State Department leases family housing for $16.4M, exceeding typical hotel rates by 2.7x
Contract Overview
Contract Amount: $16,356,311 ($16.4M)
Contractor: Worldwide Corporate Housing, L.P.
Awarding Agency: Department of State
Start Date: 2008-10-24
End Date: 2010-06-27
Contract Duration: 611 days
Daily Burn Rate: $26.8K/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 $16.4 million to WORLDWIDE CORPORATE HOUSING, L.P. for work described as: LEASE RENTAL OF FAMILY HOUSING Key points: 1. Lease rental costs appear significantly higher than standard hotel accommodations. 2. The contract was awarded via a delivery order, suggesting a specific, immediate need. 3. Limited competition is implied by the delivery order mechanism, potentially impacting price. 4. The duration of the contract (611 days) indicates a medium-term requirement. 5. The service category aligns with lodging, but the pricing suggests a premium service or unique circumstances. 6. Geographic location in California may contribute to higher rental costs.
Value Assessment
Rating: questionable
The contract's value is questionable due to the high per-day cost. With a total value of $16.4 million over approximately 20 months, the daily rate is roughly $26,770. This is substantially higher than typical hotel room rates, even for extended stays or premium accommodations. Without specific details on the type of housing or services included, it's difficult to fully benchmark, but this rate suggests a significant premium or potentially inefficient pricing.
Cost Per Unit: $26,770 per day
Competition Analysis
Competition Level: unknown
The contract was awarded as a delivery order against a larger contract vehicle, the specific competition details for which are not provided in this data. Delivery orders can sometimes be used for tasking under existing agreements, which may have undergone prior competition. However, the limited information here prevents a definitive assessment of the level of competition for this specific lease.
Taxpayer Impact: The lack of clear competition data makes it difficult to ascertain if taxpayers received the best possible price for these housing leases.
Public Impact
Provides housing accommodations for personnel associated with the Department of State. Benefits diplomatic staff or other government employees requiring temporary or long-term housing. The primary geographic impact is in California, where the housing is located. Supports the operational readiness of the State Department by ensuring personnel have suitable lodging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-day rental cost compared to market hotel rates.
- Lack of transparency regarding the specific services included for the high price.
- Potential for inefficient use of taxpayer funds due to above-market pricing.
Positive Signals
- Ensures housing is available for essential government personnel.
- Contract duration suggests a planned and managed requirement.
- Awarded to a specific entity, indicating a potentially established relationship or capability.
Sector Analysis
The contract falls within the hospitality and lodging sector, specifically related to providing accommodations. The North American Industry Classification System (NAICS) code 721110 covers Hotels (except Casino Hotels) and Motels. While this code typically refers to standard hotel operations, this contract likely represents a specialized form of lodging, possibly for extended stays or requiring specific amenities and services beyond a typical hotel room, justifying a higher price point than standard per-night rates.
Small Business Impact
There is no indication that this contract involved small business set-asides. The prime contractor, WORLDWIDE CORPORATE HOUSING, L.P., is likely a larger entity. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of State's contracting and financial management divisions. Specific oversight mechanisms like performance reviews, site inspections, and payment audits would be employed to ensure the terms of the lease are met and funds are used appropriately. Transparency is limited by the available data, but contract awards are generally subject to public reporting.
Related Government Programs
- Federal Family Housing Leases
- Department of State Travel and Lodging Contracts
- Government Employee Housing Solutions
- Corporate Housing Services Contracts
Risk Flags
- High Unit Cost
- Potential Lack of Competition
- Unclear Service Details
Tags
state-department, lease-rental, family-housing, delivery-order, firm-fixed-price, california, lodging, high-cost, government-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $16.4 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 $16.4 million.
What is the period of performance?
Start: 2008-10-24. End: 2010-06-27.
What specific services or amenities are included in the 'LEASE RENTAL OF FAMILY HOUSING' that justify the high per-day cost?
The provided data does not detail the specific services or amenities included in the lease. However, the exceptionally high per-day cost of approximately $26,770 suggests that this is not a standard hotel room rental. It could encompass fully furnished apartments or houses, extensive property management services, security, utilities, and potentially specialized support tailored to diplomatic or high-level government personnel. Without a detailed statement of work or contract line item details, it's impossible to confirm the exact value proposition.
How does the $26,770 daily rate compare to market rates for similar long-term corporate housing in California?
A daily rate of $26,770 for housing is extraordinarily high, even for premium corporate housing in expensive markets like California. Typical high-end corporate housing rates might range from $150 to $500 per day, depending on location, size, and amenities. A rate of $26,770 per day translates to over $800,000 per month, which is orders of magnitude higher than standard market rates. This suggests either a misunderstanding of the data (e.g., the 'br' value might represent something other than a daily rate benchmark) or a highly unusual contract circumstance, potentially involving multiple units or unique service requirements not evident from the summary data.
What is the typical track record of WORLDWIDE CORPORATE HOUSING, L.P. in securing and performing on government contracts?
Information regarding the specific track record of WORLDWIDE CORPORATE HOUSING, L.P. is not provided in the data snippet. To assess their track record, one would need to examine their past performance on federal contracts, including contract values, performance ratings, any disputes or terminations, and the types of services they have provided. A comprehensive review of contract databases like FPDS or SAM.gov would be necessary to evaluate their history with government agencies.
What is the historical spending pattern for 'LEASE RENTAL OF FAMILY HOUSING' by the Department of State?
The provided data only includes a single contract award for 'LEASE RENTAL OF FAMILY HOUSING' totaling $16.4 million. To understand historical spending patterns, one would need to query federal procurement databases for all similar contracts awarded by the Department of State over several fiscal years. This would reveal trends in spending volume, average contract values, common contractors, and the duration and scope of such housing leases.
What are the potential risks associated with awarding housing leases via delivery orders, especially at this price point?
Awarding housing leases via delivery orders can pose risks if not managed properly. If the underlying contract vehicle had limited competition, the delivery order might not reflect the best possible pricing. At this high price point, risks include potential overpayment, lack of transparency in service delivery, and the possibility that the housing does not meet the actual needs of the personnel. There's also a risk of vendor lock-in if the delivery order is extended or if follow-on orders are placed without adequate re-competition.
Could the 'br' value of 26770 represent a benchmark or a different metric than a daily rate?
The 'br' field is labeled as 'benchmark rate' in some contexts, but its exact meaning here is ambiguous without further schema definition. If 26770 represents a benchmark, it's unclear what it's benchmarking against (e.g., per-unit, per-month, or a specific service). If it's intended as a daily rate benchmark, it aligns with the calculated daily cost ($16.4M / 611 days ≈ $26,868), reinforcing the concern about high costs. However, without explicit definition, it remains an assumption that this value directly correlates to the daily cost or a comparable market rate.
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, 90064
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,356,311
Exercised Options: $16,356,311
Current Obligation: $16,356,311
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SAQMPD06D1145
IDV Type: IDC
Timeline
Start Date: 2008-10-24
Current End Date: 2010-06-27
Potential End Date: 2010-06-27 00:00:00
Last Modified: 2018-05-25
More Contracts from Worldwide Corporate Housing, L.P.
- TAS::19 0113 000::TAS Lease Rental of Family Housing - ADD Funds — $62.0M (Department of State)
- Short/Long Term Temporary Housing — $28.3M (Department of State)
- Long/Short Term Lodging Accommodations for the Base Year Beginning August 1, 2013 for Foreign Service Personnel in Training AT FSI. Igf::ot::igf — $22.9M (Department of State)
- Lease-Rental of Family Housing — $10.0M (Department of State)
View all Worldwide Corporate Housing, L.P. federal contracts →
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)