VA Spends $18.9M on Burial Flags, Awarded Sole-Source to Huntsville Rehabilitation Foundation

Contract Overview

Contract Amount: $18,920,978 ($18.9M)

Contractor: Huntsville Rehabilitation Foundation

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-30

End Date: 2026-08-31

Contract Duration: 1,431 days

Daily Burn Rate: $13.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: VA BURIAL FLAGS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.9 million to HUNTSVILLE REHABILITATION FOUNDATION for work described as: VA BURIAL FLAGS Key points: 1. Significant spending on a niche item (burial flags). 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (4 years) for a relatively simple product. 4. Limited transparency on pricing due to 'not available for competition'.

Value Assessment

Rating: questionable

Pricing is not available for comparison due to the sole-source nature of the award. Without competitive bids, it's difficult to assess if the $18.9 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially leading to overpayment for burial flags.

Public Impact

Veterans receive essential burial flags, a solemn and important service. The significant contract value could be a concern if not competitively bid. Potential for cost savings if competition were introduced in future procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited pricing transparency

Positive Signals

Supports a specific organization (Huntsville Rehabilitation Foundation)
Ensures provision of a necessary item for veterans

Sector Analysis

Spending on textile products like burial flags falls under miscellaneous manufacturing. Benchmarks are difficult to establish without competitive data for this specific item.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have competed for this requirement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should ensure the justification for sole-sourcing is robust and that future requirements are opened to competition.

Related Government Programs

All Other Miscellaneous Textile Product Mills
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Lack of transparency in pricing.
Potential for overpayment due to non-competitive award.
Long contract duration for a seemingly standard item.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.9 million to HUNTSVILLE REHABILITATION FOUNDATION. VA BURIAL FLAGS

Who is the contractor on this award?

The obligated recipient is HUNTSVILLE REHABILITATION FOUNDATION.

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 $18.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-08-31.

What is the justification for awarding this contract on a sole-source basis, and could competition have yielded better pricing?

The justification for the sole-source award is not provided in the data. However, sole-source contracts inherently limit price discovery. If other manufacturers or suppliers could produce burial flags meeting VA specifications, a competitive process could have potentially resulted in lower costs for the government and taxpayers.

What are the risks associated with a sole-source contract for burial flags, and how can they be mitigated?

The primary risk is paying a non-competitive price, potentially overpaying for the flags. Mitigation strategies include thoroughly vetting the sole-source justification, exploring opportunities for future competition by breaking down the requirement or seeking alternative suppliers, and ensuring strict oversight of contract performance and pricing adjustments.

How effective is this contract in ensuring the timely and quality delivery of burial flags to veterans?

The effectiveness in terms of timely and quality delivery cannot be fully assessed without performance data. However, the long-term nature of the contract (nearly 4 years) suggests an intent to ensure a stable supply. The sole-source award might simplify logistics for the VA by dealing with a single known entity.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills

Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10G22Q0070

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2939 JOHNSON RD, HUNTSVILLE, AL, 35805

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

Financial Breakdown

Contract Ceiling: $24,373,066

Exercised Options: $18,920,978

Current Obligation: $18,920,978

Actual Outlays: $13,778,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline