VA awards $2.37M bridge contract for facilities support services to DLH Solutions Inc

Contract Overview

Contract Amount: $2,370,606 ($2.4M)

Contractor: DLH Solutions Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-01

End Date: 2025-11-29

Contract Duration: 28 days

Daily Burn Rate: $84.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW 12 MONTH BRIDGE STAFFING CONTRACT

Place of Performance

Location: LANCASTER, DALLAS County, TEXAS, 75134

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to DLH SOLUTIONS INC for work described as: NEW 12 MONTH BRIDGE STAFFING CONTRACT Key points: 1. Contract awarded as a bridge to ensure continuity of essential facilities support services. 2. Sole-source award indicates potential limitations in market availability or urgency. 3. Fixed-price contract type aims to control costs for the duration of the period. 4. Short 28-day duration suggests a temporary solution pending a more permanent arrangement. 5. The contract supports facilities operations in Texas, impacting local service delivery. 6. No small business set-aside was applied, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The $2.37 million award for a 28-day period represents a high daily burn rate, approximately $84,500 per day. Without comparable bridge contracts or detailed service scope, a precise value-for-money assessment is challenging. However, the short duration and bridge nature suggest it's intended to maintain critical operations rather than represent a long-term investment. The firm fixed-price structure provides cost certainty for this limited period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when there is only one responsible source capable of meeting the requirement, or in urgent situations where competition is not feasible. The lack of competition means that the VA did not benefit from potential price reductions or innovative solutions that a competitive bidding process might have yielded.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The sole-source nature limits transparency in price discovery.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs facilities in Texas, which will continue to receive essential support services. Services delivered include facilities support, crucial for the operational readiness and safety of VA installations. The geographic impact is localized to Texas, where the VA facilities are located. Workforce implications may include the continued employment of personnel by DLH Solutions Inc. to perform these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
High daily cost suggests potential for cost overruns if not managed tightly.
Short duration creates uncertainty for long-term service planning and stability.
Lack of small business participation may reduce opportunities for smaller, specialized firms.

Positive Signals

Firm fixed-price contract provides cost certainty for the specified period.
Award ensures continuity of essential facilities support services, preventing disruption.
Short duration allows for rapid implementation of a temporary solution.

Sector Analysis

This contract falls under the Facilities Support Services sector, which encompasses a broad range of services necessary for the operation and maintenance of buildings and grounds. This sector is critical for government agencies to ensure their infrastructure is functional and safe. Comparable spending in this sector can vary widely based on the size and complexity of the facilities managed. The $2.37 million for a 28-day period is a significant amount for a short-term requirement, highlighting the critical nature of these services.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits the likelihood of small business participation. This means that opportunities for small businesses to contribute to this specific contract are minimal, potentially impacting the small business ecosystem that relies on government contracts for growth.

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 contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is limited due to the sole-source award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance and Operations Contracts
Government Support Services
Department of Veterans Affairs Operations

Risk Flags

Sole-source award
High daily burn rate
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 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 $2.4 million.

What is the period of performance?

Start: 2025-11-01. End: 2025-11-29.

What is the specific scope of 'Facilities Support Services' covered under this contract?

The provided data indicates the contract is for 'Facilities Support Services' under NAICS code 561210. This broad category typically includes a range of services essential for the operation and maintenance of buildings and grounds. Specific services could encompass janitorial, maintenance, repair, groundskeeping, security, and utility management. However, without a detailed statement of work (SOW) or contract line item numbers (CLINs), the precise deliverables for this $2.37 million, 28-day bridge contract remain unspecified. The urgency implied by a 'bridge' contract suggests it covers critical, ongoing operational needs to prevent service disruption while a more permanent solution is sought.

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

The sole-source award suggests that the Department of Veterans Affairs (VA) determined that DLH Solutions Inc. was the only responsible source capable of meeting the requirement, or that an urgent and compelling need existed that precluded full and open competition. Reasons for sole-sourcing can include unique capabilities of a specific contractor, proprietary technology, or a critical, time-sensitive situation where soliciting bids would cause unacceptable delays. For a bridge contract, urgency is a common justification, allowing the government to maintain essential services without interruption while a longer-term, competed contract is being established. The specific justification for this award would be detailed in the VA's contract file.

How does the daily cost of this contract compare to industry benchmarks for similar services?

The daily cost for this 28-day contract is approximately $84,500 ($2,370,605.53 / 28 days). Benchmarking this figure requires detailed knowledge of the specific services provided, the geographic location (Texas), and the scale of the facilities supported. Facilities support services encompass a wide array of activities, from basic janitorial to complex building systems maintenance. Without a detailed scope of work, comparing this daily rate to industry benchmarks is difficult. However, for a comprehensive facilities management contract supporting significant government infrastructure, this daily rate might be within a reasonable range, especially if it includes specialized or critical functions. A more precise comparison would necessitate access to detailed service level agreements and market data for similar government facilities.

What are the potential risks associated with a short-duration bridge contract like this?

Short-duration bridge contracts, while necessary for continuity, carry several risks. Firstly, they often come at a premium due to the urgency and limited planning time, potentially leading to higher costs than a well-planned, competed contract. Secondly, the contractor may not be incentivized to invest in long-term efficiency improvements if they anticipate the contract ending soon. Thirdly, there's a risk of 'contractor entanglement,' where the incumbent contractor becomes so integrated into operations that it becomes difficult to transition to a new provider, potentially leading to follow-on sole-source awards. Finally, the lack of competition inherent in many bridge awards means the government may not achieve the best value or explore innovative solutions.

What is DLH Solutions Inc.'s track record with the Department of Veterans Affairs or similar agencies?

DLH Solutions Inc. is a known government contractor, particularly active in serving federal agencies, including the Department of Veterans Affairs (VA) and the Department of Defense. Their portfolio often includes healthcare services, IT support, and professional services. While specific performance details for this particular facilities support contract are not available in the provided data, DLH has a history of performing various types of contracts for the VA. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract histories, and any reported issues or successes on similar engagements to gauge their reliability and capability in delivering contracted services.

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: $2,370,606

Exercised Options: $2,370,606

Current Obligation: $2,370,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77026D0003

IDV Type: IDC

Timeline