VA Awards $5.46M Bridge Contract to DLH Solutions for Facilities Support

Contract Overview

Contract Amount: $5,455,763 ($5.5M)

Contractor: DLH Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2025-10-28

Contract Duration: 119 days

Daily Burn Rate: $45.8K/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: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37130

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.5 million to DLH SOLUTIONS INC for work described as: NEW BRIDGE STAFFING CONTRACT FOR MAY 1ST (6 MONTH BRIDGE) Key points: 1. Contract awarded to DLH Solutions Inc. for facilities support services. 2. This is a 6-month bridge contract, indicating a potential gap in long-term planning. 3. The contract is not competed, raising questions about price discovery and value. 4. The Facilities Support Services sector is essential but can be prone to cost overruns if not managed effectively.

Value Assessment

Rating: questionable

The contract's value of $5.46M over approximately 6 months for facilities support seems high for a bridge action. Benchmarking against similar, competed contracts for comparable services would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this bridge contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Veterans may experience disruptions in facilities services if the bridge is not managed efficiently. Taxpayers are potentially overpaying due to the absence of competitive bidding. The VA's reliance on bridge contracts can signal underlying issues with procurement planning and execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Bridge contract duration
Potential for cost overruns

Positive Signals

Essential services maintained
Specific vendor selected

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services critical to government operations. Spending in this sector can vary widely based on facility size and complexity. This contract's value appears significant for a short-term bridge.

Small Business Impact

This contract was awarded to DLH Solutions Inc. and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The non-competitive nature of this bridge contract warrants close oversight to ensure the VA is receiving fair value and to understand the reasons for the lack of competition. A review of the procurement strategy is recommended.

Related Government Programs

Facilities Support Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for overpricing
Short-term solution for potentially long-term need
Limited transparency in award process

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.5 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 $5.5 million.

What is the period of performance?

Start: 2025-07-01. End: 2025-10-28.

What is the justification for awarding this bridge contract on a sole-source basis instead of initiating a competitive procurement?

The justification for a sole-source bridge contract typically stems from an urgent need to maintain essential services while a longer-term, competitive procurement is underway. This could be due to unforeseen circumstances, delays in the original procurement, or the need to avoid service interruption. However, the lack of competition inherently limits price discovery and may lead to less favorable terms for the government.

What are the risks associated with using bridge contracts, particularly when they are not competed?

Bridge contracts carry inherent risks, including the potential for inflated pricing due to the absence of competition, reduced incentive for the contractor to perform efficiently, and the possibility of extending services beyond the intended short-term period. When not competed, these risks are amplified as there's no market pressure to ensure the best value is obtained for taxpayer funds.

How does this contract contribute to the VA's overall mission effectiveness in providing facilities support?

This bridge contract aims to ensure continuity of essential facilities support services, thereby indirectly supporting the VA's mission of providing healthcare and benefits to veterans. However, the reliance on a non-competed bridge contract may indicate underlying procurement challenges that could impact long-term service delivery effectiveness and cost efficiency.

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: $5,455,763

Exercised Options: $5,455,763

Current Obligation: $5,455,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77024D0011

IDV Type: IDC

Timeline