State Department awards $2.68M contract for Kingston Embassy construction to Futron, Inc

Contract Overview

Contract Amount: $2,676,519 ($2.7M)

Contractor: Futron, Inc.

Awarding Agency: Department of State

Start Date: 2023-09-29

End Date: 2026-05-04

Contract Duration: 948 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSULAR AFFAIRS RECONFIGURATION U.S. EMBASSY IN KINGSTON JAMAICA

Plain-Language Summary

Department of State obligated $2.7 million to FUTRON, INC. for work described as: CONSULAR AFFAIRS RECONFIGURATION U.S. EMBASSY IN KINGSTON JAMAICA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 948 days indicates a significant, long-term construction project. 3. Fixed-price contract type may offer cost certainty for the government. 4. The project falls under commercial and institutional building construction, a common federal spending category. 5. Awarded by the Department of State, highlighting infrastructure needs for diplomatic missions.

Value Assessment

Rating: good

The contract value of $2.68 million for embassy construction appears reasonable given the scope and duration. Benchmarking against similar embassy renovation or construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost overruns, but the final cost will depend on the execution and any change orders. Without specific details on the scope of work, a direct comparison to market rates for similar construction services is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial pool of potential bidders may have been narrowed, the final award was made through a competitive process. The presence of 5 bidders suggests a healthy level of competition for this project, which generally leads to better pricing and value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive bids for the construction services.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel stationed at the U.S. Embassy in Kingston, Jamaica, who will gain improved facilities. The contract will deliver construction services for the Consular Affairs Reconfiguration project at the U.S. Embassy in Kingston. The geographic impact is specific to Kingston, Jamaica, enhancing the physical infrastructure of a U.S. diplomatic post. The project will likely involve local construction labor and potentially material suppliers in Jamaica, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction projects, which could increase costs beyond the initial fixed price.
Ensuring adherence to construction quality standards and timelines over the 948-day duration will require diligent oversight.
Geopolitical stability in Jamaica could impact project continuity and security.

Positive Signals

The firm fixed-price contract provides a degree of cost predictability.
Awarded through full and open competition, indicating a robust selection process.
The Department of State's involvement suggests established procurement and oversight procedures are in place.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The U.S. federal government is a significant consumer of construction services for embassies, military bases, and other federal facilities. The market for such specialized construction, particularly for diplomatic facilities, often involves a mix of large general contractors and specialized subcontractors. The value of this contract is modest within the overall federal construction spending landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors often utilize small businesses for specialized construction trades.

Oversight & Accountability

Oversight will likely be managed by the Department of State's Bureau of Overseas Buildings Operations (OBO) or a similar contracting officer's representative. Accountability measures are typically embedded in the contract through performance standards, payment schedules tied to milestones, and potential penalties for delays or deficiencies. Transparency is facilitated by the public nature of federal contract awards, though detailed project specifics may be limited.

Related Government Programs

Embassy Construction and Maintenance
Overseas Building Operations
Department of State Facilities Management
Commercial Building Construction Contracts

Risk Flags

Long project duration increases risk of cost escalation and delays.
Overseas construction projects face unique logistical and security challenges.
Fixed-price contracts can be risky if scope is not well-defined or subject to change.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.7 million to FUTRON, INC.. CONSULAR AFFAIRS RECONFIGURATION U.S. EMBASSY IN KINGSTON JAMAICA

Who is the contractor on this award?

The obligated recipient is FUTRON, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-05-04.

What is the specific scope of the 'Consular Affairs Reconfiguration' at the U.S. Embassy in Kingston?

The provided data does not detail the specific scope of the 'Consular Affairs Reconfiguration.' This typically involves modernization or expansion of consular facilities within an embassy, which could include upgrading waiting areas, interview rooms, security infrastructure, and processing areas to improve efficiency and security for visa and passport services. The $2.68 million contract value and the 948-day duration suggest a substantial renovation or construction effort rather than a minor upgrade.

How does the $2.68 million contract value compare to similar embassy construction or renovation projects?

Benchmarking this $2.68 million contract requires comparison with similar projects. Embassy construction and major renovations can vary significantly in cost based on location, size, security requirements, and the extent of the work. Smaller embassies or specific facility upgrades might cost less, while new embassy compounds or major overhauls can run into tens or hundreds of millions of dollars. This contract appears to be for a significant reconfiguration within an existing embassy, rather than a new build, placing it in a mid-range category for such specialized projects.

What are the primary risks associated with a 948-day construction contract for an overseas embassy?

Key risks for a long-duration overseas construction project include potential delays due to unforeseen site conditions, supply chain disruptions for materials, labor availability and cost fluctuations, and security concerns in the host country. For an embassy, political instability or changes in diplomatic relations could also pose risks. Furthermore, managing a fixed-price contract over nearly three years requires robust project management to control scope creep and ensure quality, as well as effective risk mitigation strategies from both the contractor and the government.

What is Futron, Inc.'s track record with Department of State or similar overseas construction contracts?

Information on Futron, Inc.'s specific track record with the Department of State or similar overseas construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on federal contracts, including any awards, past performance evaluations, and history of litigation or contract disputes. Their ability to successfully execute this $2.68 million, 948-day project will depend on their experience with international construction standards, security protocols, and managing complex projects in foreign environments.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for cost and efficiency?

This designation suggests that while certain sources might have been initially excluded (perhaps due to specific qualifications or prior relationships), the remaining pool of potential offerors was subjected to full and open competition. This approach aims to balance ensuring qualified bidders with maximizing competition. For taxpayers, it implies that the government sought a competitive process among eligible firms, which should theoretically lead to better pricing and value compared to a sole-source award. The presence of 5 bidders further supports the idea that competition was achieved.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Futron, Incorporated

Address: 14067 CROWN CT, WOODBRIDGE, VA, 22193

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,676,519

Exercised Options: $2,676,519

Current Obligation: $2,676,519

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM22D0075

IDV Type: IDC

Timeline