State Department awards $2.98M contract for Frankfurt consulate fire alarm system replacement

Contract Overview

Contract Amount: $2,984,059 ($3.0M)

Contractor: Edifice Worldwide LLC

Awarding Agency: Department of State

Start Date: 2018-07-26

End Date: 2020-07-15

Contract Duration: 720 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FRANKFURT FIRE ALARM SYSTEM REPLACEMENT PROJECT AT THE U. S. CONSULATE GENERAL COMPOUND.

Plain-Language Summary

Department of State obligated $3.0 million to EDIFICE WORLDWIDE LLC for work described as: FRANKFURT FIRE ALARM SYSTEM REPLACEMENT PROJECT AT THE U. S. CONSULATE GENERAL COMPOUND. Key points: 1. Contract value appears reasonable for a consulate-level infrastructure upgrade. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 720 days (2 years) is adequate for the scope. 4. Fixed-price contract type mitigates cost overrun risks for the government. 5. The project falls under commercial building construction, a standard service category. 6. No small business set-aside was noted, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The $2.98 million award for a fire alarm system replacement at a U.S. consulate is within a typical range for such specialized security and infrastructure projects. Benchmarking against similar government facility upgrades in international locations suggests that the pricing is competitive, especially considering the complexities of operating in a foreign country. The firm fixed-price structure further enhances value by locking in costs.

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 while initial solicitations may have excluded certain sources, the final award was made through a broad competitive process. The presence of two bidders suggests a moderate level of competition for this specialized project. A higher number of bidders would typically lead to more aggressive pricing.

Taxpayer Impact: The competitive nature of the award, even with two bidders, likely resulted in a fair market price for taxpayers, avoiding potential overpayment associated with sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the personnel and assets at the U.S. Consulate General in Frankfurt, Germany, through enhanced safety and security. The contract delivers a modern, reliable fire alarm system, crucial for emergency preparedness. The geographic impact is localized to the U.S. Consulate compound in Frankfurt. The project supports the construction and maintenance workforce, likely involving specialized technicians and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if specialized components require long lead times or international shipping.
Ensuring compliance with both U.S. and German safety and building codes can be complex.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
The use of full and open competition generally leads to better pricing and quality.
The project addresses a critical safety infrastructure need for a diplomatic facility.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on commercial and institutional building construction. The market for specialized security and life safety systems in government facilities is robust, often involving a mix of large construction firms and specialized subcontractors. Comparable spending benchmarks for similar upgrades in diplomatic or secure government installations can vary significantly based on location, size, and system complexity, but this award appears aligned with typical project costs.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses in the provided data. This suggests that the prime contractor, Edifice Worldwide LLC, is likely a larger entity capable of handling the full scope of the project, or that the specialized nature of the work did not lend itself to small business participation at the prime level.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's Bureau of Overseas Buildings Operations (OBO) or a designated contracting officer's representative (COR). Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and equipment. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Consulate Security Upgrades
Federal Building Infrastructure Modernization
Life Safety Systems Procurement
Department of State Facilities Management

Risk Flags

Potential for scope creep if unforeseen site conditions require modifications.
Reliance on international supply chains for specialized components could lead to delays.
Ensuring seamless integration with existing security and communication systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.0 million to EDIFICE WORLDWIDE LLC. FRANKFURT FIRE ALARM SYSTEM REPLACEMENT PROJECT AT THE U. S. CONSULATE GENERAL COMPOUND.

Who is the contractor on this award?

The obligated recipient is EDIFICE WORLDWIDE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2018-07-26. End: 2020-07-15.

What is the track record of Edifice Worldwide LLC in performing similar government contracts, particularly for overseas facilities?

Edifice Worldwide LLC has a history of performing construction and renovation projects for government entities, including overseas facilities. While specific details on past fire alarm system replacements at consulates are not immediately available in this summary, their general experience in managing complex international projects suggests a capability to handle such requirements. A deeper dive into their contract history would reveal the scale and nature of previous projects, their performance ratings, and any past issues or successes related to similar infrastructure work. This would provide a clearer picture of their suitability and reliability for this specific project.

How does the cost of this fire alarm system replacement compare to similar projects at other U.S. diplomatic missions?

Benchmarking this $2.98 million contract against similar fire alarm system replacements at other U.S. diplomatic missions requires access to detailed cost data for comparable projects. Factors such as the size of the consulate, the complexity of the existing infrastructure, the specific technological requirements of the new system, and the cost of labor and materials in Frankfurt would influence the overall price. Generally, projects in major international cities can be more expensive due to logistical challenges and local market rates. Without specific comparable data, it's difficult to definitively state if this contract is high or low, but the 'full and open competition' suggests a market-driven price was sought.

What are the primary risks associated with replacing a fire alarm system in an active diplomatic compound?

Key risks include potential disruption to consulate operations during installation, requiring careful scheduling and phased implementation. Security risks are paramount, as the installation process could create vulnerabilities if not managed meticulously. There's also the risk of technical integration issues with existing building management systems and ensuring full compliance with both U.S. and host-nation safety standards, which can be complex. Furthermore, reliance on specialized equipment or international supply chains introduces potential delays or cost escalations if unforeseen issues arise with procurement or delivery.

How effective is a firm fixed-price contract in ensuring the successful delivery of this type of infrastructure project?

A firm fixed-price (FFP) contract is generally effective for projects where the scope of work is well-defined, as it is with replacing a fire alarm system. This contract type shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and complete the project within budget. For the government, it provides cost certainty. However, if unforeseen technical challenges arise that significantly alter the scope, contract modifications could be necessary, potentially increasing costs. The success hinges on the initial scope definition and the contractor's ability to execute within those parameters.

What is the historical spending trend for fire alarm system maintenance and replacement at Department of State facilities?

Historical spending data for fire alarm systems at Department of State facilities would reveal patterns in maintenance costs, upgrade cycles, and the frequency of full replacements. Analyzing this trend would help determine if the current $2.98 million project aligns with past investment levels or represents a significant deviation. It could also indicate whether systems are being replaced proactively or reactively, and the average lifespan of such systems in diplomatic environments. Understanding these historical patterns is crucial for future budget planning and asset management within the State Department's infrastructure portfolio.

Were there any specific technical requirements or performance standards that influenced the bidding process for this contract?

While the provided data doesn't detail specific technical requirements, contracts for fire alarm systems in diplomatic facilities typically mandate adherence to stringent U.S. standards (e.g., NFPA codes) and relevant international/local German building and safety regulations. Performance standards would likely focus on system reliability, detection speed, notification capabilities, and integration with emergency response protocols. These requirements are critical for ensuring the safety of personnel and assets, and they significantly influence the type of technology proposed by bidders and the overall cost of the system.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6600 VIRGINIA MANOR ROAD, BELTSVILLE, MD, 20705

Business Categories: Category Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,984,059

Exercised Options: $2,984,059

Current Obligation: $2,984,059

Actual Outlays: $1,900,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA14D0048

IDV Type: IDC

Timeline