VA awards $10.6M bridge contract to DLH Solutions for facilities support, bypassing competition

Contract Overview

Contract Amount: $10,590,697 ($10.6M)

Contractor: DLH Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-29

End Date: 2026-04-28

Contract Duration: 181 days

Daily Burn Rate: $58.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW 12 MONTH BRIDGE STAFFING CONTRACT

Place of Performance

Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37127

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.6 million to DLH SOLUTIONS INC for work described as: NEW 12 MONTH BRIDGE STAFFING CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The 18-month duration suggests a need for ongoing services rather than a temporary gap. 3. Facilities Support Services (NAICS 561210) is a broad category, requiring clarity on specific needs. 4. The firm-fixed-price structure aims to control costs, but competition is key to ensuring value. 5. Awarded to DLH Solutions Inc., a contractor with existing federal contracts. 6. The contract is a bridge, indicating a potential gap in planned procurement or service continuity. 7. Geographic focus on Tennessee (SN) may indicate a specific facility or regional need.

Value Assessment

Rating: fair

Benchmarking the value of this $10.6 million contract is challenging without specific service details. However, the absence of competition suggests that the government may not have secured the most favorable pricing. Compared to similar facilities support contracts, the per-unit cost would need detailed analysis, but the lack of competitive bids raises concerns about optimal value for taxpayer dollars. The firm-fixed-price nature provides some cost certainty, but the overall value proposition is weakened by the procurement method.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple vendors. This approach is typically used when only one vendor can meet the requirement, or in urgent situations. The lack of competition means there was no opportunity for price negotiation or comparison among different providers, which can lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive bidding. Without multiple offers, the government cannot be assured it received the best possible price for the required facilities support.

Public Impact

Veterans Affairs facilities in Tennessee will receive essential support services. Ensures continuity of operations for critical infrastructure maintenance and management. Supports the operational readiness of VA healthcare and administrative facilities. Potential impact on local workforce through DLH Solutions' employment and subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Bridge contract suggests potential planning or procurement issues.
Lack of detailed service scope makes value assessment difficult.
Firm-fixed-price contract may not fully account for fluctuating service needs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the defined period.
Award to an incumbent or known contractor can ensure service continuity.
Focus on facilities support ensures critical infrastructure remains operational.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from building operations and maintenance to groundskeeping and security. The total addressable market for these services is substantial, with federal agencies being major consumers. This contract fits within the broader category of base operations support, ensuring that physical infrastructure is maintained. Comparable spending benchmarks would depend heavily on the specific services rendered, but agencies often spend billions annually on such support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to DLH Solutions Inc., a larger entity, suggests that opportunities for small businesses may be limited unless DLH actively engages them for subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring DLH Solutions to deliver specified services. Transparency could be enhanced by making the specific statement of work publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Maintenance and Operations
Base Operations Support Services
Government Facilities Management
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award
Lack of competition
Bridge contract implies potential planning gaps
Limited transparency on specific services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.6 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 $10.6 million.

What is the period of performance?

Start: 2025-10-29. End: 2026-04-28.

What specific facilities support services are included under this $10.6 million contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. However, the specific services are not detailed. This category can encompass a wide range of activities, including but not limited to building operations and maintenance, groundskeeping, custodial services, pest control, and potentially security services. Without a detailed Statement of Work (SOW), it is impossible to ascertain the precise nature of the services being procured, making it difficult to assess the value or necessity of the contract.

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

The data explicitly states the contract was 'NOT COMPETED' and is a 'sole-source' award. Agencies typically pursue sole-source contracts when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need where competition is not feasible. Without further justification from the Department of Veterans Affairs, the specific reason for bypassing competition remains unclear. This lack of competition raises concerns about potential overpayment and reduced innovation, as market forces are not engaged to drive efficiency and cost savings.

How does the $10.6 million value compare to similar facilities support contracts awarded by the VA or other agencies?

Direct comparison of the $10.6 million value is difficult without knowing the specific scope and duration of services. However, the contract duration is 18 months (from Oct 2025 to Apr 2026). If this represents the total value for 18 months, the monthly burn rate is approximately $588,925. Facilities support contracts can vary widely in cost depending on the size and complexity of the facilities managed. A sole-source award without competitive benchmarking makes it challenging to determine if this represents a fair market price. Further analysis would require comparing it to contracts with similar service levels and facility types.

What is the track record of DLH Solutions Inc. in providing facilities support services to the federal government?

DLH Solutions Inc. is a federal contractor that has received numerous awards across various service categories. While the provided data does not detail their specific performance history in facilities support, their continued awards suggest a level of capability and past performance acceptable to government agencies. However, the effectiveness and value derived from their services, particularly in facilities support, would require a deeper dive into past performance reviews, contract termination history, and client feedback specific to this service area.

What are the potential risks associated with a sole-source 'bridge' contract for facilities support?

The primary risks associated with a sole-source bridge contract are financial and operational. Financially, the lack of competition can lead to inflated prices as the contractor faces no pressure to offer the most competitive rate. Operationally, a bridge contract implies a gap in planned procurement or service continuity, which could indicate underlying issues with program management or strategic planning within the agency. This can also lead to vendor lock-in if the bridge extends significantly, delaying the transition to a potentially more effective or cost-efficient solution.

What is the significance of this contract being a 'bridge' contract?

A 'bridge' contract typically signifies a temporary arrangement intended to maintain essential services while a more permanent or comprehensive procurement process is underway. In this case, the $10.6 million award to DLH Solutions suggests that the Department of Veterans Affairs needs to continue facilities support services without interruption but has not yet finalized a long-term contract. This could be due to delays in the competitive bidding process, unforeseen needs, or a need to extend existing services while a new strategy is developed. The duration of 18 months indicates it's more than a short-term fix.

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: $10,590,697

Exercised Options: $10,590,697

Current Obligation: $10,590,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77026D0003

IDV Type: IDC

Timeline