State Department awards $2.88M construction contract to Gulf Supplies & Commercial Services Co. for Doha AAU Project

Contract Overview

Contract Amount: $2,884,446 ($2.9M)

Contractor: Gulf Supplies & Commercial Services CO.

Awarding Agency: Department of State

Start Date: 2022-07-15

End Date: 2022-12-01

Contract Duration: 139 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF THE DOHA AAU PROJECT TO GSCS CO.

Plain-Language Summary

Department of State obligated $2.9 million to GULF SUPPLIES & COMMERCIAL SERVICES CO. for work described as: AWARD OF THE DOHA AAU PROJECT TO GSCS CO. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The fixed-price contract structure aims to control costs, but the lack of competition may have inflated the final price. 3. Performance duration is relatively short (139 days), suggesting a focused scope of work. 4. The contract falls under commercial and institutional building construction, a sector with established market rates. 5. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms. 6. The award value of $2.88M is a significant investment for a single project of this nature.

Value Assessment

Rating: fair

The contract's value is difficult to benchmark precisely without more detail on the specific construction requirements for the Doha AAU Project. However, the award of $2.88 million for a 139-day project suggests a substantial per-day cost. Given the sole-source nature, it's challenging to assess if this represents optimal value for money compared to what might have been achieved through a competitive bidding process. Further analysis would require understanding the scope of work and comparing it to similar construction projects in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. Without a competitive process, it's harder to ensure the government received the best possible price for the construction services.

Public Impact

The primary beneficiary is the Department of State, which will receive the completed Doha AAU Project facilities. The project involves commercial and institutional building construction, likely to support diplomatic or operational functions in Doha. The geographic impact is localized to Doha, Qatar, where the construction will take place. Workforce implications would include construction labor and management, potentially sourced locally in Qatar or internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and competitive pricing.
Lack of small business participation may exclude specialized smaller firms.
Limited duration could indicate a rushed timeline or narrowly defined scope, increasing risk if unforeseen issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor simplifies management and execution.
Project completion within the specified timeframe (139 days) is a positive indicator if achieved.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector. This sector encompasses a wide range of projects, from office buildings to specialized facilities. The market for such services in international locations like Doha can be influenced by local regulations, availability of skilled labor, and geopolitical factors. Benchmarking this specific award requires comparison with similar construction projects undertaken by government agencies or private entities in the region, considering the project's scale and complexity.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. The sole-source nature further limits the potential for small business involvement. This means that opportunities for small businesses to participate in this specific federal contract were likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General. The firm fixed-price nature provides some cost control, but the sole-source award necessitates careful monitoring of performance, quality, and adherence to the contract terms to ensure accountability and prevent potential overruns or deficiencies.

Related Government Programs

Department of State Construction Contracts
Overseas Building Operations
Doha Embassy/Consulate Projects
Commercial Building Construction Services

Risk Flags

Sole-source award
Lack of competition
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.9 million to GULF SUPPLIES & COMMERCIAL SERVICES CO.. AWARD OF THE DOHA AAU PROJECT TO GSCS CO.

Who is the contractor on this award?

The obligated recipient is GULF SUPPLIES & COMMERCIAL SERVICES CO..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2022-07-15. End: 2022-12-01.

What specific construction services were included in the Doha AAU Project award?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' related to the 'Doha AAU Project'. However, the specific details of the construction services are not itemized. Typically, such projects could involve new construction, renovation, or infrastructure development for an embassy, consulate, or other government facility. Without a detailed scope of work, it is difficult to ascertain the exact nature of the services, such as site preparation, structural work, interior finishing, or utility installations. Further documentation would be needed to understand the full extent of the construction activities covered by the $2.88 million award.

How does the $2.88 million award compare to similar construction projects managed by the Department of State in the region?

Benchmarking the $2.88 million award for the Doha AAU Project against similar Department of State construction contracts in the region requires access to a broader dataset of comparable projects. Factors such as the size of the facility, the scope of work (new build vs. renovation), local construction costs in Doha, and the specific security or functional requirements of the 'AAU' designation would heavily influence cost. Given this is a sole-source award for a 139-day project, it suggests a potentially specialized or urgent need. A direct comparison without these contextual details would be speculative, but the amount represents a significant investment for a project of this duration.

What are the potential risks associated with a sole-source award for a construction project of this magnitude?

Sole-source awards, while sometimes necessary, carry inherent risks. For this $2.88 million construction contract, key risks include a lack of competitive pricing, potentially leading to the government overpaying for services. There's also a reduced incentive for the contractor to innovate or optimize costs once the contract is secured. Furthermore, without multiple bidders to vet, there's a higher risk of selecting a contractor whose capabilities or past performance might not be as thoroughly scrutinized as in a competitive process. Ensuring robust oversight and clear performance metrics becomes even more critical to mitigate these risks and ensure project success.

What is the track record of Gulf Supplies & Commercial Services Co. with federal contracts, particularly with the Department of State?

Information regarding the specific track record of Gulf Supplies & Commercial Services Co. with federal contracts, especially with the Department of State, is not detailed in the provided data snippet. To assess their reliability and past performance, a review of their contract history, including any past performance evaluations, awards, or disputes, would be necessary. Understanding their experience with similar-sized construction projects, particularly in international or complex environments, would provide valuable insight into their capability to successfully execute the Doha AAU Project.

What does the 'AAU' designation in the project title signify, and does it impact the contract's scope or cost?

The 'AAU' designation in the 'Doha AAU Project' title likely refers to an 'Administrative, Ancillary, or Utility' facility, or potentially a specific program or unit name within the Department of State's operations. Such designations often imply specialized requirements related to security, functionality, or specific operational needs that might justify a sole-source award if only one contractor possesses the requisite expertise or access. The specific meaning of 'AAU' could influence the scope of construction, materials used, and security protocols, thereby impacting the overall cost and complexity of the project.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SALWA ROAD, SOUTH DOHA

Business Categories: Category Business, Foreign Owned, International Organization, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,884,446

Exercised Options: $2,884,446

Current Obligation: $2,884,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline