State Department Awards $7.2M Renovation Contract for Dushanbe Space Improvements

Contract Overview

Contract Amount: $7,236,376 ($7.2M)

Contractor: Mtnt Intelligence Solutions, LLC

Awarding Agency: Department of State

Start Date: 2023-09-29

End Date: 2026-10-03

Contract Duration: 1,100 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REC DUSHANBE SPACE IMPROVEMENTS RENOVATION PROJECT

Plain-Language Summary

Department of State obligated $7.2 million to MTNT INTELLIGENCE SOLUTIONS, LLC for work described as: REC DUSHANBE SPACE IMPROVEMENTS RENOVATION PROJECT Key points: 1. The contract is for building construction services. 2. MTNT INTELLIGENCE SOLUTIONS, LLC is the sole awardee. 3. The contract value is $7.2 million. 4. The project duration is approximately 3 years.

Value Assessment

Rating: questionable

The contract value of $7.2 million for building renovations is significant. Without comparable contract data or a detailed breakdown of services, assessing its pricing against similar projects is difficult. The benchmark of $6,579 per day suggests a moderate daily rate, but the overall value needs further scrutiny.

Cost Per Unit: $6,579 per day

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This procurement method can limit price discovery and potentially lead to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The sole-source award may result in a higher cost to taxpayers due to the absence of competitive pressure to lower prices.

Public Impact

Taxpayers may be paying a premium due to the lack of competition. The project's success hinges on the performance of a single contractor. Transparency in the justification for the sole-source award is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of detailed cost breakdown makes value assessment difficult.
Potential for cost overruns in long-term construction projects.

Positive Signals

Clear contract award for necessary facility improvements.
Fixed price contract provides cost certainty if scope is well-defined.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope and location. The award value of $7.2 million is substantial for a single renovation project.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further investigation is needed to determine if subcontracting opportunities were explored or offered.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services at a fair price and meeting all contract requirements. The Department of State should provide a clear justification for the sole-source decision.

Related Government Programs

Commercial and Institutional Building Construction
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed cost breakdown hinders thorough value-for-money assessment.
Long project duration increases risk of cost escalation and performance issues.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.2 million to MTNT INTELLIGENCE SOLUTIONS, LLC. REC DUSHANBE SPACE IMPROVEMENTS RENOVATION PROJECT

Who is the contractor on this award?

The obligated recipient is MTNT INTELLIGENCE SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-10-03.

What specific factors justified the sole-source award for this renovation project, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. For this project, the Department of State would need to document why only MTNT INTELLIGENCE SOLUTIONS, LLC could fulfill the requirements. Without this documentation, it's difficult to assess if competitive options were truly unavailable or if the sole-source path was chosen for convenience.

How does the $6,579 daily rate benchmark compare to industry standards for similar commercial building renovations in the region?

The $6,579 per day benchmark needs to be contextualized within the specific scope of work and the geographic location (Dushanbe). Industry standards vary significantly based on labor costs, material prices, and complexity. A direct comparison requires detailed cost breakdowns and market research for similar projects in Central Asia to determine if this rate is competitive or inflated.

What mechanisms are in place to ensure cost control and prevent scope creep throughout the 3-year duration of this fixed-price contract?

While a firm fixed-price contract offers cost certainty, effective oversight is still crucial. The Department of State should implement robust project management practices, including regular progress reviews, change order controls, and performance monitoring. Clear communication channels and defined procedures for addressing unforeseen issues will be vital to prevent cost overruns and ensure the project stays within the agreed-upon budget.

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: 400 W TUDOR RD STE A400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,265,864

Exercised Options: $11,265,864

Current Obligation: $7,236,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline