State Department awards $563K for value engineering, site improvements at San Salvador facility

Contract Overview

Contract Amount: $563,222 ($563.2K)

Contractor: Michael Baker International, Inc.

Awarding Agency: Department of State

Start Date: 2026-04-02

End Date: 2031-04-01

Contract Duration: 1,825 days

Daily Burn Rate: $309/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VALUE ENGINEERING SERVICES FOR SAN SALVADOR NOB AND SITE IMPROVEMENTS

Plain-Language Summary

Department of State obligated $563,221.78 to MICHAEL BAKER INTERNATIONAL, INC. for work described as: VALUE ENGINEERING SERVICES FOR SAN SALVADOR NOB AND SITE IMPROVEMENTS Key points: 1. Contract focuses on optimizing value engineering and site enhancements for a key diplomatic facility. 2. The award is a single delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting potential for future task orders. 3. The firm-fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (5 years) indicates a long-term need for these services. 5. The absence of small business set-aside suggests the primary contractor is not a small business, and subcontracting opportunities are not explicitly mandated. 6. The contract falls under engineering services, a critical support function for government infrastructure.

Value Assessment

Rating: good

The contract value of $563,221.78 for 5 years of value engineering and site improvements appears reasonable for a diplomatic facility. Benchmarking against similar projects is difficult without more specific details on the scope of work and location. However, the firm-fixed-price structure provides cost certainty. The contractor, Michael Baker International, Inc., is a large, established firm with a history of government contracts, suggesting a degree of reliability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality. This approach aligns with federal procurement regulations aimed at maximizing value for taxpayer dollars.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it allows for the widest possible pool of offerors, driving down prices through market forces and ensuring the government receives the best possible value.

Public Impact

The primary beneficiary is the Department of State, which will receive value engineering and site improvement services for its facility in San Salvador. These services are expected to enhance the operational efficiency and physical condition of the diplomatic mission. The geographic impact is localized to the San Salvador facility and its immediate surroundings. The contract supports the government's infrastructure maintenance and modernization efforts abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of value engineering efforts.
Potential for scope creep if site improvement requirements are not clearly defined and managed.
Reliance on a single delivery order may limit flexibility if needs change significantly.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Award to an established contractor with relevant experience.
Full and open competition suggests a competitive bidding process.
Long contract duration allows for sustained focus on facility improvements.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330). This sector encompasses firms that provide engineering consulting and design services. The market for these services is substantial, driven by government infrastructure projects, private sector development, and specialized technical consulting. The value of this specific contract is relatively small within the broader engineering services market, but it represents a critical component of facility management for the Department of State.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary focus was on selecting the best overall offeror through full and open competition, rather than prioritizing small business participation. Consequently, the direct impact on the small business ecosystem for this specific award is likely minimal, though the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State responsible for facilities management in San Salvador. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to defined deliverables. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
Engineering and Architectural Services
Value Engineering Programs

Risk Flags

Potential for cost overruns if site improvement scope is not tightly controlled.
Performance risk associated with executing engineering services in an overseas environment.
Dependency on the prime contractor's expertise for effective value engineering.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $563,221.78 to MICHAEL BAKER INTERNATIONAL, INC.. VALUE ENGINEERING SERVICES FOR SAN SALVADOR NOB AND SITE IMPROVEMENTS

Who is the contractor on this award?

The obligated recipient is MICHAEL BAKER INTERNATIONAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $563,221.78.

What is the period of performance?

Start: 2026-04-02. End: 2031-04-01.

What is the specific scope of 'value engineering' services required under this contract?

The provided data does not detail the specific scope of 'value engineering' services. Value engineering typically involves a systematic method to improve the 'value' of goods or products and services by examining function. Value, in this context, is defined as the ratio of function to cost. Therefore, the services likely involve analyzing existing designs or processes for the San Salvador facility to identify potential cost savings or performance improvements without sacrificing essential functions. This could include reviewing building systems, material selections, or operational workflows to find more cost-effective alternatives or enhance efficiency. Further details would be found in the contract's statement of work.

How does the $563,221.78 contract value compare to similar value engineering contracts for diplomatic facilities?

Direct comparison of this contract's value to similar value engineering contracts for diplomatic facilities is challenging without access to a comprehensive database of such awards with detailed scopes of work. However, $563,221.78 over five years averages to approximately $112,644 per year. This figure appears modest for comprehensive value engineering and site improvements for an overseas diplomatic post, suggesting either a focused scope of work, a phased approach, or that this delivery order represents a specific component of a larger facility modernization effort. Larger, more complex projects involving significant structural changes or extensive site work could easily run into millions of dollars.

What are the key performance indicators (KPIs) used to measure the success of the value engineering efforts?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for value engineering, success is measured by the quantifiable cost savings identified and implemented, improvements in system efficiency (e.g., energy consumption, maintenance reduction), enhanced durability or lifespan of components, and adherence to functional requirements. The contract's statement of work would outline these specific metrics. Without defined KPIs, assessing the contractor's performance and the true value derived from the services becomes subjective.

What is Michael Baker International, Inc.'s track record with the Department of State for similar engineering services?

Michael Baker International, Inc. has a significant history of contracting with the U.S. Department of State and other federal agencies for engineering, design, and construction management services. They have been involved in numerous projects related to diplomatic facilities, including infrastructure upgrades, security enhancements, and site development, both domestically and internationally. Their extensive experience suggests a strong understanding of government contracting requirements and the unique challenges associated with overseas projects. Past performance evaluations, if available through federal procurement systems, would provide more granular insights into their specific performance on prior State Department contracts.

What is the historical spending trend for value engineering and site improvement services at the San Salvador facility?

The provided data does not include historical spending information for the San Salvador facility or for value engineering and site improvement services specifically. This single delivery order represents a new award for these services. To understand historical spending patterns, one would need to access historical contract databases for the Department of State, filtering by the specific facility or relevant service categories. Without this historical context, it is difficult to determine if this award represents an increase, decrease, or consistent level of investment in facility maintenance and optimization.

Are there any specific risks associated with performing engineering services in San Salvador, and how are they mitigated?

Performing engineering services in San Salvador, like any overseas location, can present risks related to political stability, security, local labor laws, supply chain disruptions, and logistical challenges. The Department of State, as the awarding agency, has established protocols and risk mitigation strategies for operating in such environments. These often include robust security plans, coordination with the U.S. Embassy, adherence to local regulations, and potentially incorporating risk premiums into contract pricing. The specific mitigation strategies for this contract would be detailed in the contract's security clauses and operational guidelines, and Michael Baker International, Inc. would be expected to comply with all State Department directives.

Industry Classification

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

Parent Company: THE Parsons Corporation

Address: 500 GRANT STREET STE 5400, PITTSBURGH, PA, 15219

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $563,222

Exercised Options: $563,222

Current Obligation: $563,222

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM22D0083

IDV Type: IDC

Timeline