VA awards $7.7M for U1 Blanks, highlighting potential for cost efficiencies in stone product manufacturing

Contract Overview

Contract Amount: $7,687,753 ($7.7M)

Contractor: American Veteran Contracting Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANUFACTURE OF U1 BLANKS, FOB ORIGIN FUND OPTION YEAR 1.

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85209

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.7 million to AMERICAN VETERAN CONTRACTING SOLUTIONS LLC for work described as: MANUFACTURE OF U1 BLANKS, FOB ORIGIN FUND OPTION YEAR 1. Key points: 1. Contract value of $7.7M for one year suggests a significant need for U1 Blanks. 2. The contract was awarded under full and open competition, indicating a competitive market. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The North American Industry Classification System (NAICS) code 327991 points to the stone product manufacturing sector. 5. Geographic location in Arizona may influence logistics and delivery costs. 6. The contractor, AMERICAN VETERAN CONTRACTING SOLUTIONS LLC, is a key player in this specific niche.

Value Assessment

Rating: good

The contract value of $7.7 million for a one-year period for U1 Blanks manufacturing appears reasonable given the specialized nature of the product. Benchmarking against similar contracts for stone product manufacturing is challenging without more specific product details. However, the firm fixed-price structure suggests that the contractor bears the risk of cost fluctuations, which is generally favorable for the government. The absence of reported cost issues in the award data further supports a positive value assessment.

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 multiple vendors were likely solicited and had the opportunity to bid. The specific exclusion of sources suggests a targeted approach to ensure qualified bidders participated. The competitive nature of this award is expected to drive price discovery and potentially lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods and services. This approach ensures that the government is not limited to a single provider, maximizing the potential for cost savings.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, ensuring a supply of U1 Blanks for its operations. Services delivered include the manufacture and supply of U1 Blanks, crucial for specific VA processes. The contract's geographic impact is centered in Arizona, where the manufacturing and potentially delivery will occur. Workforce implications may include job creation within the stone product manufacturing sector in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole manufacturer faces unforeseen issues.
Dependence on a single contractor for a critical component could pose a risk.
Limited visibility into the exact nature of 'U1 Blanks' makes it difficult to assess broader risks.

Positive Signals

Award to AMERICAN VETERAN CONTRACTING SOLUTIONS LLC supports veteran-owned businesses.
Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a healthy market for this product.

Sector Analysis

The contract falls within the broader stone product manufacturing industry, classified under NAICS code 327991. This sector involves the production of various stone-based goods. While specific market size data for 'U1 Blanks' is not readily available, the overall stone product manufacturing industry is substantial. This contract represents a specific procurement within this sector, likely for a specialized component used by the VA. Comparable spending benchmarks would depend on the exact specifications and volume of 'U1 Blanks' required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, AMERICAN VETERAN CONTRACTING SOLUTIONS LLC, is identified, but its size category relative to small business definitions is not explicitly provided in this data snippet.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract type, which holds the contractor responsible for delivering goods at the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Federal Contracts for Manufactured Goods
Stone and Stone Product Manufacturing Contracts
Veteran-Owned Small Business Support Programs

Risk Flags

Potential supply chain vulnerability for specialized manufactured goods.
Contract duration limits long-term planning and potential for sustained cost efficiencies.
Limited public information on the specific nature and function of 'U1 Blanks'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.7 million to AMERICAN VETERAN CONTRACTING SOLUTIONS LLC. MANUFACTURE OF U1 BLANKS, FOB ORIGIN FUND OPTION YEAR 1.

Who is the contractor on this award?

The obligated recipient is AMERICAN VETERAN CONTRACTING SOLUTIONS 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 $7.7 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What are 'U1 Blanks' and what is their specific function within the Department of Veterans Affairs?

The provided data does not specify the exact nature or function of 'U1 Blanks'. The NAICS code 327991 indicates they are related to stone product manufacturing. Without further context, it is difficult to determine their precise application within the VA. They could be components for medical equipment, construction materials for facilities, or specialized items for administrative purposes. Understanding their function is crucial for a comprehensive risk and value assessment, as it would clarify the criticality of the supply chain and potential alternatives.

How does the $7.7 million award compare to historical spending on similar items by the VA or other agencies?

Benchmarking the $7.7 million award requires identifying comparable contracts for 'U1 Blanks' or closely related stone products. The provided data does not offer historical spending patterns for this specific item. However, given the firm fixed-price nature and full and open competition, the price is presumed to be market-driven. A deeper analysis would involve searching federal procurement databases for similar items, considering quantity, specifications, and contract duration to establish a valid comparison. The current award represents a significant single-year investment.

What is the track record of AMERICAN VETERAN CONTRACTING SOLUTIONS LLC in fulfilling government contracts, particularly for specialized manufactured goods?

The provided data identifies AMERICAN VETERAN CONTRACTING SOLUTIONS LLC as the contractor but does not offer details on their past performance or track record. To assess their reliability, a review of their contract history, including past performance evaluations, on-time delivery rates, and any disputes or claims, would be necessary. Their ability to successfully manufacture and deliver 'U1 Blanks' as specified is critical. Further investigation into their experience with similar products and government agencies would provide insight into their capabilities and potential risks.

What are the potential risks associated with a single-year contract for a manufactured component like 'U1 Blanks'?

A single-year contract, while offering flexibility, can pose risks such as potential supply chain interruptions if the contract is not renewed or if the contractor faces production issues. It may also limit the contractor's incentive to invest in long-term process improvements. For the government, there's a risk of price increases upon re-competition or the need for a potentially lengthy and costly transition to a new supplier if renewal is not pursued. The lack of multi-year commitment could also affect the contractor's ability to secure raw materials or production capacity.

How does the firm fixed-price (FFP) contract type influence the risk profile for this procurement?

The firm fixed-price (FFP) contract type places the primary cost risk on the contractor, AMERICAN VETERAN CONTRACTING SOLUTIONS LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure is highly beneficial for the government as it provides cost certainty and protects against unexpected cost increases. The VA's risk is primarily related to the contractor's ability to meet the quality and delivery specifications within that fixed price, rather than cost overruns.

Industry Classification

NAICS: Manufacturing › Other Nonmetallic Mineral Product Manufacturing › Cut Stone and Stone Product Manufacturing

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7235 E HAMPTON AVE STE 111, MESA, AZ, 85209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned 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

Financial Breakdown

Contract Ceiling: $7,687,753

Exercised Options: $7,687,753

Current Obligation: $7,687,753

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C78621D0003

IDV Type: IDC

Timeline