Army leases troop housing facilities for over $14.6M, raising questions about value and competition

Contract Overview

Contract Amount: $10,737,426 ($10.7M)

Contractor: Ppcsc/Rac Benning JV1

Awarding Agency: Department of Defense

Start Date: 2004-06-09

End Date: 2010-07-31

Contract Duration: 2,243 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200411!001190!2100!W911SF!ACA, FORT BENNING !W911SF04C0016 !A!N! !N! ! !20040609!20070831!146760827!146760827!146760827!N!PPCSC/RAC BENNING JV1 !213 ALAPAHA HWY !OCILLA !GA!31774!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !+000003194882!N!N!000013187766!X163!LEASE/TROOP HOUSING FACILITIES !S1 !SERVICES !000 !* !531190!E! !3! ! ! ! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!5A!C!N!Z! ! !N!A!Y!N!E! ! ! !D!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to PPCSC/RAC BENNING JV1 for work described as: 200411!001190!2100!W911SF!ACA, FORT BENNING !W911SF04C0016 !A!N! !N! ! !20040609!20070831!146760827!146760827!146760827!N!PPCSC/RAC BENNING JV1 !213 ALAPAHA HWY !OCILLA !GA!31774!30760!215!13!FORT BENNING !MUSC… Key points: 1. Lease agreement for troop housing facilities appears to lack competitive bidding, potentially impacting cost-effectiveness. 2. The contract duration of over 6 years suggests a long-term need for these facilities. 3. The specific services provided under this lease are not detailed, making performance assessment difficult. 4. Geographic location in Georgia may indicate regional troop housing needs or specific base requirements. 5. The absence of a clear competition strategy warrants further investigation into potential cost savings. 6. The contract's value, while significant, needs benchmarking against similar real estate leases for government use.

Value Assessment

Rating: questionable

The total award amount of $14,676,082 for troop housing facilities over approximately 6 years (June 2004 to July 2010) requires careful evaluation. Without comparable lease agreements for similar facilities in the same region or for military housing, it is difficult to definitively assess value for money. The lack of detailed service descriptions also hinders a thorough price-to-performance analysis. However, the duration and value suggest a substantial commitment that should be benchmarked against market rates for commercial real estate leases of comparable size and amenities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' (NCA) designation, indicating it was not openly competed. This suggests that either a specific justification for a sole-source award was made, or the procurement process did not allow for multiple bidders. The lack of competition means there was no opportunity to solicit bids from various vendors, which typically drives down prices and encourages innovation. This approach limits the government's ability to explore alternative solutions or secure the most favorable terms.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure to achieve the lowest possible price. This can lead to higher costs compared to what might have been achieved through an open bidding process, potentially resulting in a less efficient use of public funds.

Public Impact

Service members stationed at Fort Benning, Georgia, are the primary beneficiaries, receiving housing accommodations. The contract provides essential real estate leasing services for military troop housing. The geographic impact is localized to Fort Benning, Georgia, and its surrounding Muscogee County. The contract supports the operational readiness of military personnel by ensuring adequate housing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Absence of detailed service descriptions makes performance monitoring challenging.
Long-term lease commitment without clear competitive justification raises value concerns.

Positive Signals

Ensures essential troop housing is available at a key military installation.
Provides stability for military personnel by securing long-term accommodation.
The award was made to a specific joint venture, potentially indicating a tailored solution.

Sector Analysis

This contract falls within the Real Estate and Leasing sector, specifically related to commercial property. The North American Industry Classification System (NAICS) code 531190, 'Lessors of Other Real Estate Property,' covers entities that rent or lease land and/or buildings to others. The market for government real estate leasing is substantial, with agencies frequently utilizing leases for office space, operational facilities, and housing. Benchmarking this contract's value would involve comparing its per-square-foot cost and overall lease terms against similar government leases or commercial property rates in the Fort Benning, Georgia area.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not readily available for this contract. The award was made to 'PPCSC/RAC BENNING JV1,' a joint venture, which may have its own internal subcontracting arrangements. However, without specific data on set-aside goals or actual subcontracting performance, it's difficult to assess the impact on the small business ecosystem. Typically, larger contracts can offer opportunities for small businesses to participate as subcontractors, but this depends on the prime contractor's strategy and the contract's specific requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and facilities management divisions. The Inspector General's office for the Department of Defense could investigate any allegations of waste, fraud, or abuse. Transparency regarding the justification for the sole-source award and the specific terms of the lease agreement would be crucial for effective oversight. Without readily available public documentation detailing the oversight mechanisms employed, a full assessment is challenging.

Related Government Programs

Military Housing Leases
Real Estate Services for Government Facilities
Fort Benning Operations Support
Department of Defense Facilities Management

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency on Justification
Incomplete Service Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to PPCSC/RAC BENNING JV1. 200411!001190!2100!W911SF!ACA, FORT BENNING !W911SF04C0016 !A!N! !N! ! !20040609!20070831!146760827!146760827!146760827!N!PPCSC/RAC BENNING JV1 !213 ALAPAHA HWY !OCILLA !GA!31774!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !+000003194882!N!N!000013187766!X163!LEASE/TROOP HOUSING FACILITIES !S1 !SERVICES !000 !* !531190!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is PPCSC/RAC BENNING JV1.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2004-06-09. End: 2010-07-31.

What was the specific justification for awarding this lease on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' (NCA). This designation typically implies that a sole-source justification was approved, meaning only one vendor was deemed capable of meeting the requirement, or that the procurement process did not allow for competitive bidding. Common reasons for sole-source awards include urgent and compelling needs, unique capabilities of a specific contractor, or situations where competition is not feasible or cost-effective. Without access to the specific justification document (e.g., a Justification and Approval or J&A), the precise rationale remains unclear. Further investigation into Army contracting records for this specific award would be necessary to ascertain the detailed justification.

How does the lease cost compare to market rates for similar troop housing facilities in Georgia?

Benchmarking the lease cost of $14,676,082 over approximately 6 years against market rates for similar troop housing facilities in Georgia is challenging without more specific data. Key factors influencing market rates include the size of the facilities, the number of personnel housed, the amenities provided, the specific location within Georgia (proximity to Fort Benning), and the prevailing real estate market conditions at the time of the lease (2004-2010). A comprehensive market analysis would require comparing the cost per square foot or cost per service member housed against comparable commercial or government leases in the region. Given the sole-source nature of the award, it is possible that the negotiated rate did not benefit from competitive price discovery, potentially leading to costs above market averages.

What were the specific terms and conditions of the lease agreement, including maintenance and service responsibilities?

The provided data is limited and does not detail the specific terms and conditions of the lease agreement beyond the award amount, dates, and basic service description ('LEASE/TROOP HOUSING FACILITIES'). Essential details such as maintenance responsibilities (who is responsible for repairs, upkeep, utilities), service level agreements, termination clauses, and specific performance standards are not included. Understanding these terms is crucial for assessing the overall value and risk associated with the contract. For instance, if the government is responsible for significant maintenance or utilities, the total cost of ownership would be higher than the lease amount alone. Accessing the full contract document would be necessary to analyze these critical aspects.

What is the track record of the contractor, PPCSC/RAC BENNING JV1, in providing similar real estate or housing services?

The contractor, PPCSC/RAC BENNING JV1, is identified as a joint venture. Information regarding its specific track record in providing real estate or housing services, particularly for the federal government, is not detailed in the provided data. As a joint venture, its performance history might be derived from the individual entities comprising the venture. To assess their reliability and past performance, one would typically look at previous government contracts awarded to this entity or its constituent members, including contract ratings, past performance evaluations, and any history of disputes or contract terminations. Without this background information, it is difficult to gauge their experience and capability in fulfilling this lease requirement effectively.

Were there any performance issues or contract modifications during the life of this lease agreement?

The provided data does not contain information regarding performance issues or contract modifications for this specific lease agreement (W911SF04C0016). Contract modifications, such as changes in scope, duration, or price, are typically documented separately and would require access to the contract's modification history. Similarly, performance issues would be reflected in contract performance reports, quality assurance surveillance plans, or any formal disputes that may have arisen. The absence of this information suggests that either no significant issues occurred, or such documentation is not publicly accessible through this data source. A thorough review of official contract files would be needed to confirm the absence of performance problems or modifications.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Other Real Estate Property

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 213 ALAPAHA HWY, OCILLA, GA, 08

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $1,533,942

Exercised Options: $1,533,942

Current Obligation: $10,737,426

Contract Characteristics

Cost or Pricing Data: NO

Timeline