FTC awards $4.2M lease support contract to Federal Acquisition Strategies LLC for 2.5 years

Contract Overview

Contract Amount: $4,236,859 ($4.2M)

Contractor: Federal Acquisition Strategies LLC

Awarding Agency: Federal Trade Commission

Start Date: 2024-03-27

End Date: 2026-09-25

Contract Duration: 912 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DC COMMERCIAL LEASE SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $4.2 million to FEDERAL ACQUISITION STRATEGIES LLC for work described as: DC COMMERCIAL LEASE SUPPORT Key points: 1. Contract value appears reasonable for administrative management consulting services over a 2.5-year period. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns for the government. 4. The contract duration of 912 days is substantial, indicating a long-term need. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of $4.2 million over approximately 2.5 years for administrative management and general management consulting services appears to be within a reasonable range for federal contracts of this nature. Without specific benchmarks for 'DC COMMERCIAL LEASE SUPPORT' services, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests the government has a clear understanding of the costs involved, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding environment, which can lead to better pricing and service options for the government. The number of bidders is not specified, but the method of competition implies a deliberate effort to solicit a wide range of proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The Federal Trade Commission (FTC) is the primary beneficiary, receiving support for its commercial lease administration. The services delivered are focused on administrative management and general management consulting, specifically related to commercial leases. The geographic impact is centered in the District of Columbia (DC), where the FTC is located and likely manages its leases. Workforce implications are likely internal to the contractor, Federal Acquisition Strategies LLC, rather than direct federal hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over two years may lead to contractor complacency if not actively managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services.
Reliance on a single delivery order for a significant amount could indicate a lack of strategic sourcing if multiple needs exist.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a competitive process that should yield fair market pricing.
The contractor, Federal Acquisition Strategies LLC, is being awarded a contract, implying some level of prior vetting or capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. The federal government is a significant consumer of such services, often outsourcing specialized functions like lease management to leverage external expertise. Comparable spending benchmarks would typically be found by analyzing other federal contracts for similar administrative support or consulting services, particularly those managed by agencies with large real estate portfolios.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Federal Acquisition Strategies LLC, is likely a small business itself, but this contract does not appear to have been specifically structured to promote small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program office within the Federal Trade Commission responsible for lease administration. As a delivery order, it is likely governed by the terms of a parent IDIQ contract, which would have its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance reviews and Inspector General involvement would depend on specific performance issues or audits.

Related Government Programs

Federal Real Estate Management
Government Administrative Support Services
Commercial Lease Agreements
Management and Consulting Services

Risk Flags

Contract duration may exceed current needs.
Performance metrics not publicly detailed.
Potential for vendor lock-in over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $4.2 million to FEDERAL ACQUISITION STRATEGIES LLC. DC COMMERCIAL LEASE SUPPORT

Who is the contractor on this award?

The obligated recipient is FEDERAL ACQUISITION STRATEGIES LLC.

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2024-03-27. End: 2026-09-25.

What is the typical cost range for commercial lease support services for federal agencies of the FTC's size?

Determining a precise 'typical' cost range for commercial lease support services is complex due to variations in scope, location, duration, and the specific services required (e.g., property management, legal review, financial analysis, strategic planning). For a federal agency like the FTC, which operates primarily in the District of Columbia, lease support could encompass a wide array of activities. Contracts for similar administrative and management consulting services (NAICS 541611) awarded under full and open competition can range from tens of thousands to millions of dollars annually, depending on the scale of the agency's real estate footprint and the complexity of its lease portfolio. The $4.2 million awarded over approximately 2.5 years, averaging around $1.68 million per year, suggests a significant level of support is anticipated, potentially covering multiple properties or complex lease negotiations and management.

How does the firm-fixed-price contract type benefit the FTC in this scenario?

The firm-fixed-price (FFP) contract type is advantageous for the Federal Trade Commission (FTC) because it establishes a ceiling price that is not subject to adjustment based on the contractor's cost experience. This provides the FTC with significant cost certainty and predictability. Under an FFP contract, the contractor, Federal Acquisition Strategies LLC, assumes the primary risk for cost overruns. This structure incentivizes the contractor to manage its resources efficiently and control costs to maximize its profit margin. For services like commercial lease support, where the scope of work can be defined with reasonable clarity, an FFP contract is often preferred to protect the government from unexpected price increases, ensuring the $4.2 million award remains the total cost unless changes are formally negotiated.

What are the potential risks associated with a 912-day contract duration?

A contract duration of 912 days (approximately 2.5 years) presents several potential risks. Firstly, there's the risk of contractor performance degradation over time; initial high performance might wane if not continuously monitored. Secondly, market conditions or the agency's needs could evolve significantly during this period, potentially making the contracted services less relevant or requiring costly modifications. Thirdly, a long duration can reduce flexibility for the agency to switch to potentially better or more cost-effective solutions if they emerge mid-contract. Finally, there's the risk of 'vendor lock-in,' where the agency becomes heavily reliant on the incumbent contractor, making a future transition more complex and expensive. Robust performance management and regular reviews are crucial to mitigate these risks.

What does 'delivery order' imply about the overall contracting strategy?

The term 'delivery order' typically implies that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This strategy allows the government to establish pre-negotiated terms, conditions, and pricing structures with multiple vendors upfront. When a specific need arises, like the FTC's requirement for commercial lease support, a delivery order is issued to one of the awardees. This approach offers flexibility and speed in acquisition, as the competition and negotiation for the basic contract have already occurred. It suggests that Federal Acquisition Strategies LLC was one of several potential awardees on a broader contract, and this specific order represents a defined scope of work within that framework.

How does the NAICS code 541611 inform our understanding of the services provided?

The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' provides a clear indication of the nature of the services being procured. This code encompasses establishments primarily engaged in providing operating advice and assistance on matters of management to clients. This includes areas such as administrative and personnel management, planning and policy, marketing, and operational improvement. For the FTC's 'DC COMMERCIAL LEASE SUPPORT' contract, this NAICS code suggests the services likely involve strategic advice, process improvement, organizational planning, and general management assistance related to the agency's commercial real estate holdings and lease agreements, rather than purely transactional or facilities management tasks.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

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: 5680 KING CENTRE DR STE 600, ALEXANDRIA, VA, 22315

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,413,642

Exercised Options: $4,236,859

Current Obligation: $4,236,859

Actual Outlays: $3,113,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F194AA

IDV Type: FSS

Timeline