State Department spent $10M on family housing leases, with a per-unit cost of $39,526
Contract Overview
Contract Amount: $10,000,000 ($10.0M)
Contractor: Worldwide Corporate Housing, L.P.
Awarding Agency: Department of State
Start Date: 2007-10-18
End Date: 2008-06-27
Contract Duration: 253 days
Daily Burn Rate: $39.5K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LEASE-RENTAL OF FAMILY HOUSING
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90064
Plain-Language Summary
Department of State obligated $10.0 million to WORLDWIDE CORPORATE HOUSING, L.P. for work described as: LEASE-RENTAL OF FAMILY HOUSING Key points: 1. The contract value of $10 million for family housing leases suggests a significant investment in personnel support. 2. The fixed-price contract type indicates that costs were determined upfront, potentially limiting cost overruns but also the flexibility to adapt to changing needs. 3. The short duration of 253 days suggests a temporary or transitional housing solution rather than long-term accommodation. 4. The single award to Worldwide Corporate Housing, L.P. warrants a review of the competition dynamics. 5. The North American Industry Classification System (NAICS) code 721110 points to the hospitality sector, specifically hotels and motels. 6. The contract was awarded in California, indicating a specific geographic focus for these housing services.
Value Assessment
Rating: fair
The total contract value of $10 million for housing leases appears substantial. The reported average cost per unit of $39,526 is high and requires further context. Without knowing the number of units or the duration of occupancy per unit, it's difficult to benchmark effectively against typical housing costs or similar government contracts. This figure could represent a premium for short-term, furnished, or specialized housing, or it could indicate potential overspending if it represents long-term unfurnished rentals.
Cost Per Unit: $39,526 per unit
Competition Analysis
Competition Level: unknown
The provided data does not specify the procurement method used for this contract. It is unclear whether this was a full and open competition, a limited solicitation, or a sole-source award. The number of bidders and the rationale for the chosen competition level are not detailed. Understanding the competition dynamics is crucial to assessing whether the government received the best possible pricing and value.
Taxpayer Impact: If this contract was not competitively bid, taxpayers may have paid a premium. A lack of competition can lead to higher prices and reduced innovation.
Public Impact
This contract directly benefits Department of State personnel and their families by providing housing solutions. The services delivered are lease and rental of family housing, ensuring accommodation for government employees. The geographic impact is concentrated in California, where the housing was secured. Workforce implications include supporting the morale and readiness of State Department employees by addressing their housing needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency regarding the competition method raises concerns about potential price inflation.
- The high per-unit cost warrants scrutiny to ensure value for taxpayer money.
- The short contract duration might indicate a reactive procurement rather than strategic planning.
Positive Signals
- The contract addresses a critical need for family housing for government personnel.
- The firm fixed-price contract type provides cost certainty for the government.
Sector Analysis
The contract falls within the broader hospitality and real estate services sector, specifically related to lodging and housing. The NAICS code 721110, 'Hotels (except Casino Hotels) and Motels,' suggests the type of accommodation procured. Government spending in this area often supports personnel stationed domestically or abroad, ensuring operational readiness. Benchmarking this spending against private sector hotel rates or long-term rental markets in California would provide further context on its value.
Small Business Impact
There is no indication from the provided data that this contract involved small business set-asides or subcontracting opportunities. Further investigation would be needed to determine if small businesses were involved in any capacity, either as prime contractors or subcontractors, and to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the firm fixed-price contract. Transparency regarding the procurement process and performance would depend on the agency's adherence to federal acquisition regulations and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of State Family Housing Programs
- Government Employee Relocation Services
- Temporary Duty (TDY) Housing Contracts
- Lodging and Hospitality Services Contracts
Risk Flags
- Potential for high per-unit cost
- Lack of competition details
- Short contract duration may indicate reactive procurement
Tags
housing, lease-rental, family-housing, department-of-state, firm-fixed-price, california, hospitality, hotels-motels, unknown-competition, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $10.0 million to WORLDWIDE CORPORATE HOUSING, L.P.. LEASE-RENTAL OF FAMILY HOUSING
Who is the contractor on this award?
The obligated recipient is WORLDWIDE CORPORATE HOUSING, L.P..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2007-10-18. End: 2008-06-27.
What was the specific justification for awarding this contract to Worldwide Corporate Housing, L.P. without a more competitive bidding process?
The provided data does not contain the justification for the award to Worldwide Corporate Housing, L.P. To determine if the procurement process was justified, one would need to access the contract file, which should contain documentation outlining the solicitation method (e.g., sole-source justification, limited competition rationale) and the reasons for selecting this particular contractor. Factors such as urgency, unique capabilities of the contractor, or the absence of other qualified bidders could be relevant. Without this information, it is impossible to assess whether the government obtained fair and reasonable pricing or if alternative, more competitive options were overlooked.
How does the per-unit cost of $39,526 compare to market rates for similar family housing in California during the contract period?
The per-unit cost of $39,526 is a significant figure that requires careful comparison to market rates for family housing in California during the contract period (October 2007 - June 2008). This cost likely represents the total contract value divided by the number of units leased or the total number of person-nights accommodated. To benchmark effectively, one would need to know the exact number of units, the duration each unit was occupied, and the specific geographic locations within California. If this figure represents the cost per family for the entire contract duration, it would be exceptionally high compared to typical rental markets. However, if it represents a per-diem rate or a cost for a very short-term, high-amenity housing solution, it might be more justifiable. Further data on the scope of services and the number of individuals housed is essential for a meaningful comparison.
What were the specific services included in the 'LEASE-RENTAL OF FAMILY HOUSING' contract, and did they justify the total expenditure?
The description 'LEASE-RENTAL OF FAMILY HOUSING' is broad and does not detail the specific services included. To assess if the $10 million expenditure was justified, a breakdown of services is necessary. This could include furnished versus unfurnished units, duration of leases, included utilities, proximity to work locations, security provisions, property management services, or any additional amenities. If the contract involved short-term leases, fully furnished accommodations, or housing in high-cost areas with specific security requirements for State Department personnel, the expenditure might be more easily justified. Conversely, if it entailed long-term unfurnished rentals in standard housing markets, the cost would warrant closer examination for potential inefficiencies or overpricing.
What is the track record of Worldwide Corporate Housing, L.P. in providing similar housing services to government agencies?
Information regarding the track record of Worldwide Corporate Housing, L.P. in providing similar services to government agencies is not included in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government contracts. This would involve searching federal procurement databases (like SAM.gov or FPDS) for other awards to this contractor, examining past performance questionnaires, and potentially consulting with agency contracting officers who have previously worked with them. Understanding their history is crucial for evaluating the reliability and effectiveness of their service delivery in this instance.
Were there any performance issues or contract modifications during the execution of this lease agreement?
The provided data summary does not include details on contract performance or modifications for this specific lease agreement. To determine if there were performance issues or modifications, one would need to examine the official contract file and any associated amendments or performance reports. Such records would indicate if the contractor met the terms of the agreement, if any disputes arose, or if changes to the scope, duration, or cost were formally approved. The absence of reported issues in a summary does not guarantee flawless execution; it simply means such details were not included in the abbreviated data set.
How does the total spending on family housing leases by the Department of State compare to previous years or other agencies?
The provided data focuses on a single contract and does not offer historical spending trends for the Department of State's family housing leases or comparative spending data across other federal agencies. To conduct such an analysis, one would need access to broader federal procurement databases and budget reports. This would involve aggregating spending data for similar contract types (NAICS 721110, housing services) over multiple fiscal years and across different agencies. Such a comparison would help determine if the $10 million expenditure represents an increase or decrease in spending, or if it aligns with or deviates from typical investment levels in this category.
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
Contractor Details
Parent Company: R&B Realty Group (UEI: 045544103)
Address: 2222 CORINTH AVE, LOS ANGELES, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,000,000
Exercised Options: $10,000,000
Current Obligation: $10,000,000
Parent Contract
Parent Award PIID: SAQMPD06D1145
IDV Type: IDC
Timeline
Start Date: 2007-10-18
Current End Date: 2008-06-27
Potential End Date: 3008-06-27 00:00:00
Last Modified: 2010-03-13
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