Army awards $13.9M housing inspection contract to JLL-RER SOLUTIONS, LLC for one year
Contract Overview
Contract Amount: $13,907,991 ($13.9M)
Contractor: Jll-Rer Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2026-09-28
Contract Duration: 364 days
Daily Burn Rate: $38.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARMY PRIVATIZED HOUSING INSPECTION SERVICES CONTRACT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $13.9 million to JLL-RER SOLUTIONS, LLC for work described as: ARMY PRIVATIZED HOUSING INSPECTION SERVICES CONTRACT Key points: 1. Contract focuses on essential housing inspection services for military personnel. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of one year allows for flexibility and re-evaluation. 5. Geographic focus on Washington D.C. indicates specific regional needs. 6. The award value is moderate for a specialized service contract of this nature.
Value Assessment
Rating: good
The contract value of $13.9 million for a one-year period for housing inspection services appears reasonable given the scope. Benchmarking against similar contracts for building inspection services in major metropolitan areas suggests this pricing is within expected ranges. The firm fixed-price structure provides cost predictability, which is a positive indicator for value for money. Without specific details on the number of units inspected or the exact scope of services, a precise per-unit cost comparison is difficult, but the overall award seems aligned with market rates for professional inspection services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The specific number of bidders is not provided, but the open competition suggests that the Army sought the best value from a wide range of qualified providers. This approach is designed to drive down prices and improve service quality through market forces.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government receives the best possible value for its investment.
Public Impact
Military families residing in privatized housing in the Washington D.C. area will benefit from ensured housing quality and safety. The contract delivers essential building inspection services, crucial for maintaining living standards and identifying potential hazards. The geographic impact is concentrated in the District of Columbia, serving specific Army installations or housing complexes within that region. The contract supports a specialized workforce of inspectors and related administrative personnel, contributing to employment in the building inspection sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if inspection criteria are not clearly defined.
- Reliance on a single contractor for a year could lead to complacency if performance is not rigorously monitored.
- The fixed-price nature might disincentivize contractors from going above and beyond standard requirements without additional compensation.
Positive Signals
- Firm fixed-price contract provides budget certainty.
- Full and open competition suggests a robust selection process.
- Clear contract duration limits long-term commitment and allows for future adjustments.
- Focus on essential housing inspections directly supports service members and their families.
Sector Analysis
The building inspection services sector is a critical component of the construction and real estate industries, ensuring compliance with safety codes and quality standards. This contract falls within the professional, scientific, and technical services category, specifically focusing on building inspection. The market for such services is competitive, with numerous firms offering specialized expertise. Government contracts for inspections are common across various agencies to maintain infrastructure and housing quality. Comparable spending benchmarks for similar services in large metropolitan areas would typically range from several million to tens of millions annually, depending on the scale and complexity.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses as prime contractors is likely minimal unless they were part of a joint venture or subcontracting team. The prime contractor, JLL-RER SOLUTIONS, LLC, is a large entity, suggesting that subcontracting opportunities for small businesses in specialized inspection or support roles may exist, but this is not guaranteed by the contract terms alone. The overall impact on the small business ecosystem depends on the prime contractor's subcontracting plan.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services to avoid non-payment or breach. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Military Housing Privatization Initiative
- Base Realignment and Closure (BRAC) related infrastructure
- Department of Defense Facilities Maintenance
- Federal Building Inspection Services
Risk Flags
- Performance Risk
- Scope Definition Risk
- Resource Availability Risk
Tags
construction, defense, department-of-the-army, full-and-open-competition, firm-fixed-price, delivery-order, housing-inspection, district-of-columbia, jll-rer-solutions-llc, professional-services, building-inspection
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to JLL-RER SOLUTIONS, LLC. ARMY PRIVATIZED HOUSING INSPECTION SERVICES CONTRACT
Who is the contractor on this award?
The obligated recipient is JLL-RER SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2025-09-29. End: 2026-09-28.
What is the track record of JLL-RER SOLUTIONS, LLC with federal government contracts, particularly in housing or building inspections?
JLL-RER SOLUTIONS, LLC, as part of the larger Jones Lang LaSalle (JLL) enterprise, has a significant history of performing real estate services, including property management and facility maintenance, for various government entities. While specific contract details for housing inspection services might vary, JLL's broader federal portfolio indicates experience in managing large-scale contracts and delivering professional services. Their track record suggests a capacity to handle complex requirements. However, a detailed review of past performance specifically on similar Army housing inspection contracts would be necessary for a comprehensive assessment of their suitability and past success in this precise domain. Publicly available data on federal contract awards can provide insights into their past performance ratings and the types of services previously rendered.
How does the awarded price of $13.9 million compare to similar housing inspection contracts awarded by the Department of Defense or other federal agencies?
The awarded price of $13.9 million for a one-year housing inspection contract is within a reasonable range for services provided in a high-cost-of-living area like Washington D.C. Benchmarking against similar contracts requires detailed comparison of scope, duration, number of units inspected, and specific service requirements. However, for a single year of comprehensive inspection services covering potentially thousands of housing units, this figure is not exceptionally high. Contracts for similar services in other regions or for different durations can vary significantly. For instance, multi-year contracts or those covering larger geographic areas or more extensive inspection types (e.g., environmental, structural) could easily exceed this amount. The firm fixed-price nature also suggests the government has negotiated a set cost for defined deliverables.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks include potential deficiencies in the quality or timeliness of inspections, leading to substandard housing conditions for service members. Another risk is the contractor's ability to scale resources effectively to meet demand, especially during peak move-in/move-out periods. Furthermore, inadequate scope definition could lead to disputes or missed critical inspection points. Mitigation strategies likely include robust performance monitoring by the Contracting Officer's Representative (COR), clear performance standards and metrics outlined in the contract, regular progress meetings, and potentially penalties for non-performance. The firm fixed-price structure incentivizes the contractor to meet requirements efficiently. The one-year duration also allows for reassessment and potential changes in future contract awards if performance is unsatisfactory.
How effective is the firm fixed-price contract type in ensuring value for money for housing inspection services?
The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks of cost overruns are manageable. For housing inspection services, where the tasks are relatively standardized (e.g., checking for specific defects, ensuring compliance with checklists), an FFP contract provides cost certainty for the government. It places the burden of managing costs and ensuring efficiency on the contractor. This incentivizes the contractor to perform the work within the agreed-upon price, potentially leading to cost savings for the government if the contractor is efficient. However, if the scope is not precisely defined, or if unforeseen issues arise, the contractor might be less inclined to address them without additional cost, potentially impacting the overall quality or completeness of service if not managed carefully through contract oversight.
What are the historical spending patterns for housing inspection services by the Department of the Army?
Historical spending patterns for housing inspection services by the Department of the Army are often tied to the broader Military Housing Privatization Initiative (MHPI) and the ongoing maintenance and oversight of privatized housing. The Army, like other branches, contracts for various inspection services to ensure the quality and safety of housing provided to service members and their families. Spending can fluctuate based on the number of housing units managed, the age and condition of the housing stock, and evolving regulatory or safety requirements. While specific aggregate data for 'housing inspection services' might be embedded within larger facilities maintenance or housing management contracts, annual outlays can range from tens to hundreds of millions of dollars across the entire Department of Defense, reflecting the vast scale of military housing operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1119 12TH ST NW, WASHINGTON, DC, 20005
Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $13,907,991
Exercised Options: $13,907,991
Current Obligation: $13,907,991
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9124J23D0016
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-09-22
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