State Department Awards $14.5M Construction Contract for Tijuana Marine Security Residence
Contract Overview
Contract Amount: $14,522,564 ($14.5M)
Contractor: Arkel International, L.L.C.
Awarding Agency: Department of State
Start Date: 2021-06-01
End Date: 2025-02-28
Contract Duration: 1,368 days
Daily Burn Rate: $10.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES FOR TIJUANA MARINE SECURITY GUARD RESIDENCE
Plain-Language Summary
Department of State obligated $14.5 million to ARKEL INTERNATIONAL, L.L.C. for work described as: CONSTRUCTION SERVICES FOR TIJUANA MARINE SECURITY GUARD RESIDENCE Key points: 1. Contract awarded to ARKEL INTERNATIONAL, L.L.C. for construction services. 2. Significant investment in infrastructure for the Tijuana Marine Security Guard Residence. 3. Competition method was 'FULL AND OPEN COMPETITION', suggesting broad market engagement. 4. Sector is Commercial and Institutional Building Construction, a common area for federal spending.
Value Assessment
Rating: good
The contract value of $14.5M appears reasonable for a multi-year construction project of this nature. Benchmarking against similar government construction contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple qualified contractors to bid. This method generally leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure development, with the competitive process aiming to ensure efficient use of these resources.
Public Impact
Enhances security and living conditions for marine security personnel. Supports the Department of State's diplomatic and security missions abroad. Potential for job creation and economic activity in the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1368 days).
- No indication of small business participation.
- Specific details on project scope are limited.
Positive Signals
- Full and open competition utilized.
- Clear contract type (Firm Fixed Price).
- Project supports critical security infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector often involves significant capital investments for government facilities, with benchmarks varying widely based on project scope and location.
Small Business Impact
The data indicates that small businesses were not specifically targeted or awarded this contract, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of State, as the contracting agency, is responsible for oversight. The use of a definitive contract and full and open competition suggests a structured procurement process, but ongoing monitoring is crucial for successful execution.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration may increase risk of cost overruns or scope creep.
- Lack of explicit small business participation noted.
- Geopolitical and local economic factors in Tijuana could impact project.
- Potential for unforeseen site conditions in construction.
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $14.5 million to ARKEL INTERNATIONAL, L.L.C.. CONSTRUCTION SERVICES FOR TIJUANA MARINE SECURITY GUARD RESIDENCE
Who is the contractor on this award?
The obligated recipient is ARKEL INTERNATIONAL, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $14.5 million.
What is the period of performance?
Start: 2021-06-01. End: 2025-02-28.
What is the estimated cost per square foot for this construction project, and how does it compare to industry benchmarks?
The provided data does not include square footage or detailed cost breakdowns, making a per-square-foot analysis impossible. To assess value, a comparison with similar government or commercial construction projects in the Tijuana region, considering materials, labor, and overhead, would be necessary. This would help determine if the $14.5M contract price is competitive.
What are the specific risks associated with a long-duration construction project in a foreign location like Tijuana?
Risks include potential delays due to local regulations, supply chain disruptions, labor availability and cost fluctuations, security concerns, and currency exchange rate volatility. Effective project management, contingency planning, and strong communication with local authorities and stakeholders are crucial to mitigate these risks and ensure timely completion within budget.
How will the effectiveness of this construction project be measured to ensure it meets the security and operational needs of the marine security guard residence?
Effectiveness will be measured through adherence to design specifications, quality of construction, timely completion, and post-occupancy evaluations. Key performance indicators could include functionality of security systems, habitability standards, and overall durability. Regular site inspections and stakeholder feedback during and after construction are vital to confirm the facility meets its intended purpose.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1055 CONVENTION STREET, BATON ROUGE, LA, 70802
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,522,564
Exercised Options: $14,522,564
Current Obligation: $14,522,564
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-06-01
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-09-16
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