Construction contract for Faculty of Medicine and Pharmacy awarded to Tseng Consulting Group, Inc. for over $21.7 million

Contract Overview

Contract Amount: $21,715,875 ($21.7M)

Contractor: Tseng Consulting Group, Inc.

Awarding Agency: Agency for International Development

Start Date: 2014-06-25

End Date: 2018-03-06

Contract Duration: 1,350 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF - THE PURPOSE OF THIS REQUISITION IS TO CREATE A DESIGN AND BUILD CONTRACT TO BUILD THE FACULTY OF MEDICINE AND PHARMACY

Plain-Language Summary

Agency for International Development obligated $21.7 million to TSENG CONSULTING GROUP, INC. for work described as: IGF::OT::IGF - THE PURPOSE OF THIS REQUISITION IS TO CREATE A DESIGN AND BUILD CONTRACT TO BUILD THE FACULTY OF MEDICINE AND PHARMACY Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm fixed price, which typically transfers risk to the contractor. 3. The duration of the contract was 1350 days, indicating a significant project timeline. 4. The project involves the design and build of a faculty building, a substantial construction undertaking. 5. The award amount of over $21.7 million places this contract in the mid-to-large size category for construction projects.

Value Assessment

Rating: fair

Benchmarking the value for this specific design and build contract is challenging without comparable projects from the Agency for International Development (USAID). However, the firm fixed-price structure suggests that the pricing was set upfront, with the contractor bearing the risk of cost overruns. The total award amount of over $21.7 million for a faculty building project needs to be assessed against the scope of work, including design complexity and construction scale, to determine if it represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this project. While two bidders are better than one, a higher number of bids could potentially lead to more aggressive pricing and better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the best value is obtained.

Public Impact

The primary beneficiaries of this contract are the Agency for International Development (USAID) and the future students and faculty of the Medicine and Pharmacy program. The services delivered include the design and construction of a new faculty building, which will provide essential infrastructure for medical and pharmaceutical education. The geographic impact is likely localized to the region where the faculty building is being constructed, supporting local development and educational capacity. Workforce implications include job creation for construction workers, engineers, architects, and potentially administrative staff for the new facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project complexities.
Risk of delays in construction impacting the operational readiness of the faculty.
Ensuring the quality of design and construction meets the specific needs of a medical and pharmacy faculty.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition generally leads to better pricing.
The project addresses a critical need for educational infrastructure in medicine and pharmacy.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of project sizes and complexities, from small renovations to large-scale institutional facilities. The market size for such construction is substantial, driven by government, education, and healthcare needs. This specific contract represents a significant investment in educational infrastructure, aligning with government priorities to enhance capacity in critical fields like medicine and pharmacy.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development (USAID) contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance milestones and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction
Educational Facility Construction
Agency for International Development Projects
Design-Build Contracts

Risk Flags

Potential for scope creep if initial design is not fully defined.
Contractor's financial stability and capacity to manage a large project.
Quality control during construction to meet specialized needs of a medical faculty.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $21.7 million to TSENG CONSULTING GROUP, INC.. IGF::OT::IGF - THE PURPOSE OF THIS REQUISITION IS TO CREATE A DESIGN AND BUILD CONTRACT TO BUILD THE FACULTY OF MEDICINE AND PHARMACY

Who is the contractor on this award?

The obligated recipient is TSENG CONSULTING GROUP, INC..

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 $21.7 million.

What is the period of performance?

Start: 2014-06-25. End: 2018-03-06.

What was the specific scope of work for the design and build of the Faculty of Medicine and Pharmacy?

The provided data indicates that the purpose of this requisition was to create a design and build contract for the Faculty of Medicine and Pharmacy. This typically encompasses all phases from initial architectural and engineering design to the physical construction of the building. The scope would likely include site preparation, foundation work, structural construction, interior finishing, installation of necessary utilities (electrical, plumbing, HVAC), and potentially specialized laboratory or teaching spaces required for a medical and pharmacy faculty. The firm fixed-price nature of the contract suggests a detailed scope was defined upfront to manage costs.

How does the $21.7 million award compare to similar construction projects for educational facilities by USAID?

Direct comparison of the $21.7 million award for this specific faculty building to similar USAID projects is difficult without access to a comprehensive database of USAID's construction contracts and their specific scopes. However, for institutional buildings of this nature (faculty, research, or specialized training facilities), an award in the range of $20-30 million is not uncommon, especially if it includes significant design complexity, specialized infrastructure requirements (like labs), and substantial square footage. Factors such as geographic location, local construction costs, and the specific amenities required would heavily influence the final price.

What are the key risks associated with a firm fixed-price design-build contract of this magnitude?

The primary risk with a firm fixed-price design-build contract is that the contractor may face unforeseen cost increases during design or construction that erode their profit margin or lead to quality compromises if not managed strictly. For the government, the risk lies in ensuring the initial scope definition was comprehensive enough to avoid change orders that could inflate the price, and that the contractor possesses the technical expertise to deliver a high-quality facility. Delays are also a significant risk, especially in complex construction projects, which can impact the operational readiness of the faculty and incur indirect costs.

What was the track record of Tseng Consulting Group, Inc. with USAID or similar government agencies prior to this award?

Information regarding Tseng Consulting Group, Inc.'s specific track record with USAID or other government agencies prior to this award is not detailed in the provided data. A thorough assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on similar projects. Government agencies typically maintain databases of contractor performance, which would be consulted during the source selection process to evaluate a bidder's reliability, technical capability, and past performance.

How does the competition level (2 bidders) impact the value for money achieved in this contract?

A competition level with only two bidders suggests a moderate level of market interest for this specific project. While competition is present, it is less robust than if there were, for example, five or more bidders. With fewer bidders, there is a reduced likelihood of achieving the most aggressive pricing. The government may have secured a reasonable price due to the fixed-price nature of the contract, but it's possible that a more competitive environment could have yielded a lower bid. The value for money is thus fair, but potentially not optimal.

What are the potential long-term implications of this faculty building on USAID's mission or the region's development?

The construction of a Faculty of Medicine and Pharmacy is a significant investment in human capital development. Long-term implications include enhancing the capacity to train healthcare professionals, potentially improving healthcare access and quality in the region. It can also foster research and innovation in medical and pharmaceutical sciences. For USAID, this project aligns with potential goals of strengthening health systems, supporting education, and promoting sustainable development within the host country, contributing to improved public health outcomes and economic growth.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21 NE 166TH ST, MIAMI, FL, 33162

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,715,875

Exercised Options: $21,715,875

Current Obligation: $21,715,875

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline