State Department awards $158M construction contract to Brown & Root Services via full and open competition
Contract Overview
Contract Amount: $158,001,655 ($158.0M)
Contractor: Brown & Root Services
Awarding Agency: Department of State
Start Date: 2002-09-30
End Date: 2008-05-12
Contract Duration: 2,051 days
Daily Burn Rate: $77.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES
Place of Performance
Location: TEXAS
State: Texas Government Spending
Plain-Language Summary
Department of State obligated $158.0 million to BROWN & ROOT SERVICES for work described as: CONSTRUCTION SERVICES Key points: 1. Contract awarded for Commercial and Institutional Building Construction. 2. Brown & Root Services secured the contract. 3. The contract was awarded by the Department of State. 4. Duration of the contract was 2051 days. 5. This was a Firm Fixed Price contract.
Value Assessment
Rating: fair
The contract value of $158M over approximately 5.7 years suggests a significant investment. Benchmarking against similar large-scale construction projects is necessary to assess if the pricing was competitive and represented good value for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing and ensures the government receives the best value. The number of bids received (5) indicates a degree of market interest.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers compared to sole-source or limited competition contracts.
Public Impact
Taxpayers funded the construction services for the Department of State. The project involved significant infrastructure development. The duration of the contract impacts long-term resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for cost overruns in long-term construction.
- Limited data on contractor past performance.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Contract awarded to a known entity (Brown & Root).
Sector Analysis
This contract falls under the construction sector, specifically Commercial and Institutional Building Construction. Large federal construction projects often involve substantial budgets and require rigorous oversight to ensure quality and cost-effectiveness.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Brown & Root Services. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. The duration and value suggest a need for robust project management and regular performance reviews to ensure accountability and taxpayer value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Contract duration is exceptionally long (2051 days).
- No specific performance metrics provided.
- Small business participation not explicitly stated.
- Potential for scope creep in large construction projects.
- Contract awarded in 2002, data may be outdated.
Tags
commercial-and-institutional-building-co, department-of-state, tx, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $158.0 million to BROWN & ROOT SERVICES. CONSTRUCTION SERVICES
Who is the contractor on this award?
The obligated recipient is BROWN & ROOT SERVICES.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $158.0 million.
What is the period of performance?
Start: 2002-09-30. End: 2008-05-12.
What specific construction services were rendered under this contract, and how did they align with the Department of State's mission requirements?
The contract was for Commercial and Institutional Building Construction, identified by NAICS code 236220. While the specific services are not detailed, this typically includes the construction of commercial buildings, offices, and other institutional facilities. The alignment with the Department of State's mission would depend on the location and purpose of the constructed facilities, such as embassies, consulates, or domestic offices.
Given the $158M value and 5-year duration, what were the key risk mitigation strategies employed by the Department of State?
The Department of State likely employed several risk mitigation strategies, including the use of a Firm Fixed Price contract to cap costs, requiring performance bonds, and establishing clear milestones and quality control checkpoints. The selection process under full and open competition also aimed to mitigate risks by choosing a contractor with demonstrated capability. Regular progress reviews and site inspections would be crucial.
How effectively did the full and open competition process ensure optimal value for taxpayer dollars on this $158M construction contract?
Full and open competition is designed to maximize value by fostering a competitive environment where multiple bidders vie for the contract. The fact that five bids were received suggests a healthy level of competition. However, true effectiveness is measured by comparing the final cost against independent cost estimates and the quality of the delivered construction, which requires further detailed analysis beyond the provided data.
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
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 9900 WESTPARK, HOUSTON, TX, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $158,001,655
Exercised Options: $158,001,655
Current Obligation: $158,001,655
Timeline
Start Date: 2002-09-30
Current End Date: 2008-05-12
Potential End Date: 2008-05-12 00:00:00
Last Modified: 2008-05-12
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