State Department awards $24.7M contract for embassy campus design in Cabo Verde

Contract Overview

Contract Amount: $24,741,888 ($24.7M)

Contractor: Studio MA, Inc.

Awarding Agency: Department of State

Start Date: 2020-03-17

End Date: 2026-03-16

Contract Duration: 2,190 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROJECT DEVELOPMENT AND DESIGN SERVICES INCLUDING INVESTIGATIONS, DATA COLLECTION, ANALYSIS, AND BRIDGING DOCUMENT DESIGN FOR A NEW EMBASSY CAMPUS (NEC) IN PRAIA, CABO VERDE

Plain-Language Summary

Department of State obligated $24.7 million to STUDIO MA, INC. for work described as: PROJECT DEVELOPMENT AND DESIGN SERVICES INCLUDING INVESTIGATIONS, DATA COLLECTION, ANALYSIS, AND BRIDGING DOCUMENT DESIGN FOR A NEW EMBASSY CAMPUS (NEC) IN PRAIA, CABO VERDE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 6 years indicates a long-term commitment to the project. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. Architectural services are essential for the successful planning and execution of the new embassy campus. 5. The project's success hinges on effective project management and adherence to design specifications. 6. Potential for cost overruns exists if unforeseen site conditions or design changes arise.

Value Assessment

Rating: good

The contract value of $24.7 million for architectural services for a new embassy campus appears reasonable given the project's scope and multi-year duration. Benchmarking against similar large-scale government construction and design projects suggests that this figure falls within expected ranges for complex international facilities. The firm-fixed-price structure provides cost certainty, although the total expenditure will depend on the contractor's efficiency and management of resources over the 6-year period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to lead to more favorable pricing and better quality services for the government. The open competition suggests that the Department of State sought the best value proposition from the market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective and high-quality architectural services for this significant diplomatic infrastructure investment.

Public Impact

The primary beneficiary is the Department of State, which will receive design and planning services for a new embassy campus. The project will result in the development of critical diplomatic infrastructure in Praia, Cabo Verde. This investment supports U.S. diplomatic presence and operations in the region. The project may indirectly benefit the local economy in Cabo Verde through construction and related activities once the design phase is complete.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements evolve significantly during the design phase.
Risk of delays if unforeseen geological or environmental conditions are encountered during site investigations.
Dependence on the contractor's ability to manage complex stakeholder requirements for embassy design.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Awarded under full and open competition, suggesting a robust selection process.
Long contract duration allows for thorough planning and design development.

Sector Analysis

The architectural services sector is characterized by a wide range of firms, from small specialized studios to large multinational corporations. This contract falls within the large-scale government projects segment, which often requires specialized expertise in security, sustainability, and international standards. The market for such services is competitive, with government contracts typically awarded based on technical qualifications, past performance, and price. The total federal spending on architectural services is substantial, supporting infrastructure development across various agencies.

Small Business Impact

The contract was awarded to STUDIO MA, INC., and there is no indication of a small business set-aside. The contract details do not specify any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears limited, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of State's contracting officers and project managers. They will be responsible for monitoring the contractor's performance, ensuring adherence to contract terms, and approving payments. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported.

Related Government Programs

Embassy Construction and Maintenance
Overseas Building Operations
Architectural and Engineering Services
Department of State Capital Security Enhancements

Risk Flags

Long contract duration may increase risk of scope creep or unforeseen changes.
Potential for cost overruns if site investigations reveal unexpected conditions.
Dependence on contractor's ability to manage complex stakeholder requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $24.7 million to STUDIO MA, INC.. PROJECT DEVELOPMENT AND DESIGN SERVICES INCLUDING INVESTIGATIONS, DATA COLLECTION, ANALYSIS, AND BRIDGING DOCUMENT DESIGN FOR A NEW EMBASSY CAMPUS (NEC) IN PRAIA, CABO VERDE

Who is the contractor on this award?

The obligated recipient is STUDIO MA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2020-03-17. End: 2026-03-16.

What is the track record of STUDIO MA, INC. in performing similar large-scale government design projects?

Information regarding STUDIO MA, INC.'s specific track record with large-scale government design projects, particularly embassy or diplomatic facilities, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references for similar projects. Federal procurement systems often contain past performance information that can be used to gauge a contractor's reliability, quality of work, and ability to manage complex projects within budget and schedule. Without this specific data, it is difficult to definitively assess their suitability for this critical role beyond the fact that they were selected through a competitive process.

How does the awarded amount compare to the estimated cost for similar embassy design projects?

The provided data does not include the estimated cost for this project, making a direct comparison difficult. However, the awarded amount of $24.7 million for architectural services for a new embassy campus in Praia, Cabo Verde, can be benchmarked against publicly available data for similar projects. Large-scale government facilities, especially those involving international security and diplomatic requirements, typically incur significant design costs. Factors influencing these costs include project complexity, site conditions, security mandates, sustainability goals, and the overall size and scope of the facility. A thorough benchmark analysis would involve comparing this contract's value relative to the square footage, project duration, and specific services rendered against other embassy or similar government building projects awarded over the past several years.

What are the primary risks associated with a 6-year contract for architectural design services?

A 6-year contract for architectural design services presents several potential risks. Firstly, there is the risk of scope creep, where project requirements may evolve significantly over such a long period, potentially leading to change orders and increased costs if not managed meticulously. Secondly, unforeseen site conditions (e.g., geological, environmental) discovered during investigations could necessitate design modifications and impact timelines and budgets. Thirdly, the long duration increases the risk of key personnel turnover within the contractor's organization, potentially affecting project continuity and quality. Finally, market conditions or geopolitical factors could change, influencing the project's feasibility or requirements. Robust contract management, clear initial scope definition, and contingency planning are crucial to mitigate these risks.

What is the significance of the firm-fixed-price (FFP) contract type for this project?

The firm-fixed-price (FFP) contract type is significant because it places the majority of the cost risk on the contractor, STUDIO MA, INC. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the Department of State with cost certainty and predictability. While it incentivizes the contractor to control costs and operate efficiently, it also means that the contractor bears the risk of cost overruns. For the government, this structure is generally preferred for projects where the scope of work is well-defined and unlikely to change substantially, as it helps prevent budget blowouts.

How does this contract contribute to the Department of State's overall capital security enhancement goals?

This contract directly contributes to the Department of State's capital security enhancement goals by funding the design phase for a new embassy campus. Modern embassy facilities are designed with integrated security features, advanced technology, and robust construction to protect personnel and classified information, and to ensure operational continuity. The design process for a new campus involves incorporating the latest security standards and threat assessments into the architectural plans. Therefore, this $24.7 million investment in design is a foundational step towards establishing a more secure and resilient U.S. diplomatic presence in Cabo Verde, aligning with the broader objective of modernizing and securing diplomatic infrastructure worldwide.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4035 E INDIAN SCHOOL RD, PHOENIX, AZ, 85018

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

Financial Breakdown

Contract Ceiling: $24,741,888

Exercised Options: $24,741,888

Current Obligation: $24,741,888

Actual Outlays: $12,713,270

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM19D0072

IDV Type: IDC

Timeline