State Department Awards $13.4M for Overseas Post Security Areas to KUK/KBRS Global
Contract Overview
Contract Amount: $13,386,539 ($13.4M)
Contractor: Kuk/Kbrs Global
Awarding Agency: Department of State
Start Date: 2002-12-23
End Date: 2012-02-07
Contract Duration: 3,333 days
Daily Burn Rate: $4.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OF OVERSEAS POST SECURITY AREAS
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of State obligated $13.4 million to KUK/KBRS GLOBAL for work described as: CONSTRUCTION OF OVERSEAS POST SECURITY AREAS Key points: 1. Significant contract value of $13.4 million awarded. 2. Sole-source award to KUK/KBRS Global raises competition concerns. 3. Long contract duration (2002-2012) may indicate evolving needs or extended project scope. 4. Construction sector spending is substantial, but specific benchmarks for overseas security areas are difficult to ascertain. 5. Lack of competition is a primary risk factor.
Value Assessment
Rating: questionable
The contract value of $13.4 million for construction services is substantial. Without comparable contracts for similar overseas security area construction, a precise pricing assessment is challenging. However, the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competitive bidding process. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source is not provided.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid more than necessary due to the absence of competitive pressure.
Public Impact
Taxpayer funds allocated for critical overseas security infrastructure. Potential for increased costs due to non-competitive award. Impact on diplomatic security and operational capabilities. Long-term implications for construction standards and contractor relationships.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation indicated
Positive Signals
- Addresses critical security needs
- Established contractor relationship (implied)
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Federal spending in this sector is significant, often driven by infrastructure upgrades and new facility development, particularly for agencies operating abroad. Benchmarks are highly variable based on location and specific requirements.
Small Business Impact
There is no indication of small business participation in this contract. Given the sole-source nature and the substantial value, opportunities for small businesses to subcontract or participate were likely limited or non-existent.
Oversight & Accountability
The sole-source award warrants further oversight to understand the justification and ensure fair pricing. Accountability for the lack of competition and potential cost overruns rests with the contracting agency.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Long contract duration may indicate scope creep or inefficiencies.
- No clear small business participation.
- Lack of transparency regarding justification for sole-source award.
Tags
commercial-and-institutional-building-co, department-of-state, ak, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $13.4 million to KUK/KBRS GLOBAL. CONSTRUCTION OF OVERSEAS POST SECURITY AREAS
Who is the contractor on this award?
The obligated recipient is KUK/KBRS GLOBAL.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2002-12-23. End: 2012-02-07.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), outlining why only one source can meet the requirement. Without this, it's impossible to assess if competitive strategies were explored or if there were legitimate reasons for excluding other potential contractors, impacting overall value for money.
How does the final cost compare to initial estimates or industry benchmarks for similar overseas construction projects, considering the lack of competition?
Given the sole-source nature, a direct comparison to competitive bids is impossible. However, an analysis against industry benchmarks for overseas construction of similar scale and complexity, adjusted for geographic location and security requirements, could reveal potential cost deviations. The absence of competition inherently raises the risk of the final cost exceeding what a competitive process might have yielded.
What measures were in place to ensure the effectiveness and quality of the constructed security areas, despite the non-competitive award?
Effectiveness and quality in a sole-source contract rely heavily on robust contract management, clear performance standards, and stringent inspection protocols. The Department of State would need to demonstrate rigorous oversight, including site inspections, adherence to specifications, and performance metrics, to ensure the security areas met all functional and safety requirements, mitigating risks associated with limited contractor vetting.
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: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 240 E TUDOR STE 200, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $13,386,539
Exercised Options: $13,386,539
Current Obligation: $13,386,539
Parent Contract
Parent Award PIID: SALMEC02D0051
IDV Type: IDC
Timeline
Start Date: 2002-12-23
Current End Date: 2012-02-07
Potential End Date: 2012-02-07 00:00:00
Last Modified: 2012-02-07
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