GSA Leases NLRB Facility Space for $27.9M in Texas, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $27,890,587 ($27.9M)

Contractor: General Services Administration Greater Southwest Finance Center (7BC)

Awarding Agency: National Labor Relations Board

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $76.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDING RENT FOR FACILITY SPACE

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

National Labor Relations Board obligated $27.9 million to GENERAL SERVICES ADMINISTRATION GREATER SOUTHWEST FINANCE CENTER (7BC) for work described as: BUILDING RENT FOR FACILITY SPACE Key points: 1. Spending of $27.9M on facility space lease. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract type is Firm Fixed Price, which shifts risk to the contractor. 4. Sector is Real Estate Property Leasing, a common government expenditure.

Value Assessment

Rating: fair

The annual rent of approximately $7.6M appears reasonable for facility space, but a direct comparison to similar GSA leases in Texas would provide a more definitive assessment.

Cost Per Unit: $7,641,300 per year

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are used for facility leasing, a necessary operational cost for the agency.

Public Impact

Ensures National Labor Relations Board has physical space to operate. Supports the real estate market in Texas through lease payments. Government spending on facilities is a significant component of the federal budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lease duration and potential for future price increases.
Dependence on a single lessor for critical facility space.

Positive Signals

Full and open competition likely secured a competitive price.
Firm Fixed Price contract limits cost overruns for the government.

Sector Analysis

This contract falls within the Real Estate Property Leasing sector. Government spending on facility leases is substantial, with GSA managing a vast portfolio of properties across the nation.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or could have been.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal real estate. Oversight would involve ensuring lease terms are met and the space is utilized effectively.

Related Government Programs

Lessors of Other Real Estate Property
National Labor Relations Board Contracting
National Labor Relations Board Programs

Risk Flags

Potential for price escalation in future renewals.
Lack of specific detail on lease terms and conditions.
No clear indication of sustainability or energy efficiency features.
Limited information on the specific needs driving the lease size and duration.

Frequently Asked Questions

What is this federal contract paying for?

National Labor Relations Board awarded $27.9 million to GENERAL SERVICES ADMINISTRATION GREATER SOUTHWEST FINANCE CENTER (7BC). BUILDING RENT FOR FACILITY SPACE

Who is the contractor on this award?

The obligated recipient is GENERAL SERVICES ADMINISTRATION GREATER SOUTHWEST FINANCE CENTER (7BC).

Which agency awarded this contract?

Awarding agency: National Labor Relations Board (National Labor Relations Board).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What is the benchmark for facility lease costs per square foot in this specific Texas region?

Benchmarking facility lease costs requires detailed information on the specific location, size, and amenities of the leased space. Without these details, a precise per-square-foot benchmark is difficult. However, GSA typically aims for competitive rates based on local market conditions. Further investigation into regional real estate data would be necessary for a definitive benchmark.

What are the risks associated with a long-term lease for facility space?

Long-term leases carry risks such as potential overpayment if market rates decrease, inflexibility if agency needs change, and the possibility of the leased space becoming outdated or unsuitable. However, they also provide cost certainty and stability for the agency's operations, avoiding the capital outlay and management burdens of owning property.

How effectively does this lease support the National Labor Relations Board's mission?

The lease effectively supports the NLRB's mission by providing the necessary physical infrastructure for its operations. The key is whether the location, size, and quality of the facility meet the agency's functional requirements and facilitate its work in labor relations. The value is realized if the space enables productivity and accessibility.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Other Real Estate Property

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of the United States (UEI: 161906193)

Address: 819 TAYLOR ST RM-5A27, FORT WORTH, TX, 90

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,890,587

Exercised Options: $27,890,587

Current Obligation: $27,890,587

Timeline