Malawi Secondary School Construction Contract Awarded for $34.5M Under Full and Open Competition
Contract Overview
Contract Amount: $34,468,712 ($34.5M)
Contractor: Bozdemir Insaat VE Muhendislik Limited Sirketi
Awarding Agency: Agency for International Development
Start Date: 2022-11-22
End Date: 2025-02-26
Contract Duration: 827 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 32
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF COMMUNITY DAY SECONDARY SCHOOLS COMMUNITY DAY SECONDARY SCHOOLS (CDSSS) IN 12 DISTRICTS ACROSS MALAWI IDENTIFIED IN LOT A1 AND A2.
Plain-Language Summary
Agency for International Development obligated $34.5 million to BOZDEMIR INSAAT VE MUHENDISLIK LIMITED SIRKETI for work described as: CONSTRUCTION OF COMMUNITY DAY SECONDARY SCHOOLS COMMUNITY DAY SECONDARY SCHOOLS (CDSSS) IN 12 DISTRICTS ACROSS MALAWI IDENTIFIED IN LOT A1 AND A2. Key points: 1. Contract awarded to BOZDEMIR INSAAT VE MUHENDISLIK LIMITED SIRKETI for $34.5M. 2. Project involves construction of Community Day Secondary Schools in 12 districts. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract is a firm fixed price type, shifting cost risk to the contractor.
Value Assessment
Rating: fair
The contract value of $34.5M for 12 schools across Malawi appears reasonable given the scope. 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 indicates that multiple bidders were likely considered, promoting competitive pricing. The award to a single entity suggests they offered the best value.
Taxpayer Impact: Taxpayer funds are being used for international development, specifically education infrastructure in Malawi. The competitive process aims to ensure efficient use of these funds.
Public Impact
Enhances educational infrastructure in Malawi, potentially improving access to secondary education. Supports international development goals of the Agency for International Development. Creates construction jobs and economic activity within Malawi during the project duration. The firm fixed price contract protects taxpayers from potential cost overruns by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific cost breakdowns for individual schools or districts.
- Potential for unforeseen logistical challenges in remote Malawian districts.
- Limited information on contractor's past performance in similar environments.
Positive Signals
- Clear contract type (Firm Fixed Price) for cost certainty.
- Full and open competition utilized for price discovery.
- Project aligns with stated development agency objectives.
Sector Analysis
This contract falls under commercial and institutional building construction, a sector often subject to significant price fluctuations based on material costs and labor availability. The benchmark for similar international development projects varies widely.
Small Business Impact
The data indicates the prime contractor is BOZDEMIR INSAAT VE MUHENDISLIK LIMITED SIRKETI, which does not appear to be a small business. There is no information provided regarding subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight will likely be managed by the Agency for International Development. Accountability will be tied to project milestones and final delivery of the constructed schools, as per the contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependency on timely delivery of materials and skilled labor.
- Geopolitical or economic instability in the region could impact project timeline.
- Contractor's capacity to manage multiple sites simultaneously.
- Ensuring quality of construction meets long-term durability standards.
Tags
commercial-and-institutional-building-co, agency-for-international-development, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $34.5 million to BOZDEMIR INSAAT VE MUHENDISLIK LIMITED SIRKETI. CONSTRUCTION OF COMMUNITY DAY SECONDARY SCHOOLS COMMUNITY DAY SECONDARY SCHOOLS (CDSSS) IN 12 DISTRICTS ACROSS MALAWI IDENTIFIED IN LOT A1 AND A2.
Who is the contractor on this award?
The obligated recipient is BOZDEMIR INSAAT VE MUHENDISLIK LIMITED SIRKETI.
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $34.5 million.
What is the period of performance?
Start: 2022-11-22. End: 2025-02-26.
What is the estimated cost per school, and how does this compare to similar educational infrastructure projects in developing nations?
With a total contract value of $34.5M for 12 schools, the average cost per school is approximately $2.875M. This figure needs to be benchmarked against comparable projects in similar socio-economic contexts, considering factors like local labor costs, material availability, and specific design requirements to determine its value.
What are the specific risks associated with constructing schools in 12 different districts across Malawi, and what mitigation strategies are in place?
Risks include logistical challenges in delivering materials and personnel to potentially remote locations, varying local labor conditions, and potential security concerns. Mitigation strategies should involve detailed logistical planning, engagement with local communities, and robust security protocols, which are presumably part of the contractor's execution plan.
How will the effectiveness of the completed schools in improving educational outcomes be measured and ensured?
Effectiveness will be measured by the successful completion of construction according to specifications and the subsequent operationalization of the schools. The Agency for International Development may track student enrollment, attendance, and potentially educational performance metrics post-construction to gauge the long-term impact.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 72061222R00005
Offers Received: 32
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: PARK ORAN OFIS, 180Y-16, ANKARA
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,468,712
Exercised Options: $34,468,712
Current Obligation: $34,468,712
Actual Outlays: $34,468,215
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-22
Current End Date: 2025-02-26
Potential End Date: 2025-02-26 00:00:00
Last Modified: 2025-06-12
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