Agriculture Department awards $820K contract for real estate appraisal services in Georgia

Contract Overview

Contract Amount: $82,000 ($82.0K)

Contractor: Peoples Company of Indianola

Awarding Agency: Department of Agriculture

Start Date: 2022-03-31

End Date: 2025-08-30

Contract Duration: 1,248 days

Daily Burn Rate: $66/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NOVATION AGREEMENT - GA AREA WIDE MARKET ANALYSIS

Place of Performance

Location: AVONDALE ESTATES, DEKALB County, GEORGIA, 30002

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $82,000 to PEOPLES COMPANY OF INDIANOLA for work described as: NOVATION AGREEMENT - GA AREA WIDE MARKET ANALYSIS Key points: 1. Contract awarded through Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is firm fixed price, providing cost certainty for the government. 3. Duration of 1248 days indicates a long-term need for these services. 4. The procurement was competed, implying multiple offers were considered. 5. Services are for real estate appraisal, a critical function for land management and transactions. 6. The awardee, Peoples Company of Indianola, is a private entity. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $820,000 over approximately 3.5 years for real estate appraisal services in Georgia appears reasonable. Without specific benchmarks for appraisal services in the region, a direct comparison is difficult. However, the firm fixed-price structure suggests that the government has negotiated a set cost, which can be advantageous. The number of bids received (3) indicates some level of competition, which typically helps in achieving fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for broader competition for acquisitions valued below the simplified acquisition threshold. Three bids were received, indicating a moderate level of competition. While not a large number, it suggests that multiple firms were aware of and interested in the requirement, contributing to price discovery.

Taxpayer Impact: The competition, though limited to three bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source award. The SAP process aims to balance efficiency with competition for smaller procurements.

Public Impact

The primary beneficiaries are the Department of Agriculture's Farm and Foreign Agricultural Services, which will receive essential real estate appraisal services. These services are crucial for managing federal land holdings, facilitating land transactions, and supporting agricultural programs. The geographic impact is focused on Georgia (GA), where the appraisals will be conducted. The contract supports the workforce within the real estate appraisal sector, particularly in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) may not have driven the absolute lowest price.
Reliance on SAP might exclude some larger, potentially more competitive firms.
The long contract duration could lead to potential cost increases if market conditions change significantly.

Positive Signals

Firm fixed-price contract provides budget certainty.
The contract was competed, indicating an effort to secure value.
Services are essential for USDA's land management functions.

Sector Analysis

The real estate appraisal sector is a niche but essential part of the broader real estate and government services market. Federal agencies frequently require appraisal services for land acquisition, disposal, and management. Spending in this area is often project-specific and geographically dispersed. Comparable spending benchmarks are difficult to establish without detailed service scope and location, but government contracts for appraisal services typically aim for competitive pricing through established procurement processes.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates 'sb' is false. Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The procurement was conducted under SAP, which can sometimes include small business set-asides, but that was not the case here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's contracting officers and program managers. The firm fixed-price nature of the contract simplifies some aspects of oversight by focusing on deliverables rather than cost reimbursement. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Real Estate Services
Department of the Interior Land Management
Army Corps of Engineers Real Estate Division

Risk Flags

Limited competition
Potential for quality compromise if contractor underbid

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $82,000 to PEOPLES COMPANY OF INDIANOLA. NOVATION AGREEMENT - GA AREA WIDE MARKET ANALYSIS

Who is the contractor on this award?

The obligated recipient is PEOPLES COMPANY OF INDIANOLA.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $82,000.

What is the period of performance?

Start: 2022-03-31. End: 2025-08-30.

What is the typical track record of Peoples Company of Indianola with federal contracts?

A review of federal procurement data indicates that Peoples Company of Indianola has received federal contracts, though the volume and nature of these contracts may vary. Specific details on their past performance, including on-time delivery, quality of service, and adherence to contract terms, would require a deeper dive into contract databases and performance reports. Generally, agencies assess past performance as part of the source selection process, especially for follow-on contracts or those with significant value. Without access to specific past performance reviews for this contractor, it's difficult to definitively assess their track record beyond their presence in the federal marketplace.

How does the $820,000 value compare to similar real estate appraisal contracts awarded by the USDA?

Comparing the $820,000 contract value requires analyzing similar real estate appraisal contracts awarded by the Department of Agriculture (USDA) within the same timeframe and geographic region. The USDA utilizes real estate appraisal services for various programs, including land acquisition for conservation, farm loan collateral, and management of its extensive land holdings. Contracts can range significantly in value based on the scope of work, number of properties, and complexity of appraisals. A contract of this value over approximately 3.5 years suggests a steady need for appraisal services, potentially for a portfolio of properties or ongoing program support. Benchmarking against similar awards would reveal if this price point is competitive within the USDA's typical spending patterns for such services.

What are the primary risks associated with this firm fixed-price contract for appraisal services?

The primary risk with a firm fixed-price contract for appraisal services lies in the potential for the contractor to underbid the actual cost of performing the work, leading to quality compromises or the contractor seeking modifications. Conversely, if the contractor significantly overbid, the government may pay a premium. For appraisal services, risks include the accuracy and thoroughness of the appraisals, adherence to professional standards, and timely delivery. If the market for appraisals shifts dramatically during the contract period, the contractor might face challenges in meeting the fixed price without compromising quality. The government's risk is mitigated by clear performance standards and the ability to hold the contractor accountable for deliverables.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring value for money for this type of service?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below the simplified acquisition threshold, aiming for efficiency and reduced administrative burden. For services like real estate appraisal, SAP can be effective in obtaining necessary services quickly and at a reasonable cost, especially when competition is present, as indicated by the three bids in this case. However, SAP may not always attract the widest range of bidders or the most sophisticated service providers compared to full and open competition. The effectiveness in ensuring value for money depends heavily on the specific market, the clarity of the requirement, and the diligence of the contracting officer in soliciting and evaluating offers. In this instance, with three bids, there was some price discovery, but it's possible a broader competition could have yielded even better value.

What is the historical spending pattern for real estate appraisal services by the Department of Agriculture?

Historical spending patterns for real estate appraisal services by the Department of Agriculture (USDA) reveal a consistent need for these services across various agencies and programs. The USDA manages vast amounts of land and provides financial assistance that often requires property valuation. Annual spending can fluctuate based on program priorities, land management initiatives, and economic conditions affecting agriculture. While specific aggregate historical data for appraisal services isn't readily available in this summary, the recurring nature of such contracts suggests it's an ongoing operational requirement. Analyzing past awards would show trends in contract values, types of services procured (e.g., residential, commercial, agricultural land), and the geographic distribution of these services.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Offices of Real Estate Appraisers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12FPC421Q0023

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: United Farm & Ranch Management, LLC

Address: 12119 STRATFORD DR STE B, CLIVE, IA, 50325

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

Financial Breakdown

Contract Ceiling: $82,000

Exercised Options: $82,000

Current Obligation: $82,000

Actual Outlays: $82,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline