State Department awards $2M contract for security upgrades at Vancouver Consulate

Contract Overview

Contract Amount: $1,986,017 ($2.0M)

Contractor: Olgoonik Federal, LLC

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2027-03-30

Contract Duration: 911 days

Daily Burn Rate: $2.2K/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: DESIGN/BUILD (D/B) SERVICES TO PROCURE, SHIP, REPLACE AND INSTALL FORCED ENTRY & BALLISTIC RESISTANT (FE/BR) PRODUCTS AT U.S. CONSULATE VANCOUVER, BRITISH COLUMBIA.

Plain-Language Summary

Department of State obligated $2.0 million to OLGOONIK FEDERAL, LLC for work described as: DESIGN/BUILD (D/B) SERVICES TO PROCURE, SHIP, REPLACE AND INSTALL FORCED ENTRY & BALLISTIC RESISTANT (FE/BR) PRODUCTS AT U.S. CONSULATE VANCOUVER, BRITISH COLUMBIA. Key points: 1. Contract focuses on critical security enhancements for U.S. diplomatic facilities. 2. Design/Build services indicate a comprehensive approach to the project. 3. The contract duration of 911 days suggests a complex and phased implementation. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award to Olgoonik Federal, LLC, requires specialized construction and security expertise.

Value Assessment

Rating: good

The contract value of approximately $2 million for security upgrades at a U.S. Consulate appears reasonable given the scope of work, which includes procurement, shipping, replacement, and installation of specialized ballistic-resistant products. Benchmarking against similar projects for diplomatic facilities is challenging due to the unique security requirements and geographic locations. However, the firm fixed-price structure suggests an effort to ensure cost predictability for the government. The value seems aligned with the complexity of integrating advanced security features into an existing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have had some restrictions, the final award was made after a competitive process that allowed all eligible sources to bid. The number of bidders (3) suggests a moderate level of competition for this specialized service. A limited number of bidders can sometimes lead to higher prices if the pool of qualified contractors is small, but the fixed-price nature of the contract helps mitigate this risk.

Taxpayer Impact: The competitive process, even if limited, helps ensure that taxpayer funds are used efficiently by encouraging multiple firms to offer their best pricing and technical solutions.

Public Impact

Enhances the physical security and safety of U.S. diplomatic personnel and assets at the Consulate in Vancouver, British Columbia. Provides critical infrastructure improvements that support the ongoing operations and mission of the State Department abroad. The project involves specialized construction and installation services, potentially creating work for skilled trades and security system installers. Ensures the continued protection of sensitive information and government property within the consulate premises.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the design/build process.
Dependence on a single contractor for critical security infrastructure upgrades.
Risk of delays if supply chain issues impact the availability of specialized ballistic-resistant materials.

Positive Signals

Firm fixed-price contract provides cost certainty.
Design/Build approach can streamline project delivery and coordination.
Contract awarded to a company with federal contracting experience.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing specialized security infrastructure. The market for such security enhancements in government facilities is niche, requiring contractors with expertise in both construction and advanced security systems. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of diplomatic security requirements, but projects involving secure facilities often represent significant investments. The State Department, like other federal agencies, regularly invests in maintaining and upgrading its overseas posts.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the contractor, Olgoonik Federal, LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor may still engage small businesses for specific services or materials as part of their overall project execution, though this is not a requirement of the contract itself.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of State's Bureau of Overseas Buildings Operations (OBO) or a designated contracting officer's representative. The firm fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of State Diplomatic Security
Federal Building Construction Contracts
Force Protection Upgrades
Consulate and Embassy Security

Risk Flags

Limited competition may impact price discovery.
Scope definition critical for Design/Build success.
Potential for supply chain delays on specialized materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.0 million to OLGOONIK FEDERAL, LLC. DESIGN/BUILD (D/B) SERVICES TO PROCURE, SHIP, REPLACE AND INSTALL FORCED ENTRY & BALLISTIC RESISTANT (FE/BR) PRODUCTS AT U.S. CONSULATE VANCOUVER, BRITISH COLUMBIA.

Who is the contractor on this award?

The obligated recipient is OLGOONIK FEDERAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-03-30.

What is the specific track record of Olgoonik Federal, LLC in performing similar design/build security projects for federal agencies, particularly the Department of State?

Olgoonik Federal, LLC has a history of performing federal contracts, including construction and facility support services. While specific details on their track record for design/build ballistic-resistant product installation at U.S. Consulates are not detailed in the provided data, their past performance on federal projects would have been assessed during the procurement process. Agencies typically review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) to gauge a contractor's reliability, quality of work, and adherence to schedule and budget on previous contracts. Further investigation into their contract history and performance reviews would provide a more comprehensive understanding of their capabilities for this specific project.

How does the awarded price of $1,986,016.54 compare to the estimated cost or budget for this type of security upgrade project?

The provided data does not include the government's estimate or budget for this project, making a direct comparison of the awarded price to the estimate impossible. However, the contract was awarded under full and open competition after exclusion of sources, with three bidders. This suggests that the awarded price reflects a competitive market rate for the services. The firm fixed-price (FFP) contract type indicates that the government sought to lock in a price, implying that the bids received were considered acceptable within the agency's budgetary framework. Without the government's estimate, it's difficult to definitively state if the price is high or low, but the competitive nature provides some assurance of value.

What are the primary risks associated with the 'design/build' delivery method for this specific project, and how are they being mitigated?

The primary risks associated with the design/build (D/B) method for this project include potential scope creep if the design is not clearly defined upfront, and the contractor potentially having less incentive for cost savings compared to separate design and construction contracts. However, D/B can also mitigate risks by consolidating responsibility, improving coordination between design and construction, and potentially accelerating the project schedule. For this project, the firm fixed-price (FFP) contract structure is a key mitigation strategy, as it shifts much of the cost risk to the contractor. Clear contract language, performance specifications, and rigorous oversight by the Department of State will be crucial to managing the D/B process effectively and ensuring the security requirements are met within budget and on time.

What is the expected impact of these security upgrades on the operational effectiveness and safety of the U.S. Consulate in Vancouver?

These security upgrades, specifically the installation of Forced Entry & Ballistic Resistant (FE/BR) products, are expected to significantly enhance the operational effectiveness and safety of the U.S. Consulate in Vancouver. By strengthening the physical security of the facility, the contract directly addresses threats to personnel, classified information, and government property. Improved security allows diplomatic staff to conduct their mission with greater confidence and resilience against potential attacks or intrusions. This investment is crucial for maintaining the integrity of U.S. diplomatic operations abroad and ensuring a secure environment for consular services and personnel.

How does the spending on this specific contract compare to historical spending patterns for similar security infrastructure projects at U.S. diplomatic missions?

Historical spending data for similar security infrastructure projects at U.S. diplomatic missions is not provided in the current dataset. However, the Department of State's Bureau of Overseas Buildings Operations (OBO) manages a significant portfolio of construction and renovation projects globally, with security enhancements being a consistent priority. The approximate $2 million value for this specific project in Vancouver appears to be within the typical range for specialized security upgrades at a mid-sized diplomatic post, considering the complexity of FE/BR installations. Annual spending on diplomatic security infrastructure can fluctuate based on global threats, aging facilities, and new construction initiatives, but consistent investment is a hallmark of maintaining secure diplomatic presence.

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: 3201 C ST STE 700, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $2,046,241

Exercised Options: $2,046,241

Current Obligation: $1,986,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0006

IDV Type: IDC

Timeline