Navy awards $4.8M for hotel lodging services in Norfolk, Virginia, to Bluewater Management Group LLC

Contract Overview

Contract Amount: $4,818,335 ($4.8M)

Contractor: Bluewater Management Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-05

End Date: 2026-06-15

Contract Duration: 375 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CIVMAR HOTEL LODGING CSU-E NORFOLK. TASK ORDER FOR OPTION YR ONE, FY 2025

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $4.8 million to BLUEWATER MANAGEMENT GROUP LLC for work described as: CIVMAR HOTEL LODGING CSU-E NORFOLK. TASK ORDER FOR OPTION YR ONE, FY 2025 Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract is for hotel lodging services, a recurring need for military personnel. 3. Fixed-price contract type suggests predictable costs for the government. 4. Option year one for FY 2025, indicating potential for continued service. 5. The North American Industry Classification System (NAICS) code 721110 points to standard hotel operations. 6. The awardee, Bluewater Management Group LLC, is a new entity in federal contracting based on available data. 7. The contract value is relatively modest within the broader federal spending landscape.

Value Assessment

Rating: fair

The contract value of approximately $4.8 million for one year of hotel lodging services appears within a reasonable range for government-rate accommodations. Benchmarking against similar contracts for lodging in the Norfolk area would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps control costs, but the absence of detailed service level agreements or performance metrics makes a definitive value assessment challenging without further information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the competition was open, specific sources may have been excluded for defined reasons. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment. This level of competition is generally expected to drive favorable pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by encouraging multiple vendors to offer their best pricing and service terms.

Public Impact

Provides essential lodging services for U.S. Navy personnel stationed or transiting through Norfolk, Virginia. Supports military readiness and operational effectiveness by ensuring accommodation availability. Benefits the local economy in Norfolk through the provision of hotel services. Indirectly supports the workforce employed by Bluewater Management Group LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited track record for the awardee, Bluewater Management Group LLC, in federal contracting.
Potential for price increases in subsequent option years if not managed carefully.
Dependence on a single contractor for a critical service like lodging.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Fixed-price contract type provides cost certainty.
Located in a key naval hub (Norfolk, VA), ensuring strategic placement of services.

Sector Analysis

The hotel and motel industry (NAICS 721110) is a significant sector within the U.S. economy, providing essential services for travelers and businesses. Federal spending in this sector often supports military personnel, government employees on travel, and temporary housing needs. Comparable spending benchmarks for government lodging contracts can vary widely based on location, duration, and service level requirements. This contract represents a small portion of the overall federal expenditure on lodging.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity or that small business participation is not a mandated component of this specific contract. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and financial management divisions. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at an agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Housing Contracts
Government Travel Services
Lodging and Hospitality Services
Department of Defense Facilities Support

Risk Flags

New Contractor Performance Risk
Lack of Detailed Performance Metrics
Potential for Unforeseen Market Rate Fluctuations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to BLUEWATER MANAGEMENT GROUP LLC. CIVMAR HOTEL LODGING CSU-E NORFOLK. TASK ORDER FOR OPTION YR ONE, FY 2025

Who is the contractor on this award?

The obligated recipient is BLUEWATER MANAGEMENT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2025-06-05. End: 2026-06-15.

What is the specific performance history of Bluewater Management Group LLC with federal contracts?

Based on the provided data, Bluewater Management Group LLC appears to be a relatively new entrant into federal contracting, as this is the first contract identified for this entity. Without a more extensive contract history, it is difficult to assess their past performance, reliability, or ability to meet federal requirements. Future performance on this contract will be crucial in establishing their track record. Agencies typically rely on past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) to inform future award decisions. The absence of this historical data presents a potential risk that needs to be monitored throughout the contract's duration.

How does the awarded price compare to market rates for similar hotel lodging in Norfolk, VA?

The awarded price of approximately $4.8 million for one year of hotel lodging services needs to be benchmarked against prevailing market rates for comparable accommodations in Norfolk, Virginia. Government lodging rates are often negotiated and may be subject to per diem limits set by the General Services Administration (GSA). While the fixed-price nature provides cost certainty, a detailed analysis would involve comparing the contracted rate per room per night against the GSA per diem rate and average commercial hotel rates in the area, considering factors like occupancy levels, service inclusions (e.g., breakfast, Wi-Fi), and contract duration. Without this granular comparison, it's challenging to definitively state if this represents optimal value for money.

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

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this hotel lodging contract. These are critical components that define the expected quality, availability, and responsiveness of the services provided by Bluewater Management Group LLC. Typical KPIs for lodging contracts might include room cleanliness standards, check-in/check-out efficiency, response times for maintenance requests, and guest satisfaction scores. The absence of explicit KPIs and SLAs in the summary data makes it difficult to assess how the contractor's performance will be measured and managed, potentially impacting the overall effectiveness and value of the service.

What is the potential for cost escalation or scope creep in future option years of this contract?

The contract includes an option year for FY 2025, indicating potential for continued service beyond the initial term. For firm-fixed-price contracts, the base price is generally set, but future option years may involve price adjustments based on economic price adjustments (EPAs) or changes in service requirements. The potential for cost escalation exists if market conditions change significantly or if the scope of services is expanded without a corresponding increase in funding or contract modification. Careful monitoring of contract terms and market dynamics will be necessary to manage potential cost increases in subsequent years.

What is the strategic importance of this lodging contract to the Department of the Navy in Norfolk?

Norfolk, Virginia, is a major hub for the U.S. Navy, hosting a significant concentration of naval installations, ships, and personnel. This contract for hotel lodging is strategically important as it ensures the availability of temporary accommodations for sailors, visiting personnel, training participants, and potentially families during official duties or relocations. Reliable lodging is essential for maintaining operational readiness, supporting personnel welfare, and facilitating the efficient functioning of naval operations in this critical geographic area. The contract's location directly supports the Navy's presence and activities in one of its most vital bases.

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

Solicitation ID: N3220524R2260

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 820 GREENBRIER CIR, CHESAPEAKE, VA, 23320

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

Financial Breakdown

Contract Ceiling: $4,818,335

Exercised Options: $4,818,335

Current Obligation: $4,818,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3220524D2260

IDV Type: IDC

Timeline