HHS awards $123,661 rent contract to 6100 EXECUTIVE LLC for Washington Science Center

Contract Overview

Contract Amount: $23,448,702 ($23.4M)

Contractor: 6100 Executive LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2022-02-01

Contract Duration: 5,240 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::75 0849::TAS LRP069864 INV.050769864 MAY07 RENT $123,661.63 6100 EXEC BLVD WASHINGTON SCIENCE CTR JT VENTURE EIN:152609669501

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.4 million to 6100 EXECUTIVE LLC for work described as: TAS::75 0849::TAS LRP069864 INV.050769864 MAY07 RENT $123,661.63 6100 EXEC BLVD WASHINGTON SCIENCE CTR JT VENTURE EIN:152609669501 Key points: 1. The contract is for rent at the Washington Science Center. 2. The awardee is 6100 EXECUTIVE LLC. 3. The contract was awarded by the Department of Health and Human Services (HHS). 4. The contract type is Firm Fixed Price. 5. The period of performance is over 5240 days.

Value Assessment

Rating: questionable

The rent cost of $123,661.63 for the Washington Science Center is difficult to assess without comparable lease data for similar facilities in the same geographic area. The long duration of the contract (over 14 years) also makes a direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism and how the final rent was determined are not provided, making it hard to fully evaluate the pricing outcome.

Taxpayer Impact: The taxpayer impact is the direct cost of the rent, $123,661.63, over the contract's extended period. Without competitive benchmarks, it's unclear if this represents optimal value for taxpayer funds.

Public Impact

Federal employees will utilize the Washington Science Center facility. The long-term lease impacts federal real estate utilization and budget planning. The contract supports the operational needs of the National Institutes of Health (NIH).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 14 years) may not reflect current market rates.
Lack of detailed pricing justification for rent.
No clear indication of small business participation.

Positive Signals

Awarded under full and open competition.
Supports critical scientific research infrastructure.

Sector Analysis

This contract falls under the 'Lessors of Nonresidential Buildings' sector, specifically for office and laboratory space. Federal spending in this sector is driven by agency needs for facilities, with costs influenced by location, size, and lease terms. Benchmarks for commercial real estate leases vary significantly by region.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no information provided regarding subcontracting opportunities for small businesses on this lease agreement.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services. Oversight would typically involve monitoring lease compliance, ensuring facility maintenance, and managing payments. The long duration necessitates consistent oversight to ensure continued value.

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.
Lack of detailed pricing justification.
No clear indication of market rate comparison.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.4 million to 6100 EXECUTIVE LLC. TAS::75 0849::TAS LRP069864 INV.050769864 MAY07 RENT $123,661.63 6100 EXEC BLVD WASHINGTON SCIENCE CTR JT VENTURE EIN:152609669501

Who is the contractor on this award?

The obligated recipient is 6100 EXECUTIVE 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 $23.4 million.

What is the period of performance?

Start: 2007-09-28. End: 2022-02-01.

What is the justification for the specific rent amount and the long contract duration, given the potential for market fluctuations?

The justification for the rent amount and long duration is not detailed in the provided data. Typically, such decisions are based on market analysis, agency needs, and the cost-effectiveness of a long-term commitment versus shorter leases with potential renewal uncertainties. Without further information, it's difficult to ascertain if this specific rent reflects optimal value or if the duration was strategically chosen to secure stable facilities.

How does the rent compare to similar commercial leases in the Washington D.C. metropolitan area for comparable scientific facilities?

A direct comparison of the rent to similar commercial leases is not possible with the provided data. Key factors like square footage, specific amenities, building class, and exact location within the D.C. metro area are missing. A thorough market analysis would be required to determine if $123,661.63 represents a competitive rate for the space and services provided at the Washington Science Center.

What are the specific terms and conditions regarding rent escalation or adjustments over the contract's extended period?

The provided data does not specify the terms and conditions for rent escalation or adjustments over the contract's extended period. Firm Fixed Price contracts can sometimes include clauses for adjustments based on economic price indices or other pre-defined factors. Understanding these terms is crucial for assessing the long-term financial commitment and potential for cost increases beyond the initial stated amount.

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

Parent Company: 6100 Executive LLC (UEI: 116949706)

Address: 507 N FREDERICK AVE, GAITHERSBURG, MD, 20877

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

Financial Breakdown

Contract Ceiling: $23,448,702

Exercised Options: $23,448,702

Current Obligation: $23,448,702

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline