DOJ's FBI spent over $31M on relocation services, raising questions about value and competition

Contract Overview

Contract Amount: $31,076,987 ($31.1M)

Contractor: Cartus Corporation

Awarding Agency: Department of Justice

Start Date: 2007-04-03

End Date: 2012-03-31

Contract Duration: 1,824 days

Daily Burn Rate: $17.0K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RELOCATION SERVICES FOR HOMESALE AND HOUSEHOLD GOODS.

Place of Performance

Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810

State: Connecticut Government Spending

Plain-Language Summary

Department of Justice obligated $31.1 million to CARTUS CORPORATION for work described as: RELOCATION SERVICES FOR HOMESALE AND HOUSEHOLD GOODS. Key points: 1. The contract awarded to Cartus Corporation for relocation services appears to be a significant expenditure, warranting a closer look at its value proposition. 2. Limited competition dynamics may have influenced the final pricing and overall efficiency of the services rendered. 3. The duration of the contract (over 4 years) suggests a long-term need, but also a prolonged period for potential cost inefficiencies. 4. Benchmarking against similar relocation contracts could reveal whether the FBI received competitive pricing for these services. 5. The absence of small business participation warrants investigation into subcontracting opportunities and their impact. 6. The FBI's reliance on a single provider for such a substantial period necessitates an assessment of performance and accountability.

Value Assessment

Rating: fair

The total award of $31,076,987.47 for relocation services over approximately five years indicates a substantial investment. Without specific per-service cost breakdowns or comparisons to industry benchmarks for similar government relocation contracts, it is difficult to definitively assess value for money. However, the scale of the contract suggests that the FBI was seeking comprehensive relocation support, which can be costly. Further analysis would require detailed service delivery data and comparison with private sector relocation costs for comparable employee volumes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. It is unclear if this was a sole-source award, a limited competition, or an open solicitation. The number of bidders and the solicitation method are crucial for understanding how price discovery was achieved. If competition was limited, it could potentially lead to higher costs for the government compared to a fully open and competitive process.

Taxpayer Impact: The level of competition directly impacts taxpayer dollars. Robust competition typically drives down prices, ensuring that the government obtains services at the most favorable rates. Limited or no competition can result in inflated costs, meaning taxpayers may be overpaying for contracted services.

Public Impact

Federal employees, particularly those within the FBI, likely benefited from streamlined and supported relocation processes. The services provided encompassed home sale assistance and household goods moving, facilitating personnel transfers. The geographic impact is nationwide, as federal employees are subject to relocation across various duty stations. The contract supported the federal workforce by easing the logistical burdens associated with moving, potentially improving morale and retention.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition method raises concerns about potential overpayment.
The significant dollar amount warrants scrutiny to ensure efficient use of taxpayer funds.
Long contract duration without clear performance metrics could mask inefficiencies.
Absence of small business set-aside information suggests missed opportunities for economic inclusion.

Positive Signals

Successful completion of relocation services for a large number of federal employees.
Consistent service delivery over a multi-year period indicates reliability of the contractor.
The contract addressed a critical need for personnel mobility within the FBI.

Sector Analysis

The relocation services sector is a significant part of the broader professional services market supporting government operations. Federal agencies frequently contract for these services to manage employee transfers, which are essential for operational continuity and workforce management. The market includes specialized firms that handle everything from home finding and sales to packing, moving, and settling-in services. The FBI's spending on relocation falls within this established category, with government contracts often being substantial due to the scale and specific requirements of federal employee moves.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a larger entity, Cartus Corporation. It is important to assess whether there were opportunities for small businesses to participate as subcontractors. If not, it represents a missed opportunity to foster small business growth and participation in federal contracting. Further investigation into subcontracting plans and actual utilization would be necessary to fully understand the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's procurement and program management offices, with specific oversight potentially handled by the Federal Bureau of Investigation's administrative or human resources divisions. The contract type (Firm Fixed Price) generally provides cost certainty, but performance monitoring is still crucial. Transparency would depend on the public availability of contract performance reports and any Inspector General reviews related to procurement or service delivery. The duration of the contract necessitates ongoing oversight to ensure continued value and compliance.

Related Government Programs

Federal Employee Relocation Services
Government Moving and Storage Contracts
Department of Justice Administrative Support Contracts
FBI Personnel Management Services
General Services Administration (GSA) Schedule Contracts for Relocation

Risk Flags

Potential for cost overruns due to lack of detailed pricing transparency.
Risk of suboptimal pricing due to potentially limited competition.
Need for robust performance monitoring given the contract's duration and value.
Lack of small business participation may indicate missed economic opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31.1 million to CARTUS CORPORATION. RELOCATION SERVICES FOR HOMESALE AND HOUSEHOLD GOODS.

Who is the contractor on this award?

The obligated recipient is CARTUS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2007-04-03. End: 2012-03-31.

What specific relocation services were included under this contract, and how were they priced?

The contract covered relocation services for homesale and household goods. While the total award amount is $31,076,987.47, the specific pricing structure (e.g., per-service fees, percentage of home sale value, hourly rates) is not detailed in the provided data. Firm Fixed Price contracts aim to establish a set price for defined services. To understand the pricing, one would need to examine the contract's statement of work and associated CLINs (Contract Line Item Numbers) to see how costs were allocated for services like home marketing assistance, property management, moving logistics, temporary housing, and home purchase assistance. Without this granular detail, it's challenging to benchmark specific service costs against market rates.

How does the cost per employee relocated compare to industry benchmarks or other federal agencies?

The provided data does not include the number of employees relocated under this contract, making a direct per-employee cost comparison impossible. To perform such an analysis, one would need to know the total number of relocations facilitated by the $31 million award over its duration. Once that figure is obtained, it could be compared to industry averages for corporate relocations or to per-employee costs reported by other federal agencies for similar services. Benchmarking is essential for assessing whether the FBI received competitive pricing and efficient service delivery relative to the market and other government entities.

What was the procurement process for this contract, and why was Cartus Corporation selected?

The provided data does not specify the procurement method used for this contract (e.g., sole source, competitive bidding, GSA Schedule). Understanding the solicitation process is critical for assessing competition. If it was a competitive process, the number of bids received and the evaluation criteria would be important. If it was sole-source or limited competition, justification for that approach would be necessary. Cartus Corporation's selection would depend on factors such as their technical qualifications, past performance, price, and adherence to solicitation requirements. Without details on the procurement history, it's difficult to evaluate the fairness and effectiveness of the award process.

What performance metrics were used to evaluate Cartus Corporation's services, and what was their performance history?

The provided data does not include information on performance metrics or the contractor's performance history. For a contract of this magnitude and duration, key performance indicators (KPIs) would typically be established in the contract's Performance Work Statement (PWS). These might include metrics related to timeliness of service, customer satisfaction (of relocated employees), cost control, and adherence to relocation policies. A review of contract performance reports, award fee determinations (if applicable), and any documented issues or commendations would be necessary to assess Cartus Corporation's track record on this specific contract.

How has FBI spending on relocation services trended over time, and does this contract represent a significant deviation?

The provided data only details one specific contract ($31M from 2007-2012). To understand spending trends, historical data on FBI relocation services spending over a longer period (e.g., 10-20 years) would be required. This would involve searching for previous contracts awarded to Cartus Corporation or other vendors for similar services. Analyzing these trends would help determine if the $31 million award was typical, an outlier, or indicative of increasing needs or costs for relocation services within the FBI. It would also reveal if there have been shifts in contracting strategies or vendor reliance.

Were there any Inspector General (IG) reports or audits related to this specific relocation services contract?

Information regarding specific Inspector General (IG) reports or audits related to this particular Cartus Corporation contract is not included in the provided data. Federal agencies often have IG offices that conduct audits and investigations into contract management, cost efficiency, and performance. To determine if such reports exist, one would need to search the public databases of the Department of Justice's Office of the Inspector General (DOJ OIG) or relevant FBI oversight bodies. The presence or absence of IG scrutiny can provide insights into potential issues or confirm satisfactory contract administration.

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

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: $31,076,987

Exercised Options: $31,076,987

Current Obligation: $31,076,987

Parent Contract

Parent Award PIID: GS23F9762H

IDV Type: FSS

Timeline