DOD's $36.7M contract for lodging during civil unrest mission highlights rapid response needs

Contract Overview

Contract Amount: $36,716,095 ($36.7M)

Contractor: Corporate Lodging Consultants, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2021-03-15

Contract Duration: 42 days

Daily Burn Rate: $874.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LODGING FOR DCNG CIVIL UNREST MISSION. BASIC SERVICES. 8000 SINGLE OCCUPANCY ROOMS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to CORPORATE LODGING CONSULTANTS, INC. for work described as: LODGING FOR DCNG CIVIL UNREST MISSION. BASIC SERVICES. 8000 SINGLE OCCUPANCY ROOMS. Key points: 1. Contract value of $36.7M for a short-duration mission indicates significant logistical demands. 2. Focus on basic services for 8,000 rooms suggests a need for essential support during critical events. 3. The contract was awarded under full and open competition, implying a broad search for qualified vendors. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The short performance period (42 days) points to an urgent, mission-specific requirement. 6. The geographic focus on Washington D.C. aligns with the civil unrest mission context.

Value Assessment

Rating: good

The contract value of $36.7 million for 42 days of lodging services, accommodating 8,000 rooms, suggests a substantial per-room, per-day cost. While specific service levels are not detailed, the price appears to be within a reasonable range for emergency lodging during a high-demand period in a major metropolitan area. Benchmarking against typical hotel rates in D.C. during peak demand would provide further context, but the firm fixed-price nature offers predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, allowing the government to solicit the best value from a wide range of potential providers. This approach is expected to yield competitive pricing and ensure that the selected contractor can meet the demanding requirements of the mission.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings by encouraging multiple vendors to offer their best pricing and services.

Public Impact

Provides essential temporary housing for military personnel deployed to support civil unrest missions. Ensures operational readiness by securing necessary logistical support for critical government functions. Supports the District of Columbia by providing lodging for federal personnel during a period of heightened activity. Indirectly supports the local economy through the utilization of lodging facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price inflation due to urgent, short-term demand.
Limited visibility into the specific 'basic services' provided per room.
Dependence on a single contractor for a critical, time-sensitive need.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process.
Firm Fixed Price contract provides budget certainty.
Short duration limits long-term financial commitment and potential cost overruns.

Sector Analysis

The travel arrangement and reservation services sector (NAICS 561599) encompasses a wide range of services, including booking accommodations, transportation, and tours. This contract falls within the government's need for rapid deployment of personnel, requiring extensive logistical support. The market for emergency lodging services can be highly dynamic, with prices fluctuating significantly based on demand, location, and the urgency of the requirement. This contract's value reflects the significant scale and time sensitivity of supporting a federal mission during civil unrest.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Given the scale and urgency of the requirement (8,000 rooms), it is likely that larger, established lodging providers or corporate lodging consultants were best positioned to meet the demand. There is no explicit information on subcontracting plans, but large contracts often include provisions for small business participation, though this is not guaranteed.

Oversight & Accountability

The contract is a BPA Call, suggesting it was issued under a pre-existing Blanket Purchase Agreement, which typically has established terms and conditions. The firm fixed-price nature provides a degree of cost control. Oversight would likely be managed by the contracting officer and relevant Department of the Army personnel responsible for the civil unrest mission. Transparency is facilitated by the contract award being publicly available, but detailed service delivery reports are not provided.

Related Government Programs

Department of Defense Emergency Response Contracts
Federal Lodging and Accommodation Services
National Guard Support Missions
Civil Disturbance Response Logistics

Risk Flags

Urgent Need
Short Performance Period
High Volume of Rooms

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to CORPORATE LODGING CONSULTANTS, INC.. LODGING FOR DCNG CIVIL UNREST MISSION. BASIC SERVICES. 8000 SINGLE OCCUPANCY ROOMS.

Who is the contractor on this award?

The obligated recipient is CORPORATE LODGING CONSULTANTS, 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 $36.7 million.

What is the period of performance?

Start: 2021-02-01. End: 2021-03-15.

What specific 'basic services' were included in the lodging contract?

The provided data indicates 'BASIC SERVICES' for lodging but does not detail what these entail. Typically, for emergency lodging contracts of this nature, 'basic services' would include a clean, safe room, potentially with basic amenities like linens and toiletries. It might also encompass access to common areas, security, and potentially meal services or access to food vendors, depending on the mission's requirements and duration. Without further documentation, the exact scope of 'basic services' remains unspecified, but it is understood to cover essential needs for personnel on duty.

How does the per-room cost compare to standard commercial rates in Washington D.C. during similar periods?

The contract value is $36,716,094.58 for 8,000 rooms over 42 days. This equates to approximately $108.68 per room per day ($36,716,094.58 / 8000 rooms / 42 days). Commercial hotel rates in Washington D.C. can vary significantly, but during periods of high demand (like civil unrest or major events), rates can easily exceed $200-$300 per night for standard accommodations. Therefore, the government's negotiated rate appears to be substantially lower than peak commercial rates, suggesting effective price negotiation or the utilization of specific government lodging agreements.

What were the key performance indicators (KPIs) for Corporate Lodging Consultants, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for Corporate Lodging Consultants, Inc. However, for a lodging contract of this nature, typical KPIs would likely include: 1) Availability: Ensuring the contracted number of rooms are ready and available on schedule. 2) Room Quality: Maintaining a standard level of cleanliness and functionality for all rooms. 3) Service Responsiveness: Promptly addressing any issues or requests from the occupants. 4) Billing Accuracy: Ensuring all charges are accurate and comply with the firm fixed-price agreement. 5) Safety and Security: Maintaining a secure environment for the occupants.

What is the typical duration and value of contracts for lodging during civil unrest missions?

Contracts for lodging during civil unrest missions are typically short-term and highly variable in value, driven by the unpredictable nature and duration of such events. This $36.7 million contract, spanning just 42 days, is substantial for its short duration, indicating a significant deployment. Historically, similar emergency response lodging contracts can range from a few days to several weeks or months, with costs escalating rapidly based on the number of personnel requiring accommodation and the geographic location. The value is heavily influenced by the scale of the unrest and the required federal response.

Were there any identified risks or challenges associated with this specific contract award?

While the data doesn't explicitly list risks, potential challenges for a contract like this could include: 1) Rapid Mobilization: The need to quickly secure and prepare 8,000 rooms on short notice. 2) Logistical Complexity: Coordinating check-ins, check-outs, and potentially other services for a large number of personnel. 3) Price Volatility: The risk of market prices increasing due to the sudden surge in demand, although the firm fixed-price contract mitigates this for the government. 4) Contractor Performance: Ensuring the chosen vendor can consistently deliver the required services under stressful conditions. The full and open competition aims to mitigate some of these risks by selecting a capable provider.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Corpay, Inc

Address: 8111 E 32ND ST N, WICHITA, KS, 67226

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

Financial Breakdown

Contract Ceiling: $36,716,095

Exercised Options: $36,716,095

Current Obligation: $36,716,095

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS33FCA018

IDV Type: BPA

Timeline