State Department awards $2.29M engineering services contract for Kampala Nox Project to KSJ Resources LLC

Contract Overview

Contract Amount: $2,292,261 ($2.3M)

Contractor: KSJ Resources LLC

Awarding Agency: Department of State

Start Date: 2018-06-06

End Date: 2027-05-01

Contract Duration: 3,251 days

Daily Burn Rate: $705/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMISSIONING SERVICES FOR KAMPALA NOX PROJECT.

Plain-Language Summary

Department of State obligated $2.3 million to KSJ RESOURCES LLC for work described as: COMMISSIONING SERVICES FOR KAMPALA NOX PROJECT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 8 years indicates a long-term need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 5. The award amount of $2.29 million falls within a moderate spending range for such services.

Value Assessment

Rating: good

The contract value of $2.29 million for over 8 years of engineering services appears reasonable. Benchmarking against similar engineering service contracts for international projects would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offer. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of State and potentially U.S. diplomatic missions in Uganda. The services delivered are engineering, likely related to infrastructure, security, or operational support for the Kampala Nox Project. The geographic impact is focused on Kampala, Uganda, supporting U.S. government operations abroad. The contract supports specialized engineering roles, potentially creating or sustaining employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration.
Reliance on a single contractor for an extended period could limit flexibility.
Ensuring continued alignment with evolving project needs over 8+ years requires diligent oversight.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a fair and competitive selection process.
Long-term award indicates a sustained and important need for the services.

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant sector within government contracting. This contract fits within the broader landscape of professional services procured by federal agencies for both domestic and international operations. Comparable spending benchmarks for engineering services can vary widely based on project scope, location, and duration, but this award appears to be of moderate size.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, KSJ Resources LLC, would determine any subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure and performance requirements. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may not be public.

Related Government Programs

Department of State Overseas Buildings Operations
Engineering and Technical Services Contracts
International Infrastructure Projects
Professional Services Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Limited information on contractor's past performance.
Specific project details ('Kampala Nox Project') are not elaborated.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.3 million to KSJ RESOURCES LLC. COMMISSIONING SERVICES FOR KAMPALA NOX PROJECT.

Who is the contractor on this award?

The obligated recipient is KSJ RESOURCES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2018-06-06. End: 2027-05-01.

What is the specific nature of the engineering services required for the Kampala Nox Project?

The provided data does not specify the exact nature of the engineering services for the Kampala Nox Project. However, given the NAICS code 541330 (Engineering Services) and the context of the Department of State, these services could encompass a wide range of activities. This might include architectural design, structural engineering, mechanical and electrical systems design, civil engineering for site development, environmental engineering assessments, or security system engineering. The project's location in Kampala, Uganda, suggests it could be related to embassy infrastructure, diplomatic facilities, or other U.S. government installations abroad. Further details would likely be found in the contract's statement of work (SOW) or performance work statement (PWS).

How does the $2.29 million contract value compare to similar engineering service contracts awarded by the Department of State?

Without access to a comprehensive database of all Department of State engineering contracts, a direct comparison is challenging. However, $2.29 million for over eight years of service suggests a moderate-sized contract. Larger infrastructure projects or complex security system designs could easily exceed this amount. Conversely, smaller, short-term consulting engagements would be significantly less. The firm fixed-price nature indicates a defined scope, and the long duration implies a sustained need. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes, geographic locations (especially for overseas operations), and contract durations awarded by the State Department or other agencies operating internationally.

What are the potential risks associated with a firm fixed-price contract lasting over eight years?

A significant risk with a long-term firm fixed-price (FFP) contract is the potential for the contractor to face unforeseen cost increases due to inflation, material price volatility, or changes in labor costs over the extended period. If these costs rise significantly beyond what was anticipated during the initial pricing, the contractor's profit margins could be severely eroded, potentially impacting their motivation or ability to perform. Conversely, if the contractor becomes highly efficient or market conditions improve dramatically, the government might be paying more than necessary. Another risk is scope creep; if the project requirements evolve substantially, managing changes under an FFP contract can become contentious. Diligent contract management and clear change order procedures are crucial to mitigate these risks.

What does 'full and open competition after exclusion of sources' imply about the procurement process?

The term 'full and open competition after exclusion of sources' is a specific procurement method used under the Federal Acquisition Regulation (FAR). It implies that the agency initially considered excluding certain sources (perhaps due to specific requirements or prior issues) but ultimately decided to proceed with a broad solicitation. This means that all responsible sources were permitted to submit a bid or proposal. The 'after exclusion of sources' part suggests that there might have been an initial consideration to limit the pool, but the final decision was to open it up. This method is generally preferred as it maximizes competition and ensures the government receives the best possible value. It contrasts with sole-source or limited competition scenarios.

What is the track record of KSJ RESOURCES LLC in performing federal contracts?

The provided data only includes basic information about this specific contract award to KSJ RESOURCES LLC. It does not offer details on the company's past performance, number of previous contracts, total value of prior awards, or performance ratings. To assess KSJ RESOURCES LLC's track record, one would need to consult federal procurement databases like SAM.gov (System for Award Management) for contract history, performance evaluations (if available), and any reported disputes or terminations. A thorough review would involve looking at the types of services they have provided, their success rate, and client feedback.

How might this contract impact U.S. diplomatic or operational effectiveness in Uganda?

Engineering services are often critical for the functioning and security of diplomatic missions and other U.S. government facilities abroad. If the Kampala Nox Project involves infrastructure upgrades, security enhancements, or essential operational support systems (like power, communications, or facilities maintenance), this contract directly contributes to the effectiveness and safety of U.S. operations in Uganda. Reliable and well-maintained facilities are crucial for diplomatic engagement, staff safety, and the overall mission success. The long duration suggests these services are fundamental to ongoing operations or a significant, multi-year development effort.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10210 SUMMIT AVE, KENSINGTON, MD, 20895

Business Categories: Asian Pacific American Owned Business, Category Business, Emerging Small Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,292,261

Exercised Options: $2,292,261

Current Obligation: $2,292,261

Actual Outlays: $667,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA13D0037

IDV Type: IDC

Timeline