State Department leases family housing for $62M, awarded to Worldwide Corporate Housing, L.P

Contract Overview

Contract Amount: $62,000,000 ($62.0M)

Contractor: Worldwide Corporate Housing, L.P.

Awarding Agency: Department of State

Start Date: 2010-12-03

End Date: 2012-11-15

Contract Duration: 713 days

Daily Burn Rate: $87.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::19 0113 000::TAS LEASE RENTAL OF FAMILY HOUSING - ADD FUNDS

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90064

State: California Government Spending

Plain-Language Summary

Department of State obligated $62.0 million to WORLDWIDE CORPORATE HOUSING, L.P. for work described as: TAS::19 0113 000::TAS LEASE RENTAL OF FAMILY HOUSING - ADD FUNDS Key points: 1. The contract value of $62 million represents a significant investment in family housing solutions. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this lease to similar housing arrangements. 5. The sector positioning of this contract is analyzed within the broader hospitality and housing market. 6. The duration of the contract (713 days) suggests a medium-term need for these services.

Value Assessment

Rating: fair

The awarded amount of $62 million for family housing leases over approximately two years requires careful benchmarking. Without specific details on the number of units, locations, and amenities, a precise value-for-money assessment is challenging. However, comparing this to average rental costs for comparable housing in the specified regions, adjusted for any unique service requirements, would be necessary. The contract's fixed-price nature suggests cost certainty, but potential overpricing or under-delivery of value can still occur if the initial price was not well-justified by market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bidders suggests a reasonably competitive environment, which should theoretically drive prices towards market equilibrium. The extent to which these bidders were qualified and the rigor of the evaluation process would determine the actual effectiveness of the competition in securing the best value for the government.

Taxpayer Impact: A competitive bidding process for housing leases helps ensure that taxpayer funds are used efficiently by preventing inflated prices and encouraging providers to offer services at reasonable rates.

Public Impact

Serves Department of State personnel and their families by providing essential housing. Facilitates the operational readiness and morale of diplomatic and government staff abroad. Geographic impact is likely concentrated in areas where State Department personnel are stationed. Supports the workforce by ensuring stable and adequate living conditions for employees and their families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if market rental rates fluctuate significantly beyond initial projections.
Risk of service quality issues if contractor performance is not rigorously monitored.
Dependency on a single contractor for a critical service like housing can create vulnerabilities.

Positive Signals

Awarded through full and open competition, suggesting a fair market price was sought.
Fixed-price contract type provides cost certainty for the government.
Multiple bidders (5) indicate a healthy level of market interest and potential for competitive pricing.

Sector Analysis

The contract falls within the hospitality and real estate services sector, specifically focusing on corporate housing and property leasing. This market is characterized by varying levels of competition depending on location and service scope. The Department of State's need for secure and reliable housing for its personnel aligns with specialized segments of this industry. Benchmarking would involve comparing lease rates to similar government or private sector leases for comparable properties in relevant geographic areas.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. The contract's nature as a lease rental for family housing might not lend itself to typical small business set-aside structures unless specific property management or maintenance services are carved out. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the primary contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and relevant program managers within the Department of State. Accountability measures would be defined in the contract's terms and conditions, including performance standards and remedies for non-compliance. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are usually internal.

Related Government Programs

Department of State Family Housing Programs
Government Leased Housing Services
Overseas Private Investment Corporation (OPIC) Housing Support
General Services Administration (GSA) Real Estate Services

Risk Flags

Potential for cost creep if market conditions change
Reliance on contractor performance for essential services
Need for detailed benchmarking to confirm value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $62.0 million to WORLDWIDE CORPORATE HOUSING, L.P.. TAS::19 0113 000::TAS LEASE RENTAL OF FAMILY HOUSING - ADD FUNDS

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 $62.0 million.

What is the period of performance?

Start: 2010-12-03. End: 2012-11-15.

What is the average cost per unit or per person for the family housing leased under this contract?

The provided data indicates a total contract value of $62,000,000 over a period of 713 days. However, the number of housing units or the number of individuals/families served is not specified. To determine the average cost per unit or per person, this information would be essential. For instance, if the contract provided housing for 100 families, the average annual cost per family would be approximately $435,000 ($62,000,000 / (100 families * 1.98 years)). If it served 200 individuals, the average annual cost per person would be around $156,000. Without the quantity of units or occupants, a precise per-unit or per-person cost cannot be calculated, making direct value comparisons difficult.

How does the awarded price compare to market rates for similar family housing in the relevant geographic locations?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' with 5 bidders, suggesting a competitive market. However, to compare the awarded price of $62 million to market rates, specific details about the geographic locations of the leased properties are crucial. If the housing is in high-cost-of-living areas or areas with limited housing availability, the $62 million might be in line with or even below market rates. Conversely, if the locations are less expensive, the price could be higher than typical market values. A thorough analysis would require benchmarking against average rental prices for comparable properties (size, amenities, security features) in those specific cities or regions, considering the contract duration and any included services.

What are the specific performance metrics and service level agreements (SLAs) associated with this housing lease contract?

The provided summary data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Typically, housing lease contracts would include clauses related to property maintenance, safety standards, response times for repairs, utility provision, and potentially security measures, especially for government personnel. The effectiveness of the $62 million investment hinges on the contractor's adherence to these standards. Without access to the full contract document, it's impossible to assess the rigor of these performance requirements and the mechanisms for ensuring compliance and addressing potential deficiencies.

What is the track record of Worldwide Corporate Housing, L.P. in fulfilling similar government housing contracts?

The provided data identifies 'WORLDWIDE CORPORATE HOUSING, L.P.' as the contractor. To assess their track record, one would need to examine their past performance on similar federal contracts, particularly those involving leased family housing or corporate accommodations. This would involve reviewing contract histories for on-time delivery, quality of service, compliance with terms, and any past performance evaluations or disputes. A contractor with a history of successful, timely, and compliant performance on similar contracts would represent a lower risk and potentially better value than one with a history of issues.

What is the historical spending trend for family housing leases by the Department of State or similar agencies?

The provided data pertains to a single contract awarded on 2010-12-03 for $62 million. To understand historical spending trends for family housing leases by the Department of State or similar agencies, a broader dataset encompassing multiple contracts over several fiscal years would be required. This would allow for analysis of spending patterns, fluctuations in demand, average contract values, and the prevalence of full-and-open versus other competition types. Without this broader context, it is difficult to determine if the $62 million expenditure represents an increase, decrease, or stable level of spending for this category of service.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $62,000,000

Exercised Options: $62,000,000

Current Obligation: $62,000,000

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMPD06D1145

IDV Type: IDC

Timeline