Preventative maintenance for two elevators at a North Dakota healthcare facility awarded to Otis Elevator Company for $7,800

Contract Overview

Contract Amount: $7,800 ($7.8K)

Contractor: Otis Elevator Company

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-15

End Date: 2027-04-14

Contract Duration: 364 days

Daily Burn Rate: $21/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR PREVENTATIVE MAINTENANCE ON TWO (2) ELEVATORS AT QUENTIN N BURDICK MEMORIAL HEALTH CARE FACILITY IN BELCOURT, ND

Place of Performance

Location: BELCOURT, ROLETTE County, NORTH DAKOTA, 58316

State: North Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7,800 to OTIS ELEVATOR COMPANY for work described as: ELEVATOR PREVENTATIVE MAINTENANCE ON TWO (2) ELEVATORS AT QUENTIN N BURDICK MEMORIAL HEALTH CARE FACILITY IN BELCOURT, ND Key points: 1. The contract value appears reasonable for preventative maintenance services on two elevators over a one-year period. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The fixed price contract type mitigates cost overrun risks for the government. 4. The duration of one year is standard for preventative maintenance contracts, allowing for regular service. 5. The services are essential for maintaining operational capacity at the Quentin N Burdick Memorial Health Care Facility. 6. The contract falls under the 'Other Building Equipment Contractors' North American Industry Classification System (NAICS) code.

Value Assessment

Rating: good

The contract value of $7,800 for one year of preventative maintenance on two elevators is within a reasonable range for such services. Benchmarking against similar contracts for elevator maintenance at federal facilities of comparable size and complexity suggests this pricing is competitive. The firm fixed-price structure further enhances value by locking in costs and reducing the risk of unexpected increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a full and open competition for procurements valued below the simplified acquisition threshold. While the specific number of bidders is not provided, the use of SAP indicates an effort to solicit offers from multiple sources. This competitive process is expected to lead to fair market pricing.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, helps ensure that taxpayer funds are used efficiently by obtaining services at a fair price.

Public Impact

Patients and staff at the Quentin N Burdick Memorial Health Care Facility in Belcourt, North Dakota, benefit from reliable elevator services. Essential healthcare services are supported by the consistent operation of building infrastructure. The geographic impact is localized to Belcourt, North Dakota, ensuring critical facility operations. Maintenance personnel, likely local or regional, are employed to perform the preventative services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of preventative maintenance tasks.
Absence of data on the age and condition of the elevators, which could impact maintenance needs.
No information provided on the number of bids received or the evaluation criteria used.

Positive Signals

Firm fixed-price contract type provides cost certainty.
One-year duration allows for regular, scheduled maintenance.
Award to a known entity (Otis Elevator Company) suggests potential for reliable service delivery.

Sector Analysis

The contract falls within the building maintenance and repair sector, specifically focusing on elevator equipment. The market for elevator maintenance is generally competitive, with established providers like Otis Elevator Company holding significant market share. This contract represents a small portion of overall federal spending on facility maintenance, which is a critical component of ensuring operational readiness across government installations.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting requirements. Given the nature of the service and the award to a large, established company, it is unlikely that small businesses were primary beneficiaries of this specific award, though they may be involved in the supply chain.

Oversight & Accountability

The contract is a purchase order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and the requiring activity within the Indian Health Service. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Healthcare Facility Operations Support
Indian Health Service Procurement
Elevator and Escalator Maintenance Services

Risk Flags

Potential for unforeseen repair costs beyond preventative maintenance scope.
Dependence on contractor responsiveness for emergency elevator issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7,800 to OTIS ELEVATOR COMPANY. ELEVATOR PREVENTATIVE MAINTENANCE ON TWO (2) ELEVATORS AT QUENTIN N BURDICK MEMORIAL HEALTH CARE FACILITY IN BELCOURT, ND

Who is the contractor on this award?

The obligated recipient is OTIS ELEVATOR COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $7,800.

What is the period of performance?

Start: 2026-04-15. End: 2027-04-14.

What specific preventative maintenance tasks are included in the $7,800 contract?

The provided data does not detail the specific preventative maintenance tasks included in the $7,800 contract. Typically, such services involve regular inspections, lubrication, cleaning, testing of safety features, and minor adjustments to ensure the elevators operate reliably and safely. A comprehensive scope of work would usually be outlined in the contract's statement of work or performance work statement, which is not available in the provided summary. Understanding these specifics is crucial for assessing the true value and adequacy of the maintenance plan.

How does the $7,800 price compare to market rates for similar elevator maintenance contracts?

The $7,800 price for one year of preventative maintenance on two elevators appears to be within a reasonable range for a federal facility. Market rates can vary significantly based on location, elevator type, age, and the specific services included. However, for standard preventative maintenance, this annual cost per elevator ($3,900) is generally competitive. Factors like the facility's remote location in North Dakota might influence pricing, but the award to a major provider like Otis suggests a negotiated rate that likely reflects market conditions for such services.

What is the track record of Otis Elevator Company in performing similar federal contracts?

Otis Elevator Company is a major global provider of elevators, escalators, and related services, with a long history of performing maintenance contracts for both commercial and government entities. While specific performance data for this particular contract is not yet available as it is newly awarded, Otis generally has a strong reputation for reliability and service. Federal agencies often contract with Otis due to their established infrastructure, technical expertise, and widespread service network, suggesting a low risk associated with their performance on this contract.

What are the potential risks associated with this contract?

Potential risks for this contract are relatively low given its nature. Key risks include the possibility of unforeseen major repairs not covered under preventative maintenance, which could lead to additional costs. Another risk is the potential for service disruptions if the contractor's response time is inadequate during a malfunction. The age and condition of the elevators themselves could also pose a risk, potentially requiring more extensive maintenance than anticipated. However, the firm fixed-price structure helps mitigate financial risks for the government.

How does this contract fit into the broader spending patterns for facility maintenance at the Indian Health Service?

This contract represents a small, specific component of the Indian Health Service's (IHS) overall spending on facility maintenance. The IHS operates numerous healthcare facilities across the United States, each requiring ongoing upkeep of essential infrastructure, including elevators. Spending on preventative maintenance like this is crucial for ensuring the operational continuity and safety of these facilities, which serve critical healthcare needs for Native American communities. While this individual contract is modest, the aggregate spending on such services across all IHS facilities is substantial and vital for mission accomplishment.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Otis Worldwide Corporation

Address: ONE CARRIER PLACE, FARMINGTON, CT, 06032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,411

Exercised Options: $7,800

Current Obligation: $7,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline