State Department awards $6.88M design-build contract for overseas building replacement to Aimcon Design Build, LLC

Contract Overview

Contract Amount: $6,881,408 ($6.9M)

Contractor: Aimcon Design Build, LLC

Awarding Agency: Department of State

Start Date: 2024-01-29

End Date: 2025-01-28

Contract Duration: 365 days

Daily Burn Rate: $18.9K/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: THE UNITED STATES GOVERNMENT (USG), DEPARTMENT OF STATE (DOS), BUREAU OF OVERSEAS BUILDINGS OPERATIONS (OBO) REQUIRES DESIGN AND CONSTRUCTION SERVICES FOR THE REPLACEMENT THIS MCI PROJECT IS TO BE A DESIGN BUILD EFFORT FOR THE REPLACEMENT OF EXISTING

Plain-Language Summary

Department of State obligated $6.9 million to AIMCON DESIGN BUILD, LLC for work described as: THE UNITED STATES GOVERNMENT (USG), DEPARTMENT OF STATE (DOS), BUREAU OF OVERSEAS BUILDINGS OPERATIONS (OBO) REQUIRES DESIGN AND CONSTRUCTION SERVICES FOR THE REPLACEMENT THIS MCI PROJECT IS TO BE A DESIGN BUILD EFFORT FOR THE REPLACEMENT OF EXISTING Key points: 1. The contract value represents a significant investment in overseas infrastructure. 2. The firm-fixed-price contract type suggests a defined scope and budget. 3. The duration of 365 days indicates a focused, project-specific effort. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. This project falls under commercial and institutional building construction, a key sector for government facilities.

Value Assessment

Rating: good

The contract value of $6.88 million for a design-build effort is within a reasonable range for overseas construction projects of this nature. Benchmarking against similar projects would require more detailed scope information, but the fixed-price nature provides a degree of cost certainty. The number of bids received (2) is on the lower side for full and open competition, which could warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple sources were solicited. However, only two bids were received. While competition was sought, the limited number of bidders might suggest potential challenges in the market or the specific requirements of the project. This could impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: A limited number of bidders, even in a full and open competition, can sometimes lead to higher prices for taxpayers if the competition is not sufficiently robust to drive down costs.

Public Impact

The primary beneficiaries are the Department of State and its personnel who will utilize the new or replaced overseas facility. The project delivers essential design and construction services for critical government infrastructure abroad. The geographic impact is specific to the location of the overseas facility being replaced. The project will likely involve a construction workforce, contributing to employment in the relevant sector and location.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential market saturation or specific project barriers.
The 'after exclusion of sources' clause in the competition type warrants understanding why certain sources were excluded.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The project is for the replacement of an existing facility, suggesting a clear need and defined scope.
The award was made by the Department of State, an agency with significant experience in managing overseas construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses the construction of non-residential buildings such as government facilities, offices, and public institutions. The market for such construction, especially overseas for government agencies, is specialized, often requiring adherence to specific security, logistical, and regulatory standards. The contract value of $6.88 million is moderate for a design-build project of this nature.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. This means that the prime contractor, Aimcon Design Build, LLC, has the discretion to engage small businesses, but it is not mandated by the contract terms. The impact on the small business ecosystem will depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of State's Bureau of Overseas Buildings Operations (OBO). OBO is responsible for managing the design, construction, acquisition, maintenance, and repair of U.S. diplomatic facilities worldwide. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the project within the agreed-upon cost. Transparency is facilitated through contract award databases, though specific project details and oversight reports may be internal to the agency.

Related Government Programs

Overseas Building Operations
Diplomatic Facilities Construction
Design-Build Contracts
Federal Construction Projects

Risk Flags

Limited competition (2 bidders) for a full and open solicitation.
Potential for cost overruns if fixed price does not account for all contingencies.
Logistical and security challenges inherent in overseas construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.9 million to AIMCON DESIGN BUILD, LLC. THE UNITED STATES GOVERNMENT (USG), DEPARTMENT OF STATE (DOS), BUREAU OF OVERSEAS BUILDINGS OPERATIONS (OBO) REQUIRES DESIGN AND CONSTRUCTION SERVICES FOR THE REPLACEMENT THIS MCI PROJECT IS TO BE A DESIGN BUILD EFFORT FOR THE REPLACEMENT OF EXISTING

Who is the contractor on this award?

The obligated recipient is AIMCON DESIGN BUILD, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2024-01-29. End: 2025-01-28.

What is the track record of Aimcon Design Build, LLC with federal contracts, particularly with the Department of State?

A review of federal contract databases indicates that Aimcon Design Build, LLC has been awarded federal contracts. To provide a comprehensive assessment of their track record, further analysis would be needed to examine the number, value, and performance history of their past federal awards, specifically any prior work with the Department of State or similar agencies. Understanding their performance on previous design-build projects and their history of meeting deadlines and budget requirements would be crucial for evaluating their reliability on this current contract.

How does the awarded price of $6.88 million compare to similar overseas building replacement projects managed by the Department of State?

Benchmarking the $6.88 million award requires detailed comparison with projects of similar scope, size, location, and complexity. The Department of State's Bureau of Overseas Buildings Operations (OBO) manages numerous such projects, and their internal cost data would be the most relevant benchmark. Factors like regional construction costs, security requirements, and specific design specifications significantly influence project pricing. Without access to OBO's internal cost estimates or a database of comparable completed projects, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature suggests the government has negotiated a ceiling cost.

What are the primary risks associated with this design-build contract for overseas construction?

Key risks for this design-build contract include potential cost overruns if the fixed price does not adequately account for unforeseen site conditions or material price fluctuations, although the FFP structure aims to mitigate this. Schedule delays are another significant risk, especially given the overseas location, which can introduce logistical challenges, labor availability issues, and potential political or security disruptions. Performance risk also exists, concerning the quality of design and construction meeting the Department of State's standards. Furthermore, the limited competition (two bidders) could imply a risk of less-than-optimal pricing or contractor capacity issues.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for overseas construction?

The 'full and open competition after exclusion of sources' method aims to balance broad solicitation with the need to potentially exclude sources that may not meet specific, justifiable criteria (e.g., security clearances, specialized capabilities). While it allows for open competition, the 'exclusion' aspect requires careful justification to ensure it doesn't unduly limit the bidder pool. In this case, receiving only two bids suggests that either the exclusion criteria were restrictive, the market for such specialized overseas construction is inherently limited, or the project's requirements were highly specific. This limited competition could potentially reduce price pressure compared to a scenario with numerous bidders.

What are the historical spending patterns for the Department of State's Bureau of Overseas Buildings Operations (OBO) in commercial and institutional building construction?

The Department of State's Bureau of Overseas Buildings Operations (OBO) consistently allocates substantial funding towards the design, construction, and renovation of U.S. diplomatic facilities worldwide. Historical spending patterns reveal a significant and ongoing investment in modernizing and securing these overseas posts. OBO's budget typically includes line items for new construction, major renovations, and security enhancements. Analyzing OBO's annual reports and budget justifications would provide detailed insights into their spending trends, average project costs, and the proportion allocated to design-build versus other contracting methods within the commercial and institutional building construction category.

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

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

Financial Breakdown

Contract Ceiling: $6,881,408

Exercised Options: $6,881,408

Current Obligation: $6,881,408

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM22D0051

IDV Type: IDC

Timeline