State Department awards $6.5M renovation contract to Cheroeenhaka Nottoway Enterprises, LLC for 941 days

Contract Overview

Contract Amount: $6,518,264 ($6.5M)

Contractor: Cheroenhaka Nottoway Enterprises, LLC

Awarding Agency: Department of State

Start Date: 2023-08-08

End Date: 2026-03-06

Contract Duration: 941 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REC HARARE, ZIMBABWE COM RENOVATION AND REPAIR PROJECT.

Plain-Language Summary

Department of State obligated $6.5 million to CHEROENHAKA NOTTOWAY ENTERPRISES, LLC for work described as: REC HARARE, ZIMBABWE COM RENOVATION AND REPAIR PROJECT. Key points: 1. Contract value appears reasonable for a multi-year renovation project of this scope. 2. Limited competition may have impacted final pricing, warranting further scrutiny. 3. Project duration of 941 days suggests a complex or extensive renovation. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. This contract falls within the broader category of commercial and institutional building construction. 6. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $6.5 million for a nearly 3-year renovation project requires benchmarking against similar government construction projects. Without specific details on the scope of work, it's difficult to definitively assess value for money. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the initial price was competitive. The awarded amount is not exceptionally high or low on its face, but a detailed cost breakdown and comparison to industry standards would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The rationale for the sole-source award is not provided in the data, which raises questions about whether adequate efforts were made to explore competitive options. Without a competitive process, it is challenging to ascertain if the selected contractor offered the best value.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution, as the absence of competition can inflate prices.

Public Impact

The primary beneficiaries are the Department of State and its personnel who will utilize the renovated facilities. The project will deliver essential renovation and repair services to a government building. The geographic impact is localized to the specific facility being renovated in Harare, Zimbabwe. The contract will likely involve a workforce of construction professionals and laborers, potentially including local hires in Zimbabwe.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value.
Sole-source awards can indicate a lack of market research or a failure to identify qualified competitors.
The long duration of the contract (941 days) could present risks related to project management and potential delays.

Positive Signals

Firm fixed-price contract type transfers cost overrun risk to the contractor.
The contract is for essential renovation and repair, addressing a clear government need.
The award to a specific LLC suggests a targeted approach, though the rationale needs clarification.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building, alteration, and repair of non-residential structures. The global market for construction services is substantial, with government contracts forming a significant portion. Benchmarking this $6.5 million award would involve comparing it to similar renovation projects for diplomatic facilities or other government buildings of comparable size and complexity, considering regional labor and material costs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the available information. This suggests that the primary award went to a larger entity, and there may have been limited consideration for engaging the small business sector in this specific procurement. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General. Transparency is limited by the sole-source nature of the award and the lack of detailed public information on the scope of work and cost breakdown. Accountability measures would be tied to the contract's performance clauses and the firm fixed-price agreement, ensuring the contractor meets specified deliverables within the agreed budget.

Related Government Programs

Department of State Facilities Management
Overseas Building Operations
Government Building Construction and Renovation
International Construction Contracts

Risk Flags

Sole-source award without clear justification.
Lack of detailed scope of work and performance metrics.
Potential for cost overruns despite fixed-price contract due to long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.5 million to CHEROENHAKA NOTTOWAY ENTERPRISES, LLC. REC HARARE, ZIMBABWE COM RENOVATION AND REPAIR PROJECT.

Who is the contractor on this award?

The obligated recipient is CHEROENHAKA NOTTOWAY ENTERPRISES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2023-08-08. End: 2026-03-06.

What is the specific scope of work for the renovation and repair project in Harare, Zimbabwe?

The provided data does not detail the specific scope of work for the "REC HARARE, ZIMBABWE COM RENOVATION AND REPAIR PROJECT." This information is crucial for a comprehensive analysis of the contract's value and necessity. Typically, such projects could involve structural repairs, upgrades to electrical and plumbing systems, modernization of facilities, or aesthetic improvements. Understanding the exact nature of the work, the condition of the existing facility, and the intended use of the renovated space would allow for a more accurate assessment of the $6.5 million cost and the 941-day timeline.

What is the justification for awarding this contract on a sole-source basis?

The justification for the sole-source award is not provided in the data. Government contracts are typically awarded through full and open competition to ensure fair pricing and maximize value for taxpayers. Sole-source awards are exceptions, usually granted when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without the specific justification, it is impossible to determine if this award adhered to federal procurement regulations or if alternative, competitive options were overlooked. This lack of transparency is a significant concern.

How does the $6.5 million contract value compare to similar renovation projects for diplomatic facilities?

Benchmarking the $6.5 million contract value against similar renovation projects for diplomatic facilities requires access to comparable contract data, including project scope, location, and duration. Given the sole-source nature and limited details, a direct comparison is challenging. However, for a multi-year, comprehensive renovation of a significant facility, $6.5 million might be within a reasonable range, especially considering potential complexities of international projects (e.g., logistics, local regulations, security). A more precise assessment would involve analyzing data from the General Services Administration (GSA) or the Department of State's own historical contract awards for similar overseas infrastructure projects.

What are the potential risks associated with a 941-day contract duration for this project?

A contract duration of 941 days (approximately 2.5 years) for a renovation project introduces several potential risks. These include the possibility of significant cost escalation if the fixed-price contract does not adequately account for inflation or unforeseen material price increases over such a long period. Project management challenges can also arise, with a higher likelihood of delays due to unforeseen site conditions, changes in requirements, or contractor performance issues. Furthermore, the extended timeline might impact the usability of the facility for an extended period, potentially causing operational disruptions for the Department of State. Robust oversight and clear milestones are essential to mitigate these risks.

What is the track record of Cheroeenhaka Nottoway Enterprises, LLC with federal contracts?

Information regarding the track record of Cheroeenhaka Nottoway Enterprises, LLC with federal contracts is not provided in the data summary. A thorough analysis would require examining the company's past performance on government contracts, including their history of meeting deadlines, staying within budget, and delivering quality work. A company with a strong performance history might justify a sole-source award more readily than one with a history of issues. Without this performance data, assessing the reliability and capability of the contractor is difficult.

Are there any performance metrics or key performance indicators (KPIs) defined in the contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) included in the contract. For a project of this scale and duration, well-defined KPIs are essential for monitoring progress, ensuring quality, and holding the contractor accountable. These might include metrics related to schedule adherence, quality of workmanship, safety compliance, and completion of specific project phases. The absence of this information suggests a potential gap in contract management and oversight, making it harder to evaluate the contractor's performance objectively.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27345 AQUIA PATH DR, COURTLAND, VA, 23837

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,518,264

Exercised Options: $6,518,264

Current Obligation: $6,518,264

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline