VA Awards $36M Bridge Contract to DLH Solutions for Facilities Support Services

Contract Overview

Contract Amount: $36,043,165 ($36.0M)

Contractor: DLH Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-29

End Date: 2026-10-28

Contract Duration: 364 days

Daily Burn Rate: $99.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW 12 MONTH BRIDGE STAFFING CONTRACT

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.0 million to DLH SOLUTIONS INC for work described as: NEW 12 MONTH BRIDGE STAFFING CONTRACT Key points: 1. Contract awarded to DLH Solutions Inc. for $36.04 million. 2. This is a bridge contract, indicating a need for continued services while a more permanent solution is sought. 3. The contract is for Facilities Support Services, a broad category. 4. No competition was involved in this award. 5. The contract duration is 364 days, ending October 28, 2026.

Value Assessment

Rating: questionable

The contract's value of $36.04 million for a 12-month bridge period appears high for staffing services without further context on the scope. Benchmarking against similar facilities support staffing contracts would be necessary to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition for a $36 million contract means taxpayers may not be receiving the best possible price for these essential facilities support services.

Public Impact

Veterans may experience continuity in facilities support services. The lack of competition raises concerns about the efficient use of taxpayer funds. DLH Solutions Inc. receives a significant sole-source award. The Department of Veterans Affairs ensures immediate operational needs are met.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Bridge contract nature
High dollar value for staffing

Positive Signals

Ensures service continuity
Addresses immediate VA needs

Sector Analysis

Facilities Support Services, under NAICS code 561210, encompasses a wide range of services including operating and maintaining buildings and other facilities. Spending in this sector can vary significantly based on the scale and complexity of the facilities managed.

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 analysis would be needed to determine if small business goals were considered.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny. Oversight should focus on the justification for the sole-source award and the process for transitioning to a competed contract in the future to ensure accountability.

Related Government Programs

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

Risk Flags

Sole-source award
Bridge contract
High dollar value
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.0 million to DLH SOLUTIONS INC. NEW 12 MONTH BRIDGE STAFFING CONTRACT

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 $36.0 million.

What is the period of performance?

Start: 2025-10-29. End: 2026-10-28.

What is the specific scope of 'bridge staffing' for facilities support services that justifies this $36 million award?

The provided data does not detail the specific 'bridge staffing' requirements. Typically, this would involve maintaining essential operational functions, such as janitorial, maintenance, security, or administrative support, during a transition period. The high value suggests a significant scale or critical nature of these services for the VA's facilities.

What are the risks associated with awarding a sole-source bridge contract of this magnitude?

The primary risks include potential overpayment due to lack of competition, reduced incentive for the contractor to perform efficiently, and a delay in securing a potentially more cost-effective, competitively awarded contract. There's also a risk that the bridge contract's scope may expand beyond its original intent.

How will the VA ensure this bridge contract effectively supports its mission while a permanent solution is sought?

The VA must closely monitor contractor performance against clearly defined deliverables and service level agreements. Regular reporting and performance reviews are crucial. Additionally, the VA should expedite the procurement process for the permanent contract to minimize the duration and potential risks of the bridge award.

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: $36,043,165

Exercised Options: $36,043,165

Current Obligation: $36,043,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77026D0003

IDV Type: IDC

Timeline