Army privatized family housing contract awarded to Jones Lang LaSalle Americas, Inc. for over $21 million

Contract Overview

Contract Amount: $21,279,226 ($21.3M)

Contractor: Jones Lang Lasalle Americas, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2011-03-31

Contract Duration: 548 days

Daily Burn Rate: $38.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: ACSIM MILITARY HOUSING PROGRAM INITIATIVES FOR ARMY PRIVATIZATION OF FAMILY HOUSING, LODGING, AND UNACCOMPANIED PERSONNEL HOUSING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to JONES LANG LASALLE AMERICAS, INC. for work described as: ACSIM MILITARY HOUSING PROGRAM INITIATIVES FOR ARMY PRIVATIZATION OF FAMILY HOUSING, LODGING, AND UNACCOMPANIED PERSONNEL HOUSING Key points: 1. Contract focuses on administrative management and consulting services for military housing. 2. Awarded as a sole-source contract, limiting competitive pricing benefits. 3. Duration of the contract was approximately 1.5 years. 4. The contract was awarded by the Department of the Army, a component of the DoD. 5. The North American Industry Classification System (NAICS) code indicates consulting services. 6. No small business set-aside was utilized for this contract. 7. The contract was awarded in late 2009, with an end date in early 2011.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to its unique nature and the limited public data available on comparable sole-source administrative management contracts for military housing privatization. The awarded amount of over $21 million for a duration of approximately 1.5 years suggests a significant investment in management services. Without more detailed performance metrics or comparisons to similar privatization initiatives, a definitive assessment of value for money is difficult. The pricing structure and justification for the sole-source award would be critical for a more thorough evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a direct award. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that typically arise from a competitive bidding process. This can sometimes lead to higher prices than might be achieved in an open market.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to leverage competition to secure the most cost-effective solution. This could potentially result in a higher overall expenditure for the services rendered compared to a competitively awarded contract.

Public Impact

The primary beneficiaries of this contract are the Department of the Army and its personnel, who are provided with improved housing management services. The services delivered include administrative management and consulting related to the privatization of family housing, lodging, and unaccompanied personnel housing. The geographic impact is primarily within areas where the Army manages family housing, though specific locations are not detailed in the provided data. Workforce implications may include the utilization of specialized consulting expertise to manage and optimize military housing assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Limited public data makes independent value assessment difficult.
Contract duration is relatively short, potentially impacting long-term strategy implementation.

Positive Signals

Focus on administrative management suggests a structured approach to housing privatization.
Award to a known entity (Jones Lang LaSalle) may imply prior experience or expertise.
Contract aims to improve military housing, a critical support function.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The market for such services is broad, encompassing various industries that require strategic planning, operational efficiency, and specialized advisory support. For military housing, privatization initiatives represent a significant segment where private sector expertise is leveraged to manage and develop government assets, aiming for improved service delivery and cost-effectiveness. Comparable spending benchmarks are difficult to establish without more specific details on the scope and scale of the privatization efforts.

Small Business Impact

This contract was not set aside for small businesses, nor does the provided data indicate any subcontracting requirements for small businesses. The award to a large firm like Jones Lang LaSalle suggests that the scope of services was likely beyond the capacity or focus of typical small business set-asides in this domain. The absence of small business participation means that opportunities for smaller firms to contribute to this specific housing privatization initiative were not pursued through this contract.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officers and program managers within the Department of the Army. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature and the proprietary information often associated with consulting services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Housing Privatization Initiative (MHPI)
Department of Defense Family Housing Management
Army Installation Management Command Services
Real Estate and Facilities Management Consulting

Risk Flags

Sole-source award may limit cost savings.
Limited public data hinders comprehensive value assessment.
Contract duration is relatively short.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to JONES LANG LASALLE AMERICAS, INC.. ACSIM MILITARY HOUSING PROGRAM INITIATIVES FOR ARMY PRIVATIZATION OF FAMILY HOUSING, LODGING, AND UNACCOMPANIED PERSONNEL HOUSING

Who is the contractor on this award?

The obligated recipient is JONES LANG LASALLE AMERICAS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2009-09-29. End: 2011-03-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not specify the exact justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as the unique capability of a single contractor, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. For a contract of this nature, it's possible that Jones Lang LaSalle possessed specialized expertise in military housing privatization or had existing knowledge of the Army's specific requirements that made them the only viable option at the time. A formal justification document would normally be required by federal acquisition regulations to support such an award, detailing why full and open competition was not practicable.

How does the awarded amount compare to typical administrative management consulting fees for similar projects?

Direct comparison of the awarded amount ($21.28 million) to typical administrative management consulting fees for similar projects is challenging without more granular data on the scope of services, project duration, and specific deliverables. The contract duration was approximately 1.5 years (548 days). If this amount covered the entire project lifecycle, it suggests a substantial investment in management and consulting for housing privatization. Benchmarking would require access to detailed cost breakdowns, performance metrics, and data from comparable Army or other military branch housing privatization efforts, ideally those that were competitively procured to establish a clearer understanding of market rates and value for money.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or deliverables for this contract. However, given the nature of administrative management and consulting services for housing privatization, expected outcomes likely included strategic planning for housing development and management, financial analysis, operational efficiency improvements, stakeholder coordination, and potentially assistance with securing financing or managing public-private partnerships. Performance would typically be assessed against contractual milestones, adherence to timelines, quality of reports and recommendations, and the overall effectiveness in supporting the Army's housing privatization goals.

What is the track record of Jones Lang LaSalle Americas, Inc. in managing federal contracts, particularly within the defense sector?

Jones Lang LaSalle Americas, Inc. (JLL) is a well-established global real estate services firm with a significant presence in managing large-scale real estate portfolios, including those for government and defense clients. While specific details of their past federal contract performance are not in the provided data, JLL has a history of engaging in public-private partnerships and providing real estate advisory, management, and development services. Their involvement in military housing privatization initiatives is consistent with their expertise. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and any reported issues or successes on similar federal engagements.

What is the historical spending trend for administrative management and consulting services within the Department of the Army?

The provided data focuses on a single contract and does not offer insights into the historical spending trends for administrative management and consulting services within the Department of the Army. To analyze such trends, one would need access to historical contract databases (like FPDS or SAM.gov) to aggregate spending data over multiple fiscal years, filter by agency (Department of the Army), service category (NAICS 541611), and contract type. This would reveal patterns in the volume and value of contracts awarded for these services, potentially highlighting periods of increased or decreased investment and identifying major contractors or program areas.

Were there any identified risks or challenges associated with this specific housing privatization initiative?

The provided data does not explicitly list risks or challenges associated with this contract. However, military housing privatization initiatives, in general, can face several common risks. These include potential cost overruns if not managed effectively, complexities in public-private partnerships, challenges in meeting diverse housing needs of military families, potential for disputes over contract terms or performance, and ensuring long-term affordability and quality of housing. The sole-source nature of this award might also introduce a risk related to the absence of competitive pressure on efficiency and innovation. A thorough risk assessment would typically be documented within the contract's acquisition planning.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DR09R0123

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jones Lang Lasalle Brokerage, Inc. (UEI: 028781060)

Address: 1801 K ST NW STE 1000, WASHINGTON, DC, 98

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,279,226

Exercised Options: $21,279,226

Current Obligation: $21,279,226

Contract Characteristics

Cost or Pricing Data: NO

Timeline