VA awards $1.4M contract for lodging services, extending existing agreement by 3 months

Contract Overview

Contract Amount: $14,045 ($14.0K)

Contractor: Bluewater Management Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-30

End Date: 2025-06-30

Contract Duration: 92 days

Daily Burn Rate: $153/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE MODIFICATION TO CORRECT THE CLIN STRUCTURE

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84148

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14,045 to BLUEWATER MANAGEMENT GROUP LLC for work described as: ADMINISTRATIVE MODIFICATION TO CORRECT THE CLIN STRUCTURE Key points: 1. Contract value appears reasonable for short-term lodging services. 2. Competition dynamics suggest a potentially limited market for this specific BPA call. 3. Short duration may indicate a need for ongoing services or a bridge to a larger procurement. 4. Performance context is tied to existing lodging support for VA operations. 5. Sector positioning is within the hospitality services supporting government functions.

Value Assessment

Rating: good

The contract value of $1.4 million for a 3-month period suggests a daily rate of approximately $15,600. This rate needs to be benchmarked against comparable government lodging contracts or commercial rates in the relevant geographic area (Utah). Without specific details on the number of rooms or services provided, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for more streamlined competition than larger procurements. The specific competition level (e.g., number of bidders, type of solicitation) is not detailed. However, the use of a BPA call suggests it was likely competed among pre-qualified vendors on an existing Blanket Purchase Agreement, potentially limiting the pool of bidders.

Taxpayer Impact: Simplified acquisition procedures can sometimes lead to less aggressive pricing compared to full and open competition, but they also offer efficiency. The specific competition level will determine the extent of taxpayer savings.

Public Impact

Beneficiaries include Department of Veterans Affairs personnel requiring temporary lodging. Services delivered are essential lodging accommodations. Geographic impact is concentrated in Utah, where the services are rendered. Workforce implications are likely minimal, primarily affecting the hospitality sector in Utah.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to BPA call structure.
Short contract duration may indicate an interim solution rather than a long-term strategy.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Leverages an existing BPA, potentially streamlining the acquisition process.
Supports critical VA operational needs.

Sector Analysis

The lodging industry is a significant sector, with government contracts forming a notable segment. This contract falls under the broader hospitality services category. Comparable spending benchmarks would involve analyzing other government lodging contracts, particularly those supporting federal agencies in similar geographic regions or for similar durations. The NAICS code 721110 (Hotels and Motels) indicates a standard commercial service.

Small Business Impact

The data indicates that small business participation (sb) is false, and it was not a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not explicitly detailed but would depend on the prime contractor's policies and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Department of Veterans Affairs Temporary Duty Travel
Federal Government Lodging Programs
Government Lodging Services
Hospitality Services Contracts

Risk Flags

Potential for limited competition under SAP.
Short contract duration may indicate interim solution.
Need for benchmarking against per diem rates and market comparables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14,045 to BLUEWATER MANAGEMENT GROUP LLC. ADMINISTRATIVE MODIFICATION TO CORRECT THE CLIN STRUCTURE

Who is the contractor on this award?

The obligated recipient is BLUEWATER MANAGEMENT GROUP 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 $14,045.

What is the period of performance?

Start: 2025-03-30. End: 2025-06-30.

What is the specific nature of the 'administrative modification to correct the CLIN structure' and its impact on the contract's original scope or pricing?

The provided data indicates an 'administrative modification to correct the CLIN structure' for this contract. A CLIN (Contract Line Item Number) defines a specific item or service to be procured. Modifications to CLIN structures are typically made to rectify errors in the original contract documentation, ensure accurate billing, or clarify the scope of work. In this instance, the modification appears to be a procedural correction rather than a change in the fundamental services or overall cost. The impact on pricing is likely negligible, as it's described as a correction. However, understanding the original error could provide insight into the initial contract setup process. Without the specific details of the original CLIN structure and the nature of the correction, it's difficult to assess any downstream implications beyond ensuring accurate administrative processing.

How does the $1.4 million contract value compare to typical lodging costs for federal employees in Utah?

The $1.4 million contract value for a 3-month period translates to approximately $15,600 per day. To assess value, this needs to be benchmarked against per diem rates for federal employees in Utah, as well as commercial hotel rates in the specific location where the lodging is provided. Federal per diem rates vary by location and time of year. If this contract is for a high-cost area or provides specialized services beyond standard hotel rooms, the rate might be justified. However, if it's for standard lodging in a moderate-cost area, this daily expenditure could be significantly higher than typical government rates, suggesting potential overpayment or a need for more competitive bidding. Further analysis would require knowing the exact location and the specific services included.

What does the 'COMPETED UNDER SAP' designation imply about the competition level and potential for cost savings?

The designation 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) indicates that the contract was procured using streamlined processes designed for purchases below certain dollar thresholds (currently $250,000, but this contract exceeds that, suggesting it might be a BPA call under SAP limits or a specific exception). SAP generally allows for more flexibility and less stringent documentation than full and open competition. While it aims for efficiency, it can sometimes result in less robust competition compared to larger procurements, potentially leading to higher prices. The number of bids received under SAP is crucial for assessing price discovery. If only a few bids were received, taxpayers may not have benefited from the most competitive pricing available in the market.

Given the short 92-day duration, is this contract likely a bridge to a larger procurement or indicative of ongoing, short-term needs?

A contract duration of 92 days (approximately 3 months) is relatively short for many federal procurements, suggesting it could serve as a bridge to a more substantial, long-term contract. This is common when existing contracts are expiring, or when requirements are still being finalized for a larger acquisition. Alternatively, it might reflect a genuine, recurring need for short-term lodging services, perhaps for specific projects, temporary staff augmentation, or emergency situations. Without further context on the VA's strategic procurement plans or the nature of the services, it's difficult to definitively state the intent. However, the short duration warrants monitoring to see if it leads to a more comprehensive, long-term solution.

What are the potential risks associated with a firm-fixed-price contract for lodging services, especially if the scope is subject to change?

Firm-fixed-price (FFP) contracts are generally preferred for their cost certainty, as the contractor assumes the risk of cost overruns. For lodging services, an FFP contract is suitable if the requirements (number of rooms, duration, specific amenities) are well-defined and unlikely to change significantly. The primary risk with FFP in this context arises if the 'administrative modification to correct the CLIN structure' masked underlying ambiguities or if the actual demand for lodging fluctuates unexpectedly. If the VA requires more or fewer services than anticipated, the FFP structure might lead to either the government paying for unused capacity or the contractor incurring losses if demand surges beyond what the fixed price can cover without adjustments. Clear scope definition and robust communication are key to mitigating these risks.

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: 9642 28TH BAY ST, NORFOLK, VA, 23518

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,045

Exercised Options: $14,045

Current Obligation: $14,045

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25920A0018

IDV Type: BPA

Timeline