DoD's $55M Contract for DC Lodging During Civil Unrest Mission

Contract Overview

Contract Amount: $55,125,609 ($55.1M)

Contractor: Corporate Lodging Consultants, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-08

End Date: 2021-01-31

Contract Duration: 23 days

Daily Burn Rate: $2.4M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LODGING FOR DCNG CIVIL UNREST MISSION. BASIC SERVICES. 6200 SINGLE OCCUPANCY ROOMS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $55.1 million to CORPORATE LODGING CONSULTANTS, INC. for work described as: LODGING FOR DCNG CIVIL UNREST MISSION. BASIC SERVICES. 6200 SINGLE OCCUPANCY ROOMS. Key points: 1. The Department of the Army awarded a $55.1 million contract for lodging services. 2. The contract was awarded to Corporate Lodging Consultants, Inc. under a BPA Call. 3. The service period was short, covering 23 days during January 2021. 4. The spending was for basic services, providing 6,200 single-occupancy rooms. 5. The contract falls under the 'All Other Travel Arrangement and Reservation Services' NAICS code.

Value Assessment

Rating: fair

The contract's price of $55.1 million for 23 days of lodging appears high, averaging over $2.4 million per day. Without specific room rates or occupancy details, it's difficult to benchmark against typical hotel costs, but the scale suggests a premium for rapid deployment and potentially specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a BPA Call. This method suggests that multiple vendors could compete, potentially leading to better price discovery. However, the urgency of the civil unrest mission might have influenced the final negotiated price.

Taxpayer Impact: Taxpayers funded the significant cost of lodging for military personnel deployed during a critical civil unrest event in the District of Columbia.

Public Impact

Ensured essential accommodation for personnel during a national security event. Supported military readiness and operational effectiveness in a high-demand situation. The significant expenditure highlights the costs associated with rapid deployment of federal resources. The contract's duration was tied to the specific mission timeline.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The spending falls under travel arrangement and reservation services, often utilized by government agencies for temporary duty or mission-specific lodging. Benchmarks for such services can vary widely based on location, duration, and service level, but large-scale, short-term deployments like this can command premium pricing.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The use of a BPA Call suggests a pre-negotiated framework, potentially streamlining oversight. However, the large sum awarded warrants scrutiny to ensure the pricing was reasonable given the circumstances and services provided.

Related Government Programs

Risk Flags

Tags

all-other-travel-arrangement-and-reserva, department-of-defense, dc, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.1 million to CORPORATE LODGING CONSULTANTS, INC.. LODGING FOR DCNG CIVIL UNREST MISSION. BASIC SERVICES. 6200 SINGLE OCCUPANCY ROOMS.

Who is the contractor on this award?

The obligated recipient is CORPORATE LODGING CONSULTANTS, 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 $55.1 million.

What is the period of performance?

Start: 2021-01-08. End: 2021-01-31.

Was the per-room cost competitive given the emergency nature and location?

The total contract value of $55.1 million for 23 days, covering 6,200 rooms, implies an average daily cost of approximately $2.4 million. Without knowing the specific negotiated room rates and the exact duration each room was occupied, it's challenging to definitively assess competitiveness. However, emergency lodging in a major metropolitan area during a crisis often incurs premium pricing compared to standard commercial rates.

What were the primary risks associated with this contract award?

Key risks included potential cost overruns if the mission extended beyond 23 days, the risk of inadequate service delivery from the chosen provider under pressure, and the possibility of paying inflated prices due to the urgent, high-demand nature of the requirement. Ensuring sufficient capacity and quality of lodging in a constrained environment was also a significant risk.

How effectively did this contract support the DCNG civil unrest mission's operational needs?

The contract effectively addressed the critical need for immediate and substantial lodging for personnel deployed to the District of Columbia. By securing 6,200 single-occupancy rooms, it provided essential logistical support, enabling the mission to proceed without significant accommodation-related disruptions. The rapid deployment of these services was crucial for operational readiness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesTravel Arrangement and Reservation ServicesAll Other Travel Arrangement and Reservation Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Corpay, Inc

Address: 8111 E 32ND ST N, WICHITA, KS, 67226

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,125,609

Exercised Options: $55,125,609

Current Obligation: $55,125,609

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS33FCA018

IDV Type: BPA

Timeline

Start Date: 2021-01-08

Current End Date: 2021-01-31

Potential End Date: 2021-01-31 00:00:00

Last Modified: 2025-04-24

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