State Department Awards $25.7M Contract for Jerusalem Office Fit-Out to Framaco International Inc
Contract Overview
Contract Amount: $25,699,375 ($25.7M)
Contractor: Framaco International Inc.
Awarding Agency: Department of State
Start Date: 2021-09-29
End Date: 2025-02-28
Contract Duration: 1,248 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: KADURI LEASE FIT-OUT OF OFFICE SPACE IN JERUSALEM.
Plain-Language Summary
Department of State obligated $25.7 million to FRAMACO INTERNATIONAL INC. for work described as: KADURI LEASE FIT-OUT OF OFFICE SPACE IN JERUSALEM. Key points: 1. The contract value of $25.7 million is significant for a single office fit-out project. 2. Framaco International Inc. secured the award through full and open competition. 3. The project involves construction, a sector often subject to cost overruns and delays. 4. The definitive contract type suggests a well-defined scope, but potential for change orders exists.
Value Assessment
Rating: fair
The contract value of $25.7 million for an office fit-out appears high. Benchmarking against similar government office construction projects would be necessary to determine if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bids were likely received. This method generally promotes competitive pricing, but the final price depends on the specific requirements and the number of responsive bidders.
Taxpayer Impact: Taxpayers are impacted by the full cost of this project, which is substantial for an office fit-out. Effective oversight is crucial to ensure value for money.
Public Impact
This project will result in a new, modern office space for the Department of State in Jerusalem. The construction will likely create jobs in the local economy. The fit-out will support diplomatic operations and personnel in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation during construction.
- Scope creep could increase the final cost.
- Long project duration (over 3 years) increases risk exposure.
Positive Signals
- Full and open competition should drive a reasonable price.
- Firm fixed price contract provides cost certainty.
- Awarded to a single contractor, simplifying management.
Sector Analysis
The Commercial and Institutional Building Construction sector is characterized by project-specific bids and varying levels of competition. Government construction contracts can be complex due to regulatory requirements and oversight.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation in this award. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Given the value and duration, robust oversight mechanisms, including regular progress reviews and site inspections, are essential to ensure compliance and manage risks.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- High contract value for office fit-out.
- Long contract duration (over 3 years).
- Construction projects are inherently prone to delays and cost overruns.
- Potential for scope creep in long-term projects.
- Geopolitical considerations in Jerusalem could impact project execution.
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 $25.7 million to FRAMACO INTERNATIONAL INC.. KADURI LEASE FIT-OUT OF OFFICE SPACE IN JERUSALEM.
Who is the contractor on this award?
The obligated recipient is FRAMACO INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $25.7 million.
What is the period of performance?
Start: 2021-09-29. End: 2025-02-28.
What is the benchmark cost per square foot for similar government office fit-outs in high-cost urban areas like Jerusalem?
Determining a precise benchmark cost per square foot for similar government office fit-outs in Jerusalem requires access to detailed project specifications and local construction cost data. However, government projects in major international cities often incur higher costs due to security requirements, specialized materials, and logistical challenges. A preliminary assessment suggests that costs could range significantly, potentially from $500 to $1500+ per square foot, depending on the level of finish and complexity.
What are the primary risks associated with a multi-year construction project of this magnitude for the State Department?
The primary risks include potential cost overruns due to inflation, material shortages, or unforeseen site conditions. Schedule delays are also a significant concern, potentially impacting operational readiness. Furthermore, security-related risks inherent in construction projects for diplomatic facilities, as well as the potential for scope creep if requirements evolve during the lengthy execution period, pose substantial challenges.
How effectively does the firm fixed price contract mitigate financial risks for the government in this specific project?
The firm fixed price (FFP) contract is designed to provide the government with cost certainty, shifting most of the financial risk to the contractor. However, the effectiveness of the FFP in this project depends on the accuracy of the initial cost estimates and the contractor's ability to manage unforeseen issues within the fixed price. Significant scope changes or contractor-induced inefficiencies could still lead to cost issues or disputes.
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
Solicitation ID: 19AQMM21R0112
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 WESTCHESTER AVE STE S430, RYE BROOK, NY, 10573
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,699,375
Exercised Options: $25,699,375
Current Obligation: $25,699,375
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-29
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2024-11-29
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