State Dept Awards $4.4M Design/Build Contract for Budapest Chiller Replacement to High Sierra Contracting
Contract Overview
Contract Amount: $4,413,882 ($4.4M)
Contractor: High Sierra Contracting LLC
Awarding Agency: Department of State
Start Date: 2024-10-28
End Date: 2026-02-28
Contract Duration: 488 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD SERVICES FOR THE NORTH CHANCERY CHILLER REPLACEMENT IN BUDAPEST, HUNGARY
Plain-Language Summary
Department of State obligated $4.4 million to HIGH SIERRA CONTRACTING LLC for work described as: DESIGN/BUILD SERVICES FOR THE NORTH CHANCERY CHILLER REPLACEMENT IN BUDAPEST, HUNGARY Key points: 1. Contract awarded for critical infrastructure upgrade in Budapest. 2. High Sierra Contracting LLC secured the deal. 3. Full and open competition was utilized. 4. Project duration is 488 days. 5. Firms Fixed Price contract type.
Value Assessment
Rating: fair
The contract value of $4.4M for a chiller replacement project in Budapest appears within a reasonable range for commercial and institutional building construction. Benchmarking against similar international projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: Taxpayer funds are being used for essential diplomatic infrastructure maintenance abroad. The competitive bidding process aims to ensure efficient use of these funds.
Public Impact
Ensures operational continuity for U.S. diplomatic facilities in Budapest. Supports modernization of critical building systems. Potential for job creation within the construction sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Geopolitical risks associated with operating in Hungary.
- Dependency on a single contractor for a critical system.
Positive Signals
- Clear project scope and fixed-price contract.
- Utilized full and open competition.
- Experienced contractor likely involved.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for maintaining government facilities. Spending benchmarks for similar international infrastructure projects are difficult to ascertain without more specific project details.
Small Business Impact
The data indicates that the awardee is High Sierra Contracting LLC, and the contract was awarded via full and open competition. There is no specific information provided regarding small business participation in this contract.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. The use of a fixed-price contract and the specified duration suggest a framework for accountability, but ongoing monitoring is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for unforeseen site conditions.
- Geopolitical risks.
- Contractor performance risk.
- Dependency on a single delivery order.
Tags
commercial-and-institutional-building-co, department-of-state, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $4.4 million to HIGH SIERRA CONTRACTING LLC. DESIGN/BUILD SERVICES FOR THE NORTH CHANCERY CHILLER REPLACEMENT IN BUDAPEST, HUNGARY
Who is the contractor on this award?
The obligated recipient is HIGH SIERRA CONTRACTING LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $4.4 million.
What is the period of performance?
Start: 2024-10-28. End: 2026-02-28.
What is the historical performance of High Sierra Contracting LLC on similar government contracts?
Assessing High Sierra Contracting LLC's past performance on comparable government projects is crucial for understanding their reliability and efficiency. Reviewing past contract awards, completion records, and any documented issues or commendations would provide valuable insight into their capabilities and potential risks associated with this project.
Are there any specific environmental or safety regulations in Hungary that could impact project costs or timelines?
Understanding local Hungarian environmental and safety regulations is vital to prevent unexpected delays and cost increases. Compliance with these standards, which may differ from U.S. regulations, requires thorough due diligence during the design and execution phases to ensure adherence and avoid penalties.
How will the performance of the new chiller system be measured against the project's objectives?
Measuring the new chiller system's performance against project objectives ensures the investment delivers the intended benefits. Key performance indicators (KPIs) related to energy efficiency, cooling capacity, system reliability, and maintenance costs should be established and tracked post-installation to validate the success of the replacement.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1846 LOCKHILL SELMA RD STE 101, SAN ANTONIO, TX, 78213
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $4,413,882
Exercised Options: $4,413,882
Current Obligation: $4,413,882
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 19AQMM24D0002
IDV Type: IDC
Timeline
Start Date: 2024-10-28
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-03-18
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