vehicle fleet, including cost-efficiency targets and service level agreements, would be necessary to evaluate this contract's strategic fit.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

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: 7222 S 142ND ST, OMAHA, NE, 68138

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,240

Exercised Options: $3,240

Current Obligation: $3,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline