Lease agreement for nonresidential buildings in Mississippi awarded to All Saints Episcopal School for over $11.3 million

Contract Overview

Contract Amount: $11,381,461 ($11.4M)

Contractor: ALL Saints Episcopal School

Awarding Agency: Corporation for National and Community Service

Start Date: 2018-11-01

End Date: 2024-10-31

Contract Duration: 2,191 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF VICKSBURG LEASE

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180

State: Mississippi Government Spending

Plain-Language Summary

Corporation for National and Community Service obligated $11.4 million to ALL SAINTS EPISCOPAL SCHOOL for work described as: IGF::OT::IGF VICKSBURG LEASE Key points: 1. The contract represents a significant investment in real estate for the Corporation for National and Community Service. 2. The firm fixed-price structure suggests predictable costs for the government. 3. The duration of the contract indicates a long-term need for the leased space. 4. The lessor is an educational institution, which may have unique operational considerations. 5. The contract is categorized under 'Lessors of Nonresidential Buildings', a common real estate service category.

Value Assessment

Rating: fair

The awarded amount of $11.38 million over approximately six years for a lease suggests a moderate annual cost. Benchmarking against similar nonresidential building leases by federal agencies is necessary for a precise value assessment. Without specific details on square footage, location specifics within Mississippi, and amenities, it's challenging to definitively assess if this price is competitive. However, the firm fixed-price nature provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that there was only one bid received, despite full and open competition, raises questions about the market's responsiveness or the attractiveness of the opportunity. This could potentially limit price discovery and may suggest that fewer entities were interested or capable of meeting the government's requirements.

Taxpayer Impact: While full and open competition was utilized, a single bid might mean taxpayers did not benefit from the most competitive pricing achievable through broader market engagement.

Public Impact

The Corporation for National and Community Service benefits from secured office or operational space. The lease supports the agency's mission delivery by providing a physical location for its operations. The geographic impact is localized to Mississippi, where the leased property is situated. The contract supports the real estate sector through rental payments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received despite full and open solicitation.
Potential for uncompetitive pricing due to lack of multiple bids.
Lack of detailed justification for sole bid in publicly available data.

Positive Signals

Contract awarded through a formal full and open competition process.
Firm fixed-price contract provides cost predictability.
Long contract duration suggests a stable, ongoing need.

Sector Analysis

The real estate sector, specifically nonresidential building leasing, is a significant area of federal spending. Agencies frequently lease space to house personnel and operations, particularly when government-owned facilities are unavailable or unsuitable. This contract falls within the broader category of facilities management and real estate services, which is a recurring need across various federal departments. Benchmarking would involve comparing lease rates per square foot against similar commercial properties in the same geographic region.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting goals. The lessor is identified as an educational institution, suggesting it may not be a typical small business entity in the traditional sense for contracting purposes. Further investigation would be needed to determine if any small business participation was mandated or voluntarily pursued.

Oversight & Accountability

The Corporation for National and Community Service is responsible for the oversight of this lease agreement. As a firm fixed-price contract, the primary oversight would focus on ensuring the property is maintained according to the lease terms and that payments are made appropriately. Transparency is moderate, as the award is publicly listed, but detailed justifications for the single bid are not readily available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Real Property Management
Government Office Space Leases
Nonresidential Building Leases

Risk Flags

Single Bidder in Full and Open Competition
Potential Lack of Market Competition

Frequently Asked Questions

What is this federal contract paying for?

Corporation for National and Community Service awarded $11.4 million to ALL SAINTS EPISCOPAL SCHOOL. IGF::OT::IGF VICKSBURG LEASE

Who is the contractor on this award?

The obligated recipient is ALL SAINTS EPISCOPAL SCHOOL.

Which agency awarded this contract?

Awarding agency: Corporation for National and Community Service (Corporation for National and Community Service).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2018-11-01. End: 2024-10-31.

What is the specific type and size of the nonresidential building being leased, and what are its key features?

The provided data identifies the contract as being for 'Lessors of Nonresidential Buildings (except Miniwarehouses)' with the North American Industry Classification System (NAICS) code 531120. However, it does not specify the exact type (e.g., office building, warehouse, specialized facility) or the square footage of the leased property. Key features such as the number of floors, parking availability, security measures, or specific amenities are also not detailed in the summary data. To fully assess the value and appropriateness of the lease, this information would be crucial. Understanding these specifics would allow for a more accurate comparison to market rates and an evaluation of whether the leased space adequately meets the Corporation for National and Community Service's operational needs.

How does the annual cost of this lease compare to similar federal leases in Mississippi or the surrounding region?

The total contract value is $11,381,461.38 over approximately 2191 days (roughly 6 years), equating to an approximate annual cost of $1.9 million. To benchmark this effectively, we would need to compare it against federal leases for comparable nonresidential buildings (e.g., similar square footage, age, condition, and location) within Mississippi or adjacent states. Data from the General Services Administration (GSA) or other federal real estate databases would be essential for this comparison. Without such comparative data, it is difficult to definitively state whether this lease represents excellent, good, fair, or questionable value for money. The fact that it was a full and open competition with only one bid might suggest the price is not highly competitive.

What is the track record of All Saints Episcopal School as a federal contractor, particularly in real estate leasing?

The provided data indicates that All Saints Episcopal School is the contractor for this lease. Information regarding their track record as a federal contractor, especially in real estate leasing, is not included in the summary data. Typically, a contractor's past performance is a key factor in award decisions and is assessed during the procurement process. To evaluate this aspect, one would need to consult federal procurement databases (like SAM.gov or FPDS) for any prior contracts awarded to this entity, review performance evaluations, and check for any history of disputes or contract terminations. Without this information, it's impossible to assess their experience and reliability in fulfilling federal real estate obligations.

What specific program or operational need does this lease support for the Corporation for National and Community Service?

The data indicates the contract is managed by the Corporation for National and Community Service (CNCS). While the contract is for leasing nonresidential buildings, the specific program or operational need it supports is not detailed. CNCS oversees various national service programs, such as AmeriCorps, and requires physical infrastructure for its staff, training, and program administration. This lease likely provides office space or operational facilities necessary for CNCS to carry out its mission in Mississippi. Further details on the agency's regional presence or specific program requirements in that state would clarify the exact purpose of this lease.

Given the full and open competition resulted in only one bid, what are the potential risks associated with this contract?

The primary risk associated with a full and open competition yielding only one bid is the potential for a lack of competitive pricing. This could mean the government may be paying more than it would if multiple bidders had competed. Other risks include potential vendor lock-in, reduced incentive for the sole bidder to perform exceptionally well, and the possibility that the government's needs might not be perfectly met if the single offeror's capabilities are limited. There's also a risk that the government might have to re-compete the contract if the sole bidder fails to perform or if circumstances change, potentially leading to disruptions and increased costs.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2717 CONFEDERATE AVE, VICKSBURG, MS, 39180

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

Financial Breakdown

Contract Ceiling: $23,402,692

Exercised Options: $23,402,692

Current Obligation: $11,381,461

Actual Outlays: $9,118,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline