State Dept. Awards $50.6M Construction Contract to Fluor Intercontinental, Inc. for Building Construction
Contract Overview
Contract Amount: $50,651,630 ($50.7M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of State
Start Date: 2003-09-29
End Date: 2009-11-24
Contract Duration: 2,248 days
Daily Burn Rate: $22.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES
Plain-Language Summary
Department of State obligated $50.7 million to FLUOR INTERCONTINENTAL, INC for work described as: CONSTRUCTION SERVICES Key points: 1. Contract Value: $50.6 million awarded for commercial and institutional building construction. 2. Contractor: Fluor Intercontinental, Inc. secured the contract. 3. Competition: Awarded under full and open competition. 4. Sector: Construction services, specifically commercial and institutional building. 5. Duration: A significant 2248-day contract period.
Value Assessment
Rating: fair
The contract value of $50.6 million is substantial for construction services. Benchmarking against similar large-scale commercial and institutional building projects would be necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Significant investment in infrastructure by the Department of State. Potential for job creation and economic activity in the construction sector. Long contract duration indicates a substantial, multi-year project. Fluor Intercontinental, Inc. is a major player in global construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2248 days) may present risks for scope creep or changing requirements.
- Lack of specific small business participation noted.
- Firm Fixed Price contract type can shift risk to the contractor but may lead to higher initial bids.
Positive Signals
- Awarded under full and open competition, indicating potential for good value.
- Experienced contractor selected.
- Clear contract type (Firm Fixed Price) for cost certainty.
Sector Analysis
This contract falls within the Construction sector, specifically commercial and institutional building construction. Spending in this area is often driven by agency infrastructure needs and modernization efforts.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false) and there is no specific mention of small business set-asides or participation goals. Further analysis would be needed to determine if small businesses were subcontracting opportunities.
Oversight & Accountability
The contract was awarded by the Department of State, implying oversight from within the agency. The long duration and significant value warrant ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration increases risk of scope creep and requirement changes.
- No indication of small business participation or subcontracting goals.
- Potential for cost escalation over the 2248-day period despite fixed price.
- Contract awarded to a single large entity, limiting broader economic distribution.
Tags
commercial-and-institutional-building-co, department-of-state, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $50.7 million to FLUOR INTERCONTINENTAL, INC. CONSTRUCTION SERVICES
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $50.7 million.
What is the period of performance?
Start: 2003-09-29. End: 2009-11-24.
What specific types of commercial and institutional buildings were constructed or renovated under this contract, and how do their functionalities align with the Department of State's mission?
The contract number NAICS 236220 covers Commercial and Institutional Building Construction. This could encompass a wide range of facilities such as administrative offices, embassies, consulates, or support infrastructure abroad. Understanding the specific purpose of these buildings is crucial to assessing their strategic value and ensuring the investment directly supports the Department's operational requirements and diplomatic functions.
Given the firm fixed price contract type and the 2248-day duration, what mechanisms were in place to manage potential cost overruns or scope changes, and how effective were they?
Firm Fixed Price contracts aim to provide cost certainty, but long durations increase the risk of unforeseen issues. The Department of State would need robust contract management processes, including change order controls, performance monitoring, and dispute resolution mechanisms. The effectiveness of these would depend on the diligence of the contracting officers and the contractor's adherence to the contract terms throughout the project lifecycle.
How did the full and open competition process ensure that Fluor Intercontinental, Inc.'s bid represented the best value and technical solution for the Department of State's construction needs?
Full and open competition allows all responsible sources to submit bids, fostering a competitive environment. The Department of State would have evaluated proposals based on pre-defined criteria, likely including price, technical approach, past performance, and management capability. The selection of Fluor Intercontinental, Inc. suggests their proposal was deemed the most advantageous, balancing cost-effectiveness with the required technical expertise and project execution plan.
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: ONE ENTERPRISE DRIVE, ALISO VIEJO, CA, 40
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,651,630
Exercised Options: $50,651,630
Current Obligation: $50,651,630
Timeline
Start Date: 2003-09-29
Current End Date: 2009-11-24
Potential End Date: 2009-11-24 00:00:00
Last Modified: 2009-09-03
More Contracts from Fluor Intercontinental, Inc
- Logcap IV Services Afghanistan — $12.6B (Department of Defense)
- Afghanistan South Expansion — $639.9M (Department of Defense)
- 200607!601203!2100!w912er!transatlantic Program Center !w912er04d0004 !A!N! !Y!0017 ! !20060410!20070514!140243291!140243291!006907190!n!fluor Intercontinental Inc !100 Fluor Daniel Drive !greenville !SC!29607!00000! !IZ! ! !iraq !+000059103585!n!n!000000000000!z299!maint/All Other Non-Building Facilities !S1 !services !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!u!j!2!030!b! !Z!N!A! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $375.8M (Department of Defense)
- Hafb Operation Allies Welcome (refuge) - O21R — $352.1M (Department of Defense)
- 200312!001241!2100!CA78 !transatlantic Program Center !daca7803d0005 !A!N! !N!0006 !20030919!20040331!615422995!615422995!006907190!n!fluor Intercontinental, Inc !ONE Enterprise Drive !aliso Viejo !CA!92656!* !* !IZ!* !* !iraq !+000000460000!n!n!000000000000!y199!other Miscellaneous Buildings !C2 !construction !1000!NOT Discernable or Classified !236220!E! !5!B!M! !A!D!20040331!B! ! !n!a!d!n!u!1!001!n!2a!z!n!z! ! !N!M!N! ! ! ! ! !a!a!000!a!b!n! ! !Y!Y! ! !0001! ! — $334.4M (Department of Defense)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)