Treasury's OCC subleases conference rooms for $131K to optimize space utilization

Contract Overview

Contract Amount: $131,181 ($131.2K)

Contractor: Savills Inc.

Awarding Agency: Department of the Treasury

Start Date: 2026-04-02

End Date: 2028-04-01

Contract Duration: 730 days

Daily Burn Rate: $180/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUBLEASE OF CONFERENCE ROOMS 1W410 AND 1W420 AT CONSTITUTION CENTER IN ORDER TO DECREASE THE FOOTPRINT AND TO INCREASE AGENCY SPACE UTILIZATION.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $131,181.45 to SAVILLS INC. for work described as: SUBLEASE OF CONFERENCE ROOMS 1W410 AND 1W420 AT CONSTITUTION CENTER IN ORDER TO DECREASE THE FOOTPRINT AND TO INCREASE AGENCY SPACE UTILIZATION. Key points: 1. The contract aims to improve agency space utilization by subleasing underused conference rooms. 2. The value-for-money is assessed by comparing the sublease cost against potential savings from reduced operational expenses. 3. Competition dynamics indicate a full and open competition, suggesting a competitive pricing environment. 4. Risk indicators are low, given the nature of the service and the established contractor. 5. Performance context involves optimizing existing federal real estate assets. 6. The contract positions the agency to potentially reduce its overall real estate footprint.

Value Assessment

Rating: good

The contract value of $131,181.45 over two years for subleasing conference rooms appears reasonable. This is a relatively small contract focused on optimizing existing space rather than acquiring new services. Benchmarking against similar real estate optimization efforts is difficult without more specific market data on conference room subleasing rates in federal buildings. However, the primary goal is likely cost avoidance or reduction in overall facility costs, which can represent significant value if successful.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the method of competition suggests a robust process was followed.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for services or assets.

Public Impact

The primary beneficiaries are the Department of the Treasury's Office of the Comptroller of the Currency (OCC), which gains optimized space utilization. The services delivered involve the subleasing of specific conference rooms (1W410 and 1W420) within the Constitution Center. The geographic impact is localized to the District of Columbia, where the Constitution Center is located. There are no direct workforce implications mentioned, as this contract focuses on real estate optimization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for underutilization of subleased space if demand is lower than anticipated.
Dependence on the primary lease agreement for the Constitution Center.

Positive Signals

Proactive approach to managing federal real estate assets.
Potential cost savings through reduced footprint.
Contract awarded to a single entity, suggesting a clear point of accountability.

Sector Analysis

This contract falls within the broader real estate services sector, specifically focusing on space optimization and subleasing within federal government facilities. The market for such services is driven by government mandates for efficient space utilization and cost reduction. Comparable spending benchmarks are difficult to establish without detailed data on federal building occupancy and subleasing agreements across different agencies and locations.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary contractor is Savills Inc., a larger entity. There is no information to suggest subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Office of the Comptroller of the Currency's facilities management and contracting oversight. Accountability measures are inherent in the contract terms and performance period. Transparency is generally maintained through federal procurement databases, though specific operational details of subleasing might be internal.

Related Government Programs

Federal Real Estate Management
Government Facilities Optimization
Office Space Utilization

Risk Flags

Potential for underutilization of subleased space.
Dependence on primary lease terms.
Limited scope of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $131,181.45 to SAVILLS INC.. SUBLEASE OF CONFERENCE ROOMS 1W410 AND 1W420 AT CONSTITUTION CENTER IN ORDER TO DECREASE THE FOOTPRINT AND TO INCREASE AGENCY SPACE UTILIZATION.

Who is the contractor on this award?

The obligated recipient is SAVILLS INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $131,181.45.

What is the period of performance?

Start: 2026-04-02. End: 2028-04-01.

What is the track record of Savills Inc. in managing federal real estate contracts?

Savills Inc. is a global real estate services provider with a significant presence in the commercial real estate market. While specific details on their federal contract history are not provided in this data snippet, their broad experience in property management, leasing, and consulting suggests a capacity to handle such agreements. Federal agencies often engage large, established real estate firms due to their extensive networks, market knowledge, and established processes. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain the full scope and performance history of Savills Inc. with government entities, including any past issues or commendations related to similar space optimization or subleasing contracts.

How does the cost of this sublease compare to market rates for similar conference room spaces in Washington D.C.?

Directly comparing the sublease cost of $131,181.45 over two years for two conference rooms to market rates is challenging without more granular data. This figure represents the total value, not a monthly or per-square-foot rate. Federal leases and subleases can differ significantly from commercial market rates due to factors like security requirements, building infrastructure, and the specific terms negotiated. Furthermore, the 'value' here is not just rental income but also the strategic benefit of optimizing agency footprint. To benchmark effectively, one would need to know the exact square footage of the rooms, their amenities, and prevailing rates for comparable, secure federal-grade office or conference spaces in the Constitution Center's vicinity. The goal of optimizing agency space utilization suggests the OCC may be receiving a favorable internal rate or that the sublease is part of a larger strategy to consolidate or reduce overall leased space.

What are the primary risks associated with this sublease agreement?

The primary risks associated with this sublease agreement are relatively low given its nature. One potential risk is the possibility of underutilization of the subleased space if the demand for these specific conference rooms decreases significantly, leading to a less than optimal return on the subleasing effort. Another risk could be related to the primary lease agreement for the Constitution Center; any changes or early termination of the main lease by the government could impact this sublease. Operational risks, such as maintenance or security issues within the subleased rooms, are also present but are typically managed through the terms of the contract and the established facility management protocols of the Constitution Center. The contractor, Savills Inc., is expected to mitigate many of these operational risks.

How does this contract contribute to the OCC's broader goals for space utilization and cost efficiency?

This contract directly supports the OCC's goals for space utilization and cost efficiency by enabling the agency to reduce its overall physical footprint within the Constitution Center. By subleasing underutilized conference rooms, the OCC can potentially decrease its overall leased or occupied space, leading to savings in rent, utilities, maintenance, and other associated facility costs. This initiative aligns with broader federal mandates to optimize government real estate portfolios and reduce spending on underused assets. The strategic aim is to ensure that federal resources are allocated effectively, and this sublease represents a tactical step towards achieving greater efficiency in the agency's operational infrastructure.

What is the historical spending pattern for similar space optimization contracts within the Department of the Treasury?

Analyzing historical spending patterns for similar space optimization contracts within the Department of the Treasury requires access to detailed procurement data. This specific contract for subleasing conference rooms is relatively small ($131,181.45 over two years), suggesting it might be part of a larger, ongoing strategy for real estate management rather than a standalone major initiative. Federal agencies, including Treasury, have increasingly focused on optimizing their real estate footprint due to budget constraints and evolving work environments (e.g., hybrid work models). Spending in this area can fluctuate based on specific agency needs, available inventory of underutilized space, and directives from the Office of Management and Budget (OMB) or the General Services Administration (GSA). Without specific historical data on Treasury's real estate optimization projects, it's difficult to establish a precise spending pattern, but the trend is generally towards greater efficiency and consolidation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW25Q00082

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1201 F ST NW STE 500, WASHINGTON, DC, 20004

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

Financial Breakdown

Contract Ceiling: $131,181

Exercised Options: $131,181

Current Obligation: $131,181

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2031JW25A00004

IDV Type: BPA

Timeline