State Department awards $2.19M contract for Kingston Embassy energy upgrade, highlighting renewable energy investment

Contract Overview

Contract Amount: $2,189,342 ($2.2M)

Contractor: Futron, Inc.

Awarding Agency: Department of State

Start Date: 2024-03-20

End Date: 2026-03-19

Contract Duration: 729 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF THE KINGSTON CHILLER AND PHOTOVOLTAIC ENERGY UPGRADE PROJECT AT THE EMBASSY KINGSTON, JAMAICA)

Plain-Language Summary

Department of State obligated $2.2 million to FUTRON, INC. for work described as: DESIGN AND CONSTRUCTION OF THE KINGSTON CHILLER AND PHOTOVOLTAIC ENERGY UPGRADE PROJECT AT THE EMBASSY KINGSTON, JAMAICA) Key points: 1. Contract focuses on renewable energy infrastructure, aligning with federal sustainability goals. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. Project duration of 729 days indicates a significant, multi-year undertaking. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project aims to improve energy efficiency and resilience at a key diplomatic post.

Value Assessment

Rating: good

The contract value of $2.19 million for a comprehensive energy upgrade project at the U.S. Embassy in Kingston, Jamaica, appears reasonable given the scope. While specific benchmarking data for embassy infrastructure projects is limited, the inclusion of photovoltaic systems and chiller upgrades suggests a substantial investment in modernization and sustainability. The firm fixed-price structure provides cost certainty. Further analysis would benefit from comparing this cost against similar projects in comparable climates and geopolitical contexts.

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 that while initial sources might have been considered, the final award was made after a broad competitive process. With 3 bidders participating, this suggests a healthy level of interest and competition for the project. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The U.S. Embassy in Kingston, Jamaica, will benefit from improved energy infrastructure and reduced operational costs. The project will deliver upgraded chiller systems and the installation of photovoltaic (solar) energy generation. Geographic impact is localized to the Embassy compound in Kingston, Jamaica. Workforce implications include potential job creation for construction and technical personnel during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the multi-year duration and international location.
Ensuring compliance with local Jamaican building codes and environmental regulations.
Supply chain disruptions for specialized equipment could impact project timeline.

Positive Signals

Focus on renewable energy aligns with U.S. government sustainability objectives.
Firm fixed-price contract provides budget predictability.
Competition among three bidders suggests a robust market response.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on energy infrastructure upgrades. The market for such projects, particularly those involving renewable energy integration for government facilities, is growing as sustainability becomes a key priority. Comparable spending benchmarks would typically involve other federal building modernization projects or large-scale commercial energy retrofits, where costs can vary significantly based on project complexity, location, and technology employed.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it's unlikely that small businesses were exclusively targeted. However, the prime contractor, Futron, Inc., may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's Bureau of Overseas Buildings Operations (OBO) or its equivalent, responsible for managing construction and maintenance of U.S. diplomatic facilities abroad. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would typically fall under the Department of State's Office of Inspector General for any potential fraud, waste, or abuse.

Related Government Programs

Federal Building Modernization Projects
Embassy Infrastructure Security and Sustainability
Renewable Energy Procurement by Government Agencies
Department of State Capital Security Construction Program

Risk Flags

International project logistics
Supply chain vulnerability
Technology integration complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.2 million to FUTRON, INC.. DESIGN AND CONSTRUCTION OF THE KINGSTON CHILLER AND PHOTOVOLTAIC ENERGY UPGRADE PROJECT AT THE EMBASSY 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 $2.2 million.

What is the period of performance?

Start: 2024-03-20. End: 2026-03-19.

What is Futron, Inc.'s track record with the Department of State and similar federal agencies?

Futron, Inc. has a history of performing contracts for the federal government, including work related to facilities and construction. A detailed review of their past performance with the Department of State and other agencies would involve examining contract databases for awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. This analysis would help assess their capacity, reliability, and experience in managing projects of similar scale and complexity, particularly in international settings.

How does the $2.19 million cost compare to similar embassy energy upgrade projects?

Benchmarking this $2.19 million contract against similar embassy energy upgrade projects is challenging due to the unique nature of diplomatic facilities and varying project scopes. However, general construction costs for commercial and institutional buildings can be compared. Factors like the specific technologies installed (photovoltaic capacity, chiller efficiency), the size of the facility being upgraded, local labor costs in Jamaica, and logistical challenges of working abroad significantly influence the overall price. Without detailed project specifications for comparable projects, a precise value-for-money assessment is difficult, but the inclusion of renewable energy suggests a strategic investment.

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

Key risks include potential construction delays due to the international location, supply chain issues for specialized equipment, and unforeseen site conditions. The firm fixed-price contract mitigates financial risk for the government by capping the total cost. Mitigation strategies likely involve robust project management, contingency planning for logistics, adherence to strict quality control, and clear communication channels between the contractor and the State Department. The project duration of 729 days also suggests that some buffer for potential issues may have been incorporated into the schedule.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing for this project?

This contracting method aims to balance the benefits of full and open competition with specific circumstances that might warrant excluding certain sources initially. By ultimately opening the competition broadly, it allows multiple qualified bidders to submit proposals, fostering price competition. The fact that three bids were received suggests that the method was effective in attracting sufficient interest. This competitive pressure generally leads to more favorable pricing for the government compared to sole-source or limited competition scenarios.

What is the historical spending pattern for energy infrastructure upgrades at U.S. embassies?

Historical spending on energy infrastructure upgrades at U.S. embassies has generally increased over the past decade, driven by mandates for improved energy efficiency, security enhancements, and the integration of sustainable technologies. Budgets for these projects can range widely, from hundreds of thousands to several million dollars, depending on the size of the embassy, its location, and the scope of the upgrade (e.g., HVAC, lighting, renewable energy, building envelope). The Department of State's Bureau of Overseas Buildings Operations (OBO) manages significant capital investments in these areas.

What are the long-term benefits of this photovoltaic and chiller upgrade for the Embassy in Kingston?

The long-term benefits are substantial. The photovoltaic system will generate clean, renewable electricity, reducing the Embassy's reliance on the local grid and potentially lowering energy costs. Upgraded chiller systems are typically more energy-efficient, further decreasing electricity consumption and operational expenses. This investment enhances the facility's resilience, reduces its carbon footprint, and contributes to U.S. government sustainability goals, potentially serving as a model for other diplomatic missions.

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: 3

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: $2,189,342

Exercised Options: $2,189,342

Current Obligation: $2,189,342

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