Justice Department awards $3.77M lease for DEA facility, bypassing competition

Contract Overview

Contract Amount: $3,774 ($3.8K)

Contractor: Centre Market Building LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-09

End Date: 2026-09-30

Contract Duration: 174 days

Daily Burn Rate: $22/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TITLE: CENTRE MARKET BUILDING, LLC (LAB-ELECTRIC CIRCUIT) REQUESTOR: BRANDON A FISKE DELIVERY DATE: 04/30/2026

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60603

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $3,774.32 to CENTRE MARKET BUILDING LLC for work described as: TITLE: CENTRE MARKET BUILDING, LLC (LAB-ELECTRIC CIRCUIT) REQUESTOR: BRANDON A FISKE DELIVERY DATE: 04/30/2026 Key points: 1. Lease agreement for DEA facility secured without competitive bidding. 2. Contract duration of 174 days suggests a short-term or interim need. 3. Fixed-price contract type aims to control costs for the government. 4. The lessor, Centre Market Building LLC, is the sole recipient of this award. 5. Location in Illinois indicates a specific operational requirement for the DEA. 6. The contract value is modest, suggesting a localized or specialized need.

Value Assessment

Rating: questionable

The value for money is difficult to assess without a competitive benchmark. As a sole-source award, there's no direct comparison to other market offerings. The fixed-price nature provides cost certainty, but the absence of competition raises questions about whether the government secured the best possible rate. Further analysis would require understanding the market rates for similar nonresidential building leases in the specific Illinois location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates it was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), suggesting it fell below certain thresholds where competition is typically required. The lack of competition means potential bidders were not given an opportunity to offer their services, which can limit price discovery.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. Without multiple offers, the government cannot be certain it obtained the best value available in the market.

Public Impact

The primary beneficiary is the Drug Enforcement Administration (DEA), which will utilize the leased space. The service delivered is the provision of nonresidential building space, specifically a facility for DEA operations. The geographic impact is localized to Illinois, where the leased building is situated. There are no direct workforce implications mentioned, as this is a real estate lease.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Short contract duration might indicate a temporary solution, potentially leading to future re-procurement costs.
Absence of small business participation noted, though not explicitly required for this type of lease.

Positive Signals

Fixed-price contract provides cost certainty for the government.
The award is to a specific entity, Centre Market Building LLC, indicating a known provider.
The lease is for a nonresidential building, aligning with operational needs.

Sector Analysis

This contract falls within the Real Estate and Leasing sector, specifically for nonresidential buildings. The North American Industry Classification System (NAICS) code 531120, 'Lessors of Nonresidential Buildings (except Miniwarehouses),' categorizes this activity. The market for commercial real estate leases is diverse, with pricing heavily influenced by location, size, and amenities. Without specific details on the leased space, direct spending benchmarks are difficult, but the award amount suggests a relatively small to medium-sized facility.

Small Business Impact

This contract does not appear to have a small business set-aside. The award is made directly to Centre Market Building LLC. There is no information provided regarding subcontracting opportunities for small businesses within this lease agreement. The focus is on securing the facility itself rather than engaging a broad range of service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and facilities management divisions. As a purchase order under simplified acquisition procedures, it may have less rigorous public transparency compared to larger, competed contracts. Accountability would be managed through the terms of the lease agreement and the performance of Centre Market Building LLC. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Real Estate Services
Federal Building Leases
DEA Facility Operations

Risk Flags

Sole-source award bypasses competition.
Lack of detailed facility specifications hinders value assessment.
Short contract duration may indicate a temporary solution with potential for future costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3,774.32 to CENTRE MARKET BUILDING LLC. TITLE: CENTRE MARKET BUILDING, LLC (LAB-ELECTRIC CIRCUIT) REQUESTOR: BRANDON A FISKE DELIVERY DATE: 04/30/2026

Who is the contractor on this award?

The obligated recipient is CENTRE MARKET BUILDING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3,774.32.

What is the period of performance?

Start: 2026-04-09. End: 2026-09-30.

What is the specific size and type of the leased nonresidential building?

The provided data does not specify the exact size (square footage) or the precise type of nonresidential building being leased beyond the general NAICS code 531120 (Lessors of Nonresidential Buildings (except Miniwarehouses)). This information is crucial for a comprehensive value assessment. Without these details, it's challenging to benchmark the rental cost against market rates for comparable properties in Illinois. Understanding the facility's purpose within the DEA's operations would also provide context for its requirements and potential cost drivers.

Why was this contract not competed under Simplified Acquisition Procedures (SAP)?

The data states the contract was 'NOT COMPETED UNDER SAP.' This typically implies that the procurement either fell below the threshold for mandatory competition under SAP, or there was a justification for a sole-source award. Agencies can award sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supply or service. However, without further documentation, the exact reason for bypassing competition remains unclear. This lack of transparency can raise concerns about fairness and potential value.

What is the market rate for similar nonresidential building leases in the relevant Illinois location?

Determining the precise market rate for similar nonresidential building leases in the specific Illinois location requires detailed market research. Factors such as square footage, building class (e.g., A, B, C), amenities, lease term, and local economic conditions significantly influence pricing. Given the $3.77 million total award for a 174-day period, the implied monthly cost is substantial. A thorough analysis would involve consulting commercial real estate databases and brokers specializing in the Illinois market to establish a comparable benchmark for fair market value.

What is the track record of Centre Market Building LLC in providing government leases?

The provided data does not offer information on the track record of Centre Market Building LLC with government contracts. To assess their reliability and experience, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, performance reviews, and any history of contract disputes or issues. Understanding their history as a lessor, particularly to government agencies, would provide valuable context for this current award.

What are the specific operational needs of the DEA that necessitate this particular lease?

The data does not detail the specific operational needs of the Drug Enforcement Administration (DEA) that led to this lease award. Understanding the purpose of the leased facility—whether it's for office space, specialized operational support, evidence storage, or another function—is critical for evaluating the necessity and appropriateness of the contract. This context would help determine if the chosen location and terms are indeed the most suitable and cost-effective solution for the DEA's requirements.

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: 30 W MONROE ST, CHICAGO, IL, 60603

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,774

Exercised Options: $3,774

Current Obligation: $3,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline