Department of Veterans Affairs Awarded a Contract to OE ENTERPRISES INC for $6,176,511.46

Summary of Award

The contract detailed in the JSON response from usaspending.gov highlights an agreement between the U.S. federal government and OE Enterprises Inc. for janitorial services at a new building. The contract, identified by the award ID "36C77023C0001," was signed on January 25, 2023, and involves the Department of Veterans Affairs (VA) as both the awarding and funding agency. OE Enterprises, a participant in the AbilityOne Program and a tax-exempt corporate entity, based in Hillsborough, North Carolina, is tasked with delivering these janitorial services, underlining their role within the NAICS classification for "Janitorial Services" (561720).

**Contract Overview**

The contract falls into the category of a "Definitive Contract" and is set under a "Firm Fixed Price" arrangement, with an overarching value reaching $6,176,511.46 if all options are exercised. This specific contract, however, has a base exercised options total of $3,132,715.62 as of the signing date. It is set to run from February 1, 2023, through January 31, 2026, with the place of performance specified in Charleston, South Carolina. The procurement process was not competed, as specified by the "Extent Competed: NOT COMPETED" descriptor within the transaction record, falling under a category that accommodated only one source as determined by the Federal Acquisition Regulation (FAR). The solicitation procedure was "Sole Source or Single Source (SSS)," indicating the VA had justifiable reasons to award the contract to OE Enterprises without a competitive bidding process, potentially due to the unique capability or availability of the recipient to fulfill the contract's requirements. **Recipient Organization** OE Enterprises Inc. is noted for its alignment with multiple business categories, including being recognized as a nonprofit organization, a U.S.-owned business, and an AbilityOne Program participant—a program that provides employment opportunities to people with significant disabilities. This indicates its strategic positioning to deliver on government contracts requiring specific employment inclusivity targets. Their operation from Hillsborough, North Carolina, aligns with their designation as a larger business entity that does not fall under the small business category. The recipient’s location details, including its unique entity identifier (UEI), further confirm their operational capacity and organizational legitimacy to engage in federally-funded projects. **Transactions and Financial Implications** The contract incurs various transactions issued over the contract’s timeline, with key financial activities captured below: 1. **Initial Transaction (January 25, 2023)**: The first transaction amounted to $947,043.92, marking the commencement of the financial obligations from the VA to OE Enterprises as the recipient. 2. **Subsequent Key Transactions**: - On January 29, 2024, a significant transaction valued at $1,048,182.16 was recorded. - On March 4, 2024, no monetary transaction was logged, possibly indicating an administrative modification. - April 25, 2024, saw an action amount of $30,290.32, followed by a small transaction the very next day for $2,363.75. - July 3, 2024, saw a smaller transaction of $1,562.71, reflecting ongoing service adjustments or additional service requests. - On the most recent action date captured, January 31, 2025, a substantial transaction of $1,082,941.72 was executed, further demonstrating the scale and continuation of service provision by OE Enterprises. **Contract Structure and Service Focus** The contract’s cost elements align with the standard industry archetype for janitorial contracts under the PSC code "S201," which pertains to housekeeping and custodial services. Its structure is consolidated with predefined service obligations and payment schedules under the firm fixed price model, ensuring a stable financial commitment between the VA and OE Enterprises over the designated performance period. No set-aside protocols or competitive preference programs were involved, as indicated by the "NO SET ASIDE USED" and "NO PREFERENCE USED" tags, positioning this contract as a straightforward engagement without additional minority or disadvantaged business goals attached. The purpose of such a comprehensive service contract is to ensure routine and specialized janitorial tasks are consistently addressed in a critical government facility, optimizing health and operational standards for government employees operating within the adjudicated building. In summary, the contract between the Department of Veterans Affairs and OE Enterprises reflects a targeted procurement strategy leveraging the unique value offered by the recipient in compliance with federal guidelines. The award’s financial allocations underscore OE Enterprises' pivotal contributions in administrative and custodial capacities, ensuring a high standard of facility maintenance within VA operational environments.