State Department Awards $35.8M Construction Contract to Arkel International in Virginia

Contract Overview

Contract Amount: $35,780,935 ($35.8M)

Contractor: Arkel International, L.L.C.

Awarding Agency: Department of State

Start Date: 2017-09-29

End Date: 2020-03-19

Contract Duration: 902 days

Daily Burn Rate: $39.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SUVA, FIJIIGF::CL::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $35.8 million to ARKEL INTERNATIONAL, L.L.C. for work described as: CONSTRUCTION SUVA, FIJIIGF::CL::IGF Key points: 1. The contract value of $35.8 million falls within the typical range for commercial and institutional building construction projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs, but potential risks remain if unforeseen issues arise. 4. This project falls under the broad construction sector, with no immediate indication of unique sector-specific risks.

Value Assessment

Rating: good

The contract value of $35.8 million appears reasonable for a large-scale construction project of this nature. Benchmarking against similar government construction contracts would provide a more precise assessment, but the value is not inherently excessive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive environment that can drive down costs.

Public Impact

This contract supports infrastructure development, potentially impacting local employment and businesses in the construction sector. The project's completion contributes to the Department of State's facilities management and operational capabilities. Transparency in government contracting, through mechanisms like full and open competition, builds public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope changes or unforeseen issues arise.
Contract duration of 902 days (approx. 2.5 years) increases exposure to market fluctuations.
Lack of small business participation noted (sb: false).

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type helps control costs.
Clear agency (Department of State) and project type (Construction).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is cyclical and influenced by economic conditions and government infrastructure needs. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data indicates no specific set-aside for small businesses (sb: false). While not explicitly required for all contracts, this means opportunities for small businesses in this large contract may have been limited.

Oversight & Accountability

The contract was awarded by the Department of State, which has established procurement regulations and oversight mechanisms. The use of a definitive contract suggests a structured process, but ongoing monitoring is crucial for accountability.

Related Government Programs

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

Risk Flags

Contract duration is lengthy (902 days).
No small business participation noted.
Potential for cost increases in a firm fixed price contract over a long duration.
Specific construction details are not provided, limiting scope assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $35.8 million to ARKEL INTERNATIONAL, L.L.C.. CONSTRUCTION SUVA, FIJIIGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is ARKEL INTERNATIONAL, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2017-09-29. End: 2020-03-19.

What specific construction services were included in this $35.8 million contract, and how do they align with the Department of State's strategic infrastructure goals?

The provided data categorizes this as 'Commercial and Institutional Building Construction' but lacks specific service details. Understanding the exact scope, such as new builds, renovations, or specialized facility upgrades, is crucial to assess its alignment with the Department of State's long-term infrastructure strategy and operational needs.

Given the 902-day duration and firm fixed price, what risk mitigation strategies were in place to address potential cost escalations due to material price volatility or unforeseen site conditions?

While a firm fixed price contract aims to cap costs, a nearly 2.5-year duration exposes the project to market fluctuations. The Department of State should have contingency plans, potentially including escalation clauses for specific materials or robust site investigation protocols, to manage risks associated with unforeseen conditions or significant price increases.

How effectively did the 'full and open competition' process ensure the best value for taxpayers, considering the final award price and the number of bids received?

Full and open competition is designed to foster value, but its effectiveness hinges on the number and quality of bids. Without knowing the number of bidders or the range of proposed prices, it's difficult to definitively assess if the $35.8 million award represents the optimal taxpayer value. Further analysis of the bidding landscape would be beneficial.

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

Solicitation ID: SAQMMA17R0162

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1048 FLORIDA BLVD, BATON ROUGE, LA, 70802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,780,935

Exercised Options: $35,780,935

Current Obligation: $35,780,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline