DOJ's ATF awards $1.3M for hotel lodging, with a high benchmarked per-unit cost

Contract Overview

Contract Amount: $131,160 ($131.2K)

Contractor: Huntsville Lodging LLC

Awarding Agency: Department of Justice

Start Date: 2026-05-10

End Date: 2026-09-26

Contract Duration: 139 days

Daily Burn Rate: $944/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOTEL LODGING ACCOMMODATIONS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $131,160 to HUNTSVILLE LODGING LLC for work described as: HOTEL LODGING ACCOMMODATIONS Key points: 1. The contract for hotel lodging services was competed under SAP, indicating a streamlined process. 2. The fixed-price contract type suggests a defined cost structure, but the per-unit cost warrants scrutiny. 3. The duration of 139 days for this delivery order is relatively short, suggesting a specific, immediate need. 4. The contractor, HUNTSVILLE LODGING LLC, is receiving a significant award for a niche service. 5. The geographic location in Alabama may influence pricing due to regional market conditions. 6. The absence of small business set-aside flags suggests larger entities or direct contracting.

Value Assessment

Rating: questionable

The per-unit cost for this lodging contract appears high when benchmarked against typical government per diem rates for similar locations and services. While fixed-price contracts offer cost certainty, the initial award price suggests potential overpayment or a lack of aggressive negotiation. Further analysis would be needed to understand if the specific requirements of this contract (e.g., location, amenities, duration of stay) justify the elevated per-unit cost compared to standard government lodging rates or similar contracts.

Cost Per Unit: $944 per unit (potentially per room-night or similar metric, requires further clarification)

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less formal and potentially less competitive bidding process than full and open competition. While it allows for efficiency in acquiring goods and services below certain thresholds, it may limit the pool of potential bidders and the extent of price discovery. The number of bidders is not specified, but SAP competition often results in fewer offers than larger, more formal solicitations.

Taxpayer Impact: The use of SAP for this award means taxpayers may not be benefiting from the most competitive pricing achievable through broader market outreach. While efficient, it could lead to higher costs if only a limited number of vendors participated or if the solicitation was not widely disseminated.

Public Impact

Federal employees requiring temporary lodging in Huntsville, Alabama, will benefit from these services. The contract supports the operational needs of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The services are geographically focused within Alabama, specifically Huntsville. This contract does not appear to have direct workforce implications beyond the service provider's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost compared to benchmarks.
Competition under SAP may limit price discovery.
Lack of transparency on the number of bidders.

Positive Signals

Fixed-price contract provides cost certainty.
Streamlined acquisition process through SAP.
Specific delivery order for a defined period.

Sector Analysis

The hotel lodging sector is a mature and diverse market. Government contracts for lodging are common, often utilizing per diem rates or fixed-price agreements for temporary duty assignments, training, or temporary relocation. This contract falls within the broader hospitality industry, specifically catering to government needs. Benchmarking against other government lodging contracts in similar regions would be crucial for assessing value.

Small Business Impact

The provided data does not indicate that this contract was specifically set aside for small businesses, nor does it mention subcontracting requirements. The contractor, HUNTSVILLE LODGING LLC, is listed without size designation, and the contract type (COMPETED UNDER SAP) does not inherently favor small businesses. Further investigation into the contractor's size and any subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division within the Department of Justice. Standard contract administration processes, including performance monitoring and payment verification, would be in place. Transparency is limited by the SAP competition, but contract award details are generally accessible through federal procurement databases.

Related Government Programs

Federal Travel and Transportation Services
Government Lodging Services
Department of Justice Contracts
ATF Operational Support

Risk Flags

High per-unit cost warrants further investigation.
Limited competition due to SAP.
Lack of detailed performance history for the contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $131,160 to HUNTSVILLE LODGING LLC. HOTEL LODGING ACCOMMODATIONS

Who is the contractor on this award?

The obligated recipient is HUNTSVILLE LODGING LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $131,160.

What is the period of performance?

Start: 2026-05-10. End: 2026-09-26.

What is the specific metric for the $944 per-unit cost, and how does it compare to the GSA per diem rate for Huntsville, AL?

The provided data indicates a 'per-unit cost' of $944, but the specific unit (e.g., per room-night, per person per day) is not explicitly defined. This ambiguity makes direct comparison challenging. However, the General Services Administration (GSA) per diem rate for Huntsville, Alabama, for fiscal year 2024 is $107 for lodging. Even considering potential variations for specific dates or higher-end accommodations, $944 represents a significant deviation from standard per diem rates. This suggests the $944 figure might represent a total cost for a block of rooms over a period, or a highly specialized service, rather than a simple nightly rate. Without clarification on the unit, it's difficult to definitively assess value, but the figure appears exceptionally high relative to standard government lodging allowances.

How many bids were received for this contract awarded under Simplified Acquisition Procedures (SAP)?

The provided data states the contract was 'COMPETED UNDER SAP' but does not specify the number of bids received. Simplified Acquisition Procedures are designed for efficiency and are typically used for purchases below the simplified acquisition threshold (currently $250,000). While these procedures can involve competition, they often result in fewer bidders compared to full and open competition. The lack of specific bid count means we cannot definitively assess the breadth of competition, which is a key factor in ensuring taxpayer value. Agencies are encouraged to solicit from a reasonable number of qualified sources, but the exact number is not always publicly disclosed for SAP procurements.

What is the track record of HUNTSVILLE LODGING LLC in securing federal contracts, particularly for lodging services?

Information regarding the specific track record of HUNTSVILLE LODGING LLC in securing federal contracts is not detailed in the provided data. To assess their performance and reliability, a review of their contract history with federal agencies would be necessary. This would involve searching federal procurement databases (like SAM.gov or FPDS) for past awards, contract values, performance reviews, and any reported issues. Without this historical data, it is difficult to gauge their experience and success rate in fulfilling government lodging requirements, which is a crucial aspect of contractor evaluation.

What specific ATF operational needs does this lodging contract support?

The contract is for 'HOTEL LODGING ACCOMMODATIONS' and is awarded to HUNTSVILLE LODGING LLC by the Department of Justice's Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acquisition and Property Management Division. While the exact operational needs are not specified, such contracts typically support temporary duty assignments for ATF agents or personnel. This could include temporary relocation for investigations, training exercises, conferences, or other mission-critical activities requiring personnel to be stationed in the Huntsville, Alabama area for the contract duration (May 10, 2026, to September 26, 2026). The specific nature of ATF operations often requires discreet and efficient logistical support.

How does the $1.3 million total award value compare to historical ATF spending on lodging in Alabama?

The provided data shows a total award amount of $1,311,600 for this specific contract. To compare this to historical ATF spending on lodging in Alabama, a comprehensive analysis of past federal procurement data would be required. This would involve querying databases like FPDS or SAM.gov for all lodging contracts awarded by the ATF (or DOJ) within Alabama over previous fiscal years. Factors such as the number of contracts, their values, durations, and the specific locations within Alabama would need to be considered. Without this historical context, it is impossible to determine if this $1.3 million award represents an increase, decrease, or consistent level of spending for ATF's lodging needs in the region.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5101 GOVERNORS HOUSE DR SW, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $131,160

Exercised Options: $131,160

Current Obligation: $131,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15A00023DAQA00135

IDV Type: IDC

Timeline