VA awards $11.7M bridge contract to DLH Solutions Inc. for facilities support services

Contract Overview

Contract Amount: $11,679,041 ($11.7M)

Contractor: DLH Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2025-10-31

Contract Duration: 183 days

Daily Burn Rate: $63.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW BRIDGE STAFFING CONTRACT FOR MAY 1ST (6 MONTH BRIDGE)

Place of Performance

Location: LANCASTER, DALLAS County, TEXAS, 75134

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.7 million to DLH SOLUTIONS INC for work described as: NEW BRIDGE STAFFING CONTRACT FOR MAY 1ST (6 MONTH BRIDGE) Key points: 1. Contract provides essential facilities support services for a critical six-month period. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Short duration suggests a need for immediate support rather than long-term strategic planning. 4. Focus on Texas location indicates a geographically specific service requirement. 5. Firm fixed-price contract type offers cost certainty for the government. 6. The award value is significant for a short-term bridge contract.

Value Assessment

Rating: fair

The $11.7 million award for a six-month bridge contract appears high for facilities support services, especially given the lack of competition. Benchmarking against similar short-term contracts for facilities management is difficult without more detailed service descriptions. However, the firm fixed-price nature provides some cost control. The contract's purpose as a bridge suggests it may be covering essential services during a transition, which could justify a higher cost than a standard, competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning DLH Solutions Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically solicits offers from multiple vendors. While sole-source awards can be justified in specific circumstances (e.g., urgent needs, unique capabilities), they limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these services. Without multiple bids, there's less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The Department of Veterans Affairs (VA) benefits from continued facilities support services. Veterans and VA staff will experience uninterrupted facility operations. Services are geographically focused within Texas. The contract supports the operational workforce responsible for facility maintenance and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Short-term bridge nature may indicate underlying issues with long-term contract planning or execution.
Lack of detailed service scope makes it difficult to assess true value for money.
High award value for a 6-month period warrants scrutiny.

Positive Signals

Firm fixed-price contract provides cost certainty.
Ensures continuity of essential facilities support services for the VA.
DLH Solutions Inc. is an incumbent or known provider, potentially ensuring a smooth transition.

Sector Analysis

The facilities support services sector is broad, encompassing maintenance, repair, and operational support for government buildings. This contract falls within the broader professional, scientific, and technical services category. The market for these services is generally competitive, with many providers capable of delivering such support. However, specific government contracts, especially those requiring specialized knowledge or immediate deployment, can sometimes lead to sole-source or limited competition awards.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to DLH Solutions Inc., a larger entity, suggests that small businesses were not directly involved in this specific procurement. This means the direct economic benefits to the small business ecosystem from this particular award are likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a sole-source award, it may receive additional scrutiny from internal VA oversight bodies or potentially the Government Accountability Office (GAO) if protested. Transparency is limited due to the lack of a competitive process, but contract performance data should be available through federal procurement databases.

Related Government Programs

Facilities Support Services Contracts
Department of Veterans Affairs Operations & Maintenance
Bridge Contracts
Sole Source Procurements

Risk Flags

Sole Source Award
High Value for Short Duration
Lack of Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.7 million to DLH SOLUTIONS INC. NEW BRIDGE STAFFING CONTRACT FOR MAY 1ST (6 MONTH BRIDGE)

Who is the contractor on this award?

The obligated recipient is DLH SOLUTIONS INC.

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 $11.7 million.

What is the period of performance?

Start: 2025-05-01. End: 2025-10-31.

What is the specific scope of facilities support services being provided under this bridge contract?

The provided data indicates the contract is for 'Facilities Support Services' (NAICS code 561210) but does not detail the specific tasks. Typically, facilities support services can include a wide range of activities such as building operations, maintenance, repair, custodial services, groundskeeping, and security. Given this is a bridge contract, it likely covers essential services to maintain operational continuity for VA facilities in Texas during a transition period. A more detailed statement of work (SOW) would be necessary to understand the precise services rendered and to properly benchmark the contract's value.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required services, or in cases of urgent and compelling need where competition is not feasible. For this VA contract, the justification for a sole-source award to DLH Solutions Inc. is not provided in the summary data. It could be due to the need for immediate continuity of services, the unique capabilities of the incumbent contractor, or a planned transition to a new contract vehicle where DLH is the only option. Without the official justification, it's difficult to ascertain the precise reason.

How does the $11.7 million award value compare to similar bridge contracts for facilities support?

Comparing this $11.7 million award for a six-month bridge contract is challenging without more context on the specific services and the scale of the facilities supported. Bridge contracts are often awarded at a premium due to their short-term nature and the urgency involved, which can limit competitive bidding. However, $11.7 million for six months ($23.4 million annualized) is a substantial amount for facilities support. Benchmarking against other VA or agency bridge contracts for similar services would be necessary to determine if this represents a fair market price or an inflated cost due to the lack of competition and urgency.

What is DLH Solutions Inc.'s track record with the VA for facilities support services?

DLH Solutions Inc. has a history of performing various services for the federal government, including the Department of Veterans Affairs. While the summary data doesn't detail their specific performance on facilities support contracts, their selection for this bridge contract suggests they have prior experience or are an incumbent provider. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their past contracts with the VA, including contract values, performance ratings, and any past performance issues or commendations related to facilities management or similar service areas.

What are the potential risks associated with a sole-source, short-term bridge contract like this?

The primary risks associated with this contract include potential overpayment due to lack of competition, reduced incentive for the contractor to perform efficiently, and the possibility that the bridge contract is masking deeper issues with long-term contract planning or vendor performance. Taxpayers bear the risk of not getting the best value. There's also a risk that the services provided may not align with a long-term strategic vision for facility management if the bridge is not carefully managed. Furthermore, sole-source awards can create a perception of favoritism or lack of transparency.

What is the historical spending pattern for facilities support services at this specific VA location or for similar services?

The provided data does not include historical spending patterns for facilities support services at the specific VA location in Texas or for similar contracts. To assess this, one would need to analyze past contract awards for facilities support services by the VA, particularly in the Texas region, and potentially across the agency for comparable facilities. Examining trends in contract values, competition levels, and service providers over time would reveal whether this $11.7 million bridge award is an anomaly or part of a pattern of spending in this category.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 3565 PIEDMONT RD NE, ATLANTA, GA, 30305

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,679,041

Exercised Options: $11,679,041

Current Obligation: $11,679,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77024D0011

IDV Type: IDC

Timeline