VA awards $12.5M contract for housing services to Volunteers of America of Los Angeles

Contract Overview

Contract Amount: $12,528,000 ($12.5M)

Contractor: Volunteers of America of LOS Angeles

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUDVASH

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.5 million to VOLUNTEERS OF AMERICA OF LOS ANGELES for work described as: HUDVASH Key points: 1. Contract aims to provide essential housing services, addressing critical needs within the veteran community. 2. Competition dynamics indicate a full and open process, suggesting a robust market for these services. 3. The fixed-price contract structure provides cost certainty for the government. 4. Performance period spans one year, allowing for focused service delivery and evaluation. 5. This award falls under 'Other Community Housing Services,' a vital sector for social support. 6. The geographic focus is California, targeting a specific regional need.

Value Assessment

Rating: good

The contract value of $12.5 million for a 364-day period appears reasonable for specialized community housing services. Benchmarking against similar contracts for veteran support programs would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost fluctuations. Without specific per-unit cost data, a detailed pricing assessment is limited, but the overall award seems aligned with the scope of services typically required for such programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bidders suggests a competitive market for these services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers, potentially leading to better value.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service providers to participate.

Public Impact

Veterans in California will benefit from enhanced housing stability and support services. The contract facilitates the delivery of 'Other Community Housing Services,' crucial for vulnerable populations. Geographic impact is concentrated in California, addressing specific regional needs. The program supports the non-profit sector by engaging organizations like Volunteers of America.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if contractor performance falters during the one-year term.
Dependence on a single awardee for a critical service in a specific region.
Limited duration may hinder long-term program development or sustainability.

Positive Signals

Award to a known entity (Volunteers of America) suggests established operational capacity.
Full and open competition indicates a healthy market and potential for quality service.
Fixed-price contract provides budget predictability.

Sector Analysis

The contract falls within the broader 'Other Community Housing Services' sector, which is a critical component of social infrastructure. This sector often involves non-profit organizations and government agencies working collaboratively to address housing insecurity. Spending in this area is influenced by federal and state funding initiatives aimed at supporting vulnerable populations, including veterans. Comparable spending benchmarks would typically be found within federal procurements for homeless assistance, transitional housing, and supportive services.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While the prime contractor is Volunteers of America of Los Angeles, which may have its own subcontracting goals, the initial award does not directly target small businesses. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, financial audits, and adherence to service level agreements. Accountability is ensured through the contract terms and conditions, with potential for corrective actions or penalties for non-performance. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.

Related Government Programs

VA HUD-VASH Program
Supportive Services for Veteran Families (SSVF)
Homeless Assistance Programs
Community Development Block Grants

Risk Flags

Contract performance risk
Geographic concentration risk
Service continuity risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.5 million to VOLUNTEERS OF AMERICA OF LOS ANGELES. HUDVASH

Who is the contractor on this award?

The obligated recipient is VOLUNTEERS OF AMERICA OF LOS ANGELES.

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 $12.5 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the historical spending pattern for similar housing services contracts awarded by the VA?

Analyzing historical spending for similar housing services contracts by the VA is crucial for understanding budget trends and identifying potential anomalies. While specific data for 'Other Community Housing Services' is not provided, the VA consistently allocates significant funds towards veteran housing initiatives. Programs like HUD-VASH and SSVF represent substantial investments. Past awards for transitional housing, permanent supportive housing, and case management services often range from several million to tens of millions of dollars annually, depending on the scope and duration. Fluctuations in spending can be attributed to changes in veteran population needs, congressional appropriations, and shifts in federal housing policy. A detailed review of prior contract awards within the same PSC (Product Service Code) or NAICS (North American Industry Classification System) code would reveal trends in contract values, competition levels, and contractor performance over time, providing a baseline for evaluating the current $12.5 million award.

How does the per-unit cost of services under this contract compare to industry benchmarks?

Determining the precise per-unit cost for services under this $12.5 million contract requires detailed service delivery metrics, such as cost per veteran housed, cost per case management hour, or cost per support service provided. Without this granular data, a direct comparison to industry benchmarks is challenging. However, the contract's value suggests it aims to serve a significant number of veterans or provide comprehensive support. Industry benchmarks for similar services, such as those provided by non-profits or other government contractors for homeless or transitional housing, often vary widely based on geographic location, intensity of services, and specific needs of the population served. For instance, the cost per veteran per month for supportive housing can range from a few hundred to over a thousand dollars. The VA typically aims to secure services at competitive rates, and the full and open competition for this contract suggests an effort to achieve favorable pricing. A thorough analysis would involve obtaining the contractor's proposed cost breakdown and comparing it against established cost models for veteran support services.

What is the track record of Volunteers of America of Los Angeles in delivering similar government contracts?

Volunteers of America of Los Angeles (VOALA) has a substantial track record in providing social services, including housing and support for vulnerable populations, which aligns with the scope of this VA contract. As a large non-profit organization, VOALA frequently partners with government agencies at federal, state, and local levels to deliver a wide array of services. Their experience often includes managing large-scale programs, adhering to strict compliance requirements, and serving diverse client bases, including veterans. Past performance information, often available through federal procurement databases or agency performance management systems, would detail their success in meeting contract objectives, managing budgets, and satisfying client needs on previous government awards. Assessing VOALA's specific performance on prior VA contracts, particularly those related to housing and veteran support, would provide strong indicators of their capability and reliability for this new award. Generally, organizations with extensive experience in the non-profit sector and government contracting are well-positioned to manage such initiatives effectively.

What are the primary risks associated with this contract and how are they being mitigated?

Several risks are associated with this $12.5 million VA contract for housing services. A primary risk is contractor performance: VOALA might fail to deliver services at the required quality or quantity, potentially impacting veteran housing stability. Mitigation strategies include the VA's robust oversight, performance monitoring, and defined service level agreements. Another risk is budget overruns, although the firm fixed-price structure inherently limits this for the government. However, scope creep or unforeseen service demands could still strain resources. Mitigation involves clear contract scope definition and change control processes. Geographic concentration in California presents a risk if local economic conditions or specific veteran needs change drastically, impacting service effectiveness. The VA likely mitigates this through regular needs assessments and contract modifications if necessary. Finally, reliance on a single awardee for a critical service in a region carries risk; however, the competitive award process aims to select a capable provider, and contingency planning might be in place for service continuity.

How does this contract contribute to the VA's broader mission of supporting veterans' well-being?

This $12.5 million contract directly supports the VA's overarching mission by addressing a fundamental need: stable and safe housing for veterans. Access to housing is a critical determinant of overall well-being, impacting physical and mental health, employment opportunities, and social integration. By funding 'Other Community Housing Services' through an experienced provider like Volunteers of America of Los Angeles, the VA extends its reach beyond direct medical care and benefits administration. This contract enables the provision of essential support services that help veterans transition out of homelessness, maintain housing stability, and reintegrate into civilian life. It complements other VA programs focused on veteran health, employment, and education, recognizing that housing is a foundational element for success in all these areas. Ultimately, this investment signifies the VA's commitment to a holistic approach to veteran care, acknowledging that secure housing is indispensable for achieving positive health outcomes and reducing long-term societal costs associated with homelessness and instability.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Other Community Housing Services

Product/Service Code: SOCIAL SERVICES › SOCIAL 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: 3600 WILSHIRE BLVD STE 1500, LOS ANGELES, CA, 90010

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

Financial Breakdown

Contract Ceiling: $12,528,000

Exercised Options: $12,528,000

Current Obligation: $12,528,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26223D0089

IDV Type: IDC

Timeline