State Department's $14.4M USAID Annex Construction Contract Awarded to Framaco-Epik-Metis JV

Contract Overview

Contract Amount: $14,416,448 ($14.4M)

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

Awarding Agency: Department of State

Start Date: 2006-09-21

End Date: 2013-04-19

Contract Duration: 2,402 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF A NEW USAID ANNEX

Plain-Language Summary

Department of State obligated $14.4 million to FRAMACO- EPIK- METIS F E M, JV for work described as: DESIGN AND CONSTRUCTION OF A NEW USAID ANNEX Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 2000 days indicates a significant, long-term construction project. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. No small business set-aside was utilized, potentially limiting direct participation for smaller firms. 5. The project falls under commercial and institutional building construction, a common sector for federal infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this $14.4 million contract is challenging without specific cost breakdowns or comparable project data. However, the duration of the project (over 2000 days) suggests a substantial undertaking. The firm-fixed-price nature of the contract implies that the contractor bore the primary risk for cost overruns, which can be a positive indicator for the government if managed effectively. Without more granular data on the scope of work and materials, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of six bidders (no.) suggests a reasonable level of competition for this construction project. A competitive bidding process generally helps in achieving fair market prices and encourages contractors to offer their best value proposals.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiary is the U.S. Department of State, which will gain a new USAID annex facility. The project delivers essential infrastructure for diplomatic and development operations. The geographic impact is localized to the site of the new annex construction. The construction activities would have implications for the local workforce in the construction trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for all contingencies.
Long project duration increases the risk of material price fluctuations or unforeseen site conditions.
Dependence on a single joint venture for a large-scale project could present execution risks.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process.
The joint venture structure may bring together diverse expertise for complex construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area supports the development and maintenance of government facilities, embassies, and operational centers worldwide. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government construction projects, factoring in location, complexity, and security requirements.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the prime contractor is a joint venture, which may or may not include small businesses. There is no explicit information on subcontracting plans for small businesses. This suggests that opportunities for small businesses would primarily be through subcontracting, the extent of which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency would be facilitated through contract award databases and potentially public reporting on project milestones, though specific oversight reports are not detailed.

Related Government Programs

USAID Facilities Construction
Department of State Building Projects
Federal Construction Contracts
Diplomatic Infrastructure

Risk Flags

Long Project Duration
Firm Fixed Price Risk
Joint Venture Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.4 million to FRAMACO- EPIK- METIS F E M, JV. DESIGN AND CONSTRUCTION OF A NEW USAID ANNEX

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 $14.4 million.

What is the period of performance?

Start: 2006-09-21. End: 2013-04-19.

What was the specific scope of work for the USAID annex construction?

The provided data indicates the contract was for the 'DESIGN AND CONSTRUCTION OF A NEW USAID ANNEX.' However, specific details regarding the size (square footage), number of floors, specific functional requirements (e.g., office space, labs, security features), and architectural design are not included in this summary. A comprehensive understanding of the scope would require reviewing the original contract statement of work (SOW) or performance work statement (PWS), which would detail the exact deliverables, specifications, and quality standards expected from the contractor.

How does the $14.4 million cost compare to similar USAID annex construction projects?

Direct comparison of the $14.4 million cost is difficult without knowing the specific size, location, and complexity of this USAID annex. However, federal construction projects, especially those involving diplomatic facilities, can be expensive due to stringent security requirements, specialized designs, and often challenging international locations. To benchmark, one would typically look at cost per square foot for similar government buildings. For instance, if this annex is 50,000 sq ft, the cost is approximately $288 per sq ft, which could be within a reasonable range for secure government facilities, but requires more detailed project specifications for a true comparison.

What are the key risks associated with a firm-fixed-price contract for a project of this duration?

For a project spanning over 2000 days (approximately 6.5 years), a firm-fixed-price (FFP) contract carries inherent risks, primarily for the contractor. The main risk is that the contractor may face significant cost overruns if material prices escalate unexpectedly, labor costs increase, or unforeseen site conditions arise that were not adequately priced into the initial bid. While FFP shifts cost risk to the contractor, the government could face risks if the contractor attempts to cut corners on quality to maintain profitability, or if the contractor becomes financially distressed due to cost overruns, potentially leading to delays or contract termination. Robust government oversight is crucial to mitigate these quality risks.

What was the track record of Framaco-Epik-Metis F.E.M, JV prior to winning this contract?

Information regarding the specific track record of the joint venture 'Framaco-Epik-Metis F.E.M, JV' prior to this contract award is not provided in the summary data. To assess their track record, one would need to investigate past performance on similar federal or large-scale construction projects. This would typically involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), checking for any history of contract disputes, litigation, or performance issues, and examining the experience of the individual firms comprising the joint venture.

How did the six bidders compare in terms of technical proposals and past performance?

The provided data confirms that six bids were received, indicating a competitive process. However, it does not offer details on the comparative strengths or weaknesses of these six bidders' technical proposals or their past performance records. In a typical full and open competition, the government evaluates both technical merit and price. The selection of Framaco-Epik-Metis F.E.M, JV implies that their combined technical approach and price were deemed the most advantageous, but the specifics of how they outperformed the other five bidders are not detailed here.

What is the historical spending pattern for USAID annex construction by the Department of State?

The provided data is specific to a single contract award and does not offer historical spending patterns for USAID annex construction by the Department of State. To analyze historical spending, one would need access to broader contract databases covering multiple years and various projects. This analysis would involve identifying all contracts related to USAID annex construction, summing their values over time, and potentially looking at trends in contract types, competition levels, and average project costs to understand the department's investment in such facilities.

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: TWO STEP

Offers Received: 6

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,416,448

Exercised Options: $14,416,448

Current Obligation: $14,416,448

Timeline