State Dept. Awards $4M Design/Build for Reykjavik Residence, Full & Open Competition

Contract Overview

Contract Amount: $4,032,337 ($4.0M)

Contractor: Framaco-Bozdemir Joint Venture LLC

Awarding Agency: Department of State

Start Date: 2023-03-24

End Date: 2026-04-01

Contract Duration: 1,104 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD REYKJAVIK CHIEF OF MISSION RESIDENCE (CMR), FIT OUT PROJECT, REYKJAVIK, ICELAND.

Plain-Language Summary

Department of State obligated $4.0 million to FRAMACO-BOZDEMIR JOINT VENTURE LLC for work described as: DESIGN/BUILD REYKJAVIK CHIEF OF MISSION RESIDENCE (CMR), FIT OUT PROJECT, REYKJAVIK, ICELAND. Key points: 1. Contract awarded to FRAMACO-BOZDEMIR JOINT VENTURE LLC for a Design/Build project. 2. The project involves fitting out the Chief of Mission Residence in Reykjavik, Iceland. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty for the government. 5. The duration is 1104 days, indicating a significant, long-term construction project.

Value Assessment

Rating: good

The contract value of $4.03 million for a design/build residence fit-out in a high-cost location like Reykjavik appears reasonable. Benchmarking against similar international construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows all eligible contractors to bid, fostering a competitive environment that should drive down costs and improve value.

Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for this important diplomatic facility.

Public Impact

Enhances diplomatic presence and living conditions for the Chief of Mission in Iceland. Supports infrastructure development in a key U.S. diplomatic location. Potential for job creation and economic activity in Iceland through the contractor and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a foreign, high-cost location.
Complexity of design/build projects can lead to unforeseen issues.
Long project duration increases exposure to market fluctuations.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests competitive pricing.
Experienced joint venture likely selected.

Sector Analysis

This project falls within the construction and facilities management sector, specifically for government-owned residences abroad. Spending benchmarks for similar international construction projects vary widely based on location, scope, and security requirements.

Small Business Impact

The contract was awarded to a joint venture, FRAMACO-BOZDEMIR JOINT VENTURE LLC. Analysis of the small business participation within this joint venture or its subcontractors is not provided in the data, but the primary awardee is not a small business.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reviews, are expected to be in place to ensure quality and adherence to schedule.

Related Government Programs

Residential Remodelers
Department of State Contracting
Department of State Programs

Risk Flags

Foreign construction risks (weather, logistics).
Potential for scope creep in design/build projects.
Long project duration (over 3 years).
Reliance on a single joint venture awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.0 million to FRAMACO-BOZDEMIR JOINT VENTURE LLC. DESIGN/BUILD REYKJAVIK CHIEF OF MISSION RESIDENCE (CMR), FIT OUT PROJECT, REYKJAVIK, ICELAND.

Who is the contractor on this award?

The obligated recipient is FRAMACO-BOZDEMIR JOINT VENTURE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2023-03-24. End: 2026-04-01.

What is the estimated cost per square foot for the fit-out, and how does it compare to similar projects in Reykjavik or other high-cost diplomatic locations?

Without the total square footage, a precise cost per square foot cannot be calculated. However, given the $4.03 million price tag for a design/build fit-out of a Chief of Mission Residence, it is crucial to benchmark this against comparable international construction projects. Factors like local labor costs, material availability, and specific design requirements in Reykjavik will influence this metric.

What are the specific risks associated with performing construction work in Reykjavik, Iceland, and what mitigation strategies are in place?

Risks in Reykjavik may include harsh weather conditions, potential supply chain disruptions due to its remote location, and adherence to local building codes and labor laws. The mitigation strategies likely involve detailed logistical planning, robust weatherproofing measures, and close coordination with local authorities and suppliers by the contractor.

How will the effectiveness of the fit-out be measured to ensure it meets the functional and security requirements of a Chief of Mission Residence?

Effectiveness will be measured through a phased approach, starting with design reviews and continuing through construction inspections and final acceptance testing. Key performance indicators will likely include adherence to the approved design, functionality of all installed systems (HVAC, electrical, security), and compliance with U.S. Department of State standards for diplomatic facilities.

Industry Classification

NAICS: Construction › Residential Building Construction › Residential Remodelers

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19GE5022R0055

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 WESTCHESTER AVE, RYE BROOK, NY, 10573

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,032,337

Exercised Options: $4,032,337

Current Obligation: $4,032,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline