USAID contract for building construction awarded to UNITED INFRASTRUCTURE PROJECTS FZCO for over $26.5 million

Contract Overview

Contract Amount: $26,521,018 ($26.5M)

Contractor: United Infrastructure Projects Fzco

Awarding Agency: Agency for International Development

Start Date: 2016-02-15

End Date: 2019-09-17

Contract Duration: 1,310 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF

Plain-Language Summary

Agency for International Development obligated $26.5 million to UNITED INFRASTRUCTURE PROJECTS FZCO for work described as: IGF::OT::IGF Key points: 1. Contract value appears reasonable given the scope of commercial and institutional building construction. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of over three years indicates a significant project timeline. 4. Fixed-price contract type shifts performance risk to the contractor. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 6. The contract falls within the broader category of construction services.

Value Assessment

Rating: fair

The contract value of approximately $26.5 million for building construction over a 3-year period is difficult to benchmark without specific project details. However, for large-scale institutional or commercial construction, this amount is within a typical range. The firm fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed as specified. Further analysis would require comparing the scope of work and deliverables to similar USAID construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, which can lead to better pricing and quality for the government. The fact that it was fully competed suggests that the agency sought the best value through a broad solicitation process. The number of bidders is not specified, but the process itself implies a degree of market engagement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the most advantageous pricing and terms by allowing a wide range of potential contractors to bid.

Public Impact

The primary beneficiaries are likely the communities or entities that will utilize the constructed buildings, potentially including government facilities or development project infrastructure. The services delivered involve the construction of commercial and institutional buildings, which could range from schools and clinics to administrative offices. The geographic impact is tied to the location of the construction projects, which could be domestic or international depending on USAID's mission. Workforce implications include the creation of construction jobs for skilled and unskilled labor during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on project scope makes it hard to assess true value for money.
The contractor's track record with similar large-scale international construction projects is not detailed.
Potential for cost overruns, despite fixed-price, if scope changes or unforeseen issues arise.
Limited transparency on the number of bidders and the evaluation criteria used in the competition.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type transfers cost risk to the contractor.
Contract duration of over three years allows for substantial project completion.
The agency involved (USAID) typically manages complex international projects.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. This is a significant segment of the federal contracting market, encompassing a wide range of projects from small renovations to large-scale infrastructure development. The market is typically characterized by a mix of large prime contractors and numerous subcontractors. Benchmarking this contract's value would require comparison against similar construction projects, considering factors like location, building type, and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). This means that large businesses were eligible to compete and potentially win the award. While not a small business set-aside, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, UNITED INFRASTRUCTURE PROJECTS FZCO. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and any specific subcontracting goals or requirements outlined in the contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). Mechanisms likely include regular project monitoring, site inspections, and performance reviews to ensure compliance with contract terms and quality standards. Accountability measures would be tied to the firm fixed-price contract, with penalties or remedies for non-performance. Transparency is generally facilitated through contract award databases, though specific project details and oversight reports may not always be publicly accessible.

Related Government Programs

USAID Construction Projects
International Development Building Contracts
Federal Commercial Building Construction
Agency for International Development Contracts

Risk Flags

Contract duration exceeds 3 years
Contract value is substantial ($26.5M+)
International project context (USAID)

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $26.5 million to UNITED INFRASTRUCTURE PROJECTS FZCO. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is UNITED INFRASTRUCTURE PROJECTS FZCO.

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 $26.5 million.

What is the period of performance?

Start: 2016-02-15. End: 2019-09-17.

What is the specific nature and location of the commercial and institutional buildings being constructed under this contract?

The provided data does not specify the exact nature or location of the buildings. However, given that the contract was awarded by the Agency for International Development (USAID), it is highly probable that these buildings are intended for use in international development projects. This could include facilities such as schools, health clinics, administrative offices for USAID missions, or infrastructure supporting other development initiatives in foreign countries. Without further details, the precise scope remains undefined, making a precise assessment of value and impact challenging.

How does the contract value of $26.5 million compare to similar USAID construction projects of comparable scope and complexity?

Benchmarking this contract's value requires detailed comparison with similar USAID construction projects. Factors such as the type of building (e.g., hospital vs. office), geographic location (which impacts labor and material costs), and specific technical requirements (e.g., seismic resistance, energy efficiency) are crucial. A preliminary assessment suggests that $26.5 million is a substantial sum, indicative of a significant construction undertaking. However, without access to a database of comparable USAID projects with detailed cost breakdowns, a definitive value-for-money assessment is difficult. The firm fixed-price nature, however, implies that the contractor is responsible for managing costs within this budget.

What are the key performance indicators (KPIs) and quality assurance measures in place for this construction contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for construction contracts of this magnitude include adherence to project schedules, quality of workmanship, compliance with building codes and standards, and safety performance. USAID likely employs a team of project managers and technical experts to conduct regular site inspections, review progress reports, and ensure that the construction meets the specified requirements. Quality assurance would involve material testing, inspections at various construction stages, and final acceptance testing. The firm fixed-price contract incentivizes the contractor to meet these standards to avoid deductions or penalties.

What is the track record of UNITED INFRASTRUCTURE PROJECTS FZCO in executing large-scale international construction projects for government agencies?

Information regarding the specific track record of UNITED INFRASTRUCTURE PROJECTS FZCO is not provided in the data. To assess their capability, one would need to investigate their past performance on similar contracts, particularly those with USAID or other federal agencies. This would involve reviewing past performance evaluations, project completion records, and any history of disputes or contract terminations. A contractor's experience with international projects is particularly relevant due to the complexities of operating in different regulatory environments, logistical challenges, and cultural nuances. Without this information, the risk associated with contractor performance cannot be fully evaluated.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include construction delays due to unforeseen site conditions, material shortages, labor issues, or political instability in the project's location. Cost overruns are a risk, although mitigated by the firm fixed-price structure, which places this risk primarily on the contractor. There's also a risk related to the contractor's performance and adherence to quality standards. Mitigation strategies likely involve robust project management by USAID, including detailed planning, regular monitoring, contingency planning for potential delays, and strict adherence to quality control processes. The contractor's own risk management plan would also be a key factor.

How has spending on commercial and institutional building construction by USAID trended over the past five years?

The provided data is for a single contract and does not offer historical spending trends for USAID in this category. To analyze trends, one would need access to historical contract databases covering multiple years. Such an analysis would involve aggregating spending on contracts classified under NAICS code 236220 (Commercial and Institutional Building Construction) awarded by USAID. This would reveal whether spending in this area has increased, decreased, or remained stable, potentially indicating shifts in agency priorities or funding levels for construction-related development activities.

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: OFFICE 509, LOB 19,, DUBAI

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $26,521,018

Exercised Options: $26,521,018

Current Obligation: $26,521,018

Actual Outlays: $253,572

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AID623I1400002

IDV Type: IDC

Timeline