DHS FEMA Spends $218K on 30-Day Conference Room and Parking Rental from KYO-YA HOTELS

Contract Overview

Contract Amount: $218,579 ($218.6K)

Contractor: Kyo-Ya Hotels & Resorts, LP

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-12

End Date: 2026-10-08

Contract Duration: 179 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIXED PRICE PURCHASE ORDER FOR THE USE OF 2 CONFERENCE ROOMS AND 25 PARKING SPACES FOR 30 DAYS.

Place of Performance

Location: LAHAINA, MAUI County, HAWAII, 96761

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $218,579.4 to KYO-YA HOTELS & RESORTS, LP for work described as: FIXED PRICE PURCHASE ORDER FOR THE USE OF 2 CONFERENCE ROOMS AND 25 PARKING SPACES FOR 30 DAYS. Key points: 1. High cost for short-term rental of basic facilities. 2. Lack of competition raises concerns about price reasonableness. 3. Potential for better value through alternative arrangements or longer-term contracts. 4. Sector benchmark for hospitality services suggests this rate is elevated.

Value Assessment

Rating: questionable

The price of $218,579.40 for 30 days of conference rooms and parking appears high, especially considering the duration. Without competitive bids, it's difficult to ascertain if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition procurement. This lack of competition likely hindered price discovery and may have resulted in a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may be overpaying for temporary facility rentals due to the absence of a competitive bidding process.

Public Impact

Federal agencies require temporary facilities for various operational needs. Procurement processes aim to secure goods and services at fair market prices. Ensuring competition in contracting is crucial for maximizing taxpayer value. Oversight is needed to verify the necessity and cost-effectiveness of such expenditures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potentially high cost for short duration
Limited transparency in price justification

Positive Signals

Requirement met for essential facilities

Sector Analysis

The hospitality sector, particularly hotels and motels, provides essential services for government functions. Benchmarks for similar short-term rentals in high-cost areas like Hawaii can vary significantly, but this price warrants scrutiny.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement. The contract was awarded to KYO-YA HOTELS & RESORTS, LP, which is likely a larger entity.

Oversight & Accountability

The non-competed nature of this purchase order raises questions about the oversight applied to ensure fair pricing and explore all available options. Further review may be needed to confirm the justification for sole-source.

Related Government Programs

Hotels (except Casino Hotels) and Motels
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Lack of competition
High unit cost for short duration
Potential for better value through alternative sourcing
Limited justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $218,579.4 to KYO-YA HOTELS & RESORTS, LP. FIXED PRICE PURCHASE ORDER FOR THE USE OF 2 CONFERENCE ROOMS AND 25 PARKING SPACES FOR 30 DAYS.

Who is the contractor on this award?

The obligated recipient is KYO-YA HOTELS & RESORTS, LP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $218,579.4.

What is the period of performance?

Start: 2026-04-12. End: 2026-10-08.

What specific operational needs justified the use of these particular conference rooms and parking spaces, and why were alternative, potentially more cost-effective solutions not pursued?

The specific operational needs are not detailed in the provided data. However, FEMA may have required these facilities for a specific event, temporary surge in personnel, or a critical mission requirement in Hawaii. The lack of competition suggests that either only one vendor was available, or the agency deemed it necessary to proceed without competition due to urgency or other factors, potentially overlooking more cost-effective alternatives.

How was the price of $218,579.40 determined to be fair and reasonable in the absence of competitive bids?

Without competitive bids, determining price reasonableness is challenging. Agencies typically rely on historical pricing data, commercial price lists, or independent government cost estimates. The justification for accepting this price without competition needs to be thoroughly documented by FEMA, potentially referencing market research or prior contract data for similar services in the region.

What is the long-term strategy for securing such facilities, and could a more strategic, longer-term contract or different procurement approach yield better value for taxpayers?

This appears to be a short-term, fixed-price arrangement. A longer-term strategy might involve establishing blanket purchase agreements or indefinite-delivery/indefinite-quantity contracts with multiple vendors to ensure consistent availability and potentially better pricing through volume. Exploring options like government-owned facilities or partnerships could also be considered for recurring needs.

Industry Classification

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

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

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: 2605 KAANAPALI PKWY, LAHAINA, HI, 96761

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

Financial Breakdown

Contract Ceiling: $874,318

Exercised Options: $437,159

Current Obligation: $218,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline