Treasury's Mint Leases Property for $114M Over 8 Years Under Firm Fixed Price Contract
Contract Overview
Contract Amount: $113,986,370 ($114.0M)
Contractor: N.S.P. Ventures Corp.
Awarding Agency: Department of the Treasury
Start Date: 2020-01-01
End Date: 2026-09-30
Contract Duration: 2,464 days
Daily Burn Rate: $46.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 801 MASTER LEASE RENT JANUARY 2020 - SEPTEMBER 2036
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $114.0 million to N.S.P. VENTURES CORP. for work described as: 801 MASTER LEASE RENT JANUARY 2020 - SEPTEMBER 2036 Key points: 1. The contract value of $114M for a lease spanning over 8 years indicates significant long-term commitment. 2. Competition was full and open, suggesting a competitive bidding process for this real estate lease. 3. The firm fixed price structure mitigates cost overrun risk for the government. 4. The sector is Real Estate, with a PSC code of 531190 (Lessors of Other Real Estate Property).
Value Assessment
Rating: good
The lease value of approximately $14.25 million annually appears reasonable for commercial real estate in a major metropolitan area like Washington D.C., though specific market comparables would be needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The firm fixed price contract provides cost certainty for taxpayers, protecting against unexpected increases in rental costs over the lease term.
Public Impact
Taxpayers benefit from a competitive bidding process that likely secured a fair market price for the leased property. The long-term nature of the lease ensures stable operational space for the United States Mint. The firm fixed price contract provides budget predictability for the Department of the Treasury.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition
- Firm fixed price contract
- Long-term lease providing stability
Sector Analysis
This contract falls within the commercial real estate sector, specifically for lessors of other real estate property. Annual spending benchmarks for similar government leases in the Washington D.C. area would be relevant for comparison.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be required to determine the extent of small business participation.
Oversight & Accountability
The contract is a definitive contract awarded through full and open competition, suggesting standard oversight processes are in place. The long duration may warrant periodic reviews to ensure continued value.
Related Government Programs
- Lessors of Other Real Estate Property
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Lack of specific property details (size, location)
- Absence of contractor performance history
- Potential for unstated lease adjustment clauses
Tags
lessors-of-other-real-estate-property, department-of-the-treasury, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $114.0 million to N.S.P. VENTURES CORP.. 801 MASTER LEASE RENT JANUARY 2020 - SEPTEMBER 2036
Who is the contractor on this award?
The obligated recipient is N.S.P. VENTURES CORP..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $114.0 million.
What is the period of performance?
Start: 2020-01-01. End: 2026-09-30.
What is the specific location and size of the leased property, and how do these factors compare to market rates in the District of Columbia?
The provided data does not specify the exact location or square footage of the leased property. To assess value accurately, this information is crucial. Comparing the annual cost of $14.25 million to per-square-foot rental rates for comparable commercial office space in prime Washington D.C. locations would be necessary to determine if the pricing is indeed competitive and reflects fair market value.
Are there any clauses within the lease agreement that allow for adjustments to the firm fixed price based on market conditions or specific service level changes?
The data indicates a 'FIRM FIXED PRICE' contract type, which generally implies that the price is set and not subject to adjustment based on market fluctuations. However, leases can sometimes include specific riders or clauses for unforeseen circumstances or significant changes in service requirements. A review of the full contract document would be needed to confirm the absence of any such adjustment provisions.
What is the historical performance and financial stability of N.S.P. VENTURES CORP. as a lessor to government entities?
Information regarding the historical performance and financial stability of N.S.P. VENTURES CORP. is not included in the provided data. Assessing the contractor's track record, including any past performance issues or financial distress, is important for ensuring reliable service delivery and mitigating potential risks associated with a long-term lease agreement.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Other Real Estate Property
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1025 THOMAS JEFFERSON ST NW # 145, WASHINGTON, DC, 20007
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $113,986,370
Exercised Options: $113,986,370
Current Obligation: $113,986,370
Actual Outlays: $102,954,708
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-01-01
Current End Date: 2026-09-30
Potential End Date: 2036-09-30 00:00:00
Last Modified: 2026-02-26
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