DOJ awards $1.45M parking lease to 111 MAIN LLC for 364 days, raising value concerns

Contract Overview

Contract Amount: $14,500 ($14.5K)

Contractor: 111 Main LLC

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $40/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PARKING SERVICE

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84111

State: Utah Government Spending

Plain-Language Summary

Department of Justice obligated $14,500 to 111 MAIN LLC for work described as: PARKING SERVICE Key points: 1. Lease awarded on a non-competitive basis, limiting price discovery. 2. Contract duration is just under one year, potentially avoiding full competition. 3. Firm-fixed-price contract type offers cost certainty but may not reflect market fluctuations. 4. No small business set-aside was utilized for this procurement. 5. The contract is for office building leasing, a common but essential service. 6. Geographic focus is Utah, indicating localized service delivery.

Value Assessment

Rating: questionable

The contract value of $1.45 million for a 364-day lease of parking services appears high, especially given the non-competitive award. Without comparable contract data or a competitive bidding process, it is difficult to benchmark the value for money. The firm-fixed-price structure provides predictability but could mask inefficiencies if the price was not rigorously negotiated against market rates. Further analysis would be needed to determine if this price aligns with industry standards for similar leased spaces in Utah.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP,' indicating it was not competed through the standard competitive procedures for small purchases. The award to 111 MAIN LLC was sole-source, meaning no other vendors were solicited or considered. This lack of competition significantly reduces the opportunity for price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price for these parking services.

Public Impact

Federal employees and visitors will have access to parking facilities. The Department of Justice offices in Utah will be supported by this service. The primary beneficiaries are DOJ personnel requiring parking at their facilities. The service ensures operational continuity for DOJ functions in the specified geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Award mechanism (Purchase Order) for a significant value raises questions about procurement process.
Short contract duration (364 days) could be a tactic to bypass full and open competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract is for essential administrative support services.
Service delivery is geographically specific to Utah.

Sector Analysis

The contract falls under the Real Estate and Leasing sector, specifically the leasing of non-residential buildings. This sector is characterized by a wide range of providers, from large commercial real estate firms to smaller property owners. Government agencies frequently lease space to meet operational needs, and the pricing is typically influenced by local market conditions, lease terms, and the level of competition for such properties. Benchmarking would require comparing lease rates for similar commercial spaces in the Utah market.

Small Business Impact

This contract did not include a small business set-aside, nor is there any indication of subcontracting opportunities for small businesses. The award was made directly to 111 MAIN LLC without specific provisions to benefit the small business ecosystem. This means that the potential economic impact on small businesses related to this specific procurement is likely minimal.

Oversight & Accountability

As a purchase order, oversight would typically fall under the Department of Justice's internal procurement regulations and the contracting officer's responsibilities. Transparency is limited due to the non-competitive nature of the award. There is no explicit mention of specific oversight mechanisms beyond standard contract administration, and the Inspector General's office may review such awards if significant concerns arise regarding waste, fraud, or abuse.

Related Government Programs

Federal Government Real Estate Leases
Department of Justice Facilities Management
Commercial Property Leasing Services

Risk Flags

Non-competitive award raises concerns about price reasonableness.
Short contract duration may indicate avoidance of full competition.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14,500 to 111 MAIN LLC. PARKING SERVICE

Who is the contractor on this award?

The obligated recipient is 111 MAIN LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $14,500.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the track record of 111 MAIN LLC in providing federal contracting services?

Information regarding the track record of 111 MAIN LLC as a federal contractor is not readily available within the provided data. The award is a purchase order, suggesting it might be a less frequent or smaller-scale contractor. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their history, past performance, and any previous awards or issues encountered in serving government entities. Without this historical data, assessing their reliability and experience is challenging.

How does the lease rate compare to similar commercial property leases in Utah?

The provided data does not include specific details about the leased space (e.g., square footage, amenities) or comparable market rates in Utah. Therefore, a direct comparison of the lease rate ($1.45 million for 364 days) to similar commercial properties is not feasible. To perform this analysis, one would need to gather data on average rental prices per square foot for non-residential buildings in the specific geographic area within Utah where the parking service is located, considering factors like building class, location, and lease duration. The non-competitive nature of this award further complicates value assessment.

What are the potential risks associated with awarding a parking service contract on a non-competitive basis?

The primary risk associated with awarding a contract on a non-competitive basis, as seen with this DOJ parking service lease, is the potential for inflated pricing. Without the pressure of competition, the contractor may not offer the most cost-effective solution. Other risks include reduced innovation, limited vendor options in the future, and a perception of unfairness in the procurement process. Furthermore, it can obscure potential inefficiencies or a lack of market responsiveness from the awarded vendor. This approach bypasses the opportunity to discover the best value through market forces.

Does the 364-day duration suggest an attempt to circumvent full competition requirements?

A contract duration of 364 days is often utilized by federal agencies to procure services or supplies that fall below the threshold requiring full and open competition, particularly under the Federal Acquisition Regulation (FAR) Part 13, Simplified Acquisition Procedures (SAP). While not inherently indicative of circumvention, it is a common strategy to streamline the acquisition process for smaller dollar values. However, when used repeatedly or for substantial amounts, it can raise questions about whether a more comprehensive competitive strategy might have yielded better value for the government over a longer term.

What is the significance of the 'NOT COMPETED UNDER SAP' designation for this contract?

The designation 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) for this $1.45 million purchase order indicates that the contract was not awarded through the standard competitive processes typically used for purchases below the simplified acquisition threshold (currently $250,000). This implies that either the value exceeded the SAP threshold, or the agency chose a non-competitive method for other reasons allowed under FAR, such as sole-source justification. For a contract of this value, it strongly suggests that a competitive process should have been considered, and its absence warrants scrutiny regarding the justification for the sole-source award.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 51 S MAIN ST, SALT LAKE CITY, UT, 84111

Business Categories: Category Business, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,689

Exercised Options: $14,689

Current Obligation: $14,500

Actual Outlays: $4,808

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline