State Dept Awards $35.8M for Cairo Building Upgrades to Paragon Professional Services
Contract Overview
Contract Amount: $35,785,279 ($35.8M)
Contractor: Paragon Professional Services LLC
Awarding Agency: Department of State
Start Date: 2024-09-30
End Date: 2029-01-30
Contract Duration: 1,583 days
Daily Burn Rate: $22.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COMPOUND UPGRADE WINDOW REPLACEMENT PROGRAM IN CAIRO, EGYPT
Plain-Language Summary
Department of State obligated $35.8 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: COMPOUND UPGRADE WINDOW REPLACEMENT PROGRAM IN CAIRO, EGYPT Key points: 1. Contract awarded to Paragon Professional Services LLC for $35.8 million. 2. The project involves compound upgrade window replacement in Cairo, Egypt. 3. Competition was full and open after exclusion of sources. 4. The contract type is a definitive contract with a firm fixed price. 5. The period of performance is from September 30, 2024, to January 30, 2029.
Value Assessment
Rating: good
The contract value of $35.8 million for a 5-year window replacement program appears reasonable given the scope and location. Benchmarking against similar large-scale construction projects for government facilities abroad would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated, though specific details on source exclusion are not provided. This method aims for broad participation while potentially refining the bidder pool.
Taxpayer Impact: The firm fixed price structure helps control costs for taxpayers, ensuring the final price is set upfront, barring significant unforeseen circumstances.
Public Impact
Enhances security and operational efficiency of U.S. diplomatic facilities abroad. Supports infrastructure modernization in a key international location. Potential for job creation both domestically (for the contractor) and locally in Egypt. Ensures compliance with modern building standards and energy efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on 'exclusion of sources' in competition.
- Geopolitical risks associated with operating in Cairo, Egypt.
- Potential for cost overruns if unforeseen construction challenges arise.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Long-term contract provides stability for project execution.
- Award to a single entity streamlines management and accountability.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for overseas government facilities is critical for maintaining diplomatic presence and security. Benchmarks would typically consider project size, complexity, and geographic location.
Small Business Impact
The data indicates the award went to Paragon Professional Services LLC, and there is no explicit mention of small business participation or subcontracting. Further analysis would be needed to determine if small businesses were involved or had opportunities.
Oversight & Accountability
The Department of State is responsible for oversight. The definitive contract structure allows for clear task orders and monitoring. Accountability will be managed through contract performance metrics and reporting requirements.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost escalation due to unforeseen site conditions.
- Geopolitical instability in the region could impact project timeline and safety.
- Dependence on a single contractor for a critical infrastructure upgrade.
- Limited transparency on the 'exclusion of sources' rationale.
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $35.8 million to PARAGON PROFESSIONAL SERVICES LLC. COMPOUND UPGRADE WINDOW REPLACEMENT PROGRAM IN CAIRO, EGYPT
Who is the contractor on this award?
The obligated recipient is PARAGON PROFESSIONAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $35.8 million.
What is the period of performance?
Start: 2024-09-30. End: 2029-01-30.
What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or security clearances are required that only a limited number of contractors can meet. While aiming for broad competition, this can sometimes limit price competition if the pool of eligible bidders is significantly reduced. Further details from the solicitation and award documents would clarify the exact criteria and its pricing implications.
What are the primary risks associated with executing a large-scale construction project like window replacement in Cairo, and what mitigation strategies are in place?
Key risks include logistical challenges in sourcing materials, potential labor disputes, navigating local regulations and customs, security concerns, and unforeseen site conditions. Mitigation strategies likely involve robust project management, contingency planning for material delays, strong relationships with local authorities and labor, and comprehensive security protocols for personnel and the worksite.
How does the firm fixed price contract ensure value for money for this extensive window replacement program, considering the long performance period?
A firm fixed price contract locks in the price, transferring most of the risk to the contractor. This incentivizes the contractor to manage costs efficiently and complete the work within budget. For a long-term project, it provides budget certainty for the government, although it requires careful initial scope definition to avoid change orders that could increase costs.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19AQMM24R0134
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3301 C ST, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,785,279
Exercised Options: $35,785,279
Current Obligation: $35,785,279
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $9,149,163
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-30
Current End Date: 2029-01-30
Potential End Date: 2029-01-30 00:00:00
Last Modified: 2024-10-15
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