State Dept. Awards $3.09M for Embassy Kuwait Product Installation to Olgoonik Federal, LLC

Contract Overview

Contract Amount: $3,091,204 ($3.1M)

Contractor: Olgoonik Federal, LLC

Awarding Agency: Department of State

Start Date: 2023-09-25

End Date: 2026-03-31

Contract Duration: 918 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD SERVICES TO PROCURE, SHIP, REPLACE AND INSTALL FEBR PRODUCTS FOR THE U.S. EMBASSY KUWAIT

Plain-Language Summary

Department of State obligated $3.1 million to OLGOONIK FEDERAL, LLC for work described as: DESIGN/BUILD SERVICES TO PROCURE, SHIP, REPLACE AND INSTALL FEBR PRODUCTS FOR THE U.S. EMBASSY KUWAIT Key points: 1. Contract awarded to Olgoonik Federal, LLC for $3.09M. 2. Service involves design/build, procurement, shipping, replacement, and installation of FEBR products. 3. The contract spans from September 25, 2023, to March 31, 2026. 4. Competition method was 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: fair

The award amount of $3.09M for design/build services for embassy product installation appears within a reasonable range for such specialized projects. Benchmarking against similar embassy infrastructure or specialized installation contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was intended to be broad, specific exclusions may have limited the pool of eligible bidders. This could impact price discovery and potentially lead to higher costs than a truly unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at a U.S. Embassy, contributing to operational security and functionality. The cost-effectiveness depends on the competitive nature of the bidding process.

Public Impact

Ensures operational readiness and security of the U.S. Embassy in Kuwait. Supports diplomatic missions abroad through necessary facility maintenance and upgrades. Potential impact on local economy through procurement and installation activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Potential for cost overruns in design/build projects.
Long contract duration with potential for scope creep.

Positive Signals

Addresses critical infrastructure needs for a U.S. Embassy.
Firm Fixed Price contract provides cost certainty.
Clear delivery and installation requirements.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector critical for maintaining and upgrading government facilities, including overseas embassies. Spending benchmarks in this sector vary widely based on project scope, location, and specific requirements.

Small Business Impact

The data indicates that the awardee is Olgoonik Federal, LLC. Further analysis is needed to determine if this is a small business and if subcontracting opportunities for small businesses are included in the contract.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Oversight will be crucial to ensure the project stays within budget, meets performance requirements, and adheres to the specified timeline, especially given the design/build nature of the work.

Related Government Programs

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

Risk Flags

Potential for cost overruns in design/build contracts.
Limited competition may reduce price competitiveness.
Long contract duration increases risk of unforeseen issues.
Lack of detail on specific products (FEBR) and their criticality.
Unclear justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.1 million to OLGOONIK FEDERAL, LLC. DESIGN/BUILD SERVICES TO PROCURE, SHIP, REPLACE AND INSTALL FEBR PRODUCTS FOR THE U.S. EMBASSY KUWAIT

Who is the contractor on this award?

The obligated recipient is OLGOONIK FEDERAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-03-31.

What specific FEBR products are being procured and installed, and what is their criticality to embassy operations?

The specific FEBR products are not detailed in the provided data. Understanding the nature of these products is crucial to assess their criticality to embassy operations, security, and functionality. This information would help justify the contract's necessity and evaluate the value proposition of the awarded services.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method?

The rationale behind excluding specific sources needs to be documented and justified. Common reasons include specialized capabilities, past performance, or unique requirements. Understanding these exclusions is vital to assess whether the competition was appropriately broadened or unnecessarily restricted, impacting potential cost savings for taxpayers.

How will the Department of State ensure cost-effectiveness and prevent scope creep in this design/build contract?

Effective oversight mechanisms, including detailed performance metrics, regular progress reviews, and a robust change order process, are essential. The Department should establish clear baseline requirements and closely monitor the design and build phases to prevent scope creep and ensure the final cost aligns with the initial objectives and taxpayer value.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 700, 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: $3,091,204

Exercised Options: $3,091,204

Current Obligation: $3,091,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0006

IDV Type: IDC

Timeline