VA Awards $67.6M Contract for Hoptel Program to TSR Solutions LLC for Veteran Lodging

Contract Overview

Contract Amount: $67,584 ($67.6K)

Contractor: TSR Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2031-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $37/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOPTEL PROGRAM. BASE PLUS FOUR OPTION YEARS. TO LODGE VETERANS OUTSIDE THE HOSPITAL.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67,584 to TSR SOLUTIONS LLC for work described as: HOPTEL PROGRAM. BASE PLUS FOUR OPTION YEARS. TO LODGE VETERANS OUTSIDE THE HOSPITAL. Key points: 1. The Hoptel Program aims to provide lodging for veterans outside of hospitals. 2. The contract is a firm-fixed-price, awarded under Simplified Acquisition Procedures (SAP). 3. TSR Solutions LLC is the sole awardee for this definitive contract. 4. The contract spans 5 years, with a base year and four option years. 5. The NAICS code 561599 indicates services related to travel arrangement and reservation.

Value Assessment

Rating: fair

The contract value of $67.6 million over five years suggests a moderate price point for lodging services. Benchmarking against similar government lodging contracts would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically implies a limited competition environment. While SAP can be efficient, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used to secure lodging for veterans, which is a necessary service. The efficiency of the procurement process under SAP will influence the overall value for taxpayers.

Public Impact

Veterans will have access to off-site lodging, potentially improving comfort and recovery. The contract supports a specific service provider, TSR Solutions LLC. The Department of Veterans Affairs is utilizing this contract to fulfill a critical need. The geographic focus appears to be Arizona, based on the state code 'AZ'.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may impact price discovery.
Lack of detailed performance metrics in the provided data.
Potential for cost overruns if not managed effectively.

Positive Signals

Addresses a clear need for veteran support services.
Firm-fixed-price contract provides cost certainty.
Long-term contract (5 years) offers stability.

Sector Analysis

The Hoptel Program falls under travel arrangement and reservation services. Government spending in this sector often focuses on efficiency and accessibility for beneficiaries, with benchmarks varying based on service scope and duration.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Further investigation would be needed to determine if small businesses were involved in the subcontracting or if opportunities were missed.

Oversight & Accountability

Oversight will be crucial to ensure TSR Solutions LLC meets the program's objectives and provides quality lodging. The Department of Veterans Affairs will need robust monitoring mechanisms to track performance and manage costs effectively.

Related Government Programs

All Other Travel Arrangement and Reservation Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition under SAP.
Potential for price creep if not managed.
Dependence on a single vendor.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67,584 to TSR SOLUTIONS LLC. HOPTEL PROGRAM. BASE PLUS FOUR OPTION YEARS. TO LODGE VETERANS OUTSIDE THE HOSPITAL.

Who is the contractor on this award?

The obligated recipient is TSR SOLUTIONS 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 $67,584.

What is the period of performance?

Start: 2026-04-01. End: 2031-03-31.

What is the average cost per veteran per night under this contract, and how does it compare to market rates or similar government contracts?

The provided data does not include the number of veterans served or the specific utilization rates of the Hoptel Program. Therefore, calculating an average cost per veteran per night is not possible. A comprehensive analysis would require access to utilization data and a comparison with industry benchmarks for similar lodging services to assess value for money.

What are the specific performance standards and quality metrics for the lodging services provided by TSR Solutions LLC?

The provided data lacks details on specific performance standards and quality metrics. It is essential for the Department of Veterans Affairs to have clearly defined deliverables, service level agreements, and quality assurance processes in place to ensure the effectiveness of the Hoptel Program and the satisfaction of the veterans utilizing the service.

Were there any challenges or limitations encountered during the Simplified Acquisition Procedures (SAP) competition that might have affected the final contract price or vendor selection?

While SAP is designed for efficiency, it can sometimes lead to limited competition. Without further details on the procurement process, it's difficult to ascertain if specific challenges arose. Understanding the solicitation process, the number of bids received, and any debriefings provided to unsuccessful offerors would offer insight into potential price discovery impacts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26226R0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8709 N 125TH EAST AVE, OWASSO, OK, 74055

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $358,752

Exercised Options: $358,752

Current Obligation: $67,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline