State Department Awards $27.7M Design-Build Contract for Juba Compound Security Upgrades to Cherokee Nation Mechanical LLC

Contract Overview

Contract Amount: $27,665,718 ($27.7M)

Contractor: Cherokee Nation Mechanical LLC

Awarding Agency: Department of State

Start Date: 2019-06-28

End Date: 2022-06-01

Contract Duration: 1,069 days

Daily Burn Rate: $25.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD CONSTRUCTION OF JUBA COMPOUND SECURITY UPGRADES PROJECT

Plain-Language Summary

Department of State obligated $27.7 million to CHEROKEE NATION MECHANICAL LLC for work described as: DESIGN-BUILD CONSTRUCTION OF JUBA COMPOUND SECURITY UPGRADES PROJECT Key points: 1. The contract value of $27.7 million for security upgrades is significant, indicating a substantial investment in facility protection. 2. The award was made on a 'not available for competition' basis, raising questions about the procurement process and potential for better pricing. 3. The project falls under Commercial and Institutional Building Construction, a sector that can see wide cost variations based on complexity and location. 4. The firm fixed-price contract type aims to control costs, but the lack of competition could still lead to a less than optimal price.

Value Assessment

Rating: questionable

The contract value of $27.7 million for a design-build security upgrade project is substantial. Without comparable contract data or a competitive bidding process, it is difficult to benchmark the pricing effectively against similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, specifically 'not available for competition.' This significantly restricts the pool of potential bidders and may limit price discovery, potentially leading to higher costs than a full and open competition.

Taxpayer Impact: The lack of robust competition for a nearly $28 million contract raises concerns about taxpayer value, as alternative, potentially more cost-effective bids were not solicited.

Public Impact

Enhanced security at a U.S. diplomatic facility abroad, contributing to the safety of personnel and classified information. Investment in infrastructure in a challenging geopolitical region, potentially supporting U.S. foreign policy objectives. Potential for job creation and economic activity through the prime contractor and any subcontractors involved in the construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price reasonableness.
Lack of detailed cost breakdown makes independent verification difficult.
Project duration of over 1000 days suggests potential for cost overruns or delays.

Positive Signals

Firm fixed-price contract provides cost certainty.
Project addresses critical security needs for a diplomatic mission.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely depending on project scope, location, and security requirements. The $27.7 million value suggests a complex and significant construction undertaking.

Small Business Impact

The data indicates that the prime contractor is Cherokee Nation Mechanical LLC. Further analysis would be needed to determine the extent of small business participation as subcontractors on this project.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Robust oversight is crucial, especially given the limited competition, to ensure the project is completed on time, within budget, and meets all security specifications.

Related Government Programs

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

Risk Flags

Lack of full and open competition.
Potential for inflated pricing due to limited bidding.
Extended project duration (1069 days).
Absence of detailed cost breakdown for independent analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.7 million to CHEROKEE NATION MECHANICAL LLC. DESIGN-BUILD CONSTRUCTION OF JUBA COMPOUND SECURITY UPGRADES PROJECT

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION MECHANICAL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2019-06-28. End: 2022-06-01.

What specific factors justified the 'not available for competition' designation for this significant security upgrade project?

The justification for a 'not available for competition' award typically stems from unique circumstances, such as urgent security needs, the unavailability of other qualified contractors, or specific government requirements that only one entity can meet. Without detailed documentation from the Department of State, the precise reasons remain unclear, but it suggests a perceived lack of viable alternatives or a time-sensitive necessity.

How does the $27.7 million cost compare to similar security upgrade projects at U.S. diplomatic facilities in comparable regions?

Benchmarking this $27.7 million contract against similar projects is challenging without access to detailed cost breakdowns and specific project scopes. Factors like geographic location, threat levels, specific security technologies required, and prevailing labor costs in the Juba region would significantly influence pricing. A lack of competitive bids further complicates direct cost comparisons.

What mechanisms are in place to ensure the effectiveness and long-term durability of the security upgrades, given the limited competition?

Ensuring effectiveness and durability relies heavily on the Department of State's contract management and quality assurance processes. This includes rigorous inspection protocols, performance monitoring, and adherence to specified materials and construction standards. The contract's firm fixed-price nature incentivizes the contractor to deliver quality work to avoid costly rework, but vigilant oversight remains paramount.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM19R0212

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10838 E MARSHALL ST STE 220F, TULSA, OK, 74116

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,665,718

Exercised Options: $27,665,718

Current Obligation: $27,665,718

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $15,723,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline