VA Pacific Island Healthcare System awards $2.26M contract for lodging services, highlighting a need for veteran support in Hawaii

Contract Overview

Contract Amount: $2,260,575 ($2.3M)

Contractor: TEG Hotels, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VA PACIFIC ISLAND HEALTHCARE SYSTEM LODGING SERVICES FOR VETERANS

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to TEG HOTELS, LLC for work described as: VA PACIFIC ISLAND HEALTHCARE SYSTEM LODGING SERVICES FOR VETERANS Key points: 1. Contract addresses essential lodging needs for veterans in a geographically dispersed region. 2. Full and open competition was utilized, suggesting a robust market for these services. 3. The contract duration of one year indicates a focus on immediate service provision. 4. Fixed-price contract type helps manage cost certainty for the agency. 5. The award to TEG HOTELS, LLC signifies a specific provider meeting VA requirements. 6. Geographic focus on Hawaii presents unique logistical considerations for service delivery.

Value Assessment

Rating: good

The contract value of $2.26 million for one year of lodging services appears reasonable given the specialized nature of supporting veterans and the high cost of living and services in Hawaii. Benchmarking against similar contracts for veteran lodging is challenging due to geographic specificity, but the fixed-price structure provides cost control. The award was made after exclusion of sources, which warrants further investigation into the rationale for limiting competition, though the initial solicitation was full and open.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation was open to all responsible sources, specific sources may have been excluded from consideration during the evaluation or award phase. The number of bidders is not specified, but the 'full and open' nature suggests an intent to maximize competition, which generally leads to better price discovery and value for the government.

Taxpayer Impact: A fully and openly competed contract generally ensures that taxpayers benefit from competitive pricing, as multiple vendors vie for the business, driving down costs. The exclusion of sources, however, could potentially limit this benefit if not justified by specific technical or performance requirements.

Public Impact

Veterans in Hawaii will receive essential lodging support, improving access to healthcare services. The services provided will directly benefit the health and well-being of military personnel and their families. The geographic impact is concentrated in Hawaii, addressing a critical need in that state. This contract supports the VA's mission to provide comprehensive healthcare to veterans nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the field.
Lack of detailed performance metrics in the provided data makes assessing service quality difficult.
Dependence on a single contractor for a critical service in a remote location could pose risks.

Positive Signals

Awarded under full and open competition, indicating a broad market search.
Fixed-price contract type provides budget certainty.
Addresses a clear and essential need for veteran support services in Hawaii.

Sector Analysis

The lodging industry (NAICS 721110) is a mature sector with numerous providers. This contract falls within the broader hospitality services market, which is essential for supporting government operations and personnel, especially in remote or high-cost areas like Hawaii. The VA's spending in this sector is consistent with its mission to provide comprehensive care and support to veterans, often requiring travel and temporary accommodation.

Small Business Impact

The provided data indicates that small business set-aside was not utilized (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is unclear, though larger contracts often have subcontracting opportunities.

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 at the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though specific performance monitoring details are not publicly available.

Related Government Programs

VA Medical Care Programs
Veteran Support Services
Government Lodging Contracts
Healthcare Services for Veterans

Risk Flags

Potential for limited competition due to source exclusion.
Geographic isolation of service area may increase logistical risks.
High cost of living in Hawaii could impact long-term affordability.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to TEG HOTELS, LLC. VA PACIFIC ISLAND HEALTHCARE SYSTEM LODGING SERVICES FOR VETERANS

Who is the contractor on this award?

The obligated recipient is TEG HOTELS, 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 $2.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of TEG HOTELS, LLC with the Department of Veterans Affairs or other federal agencies?

Information regarding the specific track record of TEG HOTELS, LLC with the Department of Veterans Affairs or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government contracts. This would help determine the contractor's reliability, quality of service, and adherence to contractual obligations in similar settings.

How does the awarded price compare to market rates for similar lodging services in Hawaii?

The provided data does not include specific unit costs or detailed service breakdowns to directly compare the awarded price of $2.26 million for one year against market rates for lodging in Hawaii. However, Hawaii is known for its high cost of living and tourism, which generally translates to higher service costs compared to the continental U.S. A thorough benchmark analysis would involve comparing the per-room night rate, occupancy expectations, and included amenities against prevailing commercial hotel rates and other government lodging agreements in the specific Hawaiian islands served.

What are the primary risks associated with this contract, given its geographic location and service type?

Key risks include logistical challenges in delivering and managing lodging services across the Hawaiian islands, potential for price fluctuations in a high-cost tourism market, and reliance on a single contractor for essential veteran support. Disruptions due to natural events (e.g., hurricanes, earthquakes) are also a consideration in Hawaii. Furthermore, ensuring consistent quality of service and adherence to VA standards across potentially multiple hotel locations presents an ongoing management challenge.

How effective is this contract in meeting the VA's objective of providing accessible healthcare to veterans in the Pacific Islands?

The effectiveness of this contract hinges on its ability to ensure veterans have reliable and comfortable lodging when accessing VA healthcare services in the Pacific Islands. If it successfully reduces barriers related to accommodation, thereby increasing veteran utilization of necessary medical appointments and treatments, it is effective. The contract's success would be measured by factors such as veteran satisfaction, reduced travel-related stress, and improved healthcare access rates among the target population in Hawaii.

What has been the historical spending pattern for lodging services by the VA Pacific Island Healthcare System?

Historical spending data for lodging services specifically by the VA Pacific Island Healthcare System is not provided. To assess spending patterns, one would need to examine previous contract awards for similar services over several fiscal years. This analysis would reveal trends in contract values, duration, competition levels, and contractor performance, providing context for the current $2.26 million award and identifying any significant increases or decreases in expenditure.

What does the 'after exclusion of sources' clause imply for the competition and potential value for taxpayers?

The 'after exclusion of sources' clause indicates that while the initial solicitation was open to all, certain potential offerors were disqualified or not considered during the evaluation or award process. This can occur for various reasons, such as failure to meet minimum qualifications, past performance issues, or specific technical requirements. While the intent of 'full and open' competition is to maximize value, the exclusion of sources could potentially limit the number of competitive bids received, possibly impacting the final price and overall value for taxpayers if the exclusions were not strictly necessary and justified.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3253 N NIMITZ HWY, HONOLULU, HI, 96819

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

Financial Breakdown

Contract Ceiling: $2,260,575

Exercised Options: $2,260,575

Current Obligation: $2,260,575

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26123D0115

IDV Type: IDC

Timeline