DHS awards $5.8M parking contract to Potomac Center North Inc. for 5 years

Contract Overview

Contract Amount: $5,814,398 ($5.8M)

Contractor: Potomac Center North Inc

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-28

End Date: 2024-05-31

Contract Duration: 1,891 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCN PARKING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.8 million to POTOMAC CENTER NORTH INC for work described as: PCN PARKING Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 1891 days (over 5 years) suggests a long-term need for parking services. 3. Fixed-price contract type offers cost certainty but may limit flexibility for unforeseen changes. 4. The service area is limited to Washington D.C., indicating a localized need. 5. No small business set-aside was utilized, suggesting potential missed opportunities for small business participation.

Value Assessment

Rating: fair

The contract value of $5.8 million over approximately five years for parking services appears to be within a reasonable range for a major metropolitan area. However, without specific details on the scope of services (e.g., number of spaces, security features, operating hours) and comparable contract data for similar facilities managed by DHS or other federal agencies, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost predictability for the government.

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. This approach is typically used when only one responsible source is available or when the agency determines it is not in the public interest to compete the requirement. The lack of competition means there was no opportunity for multiple vendors to bid, potentially leading to higher prices than if a competitive process had been employed.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost reductions that could have arisen from a bidding process. This could result in a higher overall expenditure for the government compared to a competitively awarded contract.

Public Impact

Federal employees and authorized personnel within U.S. Immigration and Customs Enforcement (ICE) are the primary beneficiaries, gaining access to necessary parking facilities. The contract ensures the availability of parking services, which is crucial for the operational efficiency of the agency's presence in Washington D.C. The geographic impact is confined to Washington D.C., specifically serving the needs of ICE operations in that locality. There are no direct workforce implications mentioned, as the contract is for services rather than direct employment generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of small business participation may exclude smaller, potentially more agile providers.
Long contract duration could lead to vendor lock-in and reduced flexibility for the agency.

Positive Signals

Firm fixed-price contract provides budget certainty for the agency.
Contract ensures essential parking services are available for agency operations.
Award to an established entity (Potomac Center North Inc.) may indicate reliability.

Sector Analysis

The contract falls within the broader category of facilities management and real estate services, specifically focusing on parking infrastructure. The market for parking services in major urban centers like Washington D.C. is substantial, with numerous private operators. Federal agencies often lease or procure parking facilities to support their operational needs, and the pricing can vary significantly based on location, amenities, and contract terms. This contract represents a specific instance of federal spending within this sector.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses. The sole-source nature of the award further limits the opportunity for small businesses to participate in this particular contract. This suggests that the agency did not prioritize small business engagement for this specific parking service requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. Standard contract administration processes, including performance monitoring and invoice review, would be in place. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. There is no specific mention of an Inspector General's direct involvement beyond routine audits.

Related Government Programs

Federal Building and Facilities Management
Government Real Estate Services
Department of Homeland Security Operations Support
Immigration and Customs Enforcement Facilities

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of small business participation noted.
Contract duration is lengthy, potentially limiting future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.8 million to POTOMAC CENTER NORTH INC. PCN PARKING

Who is the contractor on this award?

The obligated recipient is POTOMAC CENTER NORTH INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2019-03-28. End: 2024-05-31.

What specific services are included under this parking contract?

The provided data indicates the contract is for 'Parking Lots and Garages' (NAICS 812930). However, the specific services are not detailed. This typically includes the provision and management of parking spaces, potentially encompassing access control, security, maintenance, and customer service for authorized users. The exact scope would be defined in the contract's statement of work, which is not available in the provided data. Understanding the precise services is crucial for evaluating the contract's value and necessity.

How does the $5.8 million cost compare to similar federal parking contracts in Washington D.C.?

A direct comparison of the $5.8 million cost for this 5-year contract is difficult without more specific data on the scope of services and the number of parking spaces provided. Federal parking contracts in Washington D.C. can vary widely in price due to location, security requirements, and amenities. However, given the sole-source nature, it is plausible that a competitive bidding process could have yielded lower rates. Benchmarking against other sole-source or competitively awarded parking contracts for similar federal facilities in the D.C. area would be necessary for a more robust assessment of value for money.

What are the risks associated with awarding a parking contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated costs due to the lack of competition. Without competing bids, the government may not achieve the best possible price. Other risks include limited innovation, as the contractor may have less incentive to offer new solutions, and potential vendor lock-in, making it difficult to switch providers in the future. Furthermore, it raises questions about whether a competitive process was adequately explored or if there were legitimate justifications for bypassing it, such as urgent need or unique capabilities.

What is the track record of Potomac Center North Inc. with federal contracts?

The provided data indicates Potomac Center North Inc. (co) has been awarded this definitive contract by the Department of Homeland Security (ag). Further investigation into federal contract databases (like SAM.gov or FPDS) would be required to ascertain the company's full track record, including past performance on other federal contracts, any history of disputes or performance issues, and the types and values of contracts previously awarded to them. This information is crucial for assessing the contractor's reliability and suitability for fulfilling the current parking services requirement.

What is the historical spending pattern for parking services by U.S. Immigration and Customs Enforcement?

The provided data only shows this single contract award of $5.8 million from March 2019 to May 2024. To understand historical spending patterns for parking services by U.S. Immigration and Customs Enforcement (ICE), a broader analysis of past contracts would be needed. This would involve querying federal procurement databases for all parking-related contracts awarded by ICE over several fiscal years, noting the award types (competed vs. sole-source), contract values, durations, and the contractors involved. This would reveal trends in spending, reliance on specific vendors, and the overall investment in parking infrastructure.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Parking Lots and Garages

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 12TH ST SW, WASHINGTON, DC, 20024

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

Financial Breakdown

Contract Ceiling: $5,814,398

Exercised Options: $5,814,398

Current Obligation: $5,814,398

Actual Outlays: $2,352,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline