State Dept Awards $4.3M Embassy HVAC Contract to Venesco LLC Under Full and Open Competition

Contract Overview

Contract Amount: $4,339,401 ($4.3M)

Contractor: Venesco LLC

Awarding Agency: Department of State

Start Date: 2023-09-29

End Date: 2026-03-19

Contract Duration: 902 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: U.S. EMBASSY WELLINGTON HVAC AND BAS INSTALLATION

Plain-Language Summary

Department of State obligated $4.3 million to VENESCO LLC for work described as: U.S. EMBASSY WELLINGTON HVAC AND BAS INSTALLATION Key points: 1. The contract focuses on HVAC and Building Automation System (BAS) installation at the U.S. Embassy in Wellington. 2. Venesco LLC secured the award through full and open competition, indicating a competitive bidding process. 3. The project's duration is 902 days, suggesting a significant scope of work. 4. The award type is a Delivery Order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $4.34 million for HVAC and BAS installation appears reasonable for a project of this scale and duration. Benchmarking against similar embassy or large institutional building projects would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a competitive process was initiated but potentially narrowed down. This method aims for price discovery but the exclusion of sources might limit the full competitive landscape.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering competitive pricing. However, the specific exclusion of sources warrants scrutiny to ensure the best possible value was achieved.

Public Impact

Ensures operational efficiency and safety of U.S. diplomatic facilities abroad. Supports critical infrastructure maintenance for national security interests. Potential for job creation within the construction and building management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion.
Long project duration could introduce cost overruns or scope creep risks.

Positive Signals

Awarded through a competitive process.
Focus on essential infrastructure for diplomatic operations.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining government facilities, both domestically and internationally. Benchmarks for similar projects would typically consider factors like building size, complexity, and location.

Small Business Impact

The data does not indicate whether small businesses were involved as prime contractors or subcontractors in this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Standard oversight mechanisms should be in place to monitor progress, quality, and adherence to the contract terms, ensuring taxpayer funds are used effectively.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Long project duration increases risk of cost escalation.
Dependence on specialized HVAC and BAS expertise.
Geopolitical or security risks associated with embassy operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.3 million to VENESCO LLC. U.S. EMBASSY WELLINGTON HVAC AND BAS INSTALLATION

Who is the contractor on this award?

The obligated recipient is VENESCO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-03-19.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' process, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security clearances are required that only a limited number of vendors possess. Understanding these criteria is crucial to assess if the exclusion was justified and if it potentially limited competitive pricing, thereby impacting the final value achieved for the taxpayer.

What are the key performance indicators (KPIs) for this HVAC and BAS installation project, and how will their achievement be measured to ensure effectiveness and prevent cost overruns?

Key performance indicators likely include system efficiency ratings, uptime percentages, response times for maintenance, and successful integration of the BAS. The Department of State should have a robust monitoring plan to track these KPIs against baseline requirements and contractual obligations, ensuring the project delivers the intended operational benefits and stays within budget.

Given the 902-day duration, what risk mitigation strategies are in place to address potential supply chain disruptions, labor shortages, or unforeseen site conditions that could impact project complet

Effective risk mitigation would involve contingency planning for supply chain issues (e.g., alternative suppliers), securing labor commitments early, and conducting thorough site assessments to identify potential physical challenges. The contract should also include clauses for managing change orders and addressing unforeseen circumstances to protect against significant cost increases and schedule delays.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14801 MURDOCK ST, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $4,339,401

Exercised Options: $4,339,401

Current Obligation: $4,339,401

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM23D0015

IDV Type: IDC

Timeline