DoD Awards $16.5M for Lodging Services in California, Competed Under SAP
Contract Overview
Contract Amount: $16,568,299 ($16.6M)
Contractor: Luneh
Awarding Agency: Department of Defense
Start Date: 2024-08-27
End Date: 2025-10-01
Contract Duration: 400 days
Daily Burn Rate: $41.4K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 30
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LODGING BLOCK 1
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106
Plain-Language Summary
Department of Defense obligated $16.6 million to LUNEH for work described as: LODGING BLOCK 1 Key points: 1. The contract value of $16.5M for lodging services is significant for this category. 2. Competition under SAP suggests a potentially streamlined but possibly less aggressive pricing environment. 3. Risk appears moderate, with a fixed price contract and defined duration. 4. The sector is residential real estate leasing, a common government need.
Value Assessment
Rating: good
The contract value of $16.5M for lodging services appears reasonable given the duration of 400 days and the number of units (30). Benchmarking against similar government lodging contracts would provide a more precise assessment.
Cost Per Unit: $138,052.50 per unit over the contract period (approx. $345/unit/day)
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), indicating a limited competition environment. While this can expedite the process, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for lodging services, with the efficiency of the procurement process impacting the overall value for money.
Public Impact
Ensures essential lodging for military personnel or operations in California. Supports the local real estate market through a government contract. Potential for cost savings if SAP competition was effective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- Potential for price escalation if market rates increase significantly.
Positive Signals
- Fixed-price contract provides cost certainty.
- Defined contract duration and scope.
Sector Analysis
The sector involves real estate leasing, specifically residential buildings. Government spending in this area is typically driven by operational needs, troop housing, or temporary assignments. Benchmarks vary widely based on location and service level.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight would typically involve contract administration by the Department of the Navy to ensure service delivery and compliance with contract terms. Accountability rests with the contracting officer and the agency.
Related Government Programs
- Lessors of Residential Buildings and Dwellings
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Potential for above-market pricing.
- Reliance on a single lessor.
- Geographic concentration in California.
Tags
lessors-of-residential-buildings-and-dwe, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to LUNEH. LODGING BLOCK 1
Who is the contractor on this award?
The obligated recipient is LUNEH.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2024-08-27. End: 2025-10-01.
What is the typical cost per unit for similar lodging services in the specified California region?
Determining the typical cost per unit requires detailed market research for the specific California region and the type of lodging. Factors like proximity to military bases, amenities, and duration of stay significantly influence pricing. Without this localized data, a precise benchmark is difficult, but the calculated $345/unit/day suggests a potentially premium rate that warrants further investigation against comparable commercial or government rates.
What are the specific risks associated with a limited competition procurement under SAP for lodging services?
Limited competition under SAP can increase the risk of paying a non-competitive price, as fewer vendors are incentivized to offer their best rates. There's also a risk that the chosen vendor may have less experience or capacity than a vendor who might have bid in a broader competition. This can lead to potential service disruptions or quality issues if the vendor struggles to meet demand.
How effectively does this contract meet the government's need for lodging while ensuring optimal value for taxpayer money?
The contract effectively meets the need by securing lodging for 30 units over 400 days. However, the value for taxpayer money is contingent on the pricing achieved through SAP competition. While SAP aims for efficiency, it may not always secure the lowest price. A post-award analysis comparing the negotiated price against market rates and other potential bids would be necessary to fully assess value.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: N3904024R0017
Offers Received: 30
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4041 MACARTHUR BLVD STE 400, NEWPORT BEACH, CA, 92660
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,755,499
Exercised Options: $16,568,299
Current Obligation: $16,568,299
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-27
Current End Date: 2025-10-01
Potential End Date: 2026-11-01 00:00:00
Last Modified: 2025-07-22
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