CNCS Leases Aurora Office Space for $13.4M, Lacking Competition

Contract Overview

Contract Amount: $13,457,349 ($13.5M)

Contractor: Oxford Vista LLC

Awarding Agency: Corporation for National and Community Service

Start Date: 2021-08-20

End Date: 2026-08-19

Contract Duration: 1,825 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW FULLY SERVICED SUCCEEDING LEASE IN AURORA, CO AREA FOR APPROXIMATELY 83,540 ABOA /89,201 RSF.

Place of Performance

Location: AURORA, ARAPAHOE County, COLORADO, 80014

State: Colorado Government Spending

Plain-Language Summary

Corporation for National and Community Service obligated $13.5 million to OXFORD VISTA LLC for work described as: NEW FULLY SERVICED SUCCEEDING LEASE IN AURORA, CO AREA FOR APPROXIMATELY 83,540 ABOA /89,201 RSF. Key points: 1. The Corporation for National and Community Service (CNCS) secured a lease for 83,540 ABOA of office space in Aurora, CO. 2. The contract value is $13.4 million over a 5-year term. 3. This procurement was not competed, raising questions about price discovery and potential value. 4. The sector is primarily real estate leasing, with a focus on office space.

Value Assessment

Rating: questionable

The contract value of $13.4 million for 83,540 ABOA suggests a rate of approximately $32.25 per ABOA. Without competitive bids, it's difficult to assess if this rate is optimal compared to market benchmarks for similar fully serviced leases in the Aurora area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition approach. This lack of competition may have prevented the government from obtaining the best possible price and terms.

Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for this leased space.

Public Impact

Federal employees in Aurora will occupy this leased office space. The lease supports the operational needs of the Corporation for National and Community Service. Local real estate market dynamics are influenced by government leasing activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment

Positive Signals

Secured necessary office space
Long-term lease provides stability

Sector Analysis

This contract falls within the real estate and leasing sector. Government office space leases are common, but competitive bidding is crucial to ensure cost-effectiveness. Benchmarks for similar leases vary significantly by location and building class.

Small Business Impact

Information regarding small business participation in this lease agreement is not provided in the data. Typically, larger real estate leases may involve various subcontractors, some of which could be small businesses.

Oversight & Accountability

Oversight of this lease would involve ensuring the terms are met, the space is maintained appropriately, and that the agency is receiving the services outlined in the contract. The lack of competition warrants closer scrutiny of the pricing.

Related Government Programs

Lessors of Residential Buildings and Dwellings
Corporation for National and Community Service Contracting
Corporation for National and Community Service Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in price discovery
No clear justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Corporation for National and Community Service awarded $13.5 million to OXFORD VISTA LLC. NEW FULLY SERVICED SUCCEEDING LEASE IN AURORA, CO AREA FOR APPROXIMATELY 83,540 ABOA /89,201 RSF.

Who is the contractor on this award?

The obligated recipient is OXFORD VISTA LLC.

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 $13.5 million.

What is the period of performance?

Start: 2021-08-20. End: 2026-08-19.

What was the justification for not competing this lease, and how was the fair market value determined?

The provided data does not specify the justification for not competing the lease. Typically, sole-source procurements require a documented justification, such as the existence of only one responsible source or urgent and compelling needs. Without this justification, it is impossible to assess how the fair market value was determined or if it truly reflects market rates.

What are the specific risks associated with a non-competed lease of this magnitude?

The primary risk of a non-competed lease is the potential for paying above fair market value due to the absence of competitive pressure. Other risks include less favorable lease terms, reduced service levels, and a lack of transparency in the procurement process. This can lead to inefficient use of taxpayer funds and potentially suboptimal facility conditions.

How does the cost per square foot compare to similar government leases in the Denver-Aurora metropolitan area?

The lease is for 89,201 rentable square feet (RSF) at a total cost of $13,457,348.80 over five years, equating to approximately $30.04 per RSF per year, or $2.50 per RSF per month. Without specific data on comparable government leases in the Aurora area, it's challenging to make a definitive comparison. However, this rate appears within a reasonable range for a fully serviced Class B or C office space in a suburban market, but competitive bidding would have confirmed this.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings

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

Address: 1600 N DOWNING ST STE 300, DENVER, CO, 80218

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

Financial Breakdown

Contract Ceiling: $13,457,349

Exercised Options: $13,457,349

Current Obligation: $13,457,349

Actual Outlays: $10,251,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline