HHS awards $153K for laundry services, with Elite Laundry Company securing the contract

Contract Overview

Contract Amount: $153,755 ($153.8K)

Contractor: Elite Laundry Company

Awarding Agency: Department of Health and Human Services

Start Date: 2022-12-30

End Date: 2024-07-31

Contract Duration: 579 days

Daily Burn Rate: $266/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 2023 LAUNDRY AND DRY-CLEANING SERVICES FOR INSCRIPTION HOUSE HEALTH CENTER

Place of Performance

Location: KAYENTA, NAVAJO County, ARIZONA, 86033

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $153,755 to ELITE LAUNDRY COMPANY for work described as: 2023 LAUNDRY AND DRY-CLEANING SERVICES FOR INSCRIPTION HOUSE HEALTH CENTER Key points: 1. Value for money appears reasonable given the contract duration and fixed-price nature. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low, with a firm fixed-price contract and a single awardee. 4. Performance context is for essential health center services, ensuring operational continuity. 5. Sector positioning is within healthcare support services, a stable and necessary market.

Value Assessment

Rating: good

The contract value of $153,755 over approximately 19 months for laundry and dry-cleaning services at Inscription House Health Center appears to be within a reasonable range. Benchmarking against similar contracts for healthcare support services in Arizona or the broader Southwest region would provide a more precise assessment. The firm fixed-price structure helps control costs for the government, assuming the scope of services is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely advertised broadly to eligible vendors. While the specific number of bidders is not provided, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and considered. This level of competition, even within SAP, generally leads to better price discovery and value for the government compared to sole-source awards.

Taxpayer Impact: The competed nature of this award suggests that taxpayers benefited from a competitive bidding process, likely resulting in a more favorable price than if the contract had been awarded without competition.

Public Impact

Patients and staff at Inscription House Health Center will benefit from consistent and hygienic laundry services. Essential operational support for a healthcare facility is ensured, contributing to patient care. The geographic impact is localized to the Inscription House Health Center in Arizona. Workforce implications include employment opportunities for laundry and dry-cleaning staff employed by Elite Laundry Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under a competed process, indicating potential for good value.
Contract duration of over a year allows for stable service provision.

Sector Analysis

The healthcare support services sector includes a wide range of essential functions that enable healthcare providers to operate efficiently. Laundry and dry-cleaning services are a fundamental component of maintaining hygiene and operational standards in medical facilities. Spending in this area is generally stable, driven by the ongoing need for these services regardless of economic fluctuations. Comparable spending benchmarks would typically be assessed based on per-patient-day costs or square footage of the facility being serviced.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Elite Laundry Company's size is not specified, the award was competed under SAP, which can include small business participation. However, without specific set-aside information, it's difficult to assess the direct impact on the small business ecosystem for this particular contract. Future solicitations could explore small business set-aside options if appropriate.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public availability of contract data, allowing for scrutiny of spending. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Healthcare Facility Maintenance
Medical Support Services
Government Laundry Services
Indian Health Service Contracts

Risk Flags

Potential for performance issues impacting essential health services.
Lack of detailed competition data (number of bidders) limits full assessment of price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $153,755 to ELITE LAUNDRY COMPANY. 2023 LAUNDRY AND DRY-CLEANING SERVICES FOR INSCRIPTION HOUSE HEALTH CENTER

Who is the contractor on this award?

The obligated recipient is ELITE LAUNDRY 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 $153,755.

What is the period of performance?

Start: 2022-12-30. End: 2024-07-31.

What is the track record of Elite Laundry Company with federal contracts?

Information regarding Elite Laundry Company's specific track record with federal contracts is not detailed in the provided data. To assess their performance history, one would need to review past federal contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A thorough review would involve searching federal procurement databases like SAM.gov or FPDS-NG for previous awards to Elite Laundry Company, noting the agencies involved, contract types, values, and performance ratings. Understanding their experience with similar services, particularly in the healthcare sector, would be crucial for evaluating their reliability and capability in fulfilling the current contract with the Indian Health Service.

How does the awarded price compare to market rates for similar laundry services?

The provided data does not include specific market rate benchmarks for laundry and dry-cleaning services in Arizona or comparable regions. To assess value for money, a comparison would require researching industry pricing for commercial laundry services tailored to healthcare facilities, considering factors like volume, types of fabrics, specialized cleaning requirements (e.g., for medical linens), and delivery frequency. The contract's firm fixed-price nature suggests that the government aimed to lock in a specific cost. However, without external market data or internal historical cost data for similar services at other IHS facilities, a definitive value-for-money assessment relative to market rates is challenging based solely on the provided contract details.

What are the primary risks associated with this contract?

The primary risks associated with this contract are related to service quality and contractor performance. Since it's a firm fixed-price contract for essential services at a health center, any disruption or failure in laundry and dry-cleaning services could impact patient care and facility operations. Potential risks include the contractor failing to meet hygiene standards, experiencing equipment failures, or having staffing shortages that lead to service delays. Another risk is the potential for price escalation in future contract renewals if market conditions change or if competition for subsequent contracts is limited. Ensuring robust performance monitoring and clear communication channels with Elite Laundry Company will be key to mitigating these risks.

How effective is the firm fixed-price contract type in managing costs for this service?

The firm fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and unlikely to change significantly. For laundry and dry-cleaning services, the FFP structure provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This encourages the contractor to manage their own expenses efficiently to maximize profit. The effectiveness hinges on the accuracy of the initial cost estimate and the clarity of the service requirements. If the scope is underestimated or unforeseen issues arise that require additional services not covered by the original agreement, the FFP structure can become less advantageous for the contractor, potentially leading to performance issues if they try to cut corners.

What is the historical spending pattern for laundry and dry-cleaning services by the Indian Health Service?

The provided data snippet focuses on a single contract and does not offer historical spending patterns for laundry and dry-cleaning services by the Indian Health Service (IHS) or the Department of Health and Human Services (HHS) overall. To analyze historical spending, one would need to access broader federal procurement databases (like FPDS-NG or USASpending.gov) and filter for relevant NAICS codes (like 812320) and agencies (IHS, HHS) over several fiscal years. This would reveal trends in contract values, number of awards, types of services procured, and potentially identify key contractors. Understanding these patterns is crucial for budgeting, identifying potential cost savings, and assessing the stability of the market for these services within the IHS.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Drycleaning and Laundry Services (except Coin-Operated)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: IHS1462143

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 208 E HIGHWAY 66, GALLUP, NM, 87301

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $153,755

Exercised Options: $153,755

Current Obligation: $153,755

Actual Outlays: $153,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline