State Department awards $3.85M for Santiago embassy roof replacement, with 4 bids received

Contract Overview

Contract Amount: $3,853,896 ($3.9M)

Contractor: Roofing Resources Inc

Awarding Agency: Department of State

Start Date: 2019-08-07

End Date: 2026-06-30

Contract Duration: 2,519 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SANTIAGO, CHILE OBC ROOF REPLACEMENT PROJECT

Plain-Language Summary

Department of State obligated $3.9 million to ROOFING RESOURCES INC for work described as: SANTIAGO, CHILE OBC ROOF REPLACEMENT PROJECT Key points: 1. Value for money appears reasonable given the project scope and duration. 2. Competition was robust, suggesting fair pricing was achieved. 3. No immediate risk indicators are apparent from the contract data. 4. Project performance context is limited to contract award details. 5. This contract falls within the broader facilities maintenance and construction sector. 6. The fixed-price nature of the contract shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of $3.85 million for a roof replacement project over approximately 7 years (2019-2026) seems within a reasonable range for a U.S. embassy facility. Benchmarking against similar large-scale roofing projects for government facilities would provide a more precise value assessment. The firm-fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be open, specific sources may have been excluded for defined reasons. Four bids were received, which suggests a moderate level of competition. The exclusion of sources, if not fully justified, could potentially limit price discovery and the range of innovative solutions.

Taxpayer Impact: The moderate competition level means taxpayers likely benefited from competitive pricing, but the exclusion of certain sources might have prevented even better value.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel at the Santiago embassy, ensuring a secure and functional facility. The service delivered is the replacement of roofing systems, crucial for protecting the building's infrastructure. The geographic impact is localized to the U.S. Embassy in Santiago, Chile. Workforce implications include employment for skilled tradespeople involved in roofing and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if excluded sources were highly competitive.
Long contract duration could lead to unforeseen issues or scope creep if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Moderate number of bidders suggests a competitive environment.
Awarded by the Department of State, an experienced contracting agency.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on specialized building envelope services. The market for large-scale commercial and governmental roofing projects is competitive, with numerous established firms. The value of this contract is significant for a single project, reflecting the scale and security requirements of an embassy.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. Large prime contractors typically handle such projects, with potential for subcontracting opportunities to be distributed more broadly.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Department of State's facilities or overseas building operations directorates. Accountability is ensured through the firm-fixed-price contract terms and performance standards. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.

Related Government Programs

Embassy Maintenance and Repair Contracts
Overseas Building Operations
Federal Facilities Construction
Department of State Procurement

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration may increase risk of obsolescence or unforeseen issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.9 million to ROOFING RESOURCES INC. SANTIAGO, CHILE OBC ROOF REPLACEMENT PROJECT

Who is the contractor on this award?

The obligated recipient is ROOFING RESOURCES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2019-08-07. End: 2026-06-30.

What is the historical spending pattern for roofing projects at U.S. embassies?

Historical spending on roofing projects at U.S. embassies can vary significantly based on the age of the facilities, geographic location, climate, and specific security requirements. Larger, older embassies in challenging climates often require more substantial and frequent roof maintenance or replacement. While specific aggregate data for embassy roofing is not readily available in public databases, the Department of State's Overseas Building Operations (OBO) manages a vast portfolio of properties, and roofing is a recurring capital expense. Contracts for such projects can range from tens of thousands for minor repairs to millions for full replacements, as seen in this Santiago example. Factors like material durability, labor costs in foreign countries, and compliance with U.S. and local building codes influence overall expenditure.

How does the number of bidders (4) compare to similar large-scale federal roofing contracts?

A competition with four bidders for a federal contract valued at $3.85 million is generally considered moderate. For large-scale construction and specialized services like roofing on significant facilities, the number of interested and qualified bidders can fluctuate. Factors influencing bidder numbers include the project's complexity, geographic location (especially overseas), required security clearances, and the availability of specialized firms. While more bidders (e.g., 6-10) might indicate broader market interest and potentially more aggressive pricing, four bidders suggest that the opportunity was known and accessible to a reasonable segment of the market. However, the 'exclusion of sources' clause warrants further investigation to understand if this limited the pool of potential competitors.

What are the potential risks associated with a long-duration contract (2519 days) for roof replacement?

A long duration for a roof replacement project, such as the 2519 days (approx. 7 years) for this contract, introduces several potential risks. Firstly, material technology and best practices in roofing can evolve over seven years, potentially leading to the use of outdated methods or materials if not carefully managed. Secondly, the contractor's financial stability and operational capacity must be sustained over this extended period. Thirdly, unforeseen site conditions or environmental changes (e.g., extreme weather events) could impact the project's progress and cost, even under a fixed-price contract, if scope adjustments are needed. Lastly, maintaining consistent quality control and oversight from the government's perspective over such a long timeframe requires dedicated resources and vigilance to prevent degradation of standards or scope creep.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for cost-effectiveness?

The clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a nuanced approach to competition. While the intent is to maximize competition, the explicit exclusion of certain sources suggests that specific companies or types of companies were deemed ineligible to bid. The cost-effectiveness hinges on the justification for these exclusions. If the exclusions were based on legitimate, well-documented reasons (e.g., lack of specific certifications, past performance issues, national security concerns), then the remaining competition among qualified bidders could still yield a cost-effective outcome. However, if the exclusions were arbitrary or overly restrictive, it could limit the competitive pressure, potentially leading to higher prices than might have been achieved in a truly unrestricted open competition. The fact that four bids were received indicates that a sufficient number of firms remained eligible.

How does the firm-fixed-price (FFP) contract type mitigate risks for the government in this project?

A Firm-Fixed-Price (FFP) contract type is generally advantageous for the government in projects like the Santiago embassy roof replacement because it establishes a ceiling on the total cost. The contractor assumes the primary risk for any cost overruns incurred due to factors like labor cost increases, material price fluctuations, or inefficiencies in their operations. This provides the government with significant cost certainty. For the Department of State, this means the $3.85 million award amount is the expected total expenditure, barring any approved contract modifications. The FFP structure incentivizes the contractor to manage their costs efficiently and complete the work within the agreed-upon price, as any savings achieved below the fixed price benefit the contractor, while exceeding it results in a loss for them.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 423 MCFARLAN RD STE 100, KENNETT SQUARE, PA, 19348

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,853,896

Exercised Options: $3,853,896

Current Obligation: $3,853,896

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM19D0080

IDV Type: IDC

Timeline