State Department awards $37,696 for hotel rooms to Sonesta Fifty Hotel, LLC in New York

Contract Overview

Contract Amount: $37,696 ($37.7K)

Contractor: Sonesta Fifty Hotel, LLC

Awarding Agency: Department of State

Start Date: 2024-06-25

End Date: 2024-10-31

Contract Duration: 128 days

Daily Burn Rate: $295/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOTEL ROOMS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10022

State: New York Government Spending

Plain-Language Summary

Department of State obligated $37,696 to SONESTA FIFTY HOTEL, LLC for work described as: HOTEL ROOMS Key points: 1. Value for money appears reasonable given the short duration and fixed-price nature. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low due to the small award amount and short performance period. 4. Performance context is limited to the provision of lodging services. 5. Sector positioning is within the hospitality services supporting government operations.

Value Assessment

Rating: good

The award of $37,696 for hotel rooms appears to be a fair price for the services rendered, especially considering it's a fixed-price contract for a defined period. Benchmarking against similar government lodging contracts in New York City would provide a more precise value assessment, but the amount is not excessively high for a government-related booking. The contract's limited scope and duration suggest a focused need rather than a large-scale, long-term commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves soliciting offers from multiple sources. While the exact number of bidders is not specified, the 'COMPETED UNDER SAP' designation implies that the agency sought competitive quotes. This process generally leads to better price discovery and value for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayers likely benefited from a more competitive price than if the contract had been awarded without soliciting multiple offers.

Public Impact

Government personnel requiring lodging in New York will benefit from this contract. The service delivered is the provision of hotel rooms. The geographic impact is localized to New York, NY. There are no significant workforce implications directly tied to this specific contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a competitive process (SAP).
Fixed-price contract type limits cost overrun risk.
Short duration and defined end date mitigate long-term commitment risks.
Small award amount suggests a manageable and contained requirement.

Sector Analysis

The hospitality sector is a significant market for government contracts, particularly for travel and temporary lodging needs. Government agencies frequently procure hotel rooms and related services across various locations. This contract fits within the broader category of government support services, where agencies rely on commercial entities to fulfill operational requirements like temporary accommodation for personnel.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the small award amount and the nature of the service (hotel rooms), it's possible that small businesses could have bid or been awarded this contract, but specific set-aside information is absent.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and financial management divisions. As a purchase order under SAP, it is subject to internal controls and procurement regulations. Transparency is generally maintained through contract databases, though specific details on day-to-day oversight are not provided.

Related Government Programs

Government Lodging Services
Temporary Accommodation Contracts
Department of State Travel Support

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $37,696 to SONESTA FIFTY HOTEL, LLC. HOTEL ROOMS

Who is the contractor on this award?

The obligated recipient is SONESTA FIFTY HOTEL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37,696.

What is the period of performance?

Start: 2024-06-25. End: 2024-10-31.

What is the typical price range for government-rate hotel rooms in New York City?

The typical price range for government-rate hotel rooms in New York City can vary significantly based on location, time of year, and specific hotel amenities. Federal employees are generally entitled to lodging at or below the per diem rate set by the General Services Administration (GSA). For New York City, the GSA per diem rate for lodging can range from approximately $200 to over $400 per night, depending on the fiscal year and specific zones within the city. The total award of $37,696, spread over 128 days, suggests an average nightly rate of around $295, which falls within the expected range for government-negotiated rates in a high-cost city like New York, especially if the contract was secured during a period of high demand or for a specific event.

How does the competition level for this contract compare to similar lodging awards?

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which implies that multiple offers were solicited. While SAP is used for smaller procurements (typically under $250,000), it still requires agencies to seek competition. The level of competition for lodging contracts can vary; for standard government rates in major cities, many hotels are equipped to offer competitive bids. Without knowing the exact number of bidders, it's difficult to definitively compare, but the fact that it was competed suggests a healthier price discovery mechanism than a sole-source award. Larger, long-term lodging agreements might see more extensive competition with formal solicitations.

What are the primary risks associated with this type of contract?

The primary risks associated with this type of contract are relatively low due to its nature. Potential risks include the possibility that the selected hotel may not meet the quality or service expectations of the government personnel, leading to dissatisfaction or the need to find alternative accommodations. Another risk could be unforeseen price increases if the fixed-price agreement doesn't adequately account for all potential service costs, though this is mitigated by the fixed-price structure. Given the short duration (128 days) and the relatively small award amount ($37,696), the financial exposure and the impact of any service failures are limited.

What is the track record of Sonesta Fifty Hotel, LLC with government contracts?

Information regarding the specific track record of 'SONESTA FIFTY HOTEL, LLC' with government contracts is not readily available in the provided data snippet. To assess their track record, one would typically look at past performance evaluations, previous government awards, and any history of contract disputes or issues. As this is a specific entity, its history with federal agencies would need to be researched through government contract databases (like SAM.gov or FPDS) or by reviewing past performance information if available. Without this data, it's assumed they are a legitimate hospitality provider capable of fulfilling the contract requirements.

How does this award compare to the Department of State's overall spending on lodging?

This award of $37,696 represents a very small fraction of the Department of State's overall spending on lodging. The Department of State, like other large federal agencies, has significant travel and operational needs that necessitate substantial expenditures on temporary accommodations for diplomats, staff, and personnel worldwide. Annual spending on lodging for the entire agency can easily run into tens or hundreds of millions of dollars, covering numerous domestic and international locations. Therefore, this specific contract is a localized, short-term requirement rather than a major programmatic expenditure.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 E 50TH ST, NEW YORK, NY, 10022

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

Financial Breakdown

Contract Ceiling: $37,696

Exercised Options: $37,696

Current Obligation: $37,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline