State Dept. Awards $3.49M Overseas Construction Contract to Framaco International Inc
Contract Overview
Contract Amount: $34,920,435 ($34.9M)
Contractor: Framaco International Inc.
Awarding Agency: Department of State
Start Date: 2004-04-07
End Date: 2004-07-01
Contract Duration: 85 days
Daily Burn Rate: $410.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION OVERSEAS PROJECT
Plain-Language Summary
Department of State obligated $34.9 million to FRAMACO INTERNATIONAL INC. for work described as: CONSTRUCTION OVERSEAS PROJECT Key points: 1. The contract value is $3.49 million. 2. Framaco International Inc. is the sole awardee. 3. The contract was not competed, raising potential value concerns. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: questionable
The contract was not competed, making a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $3.49 million price reflects fair market value or if taxpayers received the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning no competition was sought. This limits price discovery and may lead to higher costs for taxpayers compared to a competed procurement.
Taxpayer Impact: The lack of competition for this $3.49 million contract may have resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competition. The project's overseas location could present unique logistical and oversight challenges. The contract was awarded in 2004, and its long-term impact on the State Department's infrastructure is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Specific contractor awarded
- Project completed
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project scope, location, and economic conditions. Benchmarks are difficult without more specific project details.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring the price was reasonable despite the lack of competition.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
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 $34.9 million to FRAMACO INTERNATIONAL INC.. CONSTRUCTION OVERSEAS PROJECT
Who is the contractor on this award?
The obligated recipient is FRAMACO INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2004-04-07. End: 2004-07-01.
What was the justification for awarding this construction contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source procurements require a documented justification, such as a critical need, unique capability of the contractor, or lack of other responsible sources. Without this justification, it's impossible to assess the validity of bypassing the competitive process.
How does the $3.49 million cost compare to similar overseas construction projects of comparable size and scope?
A direct comparison is challenging without more detailed project specifications and location context. However, the absence of competition makes it difficult to ascertain if this price represents a fair market value. Benchmarking against other sole-source or non-competed projects might offer some insight, but a truly accurate assessment requires competitive data.
What was the impact of the firm fixed-price contract type on the final cost and risk allocation?
A firm fixed-price contract generally shifts the risk of cost overruns to the contractor, which can incentivize efficiency. For taxpayers, this contract type can provide cost certainty, assuming the initial price was fair. However, if the initial price was inflated due to the lack of competition, the fixed price would lock in that higher cost.
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: 271 NORTH AVENUE, SUITE 311-314, NEW ROCHELLE, NY, 16
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,920,435
Exercised Options: $34,920,435
Current Obligation: $34,920,435
Timeline
Start Date: 2004-04-07
Current End Date: 2004-07-01
Potential End Date: 2006-03-22 00:00:00
Last Modified: 2008-06-02
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