State Department Awards $36.2M Design-Build Contract for Warsaw Embassy Security Upgrade

Contract Overview

Contract Amount: $36,201,421 ($36.2M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $49.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION (DESIGN BUILD SERVICES) FOR THE COMPOUND SECURITY UPGRADE (CSU) FOR THE U.S. EMBASSY IN WARSAW, POLAND.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $36.2 million to DESBUILD INCORPORATED for work described as: CONSTRUCTION (DESIGN BUILD SERVICES) FOR THE COMPOUND SECURITY UPGRADE (CSU) FOR THE U.S. EMBASSY IN WARSAW, POLAND. Key points: 1. The contract is for a significant compound security upgrade at the U.S. Embassy in Warsaw, Poland. 2. DESBUILD INCORPORATED was awarded the definitive contract under full and open competition. 3. The project utilizes a Firm Fixed Price contract type, aiming for cost certainty. 4. This project falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The award amount of $36.2 million for a design-build security upgrade appears reasonable given the scope and location. Benchmarking against similar embassy construction or security projects would provide a more precise assessment, but the value seems aligned with complex international infrastructure projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for soliciting bids and ensuring fair pricing. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive bidding process is expected to yield a fair price, maximizing taxpayer value for this critical security infrastructure investment.

Public Impact

Enhances security for U.S. diplomatic personnel and facilities in Poland. Supports diplomatic operations and national security interests abroad. Contributes to the local economy in Poland through construction activities. Represents a significant investment in maintaining secure U.S. government infrastructure overseas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Delays in construction could impact embassy operations.
Ensuring compliance with local building codes and regulations.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition likely secured competitive pricing.
Experienced contractor likely selected through competitive process.

Sector Analysis

This project falls under the Commercial and Institutional Building Construction sector, specifically focusing on design-build services for security infrastructure. Spending in this sector can vary widely based on project complexity, location, and security requirements, but embassy upgrades are typically high-value undertakings.

Small Business Impact

The contract was awarded through full and open competition, and there is no indication that small businesses were specifically targeted or subcontracted. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of State, through its Bureau of Overseas Buildings Operations, is responsible for managing such construction projects. Oversight would involve ensuring adherence to design specifications, timelines, and budget, as well as quality control throughout the construction process.

Related Government Programs

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

Risk Flags

Potential for scope creep
Unforeseen site conditions
Contractor performance risk
Geopolitical instability in the region
Delays due to permitting or local regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $36.2 million to DESBUILD INCORPORATED. CONSTRUCTION (DESIGN BUILD SERVICES) FOR THE COMPOUND SECURITY UPGRADE (CSU) FOR THE U.S. EMBASSY IN WARSAW, POLAND.

Who is the contractor on this award?

The obligated recipient is DESBUILD INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What are the specific security threats or requirements driving this upgrade?

The specific security threats are likely classified, but embassy security upgrades typically address evolving geopolitical risks, terrorism concerns, and the need to maintain operational resilience. The Compound Security Upgrade (CSU) designation suggests a comprehensive approach to physical and potentially electronic security measures to protect personnel, facilities, and classified information.

What is the historical performance of DESBUILD INCORPORATED on similar government contracts?

Assessing DESBUILD INCORPORATED's past performance on similar government contracts, particularly those involving secure facilities or international projects, is crucial. Reviewing their track record for on-time delivery, budget adherence, and quality of work would provide insight into the likelihood of successful project completion and mitigate potential risks.

Are there any provisions for post-construction support or maintenance included in the contract?

The provided data does not specify post-construction support or maintenance. Typically, definitive contracts for construction may include warranty periods or separate service agreements. Clarifying the scope of any included support and its duration is important for understanding the long-term value and operational readiness of the upgraded facility.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 19AQMM24R0085

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4744 BALTIMORE AVE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,201,421

Exercised Options: $36,201,421

Current Obligation: $36,201,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline