HHS awards $3.78M for lodging services, with Corporate Lodging Consultants Inc. securing the contract

Contract Overview

Contract Amount: $3,782,851 ($3.8M)

Contractor: Corporate Lodging Consultants, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-08

End Date: 2022-10-05

Contract Duration: 180 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CAL HOUSING ON DEMAND

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67226

State: Kansas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.8 million to CORPORATE LODGING CONSULTANTS, INC. for work described as: CAL HOUSING ON DEMAND Key points: 1. Contract value of $3.78M for lodging services indicates a significant need for travel support. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price contract type generally offers cost certainty for the government. 4. The short duration of 180 days suggests a specific, time-bound requirement. 5. The North American Industry Classification System (NAICS) code 561599 points to specialized travel arrangement services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The contract value of $3.78M for 180 days of lodging services appears substantial. Without specific details on the volume of services or the exact nature of the lodging arrangements, a direct value-for-money assessment is challenging. Benchmarking against similar government-wide lodging contracts or large-scale corporate travel management agreements would be necessary to determine if the pricing is competitive. The firm-fixed-price structure provides cost predictability, but the overall value hinges on the efficiency and effectiveness of the services provided by Corporate Lodging Consultants, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies that the government sought to maximize competition to ensure the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider range of service providers to offer their best terms.

Public Impact

Beneficiaries likely include federal employees or individuals requiring temporary lodging arrangements facilitated by the Administration for Children and Families (ACF). Services delivered encompass travel arrangement and reservation services specifically for lodging. The geographic impact is primarily within Kansas, where the contractor is located, but could extend to any location where federal personnel require lodging. Workforce implications are likely minimal for the government, with the primary workforce being employed by Corporate Lodging Consultants, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited contract duration may indicate a need for ongoing re-competition or potential service gaps if not managed proactively.
Lack of specific performance metrics makes it difficult to assess the quality and efficiency of the lodging services provided.
The broad NAICS code 'All Other Travel Arrangement and Reservation Services' could encompass a wide range of services, making it hard to pinpoint the exact scope without further detail.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded favorable pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Contracting through a delivery order mechanism can streamline the procurement process for specific needs.

Sector Analysis

The travel arrangement and reservation services sector is a mature market with numerous providers, ranging from large global corporations to specialized niche firms. Government spending in this area supports essential travel needs for federal employees and contractors. The NAICS code 561599 falls under the broader 'Travel Arrangement and Reservation Services' industry. Comparable spending benchmarks would involve analyzing other government contracts for similar lodging and travel support services, as well as private sector corporate travel management expenditures.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. The award to Corporate Lodging Consultants, Inc. does not explicitly suggest a direct impact on the small business ecosystem unless they are themselves a small business or utilize small business subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Administration for Children and Families (ACF) within the Department of Health and Human Services (HHS). Accountability measures would be tied to the terms and conditions of the firm-fixed-price delivery order, including service level agreements and performance requirements. Transparency is facilitated by the public availability of contract award data, though detailed performance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Travel Management Services
HHS Travel Policy
Federal Travel Regulations (FTR)
Lodging and Accommodation Contracts

Risk Flags

Contract duration is short (180 days), requiring potential follow-on procurement.
Lack of detailed performance metrics makes objective assessment difficult.
NAICS code is broad, potentially obscuring specific service details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.8 million to CORPORATE LODGING CONSULTANTS, INC.. CAL HOUSING ON DEMAND

Who is the contractor on this award?

The obligated recipient is CORPORATE LODGING CONSULTANTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2022-04-08. End: 2022-10-05.

What is the specific nature of the lodging services required under this contract?

The contract falls under NAICS code 561599, 'All Other Travel Arrangement and Reservation Services.' While the data indicates the contract is for 'CAL HOUSING ON DEMAND,' suggesting a focus on housing or lodging, the precise services are not detailed. This could range from booking hotel rooms for federal employees on official travel to arranging temporary housing for specific programs or personnel. Further clarification would be needed to understand the exact scope, such as whether it includes booking, negotiation of rates, management of reservations, or provision of specific types of accommodation.

How does the contract value of $3.78 million compare to similar government lodging contracts?

A direct comparison of the $3.78 million contract value is difficult without knowing the duration, volume of services, and specific geographic coverage it entails. However, government-wide travel and lodging are significant expenditures. For context, the General Services Administration (GSA) manages various travel programs and contracts that collectively represent billions of dollars annually. Individual agency contracts for lodging can vary widely based on mission needs. To assess value, one would need to benchmark this against contracts with similar service scopes, number of travelers supported, and contract lengths, ideally within the Department of Health and Human Services or related agencies.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, for travel and lodging services, KPIs might include factors such as on-time booking rates, adherence to government lodging per diem rates, traveler satisfaction scores, cost savings achieved through negotiated rates, and accuracy of reservations. The absence of this information makes it challenging to quantitatively assess the contractor's performance and the overall effectiveness of the service delivery beyond the basic fulfillment of the award.

What is the track record of Corporate Lodging Consultants, Inc. with federal government contracts?

Information on the specific track record of Corporate Lodging Consultants, Inc. with federal government contracts is not provided in the data. To assess their performance history, one would need to examine past federal awards, contract performance evaluations (like Past Performance Information Retrieval System - PPIRS), and any documented issues or successes. A review of their history would help determine their experience in delivering similar services, their ability to meet government requirements, and their overall reliability as a contractor.

What is the potential risk associated with a firm-fixed-price contract for lodging services?

Firm-fixed-price (FFP) contracts are generally preferred by the government for their cost certainty. The primary risk for the government in an FFP contract for lodging services is that the contractor may have less incentive to control costs if their bid was too high, potentially leading to paying a premium for services. Conversely, the risk lies with the contractor; if their costs exceed their fixed price, they absorb the loss. For lodging, risks could also include service quality degradation if the contractor prioritizes profit over service standards, or if unforeseen circumstances (like major events) drastically increase market lodging rates beyond what was anticipated in the fixed price.

How does the 'delivery order' award type impact this contract?

The award as a 'delivery order' suggests that this contract is likely a task order or delivery order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract, or a similar contract vehicle. This means that the underlying contract vehicle was previously competed and established. The delivery order itself then specifies the particular goods or services to be delivered, the quantity, and the price for that specific order. This method allows agencies to procure services efficiently as needed, without conducting a full, separate competition for each individual requirement, provided the original IDIQ contract was competed appropriately.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $3,782,851

Exercised Options: $3,782,851

Current Obligation: $3,782,851

Actual Outlays: $3,782,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33F0009P

IDV Type: FSS

Timeline