State Department Awards $806M for Overseas Construction, Lacking Small Business Participation
Contract Overview
Contract Amount: $805,994,716 ($806.0M)
Contractor: Domestic Awardees (undisclosed)
Awarding Agency: Department of State
Start Date: 2010-09-29
End Date: 2019-05-31
Contract Duration: 3,166 days
Daily Burn Rate: $254.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: OVERSEAS CONTRACT
Plain-Language Summary
Department of State obligated $806.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Significant contract value of $806 million for overseas construction. 2. Competition method is 'Full and Open', but awardees are undisclosed. 3. No small business participation noted, raising concerns about equity. 4. Contract duration spans nearly 9 years, indicating long-term commitment.
Value Assessment
Rating: fair
The contract value is substantial, but without knowing the specific services or locations, it's difficult to benchmark against similar overseas construction projects. The undisclosed domestic awardees make direct comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the widest range of potential bidders. However, the undisclosed nature of the awardees prevents a clear assessment of the competitive landscape and price discovery effectiveness.
Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the lack of transparency regarding awardees and small business involvement may limit the full realization of cost savings and broader economic impact.
Public Impact
Taxpayers funded a large contract for construction services abroad. The absence of small business involvement means potential missed opportunities for smaller firms to contribute and benefit. The long contract duration suggests a sustained need for these overseas construction capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undisclosed awardees
- No small business participation
- Long contract duration
Positive Signals
- Full and open competition utilized
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on geopolitical needs and infrastructure development priorities. The $806 million figure represents a significant investment in overseas facilities.
Small Business Impact
The data explicitly states that small business participation was not a factor in this contract award. This is a notable omission for a contract of this magnitude and suggests a potential lack of outreach or opportunity for small businesses in this specific procurement.
Oversight & Accountability
The Department of State managed this significant overseas construction contract. Oversight would typically involve ensuring project milestones are met, quality standards are maintained, and funds are disbursed appropriately according to the firm fixed-price agreement.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of transparency regarding awardees
- No small business participation
- Long contract duration without clear performance metrics
- Potential for cost overruns if not closely managed despite fixed price
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $806.0 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 $806.0 million.
What is the period of performance?
Start: 2010-09-29. End: 2019-05-31.
What specific types of overseas construction were undertaken, and how do the costs align with industry benchmarks for similar projects in comparable regions?
The provided data lacks specificity regarding the exact nature of the 'Commercial and Institutional Building Construction' services rendered overseas. Without details on project scope, location, and specific construction types (e.g., new builds, renovations, specific facility types), it is impossible to accurately benchmark costs against industry standards or assess value for money.
Given the 'Full and Open Competition' award type, why were the domestic awardees not disclosed, and what impact did this lack of transparency have on assessing the competitive landscape?
The non-disclosure of awardees, despite 'Full and Open Competition,' raises questions about transparency and accountability. This prevents an analysis of which firms competed, their qualifications, and the potential for market concentration. It hinders the ability to determine if the competition truly drove the best possible price and value for the taxpayer.
What steps, if any, were taken to encourage or include small businesses in the subcontracting opportunities for this large overseas construction contract?
The data indicates 'SB: false,' meaning small business participation was not a requirement or was not achieved. For a contract valued at over $800 million, this lack of small business involvement is a significant concern. It suggests a missed opportunity to leverage the capabilities of smaller firms and potentially achieve cost efficiencies through specialized subcontracting.
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: 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: $805,994,716
Exercised Options: $805,994,716
Current Obligation: $805,994,716
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-29
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2022-01-21
More Contracts from Domestic Awardees (undisclosed)
- Overseas Contract — $920.0M (Agency for International Development)
- Afghanistan Ministry of Interior/Afghan National Police Mentoring&training With Life Support Services — $876.2M (Department of Defense)
- Tasm-O Aviation Field Maintenance Igf::ot::igf — $870.9M (Department of Defense)
- Overseas Contract — $817.4M (Department of State)
- THE Principal Purpose of This Contract IS to Provide Strategic Technical and Procurement Assistance to the Government of Ukraine (GOU), Focusing on Enhancing the Resilience, Reliability, Affordability, and Security of the Electricity, Natural GAS, an — $723.3M (Agency for International Development)
View all Domestic Awardees (undisclosed) federal contracts →
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)