HHS awards $200K for 5-day lodging and meeting services to AREPII CC HOTEL LLC

Contract Overview

Contract Amount: $20,018 ($20.0K)

Contractor: Arepii CC Hotel LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-10-24

End Date: 2023-10-29

Contract Duration: 5 days

Daily Burn Rate: $4.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LODGING, MEETING, AND AV EXPENSES FOR PEER REVIEW

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20015

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20,018 to AREPII CC HOTEL LLC for work described as: LODGING, MEETING, AND AV EXPENSES FOR PEER REVIEW Key points: 1. The contract is for lodging, meeting, and AV expenses. 2. The awardee, AREPII CC HOTEL LLC, operates in the Hotels (except Casino Hotels) and Motels sector. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. The total award amount is $200,018 for a 5-day duration. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The price of $200,018 for 5 days of lodging and meeting services appears high for the specified duration and location. Benchmarking against similar government contracts for hotel and conference facilities is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition pool. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The $200,018 expenditure represents taxpayer funds for essential government operations. Ensuring competitive pricing within SAP is crucial for maximizing the value of these funds.

Public Impact

Government employees will utilize lodging and meeting facilities, impacting travel and operational costs. The contract supports the National Institutes of Health's mission by providing necessary facilities for peer review activities. Local businesses in the District of Columbia may benefit from the economic activity generated by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to limited competition under SAP.
High per-diem costs if lodging rates exceed federal per-diem limits.
Scope creep risk if meeting requirements expand beyond initial agreement.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Short duration limits long-term financial exposure.
Awarded under Simplified Acquisition Procedures for efficiency.

Sector Analysis

The contract falls within the hospitality sector, specifically hotels and motels. Government spending in this sector often involves per diem rates for lodging and facility rental for meetings and conferences.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight would involve ensuring the services rendered meet the contract's specifications and that billing is accurate. The use of SAP suggests a streamlined process, but adherence to procurement regulations remains key.

Related Government Programs

Hotels (except Casino Hotels) and Motels
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition under SAP.
Potential for pricing inefficiencies.
Lack of detailed cost breakdown.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20,018 to AREPII CC HOTEL LLC. LODGING, MEETING, AND AV EXPENSES FOR PEER REVIEW

Who is the contractor on this award?

The obligated recipient is AREPII CC HOTEL LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $20,018.

What is the period of performance?

Start: 2023-10-24. End: 2023-10-29.

What is the average cost per person per day for lodging and meeting services?

Without knowing the number of attendees or specific room rates versus meeting space costs, calculating an exact per-person, per-day cost is difficult. However, with a total award of $200,018 over 5 days, the average daily spend is approximately $40,000. This figure needs to be broken down into lodging and meeting expenses to compare against benchmarks.

What specific peer review activities necessitate this level of expenditure for lodging and meetings?

The peer review activities supported by this contract likely involve critical scientific or research proposals requiring in-person deliberation by expert panels. The duration and scope suggest complex reviews demanding significant time and resources, including travel and accommodation for reviewers.

How does the pricing compare to federal per diem rates and typical conference facility rental costs in Washington D.C.?

A thorough comparison requires detailed breakdowns of lodging rates per room and meeting space rental fees. If the awarded rates exceed federal per diem limits for the specified dates and location, or if meeting space costs are significantly higher than market rates, it could indicate a lack of optimal price discovery.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 MILITARY RD NW, WASHINGTON, DC, 20015

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,018

Exercised Options: $20,018

Current Obligation: $20,018

Actual Outlays: $20,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98018A00037

IDV Type: BPA

Timeline