State Department Awards $10.3M Contract for New U.S. Embassy Residence in Sarajevo
Contract Overview
Contract Amount: $10,336,839 ($10.3M)
Contractor: THE Durable Slate CO
Awarding Agency: Department of State
Start Date: 2024-04-01
End Date: 2027-01-10
Contract Duration: 1,014 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF A NEW CHIEF OF MISSION RESIDENCE FOR THE U.S. EMBASSY SARAJEVO.
Plain-Language Summary
Department of State obligated $10.3 million to THE DURABLE SLATE CO for work described as: CONSTRUCTION OF A NEW CHIEF OF MISSION RESIDENCE FOR THE U.S. EMBASSY SARAJEVO. Key points: 1. The contract is for the construction of a new Chief of Mission residence in Sarajevo. 2. The Durable Slate Co. was awarded the definitive contract. 3. The contract is firm-fixed-price, indicating a clear cost structure. 4. The project duration is over 1000 days, suggesting a complex undertaking.
Value Assessment
Rating: fair
The contract value of $10.3M for a new embassy residence appears within a reasonable range for such a specialized construction project, considering security and diplomatic requirements. 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 contract was awarded under full and open competition, which generally promotes competitive pricing and allows a wide range of qualified contractors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: Taxpayer funds are being used for this project, and the full and open competition aims to ensure the best value is obtained.
Public Impact
Enhances diplomatic presence and security for U.S. personnel in Sarajevo. Supports local economy through construction jobs and material sourcing. Represents a long-term investment in U.S. foreign relations infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex international construction.
- Delays in project completion impacting diplomatic operations.
- Quality control and adherence to U.S. standards in a foreign setting.
Positive Signals
- Firm-fixed-price contract limits cost escalation risk.
- Full and open competition suggests competitive pricing.
- Long-term project duration allows for thorough planning and execution.
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing construction. Embassy construction projects often involve higher costs due to stringent security, specialized materials, and international logistics compared to standard residential builds.
Small Business Impact
The data indicates the award went to 'The Durable Slate Co.' without specific information on its size. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the prime contractor is an SMB.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for federal construction projects, including site inspections and progress reporting, should be in place to ensure compliance and quality.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long project duration increases risk of delays.
- International construction projects can face logistical challenges.
- Potential for unforeseen site conditions impacting cost and schedule.
- Ensuring consistent quality control in a foreign environment.
Tags
new-single-family-housing-construction-e, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $10.3 million to THE DURABLE SLATE CO. CONSTRUCTION OF A NEW CHIEF OF MISSION RESIDENCE FOR THE U.S. EMBASSY SARAJEVO.
Who is the contractor on this award?
The obligated recipient is THE DURABLE SLATE CO.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2024-04-01. End: 2027-01-10.
What specific security and diplomatic requirements are driving the project's cost and complexity?
Specific security requirements likely include reinforced structures, advanced surveillance systems, secure communication facilities, and controlled access points. Diplomatic needs may involve representative spaces, secure living quarters for staff, and adherence to international building codes and U.S. embassy design standards. These factors collectively increase material, labor, and specialized design costs beyond typical residential construction.
How will the long project duration (over 1000 days) be managed to mitigate risks of delays and cost increases?
Managing the long duration requires robust project management, including detailed scheduling, regular progress reviews, proactive risk identification, and contingency planning. The firm-fixed-price contract provides some cost certainty, but the government will need to monitor performance closely. Clear communication channels with the contractor and local authorities are crucial to address unforeseen challenges promptly and keep the project on track.
What measures are in place to ensure the quality of construction meets U.S. standards in Sarajevo?
Quality assurance will likely involve a dedicated government quality assurance representative or team overseeing the construction process. This includes regular site inspections, material testing, review of contractor submittals, and verification that work complies with approved plans and specifications. Adherence to U.S. building codes and embassy design guidelines, even in a foreign location, will be a key performance metric.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
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: 19GE5023R0103
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3933 GROVES RD, COLUMBUS, OH, 43232
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,336,839
Exercised Options: $10,336,839
Current Obligation: $10,336,839
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-01
Current End Date: 2027-01-10
Potential End Date: 2027-01-10 00:00:00
Last Modified: 2026-01-21
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