Forest Service leases Summit County building for $1.25M over 3 years, bypassing competition

Contract Overview

Contract Amount: $125,505 ($125.5K)

Contractor: County of Summit

Awarding Agency: Department of Agriculture

Start Date: 2024-08-01

End Date: 2027-01-31

Contract Duration: 913 days

Daily Burn Rate: $137/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS REQUISITION IS TO FACILITATE THE RENTAL OF A WORKSHOP BUILDING AT 1252 SODA RIDGE ROAD IN KEYSTONE COLORADO. THE BUILDING IS OWNED BY THE SUMMIT COUNTY COLORADO, COUNTY GOVERNMENT. THE U.S. FOREST SERVICE WILL LEASE THE BUILDING F

Place of Performance

Location: SILVERTHORNE, SUMMIT County, COLORADO, 80498

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $125,505.16 to COUNTY OF SUMMIT for work described as: THE PURPOSE OF THIS REQUISITION IS TO FACILITATE THE RENTAL OF A WORKSHOP BUILDING AT 1252 SODA RIDGE ROAD IN KEYSTONE COLORADO. THE BUILDING IS OWNED BY THE SUMMIT COUNTY COLORADO, COUNTY GOVERNMENT. THE U.S. FOREST SERVICE WILL LEASE THE BUILDING F Key points: 1. Lease of a workshop building in Keystone, Colorado. 2. Contract awarded to Summit County Government. 3. No competition was utilized for this award. 4. Spending is categorized under Lessors of Nonresidential Buildings.

Value Assessment

Rating: questionable

The contract price of $1,255,051.16 for a 913-day lease appears high without competitive bidding. Benchmarking against similar commercial building leases in the region is difficult without more data, but the lack of competition raises concerns about value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a potential limitation in competition. The award to a government entity (Summit County) may have influenced the procurement approach, potentially limiting price discovery.

Taxpayer Impact: Taxpayer funds are being used for this lease. The lack of competition may result in a higher cost than if the lease had been competitively bid.

Public Impact

Local government benefits from federal lease revenue. Potential for increased operational costs for the Forest Service. Limited transparency due to non-competitive award. Impact on local commercial real estate market is minimal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential overpayment due to no bidding
Limited transparency

Positive Signals

Supports local government entity
Secures necessary facility

Sector Analysis

This lease falls under the real estate services sector, specifically nonresidential building rentals. Federal agencies often lease facilities to support operations, and benchmarks for such leases vary significantly by location and building type.

Small Business Impact

This contract does not appear to involve small businesses, as it is a direct lease from a county government entity. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The non-competitive nature of this award warrants oversight to ensure the government received fair value. Accountability for the decision to not compete the lease should be documented.

Related Government Programs

Lessors of Nonresidential Buildings (except Miniwarehouses)
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Non-competitive award
Potential for inflated pricing
Lack of market-based price discovery
Limited justification for sole-source procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $125,505.16 to COUNTY OF SUMMIT. THE PURPOSE OF THIS REQUISITION IS TO FACILITATE THE RENTAL OF A WORKSHOP BUILDING AT 1252 SODA RIDGE ROAD IN KEYSTONE COLORADO. THE BUILDING IS OWNED BY THE SUMMIT COUNTY COLORADO, COUNTY GOVERNMENT. THE U.S. FOREST SERVICE WILL LEASE THE BUILDING F

Who is the contractor on this award?

The obligated recipient is COUNTY OF SUMMIT.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $125,505.16.

What is the period of performance?

Start: 2024-08-01. End: 2027-01-31.

What was the justification for not competing this lease, given the significant dollar amount?

The justification for not competing this lease is not provided in the data. Typically, non-competitive awards require a documented justification, such as a sole-source requirement or specific circumstances outlined in federal acquisition regulations. Further investigation into the procurement file would be needed to understand the rationale.

What are the risks associated with leasing from a government entity without competition?

The primary risks include potentially paying a higher price than market rate due to the absence of competitive bidding, and a lack of transparency in the pricing and selection process. There's also a risk of less favorable lease terms compared to a competitive scenario.

How does this lease contribute to the Forest Service's operational effectiveness?

The lease provides the Forest Service with a workshop building at a specific location in Keystone, Colorado, presumably to support its operational needs in that region. The effectiveness is tied to the building's suitability for its intended purpose and its contribution to mission accomplishment.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

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

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: 208 E LINCOLN AVE, BRECKENRIDGE, CO, 80424

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $150,606

Exercised Options: $125,505

Current Obligation: $125,505

Actual Outlays: $75,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline