VA awards $2.9M contract for Veteran lodging services in Vermont to Novas Nests LLC

Contract Overview

Contract Amount: $2,938 ($2.9K)

Contractor: Novas Nests LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-06-30

Contract Duration: 82 days

Daily Burn Rate: $36/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VETERAN LODGING SERVICES AT WHITE RIVER JUNCTION VT.

Place of Performance

Location: WHITE RIVER JUNCTION, WINDSOR County, VERMONT, 05001

State: Vermont Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2,938.41 to NOVAS NESTS LLC for work described as: VETERAN LODGING SERVICES AT WHITE RIVER JUNCTION VT. Key points: 1. Contract awarded to Novas Nests LLC for lodging services. 2. The contract is valued at $2.9 million. 3. Services are for the White River Junction VA facility. 4. The contract duration is 82 days. 5. This is a firm-fixed-price contract.

Value Assessment

Rating: fair

The contract value of $2.9 million for 82 days suggests a high daily rate. Benchmarking against similar lodging contracts is needed to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a limited competition environment. This method may not always yield the lowest possible price.

Taxpayer Impact: Taxpayer funds are being used for lodging services, with potential for cost savings if pricing is optimized through broader competition.

Public Impact

Veterans will receive essential lodging services near the White River Junction VA. The contract supports a specific business, Novas Nests LLC. The short duration suggests a temporary or specific need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potentially high per-diem cost given the short duration.
Lack of small business participation noted.

Positive Signals

Supports veteran healthcare access.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

The lodging sector, particularly for government contracts, often sees varied pricing based on location and service level. This contract falls within the hospitality industry, serving a specific government need.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis could explore opportunities for small business set-asides in future lodging procurements.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure service delivery meets requirements and taxpayer funds are used efficiently.

Related Government Programs

Hotels (except Casino Hotels) and Motels
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High daily rate compared to typical lodging.
Use of SAP for a large contract value.
No small business participation.
Short contract duration may indicate a temporary need or potential for future, larger contracts.
Lack of detailed service scope in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2,938.41 to NOVAS NESTS LLC. VETERAN LODGING SERVICES AT WHITE RIVER JUNCTION VT.

Who is the contractor on this award?

The obligated recipient is NOVAS NESTS LLC.

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 $2,938.41.

What is the period of performance?

Start: 2026-04-09. End: 2026-06-30.

What is the average daily rate for this lodging contract, and how does it compare to market rates for similar services in the White River Junction area?

The contract value is $2,938,410 for 82 days. This equates to an average daily rate of approximately $35,834. This rate appears exceptionally high for standard lodging services and warrants further investigation against local market benchmarks and government per diem rates.

What factors contributed to the limited competition under Simplified Acquisition Procedures for this significant contract value?

Simplified Acquisition Procedures (SAP) are typically used for purchases below the SAT ($250,000). Awarding a $2.9M contract under SAP suggests either an unusual circumstance, a potential misclassification, or a series of smaller calls against a larger agreement. Understanding the justification for SAP is crucial for assessing the procurement process's integrity.

How effectively will these lodging services support the VA's mission and the needs of the veterans utilizing the White River Junction facility?

The effectiveness hinges on the quality of service provided by Novas Nests LLC and its proximity/accessibility to the VA facility. While the contract aims to support veterans, the high cost and limited competition raise questions about optimal resource allocation and whether alternative, more cost-effective solutions could achieve similar or better outcomes.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19 GOLDEN RD, MYSTIC, CT, 06355

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,938

Exercised Options: $2,938

Current Obligation: $2,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C24126A0025

IDV Type: BPA

Timeline