ENCON CORP awarded $4.2M contract for Abuja CES REC Project, a 72-day firm-fixed-price definitive contract

Contract Overview

Contract Amount: $4,210,304 ($4.2M)

Contractor: Encon Corp

Awarding Agency: Department of State

Start Date: 2024-05-01

End Date: 2024-07-12

Contract Duration: 72 days

Daily Burn Rate: $58.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STAGE ONE FOR ABUJA CES REC PROJECT

Plain-Language Summary

Department of State obligated $4.2 million to ENCON CORP for work described as: STAGE ONE FOR ABUJA CES REC PROJECT Key points: 1. Contract awarded to ENCON CORP for construction services, indicating a need for specialized building expertise. 2. The contract duration of 72 days suggests a focused scope of work, likely for a specific phase or component of the larger project. 3. Firm-fixed-price contract type helps manage cost certainty for the government, transferring some risk to the contractor. 4. Competition under SAP (Simplified Acquisition Procedures) implies a streamlined process for procurements below certain thresholds, potentially impacting the level of competition. 5. The contract is for Commercial and Institutional Building Construction, placing it within a significant sector of federal spending. 6. The award to a single contractor, ENCON CORP, warrants examination of the procurement process to ensure fair opportunity.

Value Assessment

Rating: fair

The contract value of $4.2 million for a 72-day construction project requires careful benchmarking against similar commercial and institutional building projects. Without specific details on the scope of work, it is difficult to definitively assess value for money. However, the firm-fixed-price nature provides some cost control. Further analysis would involve comparing the per-day cost or cost per square foot (if available) to industry standards for similar construction efforts in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less formal solicitation process than full and open competition. While this can lead to faster awards, it may limit the number of potential bidders and the extent of price discovery. The specific number of bidders is not provided, but SAP competition often results in fewer than a dozen offers.

Taxpayer Impact: Competition under SAP may result in less aggressive pricing compared to full and open competition, potentially leading to higher costs for taxpayers if not managed effectively.

Public Impact

The primary beneficiaries are likely the Department of State and its personnel at the Abuja mission, who will utilize the completed CES REC facilities. The services delivered involve the construction of commercial and institutional buildings, contributing to the physical infrastructure at the U.S. Embassy in Abuja. The geographic impact is localized to Abuja, Nigeria, supporting U.S. diplomatic operations. Workforce implications include employment opportunities for construction labor and related trades managed by ENCON CORP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could potentially lead to suboptimal pricing.
Lack of detailed scope of work makes it difficult to fully assess value for money.
Firm-fixed-price contracts can sometimes incentivize contractors to cut corners if not closely monitored.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single contractor suggests a focused selection process.
Contract completion within a defined 72-day period indicates a clear timeline.

Sector Analysis

The Commercial and Institutional Building Construction sector is a substantial part of the federal procurement landscape, encompassing a wide range of projects from office renovations to new facility construction. This contract fits within the broader category of construction services supporting government operations abroad. Benchmarking would typically involve comparing costs against similar construction projects undertaken by the government or private sector in similar geographic locations, considering factors like labor rates, material costs, and project complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, ENCON CORP, will manage the execution, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates ENCON CORP to deliver the specified construction within the agreed-upon price. Transparency is facilitated by the public availability of contract data, though detailed project specifications and oversight reports may not be publicly accessible.

Related Government Programs

Department of State Construction Contracts
Overseas Building Operations
Embassy and Consulate Construction
Commercial and Institutional Building Construction Services

Risk Flags

Limited Competition
Potential for Cost Overruns (Contractor Risk)
Scope Definition Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.2 million to ENCON CORP. STAGE ONE FOR ABUJA CES REC PROJECT

Who is the contractor on this award?

The obligated recipient is ENCON CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2024-05-01. End: 2024-07-12.

What is the specific scope of work for the 'STAGE ONE FOR ABUJA CES REC PROJECT' and how does it justify the $4.2 million cost?

The provided data does not detail the specific scope of work for 'STAGE ONE FOR ABUJA CES REC PROJECT.' The $4.2 million award covers a 72-day period for Commercial and Institutional Building Construction. To justify the cost, a detailed breakdown of the construction activities, materials, labor, and any specialized equipment required would be necessary. Without this, a precise cost-benefit analysis is not possible. However, given the firm-fixed-price nature, the contractor, ENCON CORP, has committed to delivering the defined scope within this budget. Further inquiry with the Department of State would be needed to obtain project specifications and understand the cost drivers.

How does ENCON CORP's track record in similar international construction projects compare to the requirements of this contract?

Information regarding ENCON CORP's specific track record, particularly in international construction projects similar to the Abuja CES REC Project, is not provided in the given data. A comprehensive assessment would require reviewing their past performance on federal contracts, including client satisfaction, adherence to schedule and budget, and quality of work. The Department of State likely conducted a pre-award assessment of ENCON CORP's capabilities and past performance, especially given the nature of overseas construction. Without access to performance evaluations or a detailed contractor profile, it's difficult to definitively compare their suitability beyond the fact that they were selected for this award.

What are the potential risks associated with a 72-day firm-fixed-price construction contract in an overseas location like Abuja?

Risks associated with a short-duration, firm-fixed-price construction contract in an overseas location include potential delays due to unforeseen site conditions, logistical challenges with material procurement and delivery, labor availability and cost fluctuations, and political or security issues. For a firm-fixed-price contract, the primary risk to the government is that the contractor may seek to reduce quality or scope to maintain profitability if costs escalate beyond projections. Conversely, the contractor bears the risk of cost overruns. Effective project management, clear communication channels, and robust oversight by the Department of State are crucial to mitigate these risks.

How does the $4.2 million contract value for this project compare to other similar construction projects managed by the Department of State?

Benchmarking the $4.2 million contract value for the Abuja CES REC Project requires comparison with similar construction projects undertaken by the Department of State, particularly those involving new facilities or significant renovations in overseas locations. Factors such as the size of the facility (square footage), complexity of the construction, local labor and material costs, and security requirements significantly influence project costs. Without specific details on these comparable projects, a direct comparison is challenging. However, $4.2 million for a 72-day construction phase suggests a project of moderate scale or intensity, potentially focusing on a specific building or a critical upgrade.

What are the historical spending patterns for Commercial and Institutional Building Construction by the Department of State, and how does this contract fit in?

Historical spending patterns for Commercial and Institutional Building Construction by the Department of State are generally substantial, reflecting the ongoing need to maintain, upgrade, and construct facilities at U.S. embassies and consulates worldwide. These expenditures can fluctuate based on major construction initiatives, security upgrades, and diplomatic needs. This $4.2 million contract for the Abuja CES REC Project represents a specific investment within this broader category. It likely fits into a larger program of facility modernization or expansion, contributing to the Department's overall infrastructure development goals. Analyzing past annual spending on construction services would provide context for the relative size and significance of this particular award.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8201 CORPORATE DR STE 720, HYATTSVILLE, MD, 20785

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

Financial Breakdown

Contract Ceiling: $4,210,304

Exercised Options: $4,210,304

Current Obligation: $4,210,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline