State Department awards $113K for lodging, raising questions about competition and value

Contract Overview

Contract Amount: $113,094 ($113.1K)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of State

Start Date: 2026-03-19

End Date: 2026-04-12

Contract Duration: 24 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VSU / S26012 / DS ACCOMMODATION / BNETWORK / MAR 26

Plain-Language Summary

Department of State obligated $113,094.31 to MISCELLANEOUS FOREIGN AWARDEES for work described as: VSU / S26012 / DS ACCOMMODATION / BNETWORK / MAR 26 Key points: 1. Limited competition may have impacted pricing and value for taxpayer dollars. 2. The contract duration is relatively short, suggesting a specific, immediate need. 3. The awardee is a foreign entity, which could introduce unique logistical or oversight considerations. 4. The service category (Hotels and Motels) is common, but the specific context of foreign accommodation needs further review. 5. The firm-fixed-price contract type offers cost certainty but relies on accurate initial estimates. 6. Lack of small business participation noted, with no set-aside or subcontracting requirements specified.

Value Assessment

Rating: fair

Benchmarking lodging costs for government personnel, especially in foreign locations, is complex due to varying market rates and service levels. Without more specific details on the accommodation requirements (e.g., number of rooms, duration of stay, specific amenities, location), it's difficult to definitively assess value for money. However, the absence of competition suggests potential for inflated pricing compared to a more open market scenario. The price per day, based on the total award and estimated duration, appears within a plausible range for temporary lodging, but a deeper dive into comparable rates for similar government assignments would be necessary for a conclusive assessment.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition limits the government's ability to solicit the best possible price and terms through a bidding process. It also means that potential efficiencies or cost savings that might arise from a competitive environment are likely foregone.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This contract's price was determined without comparison to other offers, potentially resulting in a less favorable deal for the government.

Public Impact

Government personnel requiring temporary accommodation in a foreign location will benefit from this contract. The service delivered is lodging, essential for official travel and operations. The geographic impact is specific to the location where the accommodation is provided, which is not detailed in the data. Workforce implications are minimal, primarily affecting the personnel utilizing the lodging.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Oversight of foreign-based services can be more challenging.
The specific need and justification for a sole-source award require further scrutiny.
Limited transparency into the selection process due to sole-source nature.

Positive Signals

Firm-fixed-price contract provides cost predictability.
The award addresses a clear need for government personnel accommodation.
The contract duration is defined, allowing for focused service delivery.

Sector Analysis

The lodging and hospitality sector is a significant part of the global economy. Government contracts for accommodation, particularly for personnel stationed or traveling abroad, are common. This contract falls within the broader category of government services procurement. Comparable spending benchmarks for government lodging can vary widely based on location, duration, and service level requirements. The North American Industry Classification System (NAICS) code 721110 (Hotels and Motels, except Casino Hotels) indicates the specific industry segment.

Small Business Impact

This contract does not appear to have any specific provisions for small business participation. There is no indication of a small business set-aside, nor are there any stated requirements for subcontracting to small businesses. This means that opportunities for small businesses to engage in providing lodging services under this contract are likely limited or non-existent, potentially excluding them from this segment of government spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's internal procurement and financial management systems. Given the foreign awardee, additional checks may be in place to ensure compliance with local laws and regulations, as well as U.S. government standards. Transparency is limited due to the sole-source nature of the award. Accountability would be managed through contract performance monitoring and adherence to the firm-fixed-price terms.

Related Government Programs

Department of State Travel and Relocation Services
Foreign Affairs
Government Lodging Contracts
Temporary Accommodation Services

Risk Flags

Sole-source award lacks competitive justification.
High potential cost per day requires further scrutiny.
Awardee identification is generic, hindering due diligence.
Lack of defined performance metrics impacts oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $113,094.31 to MISCELLANEOUS FOREIGN AWARDEES. VSU / S26012 / DS ACCOMMODATION / BNETWORK / MAR 26

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $113,094.31.

What is the period of performance?

Start: 2026-03-19. End: 2026-04-12.

What is the specific geographic location for this lodging contract, and how do market rates in that area compare to the awarded price?

The provided data does not specify the geographic location for this lodging contract. This information is crucial for assessing the reasonableness of the awarded price. Market rates for hotels and motels vary significantly by region, country, and even city. Without knowing the location, it is impossible to benchmark the $113,094.31 award against prevailing local commercial rates or other government contracts for similar services in that specific area. The Department of State typically operates in numerous locations worldwide, each with its own unique cost of living and service provider landscape. Further investigation into the contract's specific location is necessary to determine if the price represents good value.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates this contract was awarded under the 'NOT COMPETED' category, implying a sole-source justification. Common reasons for sole-source awards include urgent and compelling needs where only one responsible source can provide the required service, or when the service is available only from a single source due to unique capabilities or proprietary technology. For lodging, this might occur if the contract is for a highly specialized facility, in an extremely remote or politically sensitive location where only one provider is feasible or secure, or if there's an immediate, unforeseen need arising from an emergency situation. The specific justification from the Department of State would be required to fully understand why competition was bypassed for this particular award.

How does the price per day for this contract compare to typical per diem rates for government travelers in similar foreign locations?

To estimate the price per day, we divide the total award ($113,094.31) by the contract duration in days (approximately 24 days, assuming the end date is 12 days after the start date in 2026). This yields roughly $4,712 per day. This figure is exceptionally high when compared to standard government per diem rates, which typically range from $100 to $400 per day depending on the location. Even in high-cost cities, such rates are rarely exceeded. The high calculated daily rate suggests either a very large number of rooms/personnel being accommodated, or that the $113,094.31 covers more than just basic lodging (e.g., extensive services, catering, security), or that the initial duration estimate is inaccurate. Without more context on the scope of services and the number of individuals, a direct comparison to per diem is difficult but the initial calculation raises a significant flag.

What is the track record of the awardee, 'MISCELLANEOUS FOREIGN AWARDEES,' with the Department of State or other federal agencies?

The designation 'MISCELLANEOUS FOREIGN AWARDEES' is highly generic and does not represent a specific contractor entity. This suggests that the award was made to a foreign entity whose specific name or identification is either not publicly disclosed in this data feed or is categorized broadly. Without a specific contractor name or Unique Entity Identifier (UEI), it is impossible to research their track record, past performance, or history of awards with the Department of State or other federal agencies. This lack of specific identification hinders due diligence and performance assessment.

Are there any specific performance metrics or service level agreements (SLAs) associated with this lodging contract?

The provided data does not include details on specific performance metrics or service level agreements (SLAs) for this contract. For lodging services, typical SLAs might include standards for room cleanliness, response times for maintenance requests, availability of amenities (like Wi-Fi or breakfast), and security protocols. The firm-fixed-price nature of the contract implies that the contractor is responsible for delivering the agreed-upon lodging services within the set price. However, without defined metrics, it is challenging to objectively measure the quality of service provided and hold the contractor accountable beyond the basic provision of accommodation.

What is the total historical spending by the Department of State on lodging services under NAICS code 721110, and how does this award compare?

The provided data only pertains to this single contract award of $113,094.31. It does not offer historical spending data for the Department of State on lodging services under NAICS code 721110. To understand how this award fits into the broader spending picture, one would need access to historical contract databases (like FPDS or USASpending.gov) to aggregate past expenditures for similar services. This would allow for an analysis of trends, average contract values, and the significance of this particular award relative to the department's overall budget for accommodation. Without this context, it's difficult to assess if this award is typical, unusually large, or small.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $113,094

Exercised Options: $113,094

Current Obligation: $113,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline