HHS Leases NIH Office Space for $99K Monthly, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $16,981,303 ($17.0M)

Contractor: Caplease, LP

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-09

End Date: 2013-11-30

Contract Duration: 2,336 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LRP109869 6116 EXEC BLVD. JUNE RENT INV0607-109869 $99,131.72

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.0 million to CAPLEASE, LP for work described as: LRP109869 6116 EXEC BLVD. JUNE RENT INV0607-109869 $99,131.72 Key points: 1. The contract is for office space rental, a common but essential government function. 2. Competition was full and open, suggesting a competitive bidding process. 3. The fixed-price contract type helps control costs, but the duration is long. 4. The sector is primarily real estate services for government facilities.

Value Assessment

Rating: fair

The monthly rent of $99,131.72 for office space appears within a reasonable range for commercial real estate in Maryland, though specific market data is 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 multiple bids were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are used for rent, a recurring operational cost. The long duration and fixed price suggest predictable budgeting but may limit flexibility.

Public Impact

Ensures continued operational space for the National Institutes of Health (NIH). Supports federal agency presence and research activities in Maryland. Provides revenue for the lessor, CAPLEASE, LP, a private entity. The long-term lease impacts federal real estate portfolio management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2336 days) may reduce flexibility.
Fixed-price contract offers limited upside for cost savings if market rates decrease.

Positive Signals

Full and open competition suggests a fair market approach.
Clear contract terms with a fixed price.

Sector Analysis

This contract falls under the real estate and facilities management sector, specifically leasing non-residential buildings. Government spending in this area is driven by agency operational needs and location requirements.

Small Business Impact

The data does not indicate if small businesses were involved in this specific lease agreement, either as bidders or subcontractors.

Oversight & Accountability

Standard contract oversight by the Department of Health and Human Services (HHS) would apply, ensuring compliance with lease terms and payment schedules.

Related Government Programs

Lessors of Nonresidential Buildings (except Miniwarehouses)
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration
Fixed-price contract
Potential for market rate fluctuations over lease term

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.0 million to CAPLEASE, LP. LRP109869 6116 EXEC BLVD. JUNE RENT INV0607-109869 $99,131.72

Who is the contractor on this award?

The obligated recipient is CAPLEASE, LP.

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 $17.0 million.

What is the period of performance?

Start: 2007-07-09. End: 2013-11-30.

What is the total cost of the lease over its entire duration?

The total cost of the lease can be estimated by multiplying the monthly rent by the number of months in the duration. The duration is 2336 days, which is approximately 76.7 months. Therefore, the total cost is roughly $99,131.72/month * 76.7 months, equating to approximately $7.6 million over the life of the contract.

What are the risks associated with a long-term, fixed-price lease for office space?

A long-term, fixed-price lease carries risks such as potential overpayment if market rental rates decline significantly over the lease period. It also reduces the agency's flexibility to relocate or downsize if its needs change, potentially leading to underutilized or unnecessarily expensive space.

How does this lease contribute to the NIH's mission effectiveness?

This lease provides essential physical infrastructure for the NIH's operations, enabling its research and administrative functions to continue uninterrupted. Secure and adequate office space is fundamental to maintaining workforce productivity and supporting the agency's scientific endeavors.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 MAIDEN LN 36 FL, NEW YORK, NY, 90

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

Financial Breakdown

Contract Ceiling: $16,981,303

Exercised Options: $16,981,303

Current Obligation: $16,981,303

Contract Characteristics

Multi-Year Contract: Yes

Timeline