NASA's $20.5M employee relocation contract with Cartus Corporation shows long-term vendor relationship and potential for cost efficiencies
Contract Overview
Contract Amount: $20,525,543 ($20.5M)
Contractor: Cartus Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-01
End Date: 2010-06-02
Contract Duration: 2,436 days
Daily Burn Rate: $8.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 99
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NASA EMPLOYEE RELOCATION SERVICE
Place of Performance
Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810
Plain-Language Summary
National Aeronautics and Space Administration obligated $20.5 million to CARTUS CORPORATION for work described as: NASA EMPLOYEE RELOCATION SERVICE Key points: 1. Contract awarded through a competitive delivery order, indicating initial price discovery. 2. Long contract duration (2003-2010) suggests a stable, long-term relationship with the vendor. 3. Focus on employee relocation services points to a critical support function for agency workforce mobility. 4. The firm-fixed-price structure aims to control costs and transfer risk to the contractor. 5. NAICS code 531210 (Offices of Real Estate Agents and Brokers) aligns with the service provided. 6. The contract's value, while significant, needs to be benchmarked against similar relocation services.
Value Assessment
Rating: good
The contract value of approximately $20.5 million over its term represents a substantial investment in employee relocation. Benchmarking this against industry standards for relocation services, considering the number of employees relocated and the scope of services (e.g., home finding, moving, temporary housing), would be crucial. The firm-fixed-price nature suggests an attempt to lock in costs, which can be advantageous if services are delivered efficiently. However, without detailed service delivery data, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded as a competitive delivery order, implying that it was sourced from a pre-existing contract vehicle that underwent full and open competition. This suggests that multiple vendors had the opportunity to bid, leading to a more competitive pricing environment at the initial award stage. The number of bidders for the original contract vehicle is not specified here, but the competitive nature of the award mechanism is a positive indicator for price discovery.
Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers by ensuring that the government receives services at a fair market rate, driven by multiple vendor proposals.
Public Impact
Federal employees of NASA benefit from seamless relocation services, facilitating workforce mobility and retention. The contract supports the operational continuity of NASA by ensuring that personnel can be effectively moved to new duty stations. Geographic impact is nationwide, covering the relocation needs of employees across various NASA facilities. Workforce implications include reduced stress and administrative burden on relocating employees, allowing them to focus on their mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of relocation services expands beyond initial estimates.
- Vendor lock-in due to the long duration of the contract, potentially limiting future competitive opportunities.
- Ensuring consistent service quality across all relocations and locations can be a challenge for large-scale contracts.
Positive Signals
- Firm-fixed-price contract structure helps in budget predictability and cost control.
- Competitive award mechanism suggests a favorable initial pricing.
- Long-term contract may indicate a proven track record of satisfactory performance by the contractor.
Sector Analysis
The employee relocation services sector is a specialized segment of the broader professional services industry. This contract falls under the real estate and moving services category, supporting government agencies in managing the logistical and financial aspects of personnel transfers. The market for relocation services is competitive, with several large national and international providers. NASA's spending in this area is consistent with other large federal agencies that require significant employee mobility.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. Typically, large service contracts may include provisions for small business participation. Without specific details, it's difficult to assess the direct impact on the small business ecosystem. However, the primary contractor, Cartus Corporation, is a large entity, suggesting that direct small business set-asides might be limited unless subcontracting opportunities were mandated.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and the relevant program offices within NASA responsible for human resources and administration. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency would be enhanced through contract reporting mechanisms and potential audits by NASA's Office of Inspector General, particularly concerning the justification of costs and service delivery.
Related Government Programs
- Federal Employee Relocation Services
- Government Moving and Relocation Contracts
- Professional Services Contracts
- Workforce Management Support
Risk Flags
- Long contract duration may limit future competition.
- Potential for scope creep if not managed tightly.
- Service quality consistency across diverse relocations.
Tags
nasa, employee-relocation, cartus-corporation, competitive-delivery-order, firm-fixed-price, professional-services, real-estate-agents-and-brokers, workforce-support, federal-agency, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $20.5 million to CARTUS CORPORATION. NASA EMPLOYEE RELOCATION SERVICE
Who is the contractor on this award?
The obligated recipient is CARTUS CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2003-10-01. End: 2010-06-02.
What is the historical spending trend for NASA employee relocation services?
Historical spending data for NASA employee relocation services prior to and following this specific contract (2003-2010) would provide valuable context. Analyzing trends in annual spending, the number of employees relocated, and the average cost per relocation would reveal whether spending has increased, decreased, or remained stable over time. This analysis could highlight periods of significant workforce expansion or contraction, or shifts in relocation policy. Understanding these patterns helps in assessing the current contract's value and forecasting future needs. For instance, a consistent increase in spending might indicate growing agency needs or rising service costs, while a decrease could suggest efficiency gains or reduced mobility.
How does the cost per employee relocation under this contract compare to industry benchmarks?
To assess the value for money, a detailed comparison of the per-employee relocation cost under this contract against industry benchmarks is essential. This would involve calculating the average cost per relocation by dividing the total contract value by the number of employees relocated over its duration. These figures should then be compared to data from private sector relocation management companies or government-wide contracts for similar services. Factors such as the complexity of relocations (e.g., international vs. domestic, home-buying assistance included) must be considered for a fair comparison. If NASA's costs are significantly higher, it could indicate inefficiencies or a need to renegotiate terms. Conversely, lower costs might suggest effective management and competitive pricing.
What were the specific services included in this employee relocation contract?
The contract likely encompassed a comprehensive suite of relocation services designed to assist NASA employees and their families during a move. These services typically include, but are not limited to: pre-decision counseling, home marketing assistance, home finding services, expense reimbursement management, international relocation support (if applicable), temporary living assistance, and final move coordination. Understanding the exact scope of services is critical for evaluating the contract's value and ensuring that all necessary support was provided. Variations in service packages can significantly impact the overall cost and the employee's relocation experience.
What is Cartus Corporation's track record with government relocation contracts?
Cartus Corporation is a major player in the global relocation services market and has a significant history of serving government clients, including various federal agencies. Examining their past performance on similar government contracts, including any awards, penalties, or contract terminations, would provide insight into their reliability and service quality. Reviews of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) can reveal client satisfaction levels, adherence to schedules, and management of costs. A strong track record with government entities suggests a higher likelihood of successful contract execution for NASA.
Were there any performance issues or disputes during the life of this contract?
Investigating potential performance issues or disputes during the 2003-2010 period of this contract is crucial for a complete assessment. This would involve reviewing contract modification history, any formal complaints filed by NASA, or reports from oversight bodies like the Government Accountability Office (GAO) or NASA's Inspector General. Performance issues could range from delays in service delivery, cost overruns not covered by the fixed price, or dissatisfaction with the quality of services provided. The absence of significant documented disputes or issues would suggest a generally smooth execution of the contract.
How did the competitive delivery order mechanism impact the final pricing compared to a sole-source award?
A competitive delivery order, awarded from a pre-competed contract vehicle, generally results in more favorable pricing for the government compared to a sole-source award. The initial competition for the contract vehicle itself drives down prices as multiple vendors vie for the business. When NASA issued this delivery order, it likely benefited from the pricing established during that initial competitive process. Sole-source awards, conversely, lack this competitive pressure and may result in higher costs as the contractor faces less incentive to offer the most competitive rates. Therefore, the competitive nature of the award mechanism is a key factor in ensuring value for taxpayer money.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Offices of Real Estate Agents and Brokers › Offices of Real Estate Agents and Brokers
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 99
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Domus Holdings Corp. (UEI: 800035417)
Address: 40 APPLE RIDGE RD, DANBURY, CT, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,325,543
Exercised Options: $20,525,543
Current Obligation: $20,525,543
Parent Contract
Parent Award PIID: GS23F9762H
IDV Type: FSS
Timeline
Start Date: 2003-10-01
Current End Date: 2010-06-02
Potential End Date: 2010-06-02 00:00:00
Last Modified: 2014-08-06
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