Army leases troop housing facilities for over $15.6 million, raising questions about value and competition

Contract Overview

Contract Amount: $11,629,617 ($11.6M)

Contractor: Ppcsc/Rac Benning JV2

Awarding Agency: Department of Defense

Start Date: 2004-09-28

End Date: 2009-07-31

Contract Duration: 1,767 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200412!002001!2100!W911SF!ACA, FORT BENNING !W911SF04C0019 !A!N! !N! ! !20040928!20060201!156792132!156792132!156792132!N!PPCSC/RAC BENNING JV2 !213 ALAPAHA HWY !OCILLA !GA!31774!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !+000006344617!N!N!000017410348!X163!LEASE/TROOP HOUSING FACILITIES !S1 !SERVICES !000 !* !531190!E! !3! ! ! ! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!5A!Z!N!Z! ! !Y!A!Y!N!E! ! ! !D!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to PPCSC/RAC BENNING JV2 for work described as: 200412!002001!2100!W911SF!ACA, FORT BENNING !W911SF04C0019 !A!N! !N! ! !20040928!20060201!156792132!156792132!156792132!N!PPCSC/RAC BENNING JV2 !213 ALAPAHA HWY !OCILLA !GA!31774!30760!215!13!FORT BENNING !MUSC… Key points: 1. Contract awarded for troop housing facilities, indicating a need for accommodation services. 2. The contract's duration of 1767 days suggests a medium-to-long-term requirement. 3. Awarded by the Department of the Army, highlighting defense sector spending. 4. The service type is 'SERVICES', a broad category requiring further detail for specific value assessment. 5. The contract was not competitively procured, potentially impacting price discovery and value for money. 6. The total value of the contract is over $15.6 million, a significant investment in housing. 7. The contractor, PPCSC/RAC BENNING JV2, is responsible for delivering these housing facilities. 8. The contract falls under the 'Lessors of Other Real Estate Property' NAICS code.

Value Assessment

Rating: questionable

The total award amount of $15,679,213.20 for troop housing facilities over approximately 4.8 years warrants scrutiny. Without comparable contract data for similar housing leases in the same geographic region (Fort Benning, GA), it is difficult to benchmark the value for money. The lack of competition further complicates a precise value assessment, as there was no market pressure to drive down costs. The fixed-price nature of the contract suggests that cost overruns would primarily be borne by the contractor, but the initial pricing itself is not transparently justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not open to full and open competition. The data indicates 'NOT AVAILABLE FOR COMPETITION'. This suggests that only one contractor was deemed capable of fulfilling the requirement, or that the circumstances of the award did not permit a competitive process. The lack of multiple bidders means there was no opportunity to compare proposals and potentially secure a lower price through a bidding war.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, the government cannot be certain it received the best possible price for these housing facilities.

Public Impact

Service members stationed at Fort Benning, Georgia, are the primary beneficiaries, receiving essential housing. The contract delivers troop housing facilities, a critical component of military readiness and personnel support. The geographic impact is localized to Fort Benning, Georgia, and surrounding areas. The contract supports the operational needs of the Department of the Army by providing necessary infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and lack of cost-efficiency.
The broad 'SERVICES' category lacks specificity, making it difficult to assess the exact nature and quality of the delivered housing.
The contract's significant dollar value without clear justification for a sole-source award warrants further investigation into the procurement process.

Positive Signals

The contract addresses a clear need for troop housing, essential for military operations and personnel welfare.
The fixed-price contract structure can provide cost certainty for the government, assuming the initial price was fair.
The award was made to a joint venture (PPCSC/RAC BENNING JV2), potentially indicating a specialized capability or a strategic partnership.

Sector Analysis

This contract falls within the Real Estate sector, specifically related to the leasing of property for institutional or governmental use. The NAICS code 531190, 'Lessors of Other Real Estate Property,' encompasses entities that rent or lease land and/or buildings to others. Spending in this category by the Department of Defense is often driven by the need for operational facilities, training grounds, or housing in proximity to military installations. Benchmarking this contract's value would require comparing lease rates for similar types of properties (e.g., barracks, administrative buildings) in the specific geographic area of Fort Benning, GA, considering factors like size, amenities, and lease duration.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a sole-source award, the typical mechanisms for ensuring small business participation through competitive set-asides would not have been applicable. Further investigation would be needed to determine if any small business subcontracting requirements were imposed or voluntarily undertaken by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Inspector General's office for the Department of Defense may also have jurisdiction to investigate allegations of waste, fraud, or abuse related to the procurement or performance of this contract. Transparency is limited due to the sole-source nature of the award; details on the justification for this approach and the evaluation criteria used (if any) are not readily available.

Related Government Programs

Military Housing Privatization Initiative
Base Realignment and Closure (BRAC) related construction/leasing
Department of Defense Facilities Management Contracts
Army Barracks and Dormitory Leases

Risk Flags

Sole-source award without clear justification.
Potential lack of value for money due to non-competitive procurement.
Limited transparency regarding the specific services and cost breakdown.
Need for further due diligence on contractor performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to PPCSC/RAC BENNING JV2. 200412!002001!2100!W911SF!ACA, FORT BENNING !W911SF04C0019 !A!N! !N! ! !20040928!20060201!156792132!156792132!156792132!N!PPCSC/RAC BENNING JV2 !213 ALAPAHA HWY !OCILLA !GA!31774!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !+000006344617!N!N!000017410348!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 JV2.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2004-09-28. End: 2009-07-31.

What specific justification was provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' and awarded under a sole-source justification. Without access to the full contract file or associated documentation, the specific reasons for this determination remain unknown. Typically, sole-source awards are justified when only one responsible source is available, or in cases of urgent and compelling need where competition is not feasible. For a lease of troop housing facilities, potential justifications could include unique property availability, specific location requirements critical to base operations, or a lack of suitable alternatives within a reasonable timeframe. However, the absence of competitive bidding means these justifications were not tested against market alternatives.

How does the per-square-foot cost of this housing lease compare to market rates for similar properties in the Fort Benning, Georgia area?

The provided data does not include the square footage of the leased facilities or detailed breakdowns of the lease costs per unit or per square foot. The total award of $15,679,213.20 over the contract's duration (approximately 4.8 years, from 2004-09-28 to 2009-07-31) represents the total value. To perform a per-square-foot cost comparison, one would need to know the total square footage leased and the specific allocation of costs within the $15.6 million. Additionally, market rate data for comparable commercial or residential real estate in the Fort Benning area during the contract period would be required. Without this granular information, a meaningful cost benchmark against market rates is not possible.

What is the track record of the contractor, PPCSC/RAC BENNING JV2, with federal contracts, particularly for real estate leasing?

The provided data identifies PPCSC/RAC BENNING JV2 as the contractor for this troop housing lease. However, it does not offer details on their past performance, other federal contracts held, or specific experience in real estate leasing. A comprehensive assessment of the contractor's track record would require accessing databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to review past awards, performance evaluations, and any history of disputes or issues. The fact that they were awarded this significant contract suggests they met certain eligibility and capability requirements, but without further data, their specific performance history remains unverified.

What were the specific services included under the 'Lease/Troop Housing Facilities' description?

The contract description is 'LEASE/TROOP HOUSING FACILITIES' with a primary PSC code of 531190 (Lessors of Other Real Estate Property). This indicates the core service is the provision of real estate for housing military personnel. However, the specifics of what constitutes 'housing facilities' can vary. It could range from basic dormitory-style accommodations to more complex apartment-style units. Additional services might be included, such as maintenance, utilities, property management, or furnishing, depending on the contract's detailed statement of work. Without the full contract statement of work, the precise scope of services beyond the basic lease of property remains undefined.

How does the contract duration and value compare to other troop housing leases awarded by the Department of Defense around the same period?

The contract had a duration of 1767 days (approximately 4.8 years) and a total value of $15,679,213.20. To compare this to other troop housing leases, one would need to analyze historical contract data from the Department of Defense (DoD) for the period of 2004-2009. Key comparison points would include the average duration of similar leases, the average total contract value, and the average value per year or per service member housed. Analyzing data from other Army posts or bases during that era could reveal if this contract was typical in scope and cost, or if it represented an outlier. The sole-source nature of this award also makes direct comparison challenging, as competitively procured contracts might exhibit different pricing structures.

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: ONLY ONE SOURCE

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, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline