State Department Spends $17.1M on Overseas Post Security Area Construction, Sole-Source Awarded

Contract Overview

Contract Amount: $17,135,253 ($17.1M)

Contractor: Kuk/Kbrs Global

Awarding Agency: Department of State

Start Date: 2004-09-13

End Date: 2012-03-12

Contract Duration: 2,737 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF OVERSEAS POST SECURITY AREAS

Plain-Language Summary

Department of State obligated $17.1 million to KUK/KBRS GLOBAL for work described as: CONSTRUCTION OF OVERSEAS POST SECURITY AREAS Key points: 1. Significant investment in critical infrastructure for diplomatic security. 2. Lack of competition raises concerns about potential overpricing. 3. Long contract duration suggests complex project requirements. 4. No small business participation noted, impacting economic inclusion.

Value Assessment

Rating: questionable

The contract value of $17.1M for construction services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar overseas construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Ensures security for U.S. personnel and facilities abroad. Potential for cost overruns due to lack of competitive pressure. Limited transparency in the procurement process. No direct benefit to small businesses in this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Long duration

Positive Signals

Critical infrastructure investment
Supports diplomatic missions

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope, location, and security requirements.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This indicates a missed opportunity to support small businesses and ensure broader economic benefits from federal spending.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not competing the contract. Oversight should focus on ensuring the necessity of this approach and the reasonableness of the price.

Related Government Programs

Commercial and Institutional Building Construction
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award lacks transparency and competition.
Potential for inflated pricing due to no competitive pressure.
Long contract duration may indicate scope creep or inefficiencies.
No small business participation limits economic opportunity.
High dollar value warrants close scrutiny of cost reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17.1 million to KUK/KBRS GLOBAL. CONSTRUCTION OF OVERSEAS POST SECURITY AREAS

Who is the contractor on this award?

The obligated recipient is KUK/KBRS GLOBAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2004-09-13. End: 2012-03-12.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For overseas construction, it might relate to specific security clearances, specialized equipment, or established relationships necessary for operating in challenging environments. A thorough review would confirm if these conditions were met and documented.

How does the $17.1M cost compare to similar overseas security construction projects?

Benchmarking this $17.1M cost against similar overseas security construction projects is challenging without competitive data. Factors like location, specific security features, labor costs, and material availability significantly influence pricing. A detailed cost analysis or comparison with publicly available data on comparable projects would be needed for a definitive assessment.

What measures were in place to ensure cost-effectiveness despite the sole-source award?

Despite the sole-source award, measures to ensure cost-effectiveness could include rigorous negotiation of terms, detailed cost breakdowns, independent cost estimates, and strong contract management. The government should have verified the contractor's proposed costs against industry standards and historical data to mitigate potential overpricing.

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: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 240 E TUDOR STE 200, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,135,253

Exercised Options: $17,135,253

Current Obligation: $17,135,253

Parent Contract

Parent Award PIID: SALMEC02D0051

IDV Type: IDC

Timeline