State Department awards $38.5M contract for Baghdad bulk fuel farm construction to Desbuild Inc

Contract Overview

Contract Amount: $38,456,059 ($38.5M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2023-10-18

End Date: 2025-08-18

Contract Duration: 670 days

Daily Burn Rate: $57.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BAGHDAD BULK FUEL FARM

Plain-Language Summary

Department of State obligated $38.5 million to DESBUILD INCORPORATED for work described as: BAGHDAD BULK FUEL FARM Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. Construction services for a critical infrastructure project in a high-risk environment. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. Long performance period of 670 days indicates a complex and extensive project. 5. No small business set-aside or subcontracting plan noted, potentially limiting small business participation.

Value Assessment

Rating: fair

The contract value of $38.5 million for a bulk fuel farm in Baghdad is substantial. Without comparable contract data for similar projects in similar environments, a precise value-for-money assessment is challenging. The firm fixed-price structure aims to control costs, but the sole-source nature means the government did not benefit from competitive bidding to establish a benchmark price. Further analysis would require benchmarking against industry standards for construction of this type and scale in complex operational areas.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Desbuild Incorporated, was solicited. This approach bypasses the competitive bidding process, which typically helps ensure fair pricing and identify the best value. The lack of competition means there is no direct market comparison to assess if the price offered is optimal or if other qualified contractors could have provided superior value or lower costs.

Taxpayer Impact: The absence of competition means taxpayers may not have received the most cost-effective solution. Without a competitive process, there's a risk that the awarded price is higher than it might have been if multiple bids were considered.

Public Impact

The primary beneficiary is the U.S. Department of State, ensuring operational support for its presence in Baghdad. The contract will deliver a critical infrastructure asset: a bulk fuel farm, essential for powering facilities and operations. The geographic impact is concentrated in Baghdad, Iraq, supporting U.S. diplomatic and security missions. Workforce implications may include employment opportunities for construction labor, both locally and potentially for specialized roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of small business participation noted.
Construction in a high-risk environment presents inherent logistical and security challenges.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Contract addresses a critical infrastructure need for the State Department.
Long-term performance period allows for thorough project execution.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically focused on infrastructure development. This sector is vital for supporting government operations, particularly in overseas locations. The market for such construction in challenging environments is often limited due to security and logistical complexities, which can influence competition and pricing. Comparable spending benchmarks are difficult to establish without specific project details and location context.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is there an indication of a subcontracting plan. This suggests that small businesses were not specifically targeted for this significant construction project. Consequently, the direct economic impact on the small business ecosystem may be minimal unless Desbuild Incorporated voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given the location and nature of the work, additional security and logistical oversight would be crucial. Transparency is facilitated by contract databases, but detailed operational oversight specifics are not publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Overseas Construction Projects
Department of State Facilities Management
Infrastructure Development Contracts
Fuel Storage and Distribution Systems

Risk Flags

Sole-source award
High-risk operating environment
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $38.5 million to DESBUILD INCORPORATED. BAGHDAD BULK FUEL FARM

Who is the contractor on this award?

The obligated recipient is DESBUILD INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2023-10-18. End: 2025-08-18.

What is Desbuild Incorporated's track record with the Department of State and similar overseas construction projects?

Desbuild Incorporated has a history of performing construction contracts, including some with the Department of State. Analyzing their past performance on similar overseas projects, particularly in complex or high-risk environments like Iraq, would be crucial for assessing their capability and reliability for this Baghdad fuel farm. A review of past performance evaluations, any contract disputes, or claims filed by or against the company would provide further insight into their track record. Without specific details on their prior work in similar conditions, it's difficult to definitively gauge their suitability beyond the fact they were selected for this sole-source award.

How does the $38.5 million cost compare to similar bulk fuel farm construction projects globally or in comparable regions?

Benchmarking the $38.5 million cost for this Baghdad bulk fuel farm against similar projects is challenging without detailed specifications and location context. Construction costs can vary significantly based on factors such as size, capacity, materials used, security requirements, logistical challenges, and the specific geopolitical environment. Projects in high-risk areas like Iraq typically incur higher costs due to increased security, transportation, and operational complexities. A comprehensive comparison would require access to detailed project scopes, engineering plans, and cost breakdowns for comparable facilities, which are not publicly available. However, the sole-source nature of this award means a competitive market price was not established.

What are the primary risks associated with constructing a bulk fuel farm in Baghdad, and how are they mitigated by this contract?

Key risks include security threats to personnel and the site, logistical challenges in transporting materials and equipment to Baghdad, potential political instability impacting project continuity, and the inherent dangers of fuel storage infrastructure. The firm fixed-price contract aims to mitigate cost overruns if risks materialize, shifting some financial burden to the contractor. However, the contract's effectiveness in mitigating non-financial risks like security and logistics depends heavily on the contractor's operational plans, the Department of State's security protocols, and the overall stability of the operating environment. The long performance period also introduces risks related to changing conditions over time.

What is the expected effectiveness of the completed fuel farm in supporting State Department operations in Baghdad?

The completed bulk fuel farm is expected to significantly enhance the reliability and sustainability of fuel supply for U.S. Department of State operations in Baghdad. This critical infrastructure will likely reduce reliance on potentially less secure or more expensive ad-hoc fuel sourcing methods, ensuring consistent power generation for facilities and operational readiness. Its effectiveness will be measured by its ability to meet the projected fuel demands, maintain operational safety standards, and contribute to the overall logistical resilience of the U.S. presence in the region. The long-term operational effectiveness will also depend on proper maintenance and management post-construction.

What has been the historical spending by the Department of State on construction and infrastructure projects in Iraq over the past five years?

Historical spending by the Department of State on construction and infrastructure projects in Iraq over the past five years has been substantial, reflecting the ongoing need to maintain and develop diplomatic facilities and support operations in a challenging environment. While specific aggregate figures require detailed database queries, significant investments have been made in areas such as embassy compound expansion, security enhancements, housing, and essential utilities. These projects often involve complex contracting mechanisms, including both competed and sole-source awards, and are subject to evolving security and political conditions. The trend generally indicates a sustained commitment to infrastructure development to support long-term diplomatic engagement.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

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: 4744 BALTIMORE AVE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,456,059

Exercised Options: $38,456,059

Current Obligation: $38,456,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline