State Department awards $8.5M construction contract for Panama Communications Network to Framaco-Bozdemir Joint Venture

Contract Overview

Contract Amount: $8,530,467 ($8.5M)

Contractor: Framaco-Bozdemir Joint Venture LLC

Awarding Agency: Department of State

Start Date: 2024-05-01

End Date: 2026-03-04

Contract Duration: 672 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PANAMA COMMUNICATIONS NETWORK

Plain-Language Summary

Department of State obligated $8.5 million to FRAMACO-BOZDEMIR JOINT VENTURE LLC for work described as: PANAMA COMMUNICATIONS NETWORK Key points: 1. Contract value appears reasonable given the duration and scope of construction services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The definitive contract type with a firm fixed price offers cost certainty for the government. 4. Construction services for a communications network indicate critical infrastructure development. 5. The contract duration of 672 days suggests a significant project requiring substantial resources. 6. No small business set-aside was utilized, which may limit opportunities for smaller firms.

Value Assessment

Rating: good

The contract value of $8.53 million for a 672-day construction project is within a reasonable range for similar infrastructure development. Benchmarking against other large-scale construction projects for government facilities, particularly those involving specialized communication networks, suggests that the pricing is competitive. The firm fixed-price nature of the award provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a healthy market interest. This level of competition generally promotes price discovery and encourages bidders to offer competitive terms to secure the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of State and its personnel operating in Panama, who will gain enhanced communication capabilities. The contract will deliver essential construction services for the Panama Communications Network, improving infrastructure. The geographic impact is localized to the specific site in Panama where the network is being established. The project will likely involve a workforce of construction laborers, engineers, and project managers, contributing to local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of schedule delays due to logistical complexities in Panama.
Dependence on the performance and capacity of the joint venture to deliver complex construction.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market and potentially better pricing.
Award to a joint venture may indicate specialized capabilities for this project.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for such services is substantial, driven by government infrastructure needs and private sector development. The $8.53 million award is a significant but not exceptionally large contract within this sector, fitting within the typical range for specialized government facility construction.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). This means that larger firms or joint ventures were the primary focus of the competition. While this contract may not directly benefit small businesses through set-asides, the prime contractor could potentially engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight, though detailed project-specific oversight mechanisms are not provided.

Related Government Programs

Department of State Facilities Construction
Overseas Communications Infrastructure Projects
Latin America Construction Contracts
Panama Federal Contracts

Risk Flags

Potential for schedule delays due to international logistics.
Risk of unforeseen site conditions impacting construction costs.
Contractor's capacity to manage complex international construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.5 million to FRAMACO-BOZDEMIR JOINT VENTURE LLC. PANAMA COMMUNICATIONS NETWORK

Who is the contractor on this award?

The obligated recipient is FRAMACO-BOZDEMIR JOINT VENTURE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-03-04.

What is the track record of Framaco-Bozdemir Joint Venture LLC in performing similar large-scale construction projects for the federal government?

A detailed review of Framaco-Bozdemir Joint Venture LLC's past performance is crucial for assessing their capability to successfully execute the Panama Communications Network project. Information regarding their experience with similar firm fixed-price contracts, construction of communication infrastructure, and projects in international locations would be highly relevant. Analyzing their history of meeting deadlines, staying within budget, and the quality of their work on previous government contracts can provide strong indicators of their reliability and competence for this $8.53 million award. Without specific historical data on this joint venture's prior federal contracts, it is difficult to definitively assess their track record.

How does the awarded price of $8.53 million compare to similar construction projects for communication networks in similar geographic regions?

Benchmarking the $8.53 million contract value against comparable projects is essential for evaluating value for money. This comparison should consider the scope of work, the complexity of the communication network being installed, the duration of the contract (672 days), and the specific geographic location in Panama, which may involve unique logistical challenges and labor costs. If data on similar State Department or other agency projects for communication infrastructure in Latin America is available, it can reveal whether this award represents a competitive price or if it is significantly higher or lower than market rates. A higher price might indicate unique project requirements or less competition, while a lower price could suggest aggressive bidding or potential risks to quality or schedule.

What are the primary risks associated with constructing a communications network in Panama, and how are they mitigated by this contract?

Constructing a communications network in Panama presents several potential risks, including logistical challenges related to importing materials and equipment, potential security concerns, navigating local regulations and permitting processes, and the availability of skilled labor. Environmental factors, such as weather patterns, could also impact construction timelines. This contract, being a firm fixed-price award, places the primary financial risk of cost overruns on the contractor, Framaco-Bozdemir Joint Venture LLC. However, the government's risk is mitigated through clear performance requirements and the potential for contract termination if the contractor fails to perform. The government's oversight team will be critical in monitoring progress and addressing any emerging issues proactively.

What is the expected impact of the Panama Communications Network on the Department of State's operations in the region?

The Panama Communications Network is expected to significantly enhance the Department of State's operational capabilities in the region. Improved communication infrastructure is vital for secure and efficient diplomatic operations, enabling better coordination between the embassy, regional posts, and Washington D.C. This could translate to faster information dissemination, more reliable data transfer for sensitive communications, and potentially improved security protocols. The network's reliability and capacity will directly support the State Department's mission objectives, including consular services, intelligence gathering, and diplomatic engagement within Panama and potentially supporting broader regional communication needs.

How has the Department of State's spending on construction and communications infrastructure in Latin America trended over the past five years?

Analyzing the Department of State's historical spending on construction and communications infrastructure in Latin America over the past five years would provide valuable context for this $8.53 million award. Understanding trends in contract values, types of projects awarded, and the number of competitions can reveal patterns in investment priorities and market dynamics. For instance, an increasing trend might indicate a strategic focus on upgrading infrastructure in the region, while a fluctuating trend could suggest project-specific needs or budget constraints. This historical data would help determine if this contract is an outlier or part of a sustained investment strategy, and whether spending has been consistently competitive.

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

Solicitation Procedures: TWO STEP

Solicitation ID: 19AQMM23R0212

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 WESTCHESTER AVE, RYE BROOK, NY, 10573

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $8,530,467

Exercised Options: $8,530,467

Current Obligation: $8,530,467

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline