City Of Palm Springs

City of Palm Springs, a U.S. local government entity based in Palm Springs, California, receives federal grants as a prime recipient for airport infrastructure, transportation safety, and community development projects, with no federal contracting activity but substantial work as a lessor of municipal real estate to federal agencies.

The city's federal footprint splits sharply between two streams. The larger and more recent is federal grant funding: the Federal Aviation Administration (FAA) has awarded the city $37.74 million across multiple grants since 2021 under the Airport Improvement Program (CFDA 20.106) for terminal reconstruction, taxiway rehabilitation, zero emissions equipment at Palm Springs International Airport, and airport master planning. The FAA Western Pacific Region awarded $22.69 million on September 12, 2025, for Phase 1 terminal reconstruction including site enabling, building expansion, and electrical work to support a new baggage handling system; $8.38 million on September 18, 2025, as a formula grant for the same terminal project; and $6.31 million on September 12, 2025, as a project grant for overlapping Phase 1 work. Additional FAA grants cover $9.5 million for taxiway A1 and W rehabilitation (August 2024, completing August 2028), $2.3 million for airport master plan updates (June 2023–June 2027), and $555,054 for zero emissions vehicle and charger infrastructure (September 2024, completing September 2028). The city also received a $776,000 project grant from the Federal Highway Administration under the Safe Streets and Roads for All program (CFDA 20.939, awarded June 4, 2026, completing June 4, 2029) to develop a comprehensive safety action plan consolidating roadway, pedestrian, and bikeway safety strategies. The Department of Housing and Urban Development Assistant Secretary for Community Planning and Development has awarded the city Community Development Block Grant (CDBG) entitlement grants annually under a formula basis; the city also received two congressionally directed spending awards under the Economic Development Initiative program (August 2024, both completing August 2032). The city acts as a sub-recipient under California Department of Transportation and California Office of Traffic Safety grants supporting intersection safety improvements and selective traffic enforcement.

The second, older stream is real estate leasing to federal agencies. The city leases nonresidential buildings (NAICS 531311, Lessors of Nonresidential Buildings Except Miniwarehouses) to the General Services Administration (GSA), the Department of Homeland Security Transportation Security Administration, and the Department of Homeland Security US Secret Service under two Basic Ordering Agreements: GS09B02056 (31 task orders, $48.5 million combined potential value) and GS09B01291 (70 task orders, $9.6 million combined potential value). GSA's Public Buildings Service Central Office accounts for $21.9 million of combined potential value across 14 awards, anchoring the city's contracting customer concentration at the federal agency level. Combined obligated dollars across all awards ($206.3 million) exceed combined potential value ($65.6 million), reflecting the mature, recurring nature of the leasing portfolio against newer, longer-term grant commitments. Award velocity shows 11 awards in 2024 but only 5 awards combined in 2025 and 2026 (through June); only two awards face completion within the next twenty-four months, indicating low recompete exposure.