State Department awards $3.38M for international real estate services, with a 2027 completion date

Contract Overview

Contract Amount: $3,375,365 ($3.4M)

Contractor: Jones Lang Lasalle Americas, Inc.

Awarding Agency: Department of State

Start Date: 2019-11-27

End Date: 2027-03-01

Contract Duration: 2,651 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REAL ESTATE SERVICES FOR INTERNATIONAL PROPERTIES.

Plain-Language Summary

Department of State obligated $3.4 million to JONES LANG LASALLE AMERICAS, INC. for work described as: REAL ESTATE SERVICES FOR INTERNATIONAL PROPERTIES. Key points: 1. Contract value represents a significant investment in managing overseas properties. 2. The firm fixed-price structure aims to control costs for the duration of the contract. 3. A long performance period suggests a need for sustained real estate support. 4. The contract was awarded through full and open competition, indicating a broad search for qualified vendors. 5. The specific NAICS code points to specialized real estate activities beyond standard brokerage.

Value Assessment

Rating: good

The contract value of $3.38 million over its period of performance appears reasonable for specialized international real estate services. Benchmarking against similar contracts for global property management and advisory services would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, suggesting that multiple vendors were solicited and evaluated. The number of bidders is not specified, but this method generally promotes competitive pricing and allows the government to select the best value offer. The open nature of the competition is a positive indicator for price discovery and efficient use of taxpayer funds.

Taxpayer Impact: Full and open competition maximizes the pool of potential offerors, increasing the likelihood of obtaining competitive pricing and ensuring that the government receives the best possible services for the funds expended.

Public Impact

Benefits the Department of State by ensuring the proper management and maintenance of its international real estate portfolio. Services delivered likely include property acquisition, leasing, disposal, valuation, and advisory support for overseas facilities. Geographic impact is global, covering all international locations where the State Department maintains a real estate presence. Workforce implications may involve the utilization of specialized real estate professionals, both within the contractor's organization and potentially local support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined and managed.
Reliance on a single contractor for critical international real estate functions could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty.
Long-term contract allows for continuity of essential services.
Full and open competition suggests a robust selection process.

Sector Analysis

The real estate services sector is vast, encompassing brokerage, property management, development, and consulting. Federal spending in this area often supports agency operations, infrastructure, and diplomatic missions abroad. This contract fits within the broader category of government real estate support services, which are crucial for agencies with significant overseas footprints like the Department of State. Comparable spending benchmarks would typically be found within government-wide contracts for real estate services or agency-specific historical data.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information on subcontracting plans for small businesses. The absence of a small business set-aside suggests that the scope or nature of the services required may have been deemed more suitable for larger, specialized firms, or that competition among large businesses was expected to yield the best results.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program office within the Department of State. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful delivery. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
General Services Administration Real Estate Services
Federal Real Property Management

Risk Flags

Long contract duration may increase exposure to market volatility.
International operations introduce geopolitical and regulatory risks.
Reliance on a single awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.4 million to JONES LANG LASALLE AMERICAS, INC.. REAL ESTATE SERVICES FOR INTERNATIONAL PROPERTIES.

Who is the contractor on this award?

The obligated recipient is JONES LANG LASALLE AMERICAS, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2019-11-27. End: 2027-03-01.

What is the contractor's track record with similar federal real estate contracts?

JONES LANG LASALLE AMERICAS, INC. (JLL) is a well-established global real estate services firm with extensive experience in managing and advising on large, complex real estate portfolios. While specific details of their past federal contracts are not provided in this data snippet, JLL has a history of working with various government agencies on projects ranging from portfolio optimization and transaction management to facilities management and consulting. Their ability to secure this contract through full and open competition suggests they met the government's requirements and demonstrated relevant expertise. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and any past issues would provide a more comprehensive understanding of their track record.

How does the awarded amount compare to the estimated value or previous contracts for similar services?

The awarded amount of $3,375,365.42 for international real estate services over a period extending to March 2027 (approximately 3.3 years) translates to an average annual value of roughly $1.02 million. Without access to the original solicitation's estimated value or historical spending data for similar services provided to the Department of State, a direct comparison is challenging. However, for specialized global real estate advisory and management, this annual figure appears within a reasonable range, especially considering the complexities of international property law, market fluctuations, and diverse operational needs. Benchmarking against GSA schedules or other agency contracts for similar scope would be necessary for a definitive assessment.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen market changes or operational complexities in diverse international locations. Performance risk is another concern; failure to deliver timely and effective real estate services could impact diplomatic operations. Mitigation strategies likely include robust contract oversight by the Department of State, clear performance metrics and deliverables outlined in the contract, and the contractor's own internal quality control processes. The firm fixed-price nature shifts some financial risk to the contractor, incentivizing efficient service delivery. The long duration also necessitates careful monitoring to ensure continued alignment with evolving agency needs.

What is the expected impact of these services on the Department of State's operational effectiveness?

Effective management of international real estate is critical for the Department of State's ability to conduct diplomacy and maintain its global presence. This contract is expected to ensure that U.S. embassies, consulates, and other facilities abroad are properly maintained, acquired, leased, or disposed of in a cost-effective and compliant manner. By leveraging specialized expertise, the Department can optimize its property portfolio, reduce operational burdens on its own staff, and ensure that facilities meet security and functional requirements. This directly supports the agency's mission by providing stable and appropriate operational environments worldwide.

How has federal spending on international real estate services evolved over the past five years?

Analyzing federal spending trends on international real estate services requires access to comprehensive historical data across multiple agencies, which is beyond the scope of this single contract's data. However, generally, spending in this category can fluctuate based on geopolitical factors, global economic conditions, and specific agency needs for overseas infrastructure. Agencies like the Department of State, Department of Defense, and intelligence agencies are major consumers of such services. Factors like embassy construction projects, base consolidations, or shifts in diplomatic priorities can significantly influence spending levels. Without aggregated data, it's difficult to provide a precise evolution, but sustained global engagement typically necessitates consistent investment in international real estate support.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1801 K ST NW STE 1000, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $3,375,365

Exercised Options: $3,375,365

Current Obligation: $3,375,365

Actual Outlays: $1,015,977

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA17D0087

IDV Type: IDC

Timeline