VA awards $2.95M property management contract to Tardan Group LLC for Tucson CMOP

Contract Overview

Contract Amount: $2,952,190 ($3.0M)

Contractor: Tardan Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-01

End Date: 2026-05-31

Contract Duration: 821 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROPERTY MANAGEMENT FOR TUCSON CMOP

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to TARDAN GROUP LLC for work described as: PROPERTY MANAGEMENT FOR TUCSON CMOP Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. The duration of the contract is 821 days, indicating a medium-term service requirement. 4. The contract is for facilities support services, a critical component of operational readiness. 5. The award value of $2.95 million is spread over approximately 27 months. 6. The contractor, Tardan Group LLC, is responsible for property management services.

Value Assessment

Rating: good

The contract value of $2.95 million for property management over 27 months appears reasonable for facilities support services. Benchmarking against similar contracts for property management at VA facilities or other government agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has secured a predictable cost for these services, assuming the scope is well-defined and the contractor can manage their costs effectively. Without specific performance metrics or comparisons to market rates for similar services in Tucson, AZ, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but two bidders can still result in a fair market price if the requirements are clearly defined and the bidding process is robust.

Taxpayer Impact: The competitive nature of this award, even with two bidders, is generally favorable for taxpayers as it encourages competitive pricing. The exclusion of sources prior to the final award warrants further investigation to ensure no potentially capable and cost-effective vendors were unfairly excluded.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and the veterans served by the Tucson Community-Based Outpatient Clinic (CMOP). The contract ensures the proper maintenance and management of the physical property at the Tucson CMOP, contributing to a safe and functional healthcare environment. Geographic impact is focused on Tucson, Arizona, supporting local operations of the VA. Workforce implications may include the direct employment of personnel by Tardan Group LLC for property management tasks, potentially creating local jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'After Exclusion of Sources' clause requires scrutiny to ensure fair competition.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency.
The firm-fixed-price contract could lead to scope creep issues if not managed tightly.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm-fixed-price contract shifts cost risk to the contractor.
Contract supports critical VA healthcare infrastructure.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. The market for facilities management is substantial, with significant government spending allocated to maintaining federal properties. This specific contract for a VA CMOP is a niche within this larger sector, focusing on specialized needs of healthcare facilities. Comparable spending benchmarks would involve analyzing other government contracts for similar facility sizes and service scopes, particularly within healthcare or sensitive government operations.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as 'ss' (small business set-aside) is false and 'sb' (small business) is false. This suggests the contract was not specifically set aside for small businesses, and the prime contractor, Tardan Group LLC, is likely not classified as a small business for this award. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this VA facility.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs, likely through its contracting officers and program managers responsible for the Tucson CMOP. Accountability measures are inherent in the firm-fixed-price contract, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is facilitated by the contract's public availability, allowing for scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VA Facilities Management Contracts
Government Property Management Services
Community-Based Outpatient Clinics (CMOP) Operations
Facilities Support Services Contracts
Department of Veterans Affairs Healthcare Infrastructure

Risk Flags

Potential for limited competition due to source exclusion.
Risk of scope creep or service quality issues with FFP contract.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to TARDAN GROUP LLC. PROPERTY MANAGEMENT FOR TUCSON CMOP

Who is the contractor on this award?

The obligated recipient is TARDAN 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 $3.0 million.

What is the period of performance?

Start: 2024-03-01. End: 2026-05-31.

What is the track record of Tardan Group LLC in performing similar property management services for the federal government?

Assessing the track record of Tardan Group LLC requires a review of their past performance on federal contracts, particularly those involving property management for healthcare facilities or similar government installations. Information on past performance can often be found in federal procurement databases like SAM.gov or through agency-specific performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS). A positive track record would include successful completion of similar contracts, adherence to schedules and budgets, and positive performance reviews. Conversely, a history of contract disputes, performance failures, or significant cost overruns would raise concerns about their capability to successfully execute this current contract. Without specific historical data on Tardan Group LLC's performance, it is difficult to definitively assess their reliability for this VA contract.

How does the awarded price of $2.95 million compare to market rates for similar property management services in Tucson, Arizona?

To benchmark the $2.95 million award against market rates, one would typically analyze the contract's scope of work and compare it to pricing data for similar property management services in the Tucson, Arizona area. This involves researching commercial property management rates, considering factors such as the size and type of facility (a CMOP has specific requirements), the range of services included (e.g., maintenance, security, landscaping, janitorial), and the contract duration. Government contracts sometimes include additional compliance and reporting requirements that can influence pricing. If Tardan Group LLC's proposed price, when broken down by service component and adjusted for the contract's specific demands, aligns with or is below prevailing commercial rates for comparable services, it suggests good value. Conversely, if it significantly exceeds market benchmarks, it could indicate potential overpricing or a less competitive bidding environment.

What are the primary risks associated with this firm-fixed-price contract for property management?

The primary risks associated with this firm-fixed-price (FFP) contract for property management revolve around potential scope creep and contractor performance. While FFP shifts cost overrun risk to the contractor, it necessitates a very clear and comprehensive Statement of Work (SOW). If the SOW is ambiguous or incomplete, the contractor may be incentivized to cut corners on services to maintain profitability, potentially impacting the quality of property management. Conversely, if the government requires additional services not explicitly defined in the SOW, it could lead to costly change orders, negating the cost certainty of the FFP structure. Another risk is the contractor's financial stability and capacity to absorb unexpected costs or manage unforeseen facility issues, which could lead to performance degradation or contract termination. Effective oversight and clear communication are crucial to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' clause in ensuring optimal value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' clause presents a nuanced approach to competition. While it aims to maintain the principle of full and open competition, the explicit exclusion of certain sources prior to the final bidding stage raises questions about the breadth of competition achieved. If the exclusions were based on legitimate, well-documented reasons (e.g., past performance issues, lack of specific capabilities), then the clause might still lead to optimal value by focusing competition among qualified vendors. However, if the exclusions were arbitrary or could be perceived as favoring certain bidders, it could limit price discovery and potentially result in a higher cost for taxpayers than if a truly unrestricted competition had occurred. The effectiveness hinges on the justification and transparency surrounding the source exclusions.

What is the historical spending pattern for property management services at the Tucson CMOP or similar VA facilities?

Analyzing historical spending patterns for property management at the Tucson CMOP or comparable VA facilities is essential for context. This involves examining previous contract awards for these services, including the number of bidders, contract values, durations, and the contractors involved. Significant year-over-year increases in spending, a lack of consistent competition, or frequent contract modifications could signal potential issues with cost control, contractor performance, or evolving service needs. Conversely, stable spending with consistent competition might indicate a well-managed and efficient procurement process. Understanding this history allows for a more informed assessment of whether the current $2.95 million award represents a reasonable continuation of past spending or a deviation requiring further justification.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77024Q0068

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10737 AVENTURA DR, JACKSONVILLE, FL, 32256

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,213,713

Exercised Options: $2,952,190

Current Obligation: $2,952,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline