NIH spends $32K on hotel services for patient travel, awarded via sole-source purchase order

Contract Overview

Contract Amount: $32,217 ($32.2K)

Contractor: THE Children's INN AT NIH Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-09

End Date: 2026-04-09

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 26-002669 HOTEL INVOICES IN SUPPORT OF PATIENT RELATED TRAVEL REFERENCE INVOICE 1341

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32,217.28 to THE CHILDREN'S INN AT NIH INC for work described as: 26-002669 HOTEL INVOICES IN SUPPORT OF PATIENT RELATED TRAVEL REFERENCE INVOICE 1341 Key points: 1. Value for money is difficult to assess without comparable rates, but the cost appears reasonable for specialized patient support. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and value optimization. 3. Risk indicators are low given the short duration and specific nature of the service, but reliance on a single provider warrants monitoring. 4. Performance context suggests a need for reliable lodging for patients undergoing treatment, a critical support function. 5. Sector positioning places this within the healthcare support services, specifically lodging for medical needs.

Value Assessment

Rating: fair

The contract value of $32,217.28 for hotel services supporting patient travel appears moderate. Benchmarking against typical hotel rates in the Maryland area for similar durations would be necessary for a precise value assessment. Given the specialized nature of supporting patients, the rate might include additional services or amenities not typical for standard hotel stays. Without more granular data on the services provided and the number of individuals supported, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. This means that the National Institutes of Health (NIH) did not solicit offers from multiple vendors. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less competitive pricing compared to fully competed contracts. The lack of competition here means potential savings may have been forgone.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is diminished when only one source is considered.

Public Impact

Patients receiving medical treatment at NIH facilities benefit from supported travel and lodging. The service ensures that patients have a place to stay during their treatment periods. The geographic impact is localized to Maryland, where the hotel is situated. Workforce implications are minimal, likely involving hotel staff and administrative personnel for booking and billing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Potential for over-reliance on a single provider for critical patient support services.
Limited transparency into the justification for a sole-source award without further documentation.

Positive Signals

Addresses a critical need for patient support during medical treatment.
The contract is for a defined period, limiting long-term financial exposure.
The fixed-price nature of the contract provides cost certainty for the government.

Sector Analysis

This contract falls within the hospitality and lodging sector, specifically serving the healthcare industry's need for patient accommodation. The market for hotels and motels is vast, but contracts supporting federal agencies often require specific compliance and service levels. The total federal spending on hotels and motels is substantial, with this contract representing a very small fraction, likely focused on a niche requirement for patient support services at NIH.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made directly to 'THE CHILDREN'S INN AT NIH INC', and the contract details do not specify any provisions for small business participation. Therefore, the impact on the small business ecosystem is likely negligible for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the National Institutes of Health. As a purchase order for hotel services, oversight would focus on ensuring the services rendered align with the terms and conditions, accurate billing, and appropriate use of funds. Transparency is moderate, as purchase orders are generally public, but the justification for the sole-source award would require deeper investigation.

Related Government Programs

NIH Patient Travel Support Programs
Federal Lodging Contracts
Healthcare Support Services
Government Travel Management

Risk Flags

Sole-source award may limit price competition.
Lack of detailed service description requires further inquiry.
Potential for above-market rates due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32,217.28 to THE CHILDREN'S INN AT NIH INC. 26-002669 HOTEL INVOICES IN SUPPORT OF PATIENT RELATED TRAVEL REFERENCE INVOICE 1341

Who is the contractor on this award?

The obligated recipient is THE CHILDREN'S INN AT NIH INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $32,217.28.

What is the period of performance?

Start: 2026-04-09. End: 2026-04-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and was a sole-source award. A sole-source justification is typically required when only one responsible source is available or capable of meeting the government's needs. For NIH patient travel, this could be due to the unique proximity of the hotel to NIH facilities, specialized services offered by the hotel that cater specifically to patients (e.g., accessibility, medical support integration), or an urgent need where soliciting competition would cause unacceptable delays. Without the official justification document (e.g., a Justification and Approval or J&A), the precise reason remains speculative but likely relates to specialized patient needs or location.

How does the per-night cost of this hotel compare to standard commercial rates in the Bethesda/Rockville, MD area?

The total contract value is $32,217.28, and the duration is listed as 0 days, implying this is likely a contract ceiling or an estimate for services over a period, rather than a fixed duration stay. To compare per-night costs, we would need to know the number of room nights utilized. If, for example, this contract supported 100 room nights, the average cost per night would be approximately $322. This rate appears high compared to standard commercial hotel rates in the Bethesda/Rockville area, which typically range from $150-$250 per night, depending on the hotel's star rating and season. However, 'THE CHILDREN'S INN AT NIH INC' may offer specialized services or amenities tailored to patients, justifying a premium.

What are the potential risks associated with a sole-source award for patient lodging?

The primary risk of a sole-source award for patient lodging is the potential for inflated pricing due to the lack of competition. Without competing offers, the government may not secure the most cost-effective rates available in the market. Additionally, there's a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting flexibility in service or pricing negotiations in the future. Ensuring the vendor consistently meets performance expectations without competitive pressure also requires diligent oversight. Finally, the justification for sole-source awards can sometimes be less transparent, raising concerns about fairness and efficiency.

What specific services are included under 'Hotel Invoices in Support of Patient Related Travel'?

The description 'HOTEL INVOICES IN SUPPORT OF PATIENT RELATED TRAVEL' suggests that the contract covers lodging expenses incurred by patients receiving treatment at the National Institutes of Health (NIH). This could include standard hotel room charges, potentially meals, and possibly specialized services tailored to patients, such as accessible rooms, proximity to medical facilities, or ancillary support. The reference to 'THE CHILDREN'S INN AT NIH INC' implies a facility closely associated with or specifically designed to serve patients and their families during medical care, potentially offering more than just basic accommodation.

What is the historical spending pattern for this type of service at NIH?

Analyzing historical spending patterns for this specific service at NIH would require access to historical contract databases and filtering for similar services (hotel/lodging for patient travel) and potentially the same contractor. Without that data, it's difficult to establish a trend. However, federal agencies, particularly those with large research and treatment facilities like NIH, frequently contract for lodging to support patients, researchers, and staff. Spending can fluctuate based on patient volume, research initiatives, and the availability of on-campus or nearby lodging options. The $32K amount for this specific contract appears moderate for a defined period or service need.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7 WEST DR, BETHESDA, MD, 20814

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: $32,217

Exercised Options: $32,217

Current Obligation: $32,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline