State Department awarded $1.58B design-build contract for construction services, completed in 2010

Contract Overview

Contract Amount: $15,817,054 ($15.8M)

Contractor: Framaco- Epik- Metis F E M, JV

Awarding Agency: Department of State

Start Date: 2005-09-13

End Date: 2010-12-22

Contract Duration: 1,926 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD CONSTRUCTION

Plain-Language Summary

Department of State obligated $15.8 million to FRAMACO- EPIK- METIS F E M, JV for work described as: DESIGN/BUILD CONSTRUCTION Key points: 1. Contract value represents a significant investment in infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Contract duration of over 5 years indicates a substantial project. 4. Fixed-price contract type may offer cost certainty but limits flexibility. 5. The project falls under commercial and institutional building construction. 6. Awarding agency is the Department of State, indicating a focus on diplomatic facilities.

Value Assessment

Rating: fair

The contract value of $1.58 billion is substantial for a design-build construction project. Without specific benchmarks for comparable projects of this scale and complexity (e.g., embassy construction, secure facility development), a precise value-for-money assessment is challenging. However, the duration of the contract (over 5 years) suggests a large-scale undertaking. The firm-fixed-price structure implies that the contractor bore the risk of cost overruns, which can be a positive indicator if the final price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders (as indicated by 'no': 2) suggests some level of competition, though the exact number of proposals received and the evaluation process are not detailed. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are likely the Department of State and its personnel, who would utilize the constructed facilities. Services delivered include design and construction of commercial and institutional buildings, potentially embassies, consulates, or other diplomatic infrastructure. Geographic impact would be specific to the location(s) where the facilities were constructed, likely overseas. Workforce implications include employment opportunities for construction workers, engineers, architects, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced price pressure.
Long contract duration could introduce risks related to changing economic conditions or material costs.
Lack of detailed performance data makes it difficult to assess project success and contractor performance.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Significant investment in infrastructure suggests a critical need for the facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The Department of State's need for such facilities, particularly for overseas operations, often involves complex security requirements and specialized design considerations. Benchmarking this contract's value would ideally involve comparing it to other large-scale government construction projects, especially those for diplomatic or secure facilities, to understand its relative cost-effectiveness.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the large contract value and the nature of design-build construction, it is possible that larger firms were the primary awardees. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight mechanisms for a contract of this magnitude awarded by the Department of State would typically involve project management teams, regular progress reporting, site inspections, and potentially audits by the Inspector General. Transparency would be facilitated through contract award databases and public reporting requirements. Accountability would be enforced through contractual terms, performance metrics, and potential penalties for non-compliance.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
Government Construction Contracts
Design-Build Contracts

Risk Flags

Potential for cost overruns despite fixed-price contract if scope changes significantly.
Risk associated with long contract duration and potential for market fluctuations.
Limited competition (2 bidders) may have impacted price competitiveness.
Lack of detailed performance data hinders assessment of contractor execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.8 million to FRAMACO- EPIK- METIS F E M, JV. DESIGN/BUILD CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is FRAMACO- EPIK- METIS F E M, JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2005-09-13. End: 2010-12-22.

What was the specific nature and location of the facilities constructed under this contract?

The provided data indicates the contract was for 'DESIGN/BUILD CONSTRUCTION' under NAICS code '236220' (Commercial and Institutional Building Construction) and awarded by the Department of State. However, the specific nature, purpose, and geographic location(s) of the facilities constructed are not detailed in the provided data. Typically, such large-scale construction contracts for the Department of State involve the building or renovation of embassies, consulates, or other diplomatic facilities, often in overseas locations, which require specialized security features and adherence to international standards. Without more specific project details, it's impossible to ascertain the exact scope of work or the precise impact of the constructed facilities.

How did the final cost compare to the initial estimated cost, if available?

The provided data shows the awarded amount ('a') as $1,581,705,400. However, there is no information available regarding the initial estimated cost for this contract. For firm-fixed-price contracts, the awarded amount is the ceiling price. If the contract was successfully executed within this budget, it would suggest good cost management by the contractor. Without the initial estimate, a direct comparison to assess cost savings or overruns is not possible. Further investigation into contract modifications or amendments might reveal if the final cost deviated from the initially awarded amount.

What were the key performance metrics and the contractor's performance rating, if any?

The provided data does not include information on key performance metrics or the contractor's performance rating for this specific contract. For large construction projects, performance is typically evaluated based on factors such as adherence to schedule, quality of work, safety compliance, and budget management. A 'Past Performance Information' (PPI) system often tracks contractor performance on federal contracts. Without access to these records or specific contract clauses related to performance, it is difficult to assess how effectively FRAMACO- EPIK- METIS F E M, JV executed this design-build project for the Department of State.

Were there any significant contract modifications or change orders issued during the contract period?

The provided data does not contain information about contract modifications or change orders for this contract. Large, long-duration construction projects, especially those involving design-build elements, often experience modifications due to unforeseen site conditions, design adjustments, or changes in government requirements. The absence of this data prevents an analysis of how scope or cost may have evolved over the contract's life. Investigating contract amendment records would be necessary to determine if significant changes occurred and their impact on the overall project.

What is the typical cost range for similar design-build construction projects undertaken by the Department of State?

Determining a precise 'typical cost range' for similar Department of State design-build construction projects is complex due to significant variations in project scope, location, security requirements, and market conditions. However, projects involving the construction of embassies or secure diplomatic facilities can range from tens of millions to hundreds of millions, or even billions, of dollars, as seen with this $1.58 billion award. Factors such as the size of the facility, the level of security needed (e.g., blast resistance, surveillance), the complexity of the design, and the cost of labor and materials in the specific geographic region heavily influence the final price. This contract's value suggests a very large and complex undertaking.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 WESTCHESTER, STE S-430, PORT CHESTER, NY, 16

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,817,054

Exercised Options: $15,817,054

Current Obligation: $15,817,054

Timeline