State Department's $87.9M construction contract awarded to undisclosed domestic firms via full and open competition

Contract Overview

Contract Amount: $87,939,756 ($87.9M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2009-09-30

End Date: 2013-08-09

Contract Duration: 1,409 days

Daily Burn Rate: $62.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $87.9 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. The contract value represents a significant investment in infrastructure, with a substantial portion allocated to overseas construction. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The definitive contract type indicates a clear scope of work and pricing structure. 4. The duration of the contract (1409 days) suggests a complex and long-term project. 5. The absence of specific small business set-asides warrants further investigation into subcontracting opportunities. 6. The undisclosed nature of the awardees raises questions about transparency and potential concentration of awards.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the undisclosed nature of the awardees and the specific services rendered under the 'Commercial and Institutional Building Construction' category. Without comparable contract data or detailed cost breakdowns, assessing value for money is difficult. The fixed-price nature of the contract provides some cost certainty, but the overall price relative to the scope and duration cannot be definitively assessed without more information.

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 a bid. The presence of 8 bids suggests a reasonable level of competition for this project. This competitive environment is generally favorable for price discovery and ensuring that the government receives competitive offers.

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

Public Impact

The primary beneficiaries are likely the Department of State and its personnel requiring improved or new facilities. The contract delivered construction services for commercial and institutional buildings, potentially including offices, housing, or support facilities. Geographic impact is implied to be overseas, supporting diplomatic and operational missions. The contract likely supported a workforce of construction professionals, laborers, and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding awardee identity hinders assessment of contractor performance and potential conflicts of interest.
The broad 'Commercial and Institutional Building Construction' category may obscure specific cost drivers and value.
Limited insight into subcontracting plans makes it difficult to assess small business participation.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
The firm fixed-price contract type offers cost predictability for the government.
A significant number of bids (8) indicates market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the broad construction sector, specifically for commercial and institutional buildings. This sector is characterized by project-based work, varying levels of specialization, and significant capital investment. Comparable spending benchmarks would typically involve analyzing other large-scale government construction projects, particularly those for diplomatic facilities or overseas infrastructure, to gauge cost-effectiveness.

Small Business Impact

The data indicates that this contract did not have specific small business set-asides (sb: false). Without explicit set-asides, the extent of small business participation would depend on subcontracting opportunities offered by the prime contractor(s). The undisclosed nature of the awardees makes it difficult to assess their typical subcontracting practices or commitment to engaging small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and program management offices. Accountability measures would be enforced through contract terms, performance reviews, and payment schedules. Transparency is limited by the undisclosed awardees. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
Federal Construction Contracts
Commercial Building Construction

Risk Flags

Undisclosed Awardees
Potential Lack of Transparency in Contractor Selection
Limited Data on Small Business Subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $87.9 million to DOMESTIC AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $87.9 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-08-09.

What specific types of commercial and institutional buildings were constructed under this contract?

The provided data categorizes this contract under 'Commercial and Institutional Building Construction' (nd: 236220) but does not specify the exact types of buildings. This category typically encompasses a wide range of structures, such as office buildings, administrative facilities, housing units, warehouses, or specialized support structures. Given the 'OVERSEAS CONTRACT' designation (d: OVERSEAS CONTRACT), it is highly probable that these buildings were intended to support U.S. diplomatic missions, embassies, consulates, or related personnel and operational needs in foreign countries. Further details would likely be found in the contract's statement of work or associated documentation.

How does the contract duration of 1409 days compare to similar overseas construction projects?

A contract duration of 1409 days, approximately 3.86 years, is substantial for a construction project. This length suggests a large-scale, complex undertaking, potentially involving multiple phases, significant site preparation, or construction in challenging overseas environments. Comparing this to similar projects requires access to a database of overseas construction contracts with detailed duration information. Generally, projects of this magnitude, especially those involving new construction or major renovations of government facilities abroad, often span several years due to logistical complexities, security requirements, and the scale of the build. Shorter durations might be typical for smaller renovations or specific component installations.

What are the implications of awarding a large contract to undisclosed domestic awardees?

Awarding a contract of this size ($87.9 million) to undisclosed domestic awardees presents several implications. Primarily, it reduces transparency, making it difficult for the public, oversight bodies, and even other potential contractors to assess the track record, financial stability, and performance history of the entities undertaking the work. While the competition was 'full and open,' the anonymity of the winners prevents a thorough analysis of whether the selected firms possess the most relevant expertise or offer the best value beyond the initial bid. This lack of disclosure could potentially mask issues related to past performance, conflicts of interest, or the concentration of government contracts among a few entities. It also complicates efforts to track subcontracting and ensure small business participation.

What is the significance of the contract being a 'Definitive Contract' with 'Firm Fixed Price' terms?

The contract being a 'Definitive Contract' signifies that it represents a final agreement between the government and the contractor, outlining all terms and conditions. This contrasts with 'Indefinite-Delivery' contracts which may have uncertain quantities or delivery schedules. The 'Firm Fixed Price' (pt: FIRM FIXED PRICE) pricing structure is significant because it places the primary risk of cost overruns on the contractor. This means the contractor agreed to perform the work for a set price, regardless of their actual costs. For the government, this provides a high degree of cost certainty and predictability, making budgeting easier and protecting against unexpected price increases. However, it can also mean that contractors may build in higher contingency amounts into their initial bids to account for potential risks.

How does the total award amount of $87.9 million compare to typical spending on overseas construction by the Department of State?

The total award amount of $87.9 million is a substantial sum for a single construction contract. To assess its comparability to typical Department of State spending on overseas construction, one would need to analyze historical spending data for similar projects managed by the Bureau of Overseas Building Operations (OBO) or other relevant State Department entities. OBO, for instance, manages a large portfolio of capital construction projects, many of which are multi-million dollar endeavors. An $87.9 million contract would likely represent a significant project, possibly a new embassy compound, a major renovation, or the construction of a large residential facility. Without access to aggregated historical data, it's difficult to definitively state if this amount is 'typical,' but it certainly falls within the range of major capital investments for diplomatic infrastructure.

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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $87,939,756

Exercised Options: $87,939,756

Current Obligation: $87,939,756

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline