DOJ DEA awards $51,336 for nonresidential building lease in Texas

Contract Overview

Contract Amount: $51,336 ($51.3K)

Contractor: THE Austonian Condominium Association, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $141/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TITLE: FY26 RECUR, STVP, THE AUSTONIAN., $51,336.00, BASE REQUESTOR: JAMES E MIDDLETON AFT#: 2026-ST-0257 POP DATES: 06/01/2026 TO 05/31/2031

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78701

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $51,336 to THE AUSTONIAN CONDOMINIUM ASSOCIATION, INC. for work described as: TITLE: FY26 RECUR, STVP, THE AUSTONIAN., $51,336.00, BASE REQUESTOR: JAMES E MIDDLETON AFT#: 2026-ST-0257 POP DATES: 06/01/2026 TO 05/31/2031 Key points: 1. Lease agreement for nonresidential building in Texas. 2. Contract is a Firm Fixed Price purchase order. 3. No competition was conducted under Simplified Acquisition Procedures (SAP). 4. The lease term is for 364 days.

Value Assessment

Rating: questionable

The contract value of $51,336 for a 364-day lease appears high for a single unit, especially without competitive bidding. Benchmarking against similar nonresidential building leases in Texas would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This lack of competition may have resulted in a higher price than could have been achieved through a more open bidding process.

Taxpayer Impact: The absence of competitive bidding raises concerns about whether taxpayers received the best possible value for this lease.

Public Impact

Federal agency leasing nonresidential space in Texas. Potential for inflated costs due to lack of competition. Impact on local real estate market is minimal given the contract size.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing

Positive Signals

Clear contract type (Purchase Order)
Defined lease term

Sector Analysis

The lease falls under the 'Lessors of Nonresidential Buildings' sector. Spending benchmarks for similar leases vary widely based on location, size, and amenities. Without more specific details on the property, it's difficult to benchmark accurately.

Small Business Impact

There is no indication that this contract was awarded to a small business. Further analysis would be needed to determine if small business participation was considered or achieved.

Oversight & Accountability

Oversight of this contract would involve ensuring the leased property meets the DEA's needs and that the terms are being adhered to. The lack of competition warrants closer scrutiny of the pricing.

Related Government Programs

Lessors of Nonresidential Buildings (except Miniwarehouses)
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Lack of competitive bidding
Potential for price inflation
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $51,336 to THE AUSTONIAN CONDOMINIUM ASSOCIATION, INC.. TITLE: FY26 RECUR, STVP, THE AUSTONIAN., $51,336.00, BASE REQUESTOR: JAMES E MIDDLETON AFT#: 2026-ST-0257 POP DATES: 06/01/2026 TO 05/31/2031

Who is the contractor on this award?

The obligated recipient is THE AUSTONIAN CONDOMINIUM ASSOCIATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $51,336.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the justification for not competing this lease under SAP?

The provided data states the contract was 'NOT COMPETED UNDER SAP'. This implies a limited competition strategy was employed. A detailed justification would typically be documented by the agency, outlining reasons such as urgency, specific site requirements, or existing relationships that precluded a broader solicitation process.

How does the lease cost compare to market rates for similar properties in the region?

Without specific details on the property's size, condition, and exact location within Texas, a precise market comparison is challenging. However, the $51,336 price tag for a 364-day lease, especially without competition, suggests a need for thorough due diligence to ensure it aligns with prevailing market rates for comparable nonresidential buildings.

What are the risks associated with a sole-source or limited-competition lease for government property?

The primary risk is the potential for inflated costs due to the absence of competitive pressure, leading to a suboptimal use of taxpayer funds. Other risks include limited options if the property does not meet evolving needs, and potential perceptions of impropriety or favoritism, even if unintentional.

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

Solicitation ID: D-26-ST-0110

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 CONGRESS AVE, AUSTIN, TX, 78701

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: $272,549

Exercised Options: $51,336

Current Obligation: $51,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline