VA Awards $22.2M Contract for Rubber Hoses and Belting to Archer Western Demaria JV VIII

Contract Overview

Contract Amount: $22,254,391 ($22.3M)

Contractor: Archer Western Demaria JV VIII

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-06-27

End Date: 2018-01-23

Contract Duration: 1,306 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SIMLEARN CENTER IGF::OT::IGF

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.3 million to ARCHER WESTERN DEMARIA JV VIII for work described as: SIMLEARN CENTER IGF::OT::IGF Key points: 1. Contract awarded to a joint venture, indicating potential for specialized capabilities. 2. The contract value is moderate, suggesting a specific need within the VA. 3. Fixed-price contract type aims to control costs for the government. 4. The duration of the contract (1306 days) is substantial, implying a long-term requirement.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for cost control. Benchmarking against similar contracts for rubber and plastics manufacturing would provide further insight into the pricing's competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is expected to yield fair market value, benefiting taxpayers by ensuring competitive pricing.

Public Impact

Ensures continued supply of essential rubber and plastic components for VA operations. Supports a joint venture, potentially fostering business growth and specialized manufacturing. The fixed-price nature provides budget certainty for the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value assessment difficult.
The joint venture structure might present unique oversight challenges.
Long contract duration could lead to potential price escalation if not managed carefully.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type.
Awarded to a joint venture, potentially leveraging specialized expertise.

Sector Analysis

This contract falls within the manufacturing sector, specifically for rubber and plastics hoses and belting. Spending benchmarks in this area can vary significantly based on material costs and production complexity.

Small Business Impact

The contract was awarded to a joint venture, and it is not explicitly stated whether small businesses are involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The firm fixed-price contract type provides a degree of cost control. Oversight would focus on contract performance, delivery schedules, and adherence to specifications to ensure accountability.

Related Government Programs

Rubber and Plastics Hoses and Belting Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for price volatility in raw materials.
Dependence on a joint venture for critical supplies.
Long contract duration may not reflect current market prices.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.3 million to ARCHER WESTERN DEMARIA JV VIII. SIMLEARN CENTER IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN DEMARIA JV VIII.

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 $22.3 million.

What is the period of performance?

Start: 2014-06-27. End: 2018-01-23.

What is the specific nature of the rubber and plastic hoses and belting required, and how critical are they to VA operations?

The specific nature of the rubber and plastic hoses and belting is not detailed in the provided data. However, their procurement by the Department of Veterans Affairs suggests they are essential for the maintenance, operation, or medical functions within VA facilities. Understanding their criticality would inform the risk associated with supply chain disruptions or quality issues.

How does the awarded price compare to industry benchmarks for similar rubber and plastic products, considering the contract's duration and specifications?

Without specific product details and current market pricing for rubber and plastic hoses and belting, a direct comparison to industry benchmarks is challenging. The firm fixed-price nature suggests an attempt to lock in a price, but its competitiveness relies on the accuracy of the initial cost estimation and the prevailing market conditions at the time of award.

What mechanisms are in place to ensure the quality and timely delivery of these components throughout the contract's 1306-day duration?

The contract type (firm fixed-price) implies that the contractor bears the risk for cost overruns, incentivizing timely and quality delivery. Standard government oversight, including inspection and acceptance procedures, would be in place. The VA likely has quality assurance surveillance plans (QASPs) to monitor performance and ensure adherence to specifications.

Industry Classification

NAICS: Manufacturing › Rubber Product Manufacturing › Rubber and Plastics Hoses and Belting Manufacturing

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 W. ADAMS, CHICAGO, IL, 60607

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,254,391

Exercised Options: $22,254,391

Current Obligation: $22,254,391

Subaward Activity

Number of Subawards: 746

Total Subaward Amount: $295,091,296

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline