FEMA's $2.9M parking contract for HQ awarded via purchase order, raising questions on competition and value

Contract Overview

Contract Amount: $2,899 ($2.9K)

Contractor: Colonial Parking, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-12-21

End Date: 2022-11-30

Contract Duration: 344 days

Daily Burn Rate: $8/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINSTRATOR PARKING FEMA HQ

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20007

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2,899.35 to COLONIAL PARKING, INC for work described as: ADMINSTRATOR PARKING FEMA HQ Key points: 1. Contract awarded as a purchase order, suggesting a less formal procurement process. 2. Lack of competition raises concerns about potential overpayment and suboptimal service. 3. The contract duration of 344 days is relatively short for a parking service. 4. The service is geographically concentrated in Washington D.C. 5. No small business set-aside was utilized for this procurement. 6. The contract falls under the 'Parking Lots and Garages' NAICS code.

Value Assessment

Rating: questionable

The contract's value of $2.9 million for parking services at FEMA HQ warrants scrutiny due to the lack of competitive bidding. Without comparison to other bids or market rates, it's difficult to definitively assess value for money. However, the absence of competition often leads to higher prices than would be achieved in a robustly competed environment. The fixed-price nature of the award provides some cost certainty, but the overall value proposition is weakened by the procurement method.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicated by 'NOT COMPETED' in the data. It was awarded as a purchase order, which typically bypasses the formal competitive bidding process required for larger contracts. The lack of competition means there were no other vendors vying for this business, and therefore no price discovery through market forces. This approach limits the government's ability to secure the best possible pricing and service.

Taxpayer Impact: Taxpayers may have paid a premium for parking services due to the absence of competitive pressure. Without a bidding process, the government cannot be assured it received the most cost-effective solution available.

Public Impact

Federal employees at FEMA Headquarters in Washington D.C. benefit from access to parking. The service provided is the operation and maintenance of parking facilities. The geographic impact is limited to the District of Columbia. There are no direct workforce implications mentioned for this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Purchase order award method bypasses standard competitive processes.
No clear justification for sole-source award provided.
Limited transparency on how the contractor was selected.

Positive Signals

Contract provides essential parking services for a federal agency.
Fixed-price contract offers some cost predictability.
Service is geographically specific to agency needs.

Sector Analysis

The contract falls within the broader facilities management and real estate services sector. This specific procurement relates to parking lot and garage operations, a niche within property services. Comparable spending benchmarks for parking services can vary significantly based on location, size, and amenities. The $2.9 million expenditure for a single location over approximately one year suggests a substantial need or a less competitive pricing environment.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in providing these parking services. This approach does not contribute to the government's goals of supporting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). As a purchase order, oversight might be less formalized than for a competitively awarded contract. Transparency is limited due to the lack of a competitive process and public justification for the sole-source award. Inspector General jurisdiction would apply if any fraud or mismanagement is suspected.

Related Government Programs

FEMA HQ Operations
Department of Homeland Security Facilities Management
Federal Parking Services
District of Columbia Government Contracts

Risk Flags

Lack of Competition
Sole-Source Award
Purchase Order Award Method
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2,899.35 to COLONIAL PARKING, INC. ADMINSTRATOR PARKING FEMA HQ

Who is the contractor on this award?

The obligated recipient is COLONIAL PARKING, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $2,899.35.

What is the period of performance?

Start: 2021-12-21. End: 2022-11-30.

What is the track record of Colonial Parking, Inc. with federal contracts?

Colonial Parking, Inc. has a history of securing contracts with various government entities, including federal agencies. While this specific contract with FEMA was awarded via a purchase order without competition, the company's broader federal contracting history would need to be reviewed to assess its overall performance, compliance, and reliability. A review of past performance evaluations and any contract disputes or terminations would provide a more comprehensive understanding of their track record. Without access to detailed historical data beyond this single award, it's difficult to provide a definitive assessment of their federal performance.

How does the $2.9 million cost compare to similar parking contracts?

Benchmarking the $2.9 million cost for parking services is challenging without more specific details about the scope of services, the number of parking spaces managed, and the exact location within Washington D.C. However, given that this was a sole-source award via a purchase order, it is reasonable to assume that the price may be higher than what would be achieved through a competitive bidding process. Typical federal parking contracts can range widely, but a cost of this magnitude for approximately one year of service at a single headquarters location suggests either a very large facility, premium services, or a lack of competitive pricing pressure. Further analysis would require comparing it to other sole-source parking contracts or market rates for similar services in the D.C. area.

What are the primary risks associated with a sole-source purchase order for parking services?

The primary risks associated with a sole-source purchase order for parking services include potential overpayment due to the absence of competitive pricing, reduced service quality if the contractor faces no market pressure to perform, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Additionally, relying on a single source can create dependency and limit flexibility if the contractor's performance deteriorates or if needs change significantly. The government also misses opportunities to foster innovation and competition within the parking services market.

How effective is the 'Parking Lots and Garages' NAICS code in categorizing this service?

The 'Parking Lots and Garages' (NAICS code 812930) code is generally appropriate for categorizing services related to the operation and maintenance of parking facilities. This contract, providing parking for FEMA HQ, directly aligns with the description of this code. However, the NAICS code itself does not provide insights into the effectiveness of the service delivery or the value for money. Its primary function is for statistical and classification purposes, helping to group similar businesses and economic activities. The effectiveness of the service would be assessed through performance metrics and user feedback, not the NAICS code.

What are the historical spending patterns for parking services at FEMA or DHS?

Analyzing historical spending patterns for parking services at FEMA or DHS would require access to detailed federal procurement databases and budget documents over several fiscal years. Without this specific data, it's impossible to determine if the $2.9 million expenditure is an anomaly, an increase, or consistent with past spending. Typically, agencies like FEMA and DHS, with significant headquarters operations in urban areas like Washington D.C., would have ongoing needs for parking. Understanding historical spending would help contextualize the current contract's value and identify trends in procurement methods and costs for such services.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Parking Lots and Garages

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Forge Company

Address: 1050 THMS JEFRSN ST NW 100, WASHINGTON, DC, 20007

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

Financial Breakdown

Contract Ceiling: $2,899

Exercised Options: $2,899

Current Obligation: $2,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline