VA Awards $22.2M Relocation Program Contract to WHR Group, Inc. for Employee Moves

Contract Overview

Contract Amount: $22,187,061 ($22.2M)

Contractor: WHR Group, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-06-24

End Date: 2021-12-17

Contract Duration: 2,368 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE AND ADMINISTER A RELOCATION PROGRAM FOR THE DEPARTMENT OF VETERANS AFFAIRS TO INCLUDE AN APPRAISED VALUE OFFER (AVO) PROGRAM, AMENDED VALUE SALES, BUYER VALUE OPTION (BVO) PROGRAM AND PROPERTY MANAGEMENT FOR THOSE EMPLOYEES WHO ARE APPROVED FOR AND ENROLLED IN THE APPLICABLE PROGRAM. OTHER ANCILLARY SERVICES TO BE PROVIDED INCLUDE HOME MARKETING ASSISTANCE, PRE-DECISIONAL COUNSELING AND DESTINATION AREA SERVICES. IGF::OT::IGF

Place of Performance

Location: PEWAUKEE, WAUKESHA County, WISCONSIN, 53072

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.2 million to WHR GROUP, INC for work described as: THE CONTRACTOR SHALL PROVIDE AND ADMINISTER A RELOCATION PROGRAM FOR THE DEPARTMENT OF VETERANS AFFAIRS TO INCLUDE AN APPRAISED VALUE OFFER (AVO) PROGRAM, AMENDED VALUE SALES, BUYER VALUE OPTION (BVO) PROGRAM AND PROPERTY MANAGEMENT FOR THOSE EMPLOYEES WHO ARE APPROVED FOR AND EN… Key points: 1. The contract focuses on comprehensive relocation services for VA employees, including property management and marketing assistance. 2. WHR Group, Inc. is the sole awardee, indicating a specific need or capability sought by the VA. 3. The contract duration is substantial (2368 days), suggesting a long-term need for these services. 4. The spending is categorized under 'Used Household and Office Goods Moving', a niche service area.

Value Assessment

Rating: fair

The contract value of $22.2 million over approximately 6.5 years averages around $3.4 million annually. Benchmarking this against similar government-wide relocation services is difficult without more specific service details, but it appears to be a significant investment for employee relocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The use of a Firm Fixed Price contract aims to control costs, but the specific pricing structure and its discovery mechanism are not detailed.

Taxpayer Impact: Taxpayer funds are used to facilitate employee relocation, which can be a necessary cost for government operations and workforce mobility, but the efficiency of this spending is key.

Public Impact

Ensures VA employees can relocate efficiently for government service, maintaining workforce stability. Supports employees navigating the complexities of moving homes and families for their duties. The program's success directly impacts VA's ability to staff critical positions nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics or service level agreements.
Potential for cost overruns if relocation needs exceed initial projections.
Dependence on a single contractor for a critical employee support function.

Positive Signals

Full and open competition suggests a competitive bidding process.
Firm Fixed Price contract type helps manage budget predictability.
Long-term contract provides stability for employee relocation planning.

Sector Analysis

This contract falls within the professional services sector, specifically related to relocation and moving services. Government spending in this area is often driven by personnel mobility requirements and the need to support federal employees transferring between duty stations.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically involve the VA's contracting officer and program managers monitoring contractor performance against contract terms and service level agreements. Regular reporting and performance reviews are standard accountability measures.

Related Government Programs

Used Household and Office Goods Moving
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for scope creep or unmanaged ancillary service costs.
Reliance on a single vendor for critical employee support.
Limited transparency on specific program metrics and performance.
Contract duration may exceed current agency needs if staffing levels change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.2 million to WHR GROUP, INC. THE CONTRACTOR SHALL PROVIDE AND ADMINISTER A RELOCATION PROGRAM FOR THE DEPARTMENT OF VETERANS AFFAIRS TO INCLUDE AN APPRAISED VALUE OFFER (AVO) PROGRAM, AMENDED VALUE SALES, BUYER VALUE OPTION (BVO) PROGRAM AND PROPERTY MANAGEMENT FOR THOSE EMPLOYEES WHO ARE APPROVED FOR AND ENROLLED IN THE APPLICABLE PROGRAM. OTHER ANCILLARY SERVICES TO BE PROVIDED INCLUDE HOME MARKETING ASSISTANCE, PRE-DECISIONAL COUNSELING AND DESTINATION AREA SERVICES. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is WHR GROUP, 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 $22.2 million.

What is the period of performance?

Start: 2015-06-24. End: 2021-12-17.

What is the average cost per employee relocated under this contract, and how does it compare to industry benchmarks?

The total contract value is $22.2 million over approximately 6.5 years, with 5 delivery orders. Without knowing the exact number of employees relocated or the specific services utilized per employee, calculating an average cost per relocation is not possible. This figure would be crucial for assessing value for money compared to private sector relocation services.

What are the key performance indicators (KPIs) used to measure the success and efficiency of WHR Group's relocation services?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) established for this contract. Effective oversight requires clearly defined metrics related to timeliness, cost-effectiveness, employee satisfaction, and adherence to program guidelines to ensure the contractor is meeting VA's needs.

How does the appraised value offer (AVO) program and buyer value option (BVO) program contribute to cost savings or employee satisfaction compared to traditional relocation assistance?

The AVO and BVO programs are designed to offer employees flexibility and potentially a more favorable financial outcome during relocation by providing options for property sale and purchase. Their contribution to cost savings for the government and enhanced employee satisfaction depends on the specific program design, market conditions, and how effectively WHR Group administers these options.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Used Household and Office Goods Moving

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: N27 W23681 PAUL RD, PEWAUKEE, WI, 53072

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

Financial Breakdown

Contract Ceiling: $59,762,684

Exercised Options: $22,187,061

Current Obligation: $22,187,061

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS33F0002W

IDV Type: FSS

Timeline