Army awards $6.37M contract for lodging services in Memphis, TN, with 20-day duration
Contract Overview
Contract Amount: $6,374,360 ($6.4M)
Contractor: S365 Inc
Awarding Agency: Department of Defense
Start Date: 2025-12-11
End Date: 2025-12-31
Contract Duration: 20 days
Daily Burn Rate: $318.7K/day
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TF GRIZZLY MEMPHIS MISSION 4OCT - TBD (DATES ARE SUBJECT TO CHANGE)
Place of Performance
Location: NORFOLK, MADISON County, NEBRASKA, 68701
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $6.4 million to S365 INC for work described as: TF GRIZZLY MEMPHIS MISSION 4OCT - TBD (DATES ARE SUBJECT TO CHANGE) Key points: 1. Contract value is $6.37M for a short 20-day period. 2. Competed under Simplified Acquisition Procedures (SAP), suggesting potential for limited competition. 3. Firm Fixed Price contract type aims to control costs. 4. Sector is Hospitality, specifically Hotels and Motels.
Value Assessment
Rating: fair
The contract value of $6.37M for 20 days of lodging is high. The benchmark for Hotels (except Casino Hotels) and Motels (NAICS 721110) typically shows lower per-diem rates for similar services.
Cost Per Unit: $318,718 per day
Competition Analysis
Competition Level: limited
Competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. This method may not achieve the best price discovery compared to full and open competition.
Taxpayer Impact: The firm fixed price contract aims to control costs, but the limited competition under SAP could lead to a higher price than if fully competed, impacting taxpayer value.
Public Impact
Provides essential lodging for military personnel during a specific mission. Supports the local hospitality industry in Memphis, TN. Short duration suggests a specific, temporary operational need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for overpayment due to limited competition under SAP.
- High per-diem cost for lodging services.
- Short contract duration may indicate a lack of long-term planning or a specific urgent need.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Competition under SAP can still yield savings compared to sole-source.
- Supports Department of Defense operational readiness.
Sector Analysis
The hospitality sector, particularly hotels and motels, is a common area for government contracting, especially for temporary lodging needs. Spending benchmarks vary widely based on location and service level, but this contract's per-diem rate appears elevated.
Small Business Impact
The contract was competed under Simplified Acquisition Procedures, which can sometimes include small businesses. However, the specific awardee, S365 INC, is not identified as a small business in this data. Further analysis would be needed to confirm small business participation.
Oversight & Accountability
The contract was competed under SAP, indicating some level of solicitation. However, the limited nature of SAP competition warrants oversight to ensure fair pricing and prevent potential waste. The short duration might also be reviewed for efficiency.
Related Government Programs
- Hotels (except Casino Hotels) and Motels
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost compared to industry benchmarks.
- Limited competition due to SAP.
- Lack of detailed service description for justification of cost.
- Short contract duration may indicate inefficient planning.
Tags
hotels-except-casino-hotels-and-motels, department-of-defense, ne, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.4 million to S365 INC. TF GRIZZLY MEMPHIS MISSION 4OCT - TBD (DATES ARE SUBJECT TO CHANGE)
Who is the contractor on this award?
The obligated recipient is S365 INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $6.4 million.
What is the period of performance?
Start: 2025-12-11. End: 2025-12-31.
What specific services are included in the lodging to justify the high per-diem cost?
The provided data does not detail the specific services included beyond basic lodging. A higher per-diem rate could be justified by factors such as included amenities, meal provisions, security, or specialized facilities required for the mission. Further investigation into the contract's statement of work is necessary to understand the cost drivers.
Could this lodging requirement have been met more cost-effectively through other means?
Given the high per-diem cost and short duration, it's worth exploring if alternative lodging solutions were considered. This could include government-owned facilities, long-term hotel contracts negotiated at lower rates, or even temporary housing solutions. The limited competition under SAP suggests these alternatives may not have been fully explored or were deemed less suitable for the mission's specific needs.
What is the strategic importance of this mission requiring lodging in Memphis?
The data indicates the contract supports a Department of Defense mission, specifically for the Department of the Army. While the exact nature and strategic importance of the 'TF GRIZZLY MEMPHIS MISSION' are not detailed, such missions often relate to readiness exercises, support operations, or personnel deployment. Understanding the mission's objectives would provide context for the necessity and urgency of securing lodging.
Industry Classification
NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: W912L726Q0502
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 84640 US HIGHWAY 81, NORFOLK, NE, 68701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $6,374,360
Exercised Options: $6,374,360
Current Obligation: $6,374,360
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912L726DA007
IDV Type: IDC
Timeline
Start Date: 2025-12-11
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-11
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