State Department awards $15.1M for Almaty Consulate's technical due diligence and project development

Contract Overview

Contract Amount: $15,142,731 ($15.1M)

Contractor: Ennead Architects LLP

Awarding Agency: Department of State

Start Date: 2021-06-01

End Date: 2027-05-31

Contract Duration: 2,190 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TECHNICAL DUE DILIGENCE AND PROJECT DEVELOPMENT SERVICES FOR THE NEW CONSULATE COMPOUND IN ALMATY, KAZAKHSTAN.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

Department of State obligated $15.1 million to ENNEAD ARCHITECTS LLP for work described as: TECHNICAL DUE DILIGENCE AND PROJECT DEVELOPMENT SERVICES FOR THE NEW CONSULATE COMPOUND IN ALMATY, KAZAKHSTAN. Key points: 1. Contract focuses on essential pre-construction services for a new diplomatic facility. 2. Full and open competition suggests a robust market for these specialized services. 3. Long contract duration (5 years) indicates a significant, multi-phase project. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. Contractor has experience in architectural services, aligning with the contract's needs. 6. Geographic focus on Kazakhstan highlights international infrastructure development efforts.

Value Assessment

Rating: good

The contract value of $15.1 million for technical due diligence and project development services appears reasonable given the scope and duration. While direct comparisons are difficult without more specific project details, architectural services for major international facilities can be substantial. The firm fixed price structure provides cost certainty. Benchmarking against similar international consulate or embassy construction projects would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the contract. The number of bidders is not specified, but the method suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the most advantageous offer available.

Public Impact

The primary beneficiary is the Department of State, which will receive critical services for the development of its new consulate compound in Almaty, Kazakhstan. Services include technical due diligence and project development, essential for ensuring the successful planning and execution of the new facility. The geographic impact is concentrated in Almaty, Kazakhstan, supporting U.S. diplomatic infrastructure abroad. Workforce implications may include employment opportunities for architects, engineers, project managers, and other specialists involved in the due diligence and development phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during the extensive project development phase.
Reliance on a single contractor for a prolonged period could limit flexibility if project requirements change significantly.
Geopolitical risks associated with operating in Kazakhstan could impact project timelines and execution.

Positive Signals

Firm Fixed Price contract provides cost certainty and reduces the risk of budget overruns for the government.
Full and open competition suggests a strong market selection process, likely resulting in a qualified contractor.
The contractor, ENNEAD ARCHITECTS LLP, has a background in architectural services, indicating relevant expertise for this project.

Sector Analysis

This contract falls within the Architectural Services sector (NAICS 541310), which encompasses firms that plan and design buildings and other structures. The market for these services is global, particularly for government infrastructure projects abroad. Spending on such services is often tied to diplomatic relations, national security, and international development initiatives. Comparable spending benchmarks would involve analyzing other federal contracts for architectural and engineering services on overseas construction projects.

Small Business Impact

This contract was awarded through full and open competition and does not appear to have a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will be managed by the Department of State, likely through its Bureau of Overseas Buildings Operations (OBO) or a designated contracting officer's representative. Accountability measures are embedded in the firm fixed price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the contract award process itself, and any significant issues or disputes would likely be subject to internal review and potentially Inspector General oversight if fraud or mismanagement is suspected.

Related Government Programs

Department of State Capital Security Program
Overseas Buildings Operations (OBO) Projects
Federal Architecture and Engineering Contracts
International Construction and Development Projects

Risk Flags

Long-term contract duration may present risks if project needs change.
Geopolitical factors in Kazakhstan could impact project execution.
Reliance on fixed-price contract requires careful scope definition to avoid disputes.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.1 million to ENNEAD ARCHITECTS LLP. TECHNICAL DUE DILIGENCE AND PROJECT DEVELOPMENT SERVICES FOR THE NEW CONSULATE COMPOUND IN ALMATY, KAZAKHSTAN.

Who is the contractor on this award?

The obligated recipient is ENNEAD ARCHITECTS LLP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2021-06-01. End: 2027-05-31.

What is the track record of ENNEAD ARCHITECTS LLP with the Department of State or similar federal agencies on international projects?

ENNEAD ARCHITECTS LLP has a notable history of working on significant architectural projects, including federal facilities. While specific details on past Department of State contracts for overseas facilities require deeper database searches, their portfolio often includes large-scale public and institutional buildings. Their experience is crucial for navigating the complexities of international project development, which involves understanding local regulations, security requirements, and logistical challenges inherent in building diplomatic compounds abroad. Assessing their past performance on similar projects, particularly those involving government clients or international locations, would provide a clearer picture of their reliability and capability in delivering complex projects on time and within budget.

How does the $15.1 million contract value compare to similar technical due diligence and project development services for overseas diplomatic facilities?

Benchmarking the $15.1 million contract value requires comparing it against similar projects in terms of scope, complexity, and location. Projects involving the design and development of new consulate or embassy facilities abroad are typically high-value undertakings due to security requirements, specialized design needs, and logistical challenges. The value seems commensurate with the early-stage, yet critical, technical due diligence and project development phases for a new compound. However, a precise comparison would necessitate analyzing the specific deliverables outlined in the contract, the size and strategic importance of the Almaty consulate, and the prevailing market rates for architectural and engineering services in that region and for similar government projects globally.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays due to unforeseen site conditions or geopolitical instability in Kazakhstan, scope creep if project requirements evolve significantly, and contractor performance issues. Mitigation strategies are embedded within the contract structure. The Firm Fixed Price (FFP) nature of the contract shifts much of the cost risk to the contractor, incentivizing efficient project management. The full and open competition process aims to select a highly capable firm, reducing performance risk. The Department of State's oversight, through a Contracting Officer's Representative (COR), will monitor progress, manage changes, and ensure adherence to contract terms. Clear performance standards and milestones are crucial for managing project execution.

How effective is the full and open competition process likely to be in ensuring value for money for this specific contract?

The full and open competition process is generally considered the most effective method for ensuring value for money, as it maximizes the pool of potential bidders and encourages competitive pricing. For a contract like this, involving specialized architectural and project development services for a significant overseas facility, a broad competition allows the Department of State to solicit proposals from firms with diverse expertise and potentially innovative approaches. This competitive pressure should drive down costs and improve the quality of services offered. The effectiveness is further enhanced if the evaluation criteria are clearly defined and weighted appropriately, focusing not just on price but also on technical qualifications, past performance, and understanding of the project's unique challenges.

What is the historical spending trend for architectural and project development services for overseas facilities by the Department of State?

Historical spending by the Department of State on architectural and project development services for overseas facilities has been substantial and cyclical, often driven by infrastructure modernization needs, security upgrades, and the construction of new diplomatic posts. The Bureau of Overseas Buildings Operations (OBO) manages a significant capital program that includes new construction, major renovations, and security enhancements for U.S. embassies and consulates worldwide. Annual spending can fluctuate based on the number and scale of projects initiated, geopolitical priorities, and available appropriations. Analyzing multi-year spending data for OBO and related capital security programs would reveal trends in investment in diplomatic infrastructure and the associated service contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 320 W 13TH ST, NEW YORK, NY, 10014

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

Financial Breakdown

Contract Ceiling: $15,142,731

Exercised Options: $15,142,731

Current Obligation: $15,142,731

Actual Outlays: $761,934

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM19D0061

IDV Type: IDC

Timeline