VA's $15.2M hospital housekeeping contract for Mather/McClellan VA Medical Facilities awarded to AHTNA TECHNICAL SERVICES, INC

Contract Overview

Contract Amount: $15,229,956 ($15.2M)

Contractor: Ahtna Technical Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2005-10-01

End Date: 2009-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOSPITAL HOUSEKEEPING FOR MATHER/MCCLELLAN VA MEDICAL FACILITIES - PURCHASE ORDER 612-C69001 FY 06.

Place of Performance

Location: NORTH HIGHLANDS, SACRAMENTO County, CALIFORNIA, 95660

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.2 million to AHTNA TECHNICAL SERVICES, INC. for work described as: HOSPITAL HOUSEKEEPING FOR MATHER/MCCLELLAN VA MEDICAL FACILITIES - PURCHASE ORDER 612-C69001 FY 06. Key points: 1. Contract awarded for janitorial services at VA medical facilities. 2. The contract duration spans over three years. 3. AHTNA TECHNICAL SERVICES, INC. is the contractor. 4. The contract type is Firm Fixed Price. 5. This contract was not competed. 6. The contract was awarded by the Department of Veterans Affairs.

Value Assessment

Rating: fair

The total value of this contract is $15.2 million over approximately three years. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The fixed-price nature suggests cost certainty for the government, but the lack of competition raises concerns about whether the pricing reflects market rates or if potential savings were forgone. Benchmarking against similar janitorial service contracts for federal facilities of comparable size and scope would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. This significantly limits the opportunity for multiple vendors to bid, which can lead to higher prices and reduced innovation. The absence of a competitive process means the government did not benefit from the price discovery that typically occurs when multiple offers are evaluated.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without a bidding process, there is less pressure on the contractor to offer the most competitive price, potentially leading to less efficient use of federal funds.

Public Impact

Benefits veterans by ensuring a clean and sanitary environment in VA medical facilities. Provides essential janitorial and housekeeping services to maintain health and safety standards. Services are delivered at the Mather and McClellan VA Medical Facilities in California. Supports the operational readiness of critical healthcare infrastructure for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award limits opportunities for small businesses to compete.
No clear indication of performance metrics or quality assurance in the provided data.

Positive Signals

Contract ensures essential services are provided to VA medical facilities.
Firm Fixed Price contract provides cost predictability.
Contractor has been awarded a significant contract, suggesting some level of capability.

Sector Analysis

The janitorial services sector is a mature and competitive market. Federal agencies, particularly those with large facilities like the Department of Veterans Affairs, are significant consumers of these services. While the specific NAICS code 561720 (Janitorial Services) covers a broad range of cleaning activities, contracts for healthcare facilities often require specialized cleaning protocols and adherence to strict hygiene standards. The total federal spending on janitorial services is substantial, but this particular contract represents a small fraction of that overall market.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses and was awarded on a sole-source basis. This means that small businesses did not have a direct opportunity to compete for this specific award. There is no information available regarding subcontracting plans or requirements, so the impact on the small business ecosystem is unclear, but likely minimal given the procurement method.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a sole-source award, scrutiny might be higher to ensure the justification for non-competition is valid and that the pricing is reasonable. Transparency is limited by the lack of public competition details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Facility Maintenance Contracts
Federal Janitorial Services Contracts
Healthcare Facility Support Services

Risk Flags

Sole-source award lacks competition
Potential for non-competitive pricing
Limited transparency on justification for sole-source
No clear performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.2 million to AHTNA TECHNICAL SERVICES, INC.. HOSPITAL HOUSEKEEPING FOR MATHER/MCCLELLAN VA MEDICAL FACILITIES - PURCHASE ORDER 612-C69001 FY 06.

Who is the contractor on this award?

The obligated recipient is AHTNA TECHNICAL SERVICES, 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 $15.2 million.

What is the period of performance?

Start: 2005-10-01. End: 2009-03-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION' and has a contract type of 'sole-source'. However, the specific justification for this sole-source award is not detailed in the provided information. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the agency's needs, often due to unique capabilities, urgent requirements, or specific circumstances. Without the official justification document, it's impossible to verify the validity of the sole-source determination. This lack of transparency is a concern for ensuring fair and competitive procurement practices.

How does the pricing of this contract compare to similar janitorial services contracts for federal facilities?

Direct price comparison is challenging without access to detailed cost breakdowns and specific service level agreements for this contract, as well as comparable contract data. The total award amount is $15.2 million over approximately 3 years. To benchmark effectively, one would need to compare the per-square-foot cleaning costs, frequency of services, specialized cleaning requirements (e.g., for medical environments), and labor rates against other VA or federal facility janitorial contracts of similar size and scope. The sole-source nature of this award raises a flag that the pricing may not be as competitive as it could be in a fully competed environment.

What are the potential risks associated with a sole-source award for essential facility services?

The primary risk of a sole-source award for essential services like hospital housekeeping is the potential for inflated costs due to the absence of competitive pressure. The government may not achieve the best possible price or value. Additionally, there's a risk of complacency from the contractor, as they face no direct competition for future work or contract renewal. This can sometimes lead to a decline in service quality over time if robust performance monitoring and management are not rigorously applied. Furthermore, it limits opportunities for other qualified vendors, including small businesses, to enter or expand their footprint within the federal contracting space.

What performance metrics or quality assurance measures are in place for this contract?

The provided data does not include specific details regarding performance metrics, quality assurance plans, or key performance indicators (KPIs) for this contract. For essential services like hospital housekeeping, robust performance monitoring is crucial to ensure that health and safety standards are consistently met. The Department of Veterans Affairs would typically have established procedures for contract surveillance, including site inspections, user feedback mechanisms, and performance evaluations. However, without explicit information on these measures within the contract's data, it's difficult to assess the effectiveness of oversight and ensure optimal service delivery.

What is the historical spending pattern for hospital housekeeping services at Mather/McClellan VA facilities?

The provided data pertains to a specific purchase order (612-C69001) for FY06, totaling $15.2 million and running from October 1, 2005, to March 31, 2009. This represents a snapshot of spending for a particular period. To understand historical spending patterns, one would need to examine contract awards for janitorial and housekeeping services at these specific VA facilities over multiple fiscal years. Analyzing trends in contract values, durations, awardees, and procurement methods (competitive vs. sole-source) would reveal whether spending has increased or decreased, if competition has varied, and if there have been shifts in service providers or contract types over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ahtna, Incorporated (UEI: 069586055)

Address: 406 W FIREWEED LN STE 204, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $19,504,272

Exercised Options: $17,852,820

Current Obligation: $15,229,956

Timeline