AmeriCorps facility lease in Sacramento, CA, awarded to McClellan Business Park LLC for over $15.1 million

Contract Overview

Contract Amount: $15,128,869 ($15.1M)

Contractor: Mcclellan Business Park LLC

Awarding Agency: Corporation for National and Community Service

Start Date: 2017-08-09

End Date: 2026-08-08

Contract Duration: 3,286 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SUCCEEDING LEASE - FIVE (5) YEAR FIRM AND FIVE (5) YEAR NON-FIRM TERM. AUGUST 9, 2017 - AUGUST 8, 2022 (FIRM) AND AUGUST 9, 2022 - AUGUST 8, 2027 (NON-FIRM). AMERICORPS NCCC PACIFIC REGION FACILITY LEASE - SACRAMENTO, CA.

Place of Performance

Location: MCCLELLAN, SACRAMENTO County, CALIFORNIA, 95652

State: California Government Spending

Plain-Language Summary

Corporation for National and Community Service obligated $15.1 million to MCCLELLAN BUSINESS PARK LLC for work described as: IGF::OT::IGF SUCCEEDING LEASE - FIVE (5) YEAR FIRM AND FIVE (5) YEAR NON-FIRM TERM. AUGUST 9, 2017 - AUGUST 8, 2022 (FIRM) AND AUGUST 9, 2022 - AUGUST 8, 2027 (NON-FIRM). AMERICORPS NCCC PACIFIC REGION FACILITY LEASE - SACRAMENTO, CA. Key points: 1. The contract represents a long-term commitment for facility space, spanning a decade. 2. The lease was not competed, raising questions about potential cost savings through competitive bidding. 3. The fixed-price nature of the contract shifts cost risk to the government. 4. The facility supports the AmeriCorps NCCC Pacific Region, indicating a critical operational need. 5. The duration of the lease suggests a stable, ongoing requirement for the services provided.

Value Assessment

Rating: fair

The total value of $15.1 million over ten years averages to $1.51 million annually. Without comparable lease data for similar facilities in Sacramento, it is difficult to definitively benchmark the value. However, the lack of competition suggests that the government may not have secured the most favorable pricing. The fixed-price structure means the government is obligated to pay the agreed-upon amount regardless of actual usage or market fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not subjected to a competitive bidding process. This approach is typically used when only one source is capable of meeting the requirement. The lack of competition means that the government did not explore potential cost savings that could have been achieved through a more open bidding process, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for this facility lease, as there was no market pressure to drive down prices.

Public Impact

The primary beneficiaries are the AmeriCorps National Civilian Community Corps (NCCC) Pacific Region program, which utilizes the facility for its operations. The facility provides essential space for administrative functions, training, and potentially housing for AmeriCorps members. The geographic impact is focused on Sacramento, California, serving as a hub for the Pacific Region's activities. The contract supports the AmeriCorps mission of engaging Americans in service to address critical needs, indirectly impacting communities served by the NCCC program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in above-market pricing.
Long-term commitment limits flexibility to adapt to changing needs or seek better value.
Fixed-price contract offers no cost savings if actual facility needs are lower than anticipated.

Positive Signals

Provides a stable, long-term facility for a critical national service program.
Ensures continuity of operations for the AmeriCorps NCCC Pacific Region.
Supports the government's commitment to national service initiatives.

Sector Analysis

This contract falls within the Real Estate and Leasing sector, specifically for government facility leases. The market for commercial real estate and leasing is dynamic, influenced by location, size, and amenities. Government leases often involve long-term commitments and specific security or operational requirements. Benchmarking this lease against private sector commercial leases of similar size and in the Sacramento area would be necessary for a comprehensive value assessment, but such data is not readily available.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of a facility lease, it is unlikely that subcontracting opportunities for small businesses would be a significant component, unless related to facility maintenance or support services not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Corporation for National and Community Service (CNCS) contracting and program management offices. Transparency is limited by the sole-source nature of the award. Accountability would be measured by the contractor's adherence to lease terms and the facility's suitability for AmeriCorps operations. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Real Estate Services
Federal Facility Leases
AmeriCorps Program Funding

Risk Flags

Sole-source award lacks competitive pricing.
Long-term commitment may reduce flexibility.
Fixed-price contract shifts cost risk to government.

Frequently Asked Questions

What is this federal contract paying for?

Corporation for National and Community Service awarded $15.1 million to MCCLELLAN BUSINESS PARK LLC. IGF::OT::IGF SUCCEEDING LEASE - FIVE (5) YEAR FIRM AND FIVE (5) YEAR NON-FIRM TERM. AUGUST 9, 2017 - AUGUST 8, 2022 (FIRM) AND AUGUST 9, 2022 - AUGUST 8, 2027 (NON-FIRM). AMERICORPS NCCC PACIFIC REGION FACILITY LEASE - SACRAMENTO, CA.

Who is the contractor on this award?

The obligated recipient is MCCLELLAN BUSINESS PARK 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 $15.1 million.

What is the period of performance?

Start: 2017-08-09. End: 2026-08-08.

What is the historical spending pattern for AmeriCorps facility leases in Sacramento, CA?

The provided data only details one contract for the AmeriCorps NCCC Pacific Region facility lease in Sacramento, CA, valued at over $15.1 million from 2017 to 2026. There is no historical data available within this dataset to establish a spending pattern for similar leases in the region. To understand historical spending, one would need to access broader federal procurement databases and filter for facility leases by the Corporation for National and Community Service or similar agencies in the Sacramento area over a longer period. This would allow for an analysis of trends in lease duration, cost per square foot, and the prevalence of competitive versus sole-source awards.

How does the annual cost of this lease compare to market rates for similar commercial properties in Sacramento?

The annual cost of this lease is approximately $1.51 million ($15.1 million / 10 years). To compare this to market rates, one would need to research average rental prices per square foot for comparable commercial office or facility space in Sacramento, CA, during the lease period (2017-2026). Factors such as building class, amenities, location within Sacramento, and lease terms (e.g., included utilities, maintenance responsibilities) would need to be considered. Without access to specific square footage and detailed market data for Sacramento commercial real estate during that timeframe, a precise comparison is not possible. However, the sole-source nature of the award raises a presumption that the government may not have achieved the most competitive market rate.

What are the specific risks associated with a 10-year fixed-price lease for a government facility?

A significant risk of a 10-year fixed-price lease is the potential for the government to overpay if market rental rates decrease over the lease term. Conversely, if operating costs for the lessor increase significantly, they may be less incentivized to maintain the property to the highest standards, although lease agreements typically include maintenance clauses. Another risk is the lack of flexibility; the government is locked into the space for a decade, making it difficult to relocate or downsize if programmatic needs change or a more cost-effective option becomes available. The fixed-price nature also means the government bears the risk of paying the full amount even if the facility is underutilized.

What is the track record of McClellan Business Park LLC as a government contractor?

The provided data identifies McClellan Business Park LLC as the contractor for this specific AmeriCorps facility lease. To assess their broader track record as a government contractor, one would need to consult federal procurement databases (like FPDS or SAM.gov) to identify other contracts awarded to this entity. This would reveal the types of services or goods they have provided, the agencies they have contracted with, the total value of contracts held, and any performance history, including past performance evaluations or any instances of contract disputes or terminations. Without this broader search, their track record beyond this single lease remains unknown.

How does the Corporation for National and Community Service typically procure facility leases?

The Corporation for National and Community Service (CNCS), like other federal agencies, generally procures facility leases through competitive bidding processes to ensure best value for taxpayer dollars. This typically involves issuing a solicitation for offers (SFO) and evaluating proposals based on criteria such as price, technical suitability, and past performance. However, agencies can award sole-source contracts under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements. The sole-source award for this AmeriCorps lease suggests that such specific circumstances may have applied, or that the procurement process did not adequately explore competitive options.

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

Solicitation ID: CNSHQ17T0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3140 PEACEKEEPER WAY, MCCLELLAN, CA, 95652

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

Financial Breakdown

Contract Ceiling: $21,240,730

Exercised Options: $15,128,869

Current Obligation: $15,128,869

Actual Outlays: $11,423,881

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline