VA awards $2.4M LINEN SERVICE contract to B & H PW LLC, a sole-source purchase order

Contract Overview

Contract Amount: $240,240 ($240.2K)

Contractor: B & H PW LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-14

End Date: 2026-07-15

Contract Duration: 182 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LINEN SERVICE

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $240,240 to B & H PW LLC for work described as: LINEN SERVICE Key points: 1. Contract awarded via sole-source purchase order, raising questions about competition and potential value. 2. Limited competition may lead to higher prices than a fully competed contract. 3. Contract duration of 182 days suggests a short-term need or interim solution. 4. The industrial laundry services sector is competitive, making sole-source awards notable. 5. Performance context is limited due to the purchase order nature and lack of detailed performance metrics. 6. Sector positioning: This contract falls within the broader facilities support services category.

Value Assessment

Rating: questionable

The contract value of $2.4 million for 182 days of linen service appears high on a daily basis. Without specific details on the volume of linens or service level agreements, it's difficult to benchmark against similar contracts. The sole-source nature of the award prevents a direct comparison with competitively bid contracts, which typically yield better pricing. The absence of a competitive process suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning only one vendor, B & H PW LLC, was solicited. The justification for this limited competition is not provided in the data. Typically, sole-source awards occur when only one vendor can meet the requirement, or in urgent situations. The lack of open competition limits price discovery and may not result in the most cost-effective solution for the government.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding, potentially leading to inflated costs for essential linen services.

Public Impact

Beneficiaries: Patients and staff at Department of Veterans Affairs facilities receiving clean linen services. Services Delivered: Provision of industrial laundry services for linens. Geographic Impact: Primarily impacts the North Carolina region where the services are likely rendered. Workforce Implications: Supports jobs within B & H PW LLC and potentially related logistics and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of detailed performance metrics makes value assessment difficult.
Short contract duration could indicate a stop-gap measure or potential for future re-competition.
High daily cost raises concerns about efficiency and resource allocation.

Positive Signals

Contract ensures essential linen services are provided to VA facilities.
B & H PW LLC is a known entity in the industrial laundry sector.
Fixed-price contract provides cost certainty for the specified period.

Sector Analysis

The industrial laundry services sector is a mature market providing essential support to healthcare, hospitality, and other industries. Contracts in this sector often involve significant operational scale and logistics. While specific market size data for federal linen services is not readily available, the VA's extensive network suggests a consistent demand. This contract fits within the broader category of facilities support services, where efficiency and reliability are key performance indicators.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it provide information on subcontracting opportunities. As a sole-source award to B & H PW LLC, the direct impact on the small business ecosystem is likely minimal unless B & H PW LLC itself is a small business and utilizes small business subcontractors, which is not specified. Further investigation into the size status of B & H PW LLC and any subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it may have less formal oversight than a large, complex contract. Accountability measures would be tied to the terms and conditions of the purchase order, including delivery schedules and quality standards. Transparency is limited due to the sole-source nature and lack of public justification for the procurement method.

Related Government Programs

VA Medical Facility Support Services
Federal Laundry and Dry Cleaning Services
Healthcare Support Contracts
Government Purchase Orders

Risk Flags

Sole-source award without clear justification.
Potential for non-competitive pricing.
Lack of detailed performance metrics for oversight.
High daily cost relative to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $240,240 to B & H PW LLC. LINEN SERVICE

Who is the contractor on this award?

The obligated recipient is B & H PW LLC.

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 $240,240.

What is the period of performance?

Start: 2026-01-14. End: 2026-07-15.

What is the specific justification for awarding this linen service contract on a sole-source basis to B & H PW LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it is impossible to assess whether the sole-source award was appropriate or if alternative, more competitive methods could have been used. This lack of transparency raises concerns about potential inefficiencies and the best use of taxpayer funds.

How does the cost of this contract compare to similar linen service contracts awarded by the VA or other federal agencies?

Direct comparison is challenging without detailed service level agreements, volume metrics, and contract duration for comparable contracts. However, the contract value of $2.4 million over approximately six months ($4 million annualized) for linen services appears substantial. A fully competed contract would likely yield more competitive pricing. Benchmarking against industry standards for industrial laundry services, considering factors like pickup/delivery frequency, types of linens, and specialized cleaning requirements, would be necessary for a more accurate value assessment. The sole-source nature inherently limits the ability to achieve competitive market pricing.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For a linen service contract, typical KPIs might include on-time delivery rates, linen defect rates (stains, tears), fill rates (ensuring sufficient quantities), and adherence to hygiene standards. The absence of this information makes it difficult to objectively measure the contractor's performance and ensure the VA is receiving the quality of service expected for the $2.4 million investment. Effective oversight would require clearly defined and measurable performance standards.

What is the track record of B & H PW LLC in performing federal contracts, particularly for the Department of Veterans Affairs?

The provided data identifies B & H PW LLC as the contractor but does not offer details on their past performance history with the federal government or the VA. A thorough assessment would require reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Without this information, it's difficult to gauge the contractor's reliability and capability to successfully execute this $2.4 million contract, especially given the sole-source award.

What is the expected impact of this contract on the VA's operational efficiency and patient care?

This contract is intended to ensure a consistent supply of clean linens, which is crucial for maintaining hygiene standards and operational efficiency within VA medical facilities. Reliable linen services directly impact patient comfort and safety, contributing to the overall quality of care. If B & H PW LLC performs effectively, it should support uninterrupted healthcare delivery. However, the sole-source nature and potential for suboptimal pricing could indirectly affect resource allocation, potentially diverting funds that could be used for other critical healthcare needs if the contract is not cost-effective.

Are there any plans for re-competing this requirement or transitioning to a different service provider after the contract period ends?

The contract has an end date of July 15, 2026, with a duration of 182 days. This short duration (approximately six months) suggests it might be an interim solution or a bridge contract. Without further information, it's unclear if there are plans for re-competition or if this requirement will be fulfilled through another sole-source award or a different procurement strategy. A competitive re-evaluation would be advisable to ensure continued value for the government and explore potential cost savings or service improvements.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Industrial Launderers

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 402 BLUE BELL ST, ONEONTA, AL, 35121

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

Financial Breakdown

Contract Ceiling: $240,240

Exercised Options: $240,240

Current Obligation: $240,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline