State Department's $12.9M USAID Annex Building in Jamaica Awarded to DESBUILD INCORPORATED

Contract Overview

Contract Amount: $12,904,610 ($12.9M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2005-09-07

End Date: 2014-06-23

Contract Duration: 3,211 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW USAID ANNEX BUILDING (NOX) KINGSTON, JAMAICA

Plain-Language Summary

Department of State obligated $12.9 million to DESBUILD INCORPORATED for work described as: NEW USAID ANNEX BUILDING (NOX) KINGSTON, JAMAICA Key points: 1. Value for money appears fair given the long duration and scope of construction. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 3211 days (approx. 8.8 years) is exceptionally long for a construction project. 4. Fixed-price contract type may limit cost overruns but could impact scope flexibility. 5. The contract was awarded by the Department of State for construction services. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract value of $12.9 million for a USAID annex building in Kingston, Jamaica, needs context. Given the nearly 9-year duration, the annual spending averaged around $1.47 million. Without comparable construction projects in the region or specific details on the building's size and complexity, a precise value-for-money assessment is challenging. However, the fixed-price nature suggests the government aimed to control costs upfront.

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 a bid. With 5 bids received, this suggests a reasonable level of competition for this project. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Department of State and USAID, gaining a new facility in Jamaica. The project delivered commercial and institutional building construction services. The geographic impact is localized to Kingston, Jamaica. The contract likely supported local construction labor and material suppliers in Jamaica.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exceptionally long contract duration (3211 days) raises questions about project management, potential delays, and the initial scope definition.
Lack of specific details on the building's size, features, and complexity makes it difficult to benchmark the cost effectively.
The long duration could indicate unforeseen challenges or a phased construction approach that wasn't clearly defined upfront.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The firm fixed-price contract type provides cost certainty for the government.
The contract was awarded by a reputable agency, the Department of State.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of project sizes and complexities, from small renovations to large-scale new builds. The market can be highly localized, with significant variations in labor costs, material availability, and regulatory environments. Benchmarking this specific project's cost would require detailed information on square footage, materials used, and local construction rates in Kingston.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. There is no information provided regarding subcontracting plans or actual subcontracting to small businesses, which limits the analysis of its impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of State's contracting officers and potentially its Office of Inspector General. Transparency is generally facilitated through contract award databases like FPDS. However, the long duration and specific details of project milestones and performance are not readily available in the provided data, making a full assessment of accountability challenging.

Related Government Programs

USAID Facilities Construction
Department of State Overseas Buildings Operations
Embassy and Consulate Construction Projects
International Construction Contracts

Risk Flags

Unusually long contract duration for a construction project.
Lack of detailed project scope and performance metrics in public data.
Potential for scope creep or unforeseen issues given the extended timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $12.9 million to DESBUILD INCORPORATED. NEW USAID ANNEX BUILDING (NOX) KINGSTON, JAMAICA

Who is the contractor on this award?

The obligated recipient is DESBUILD INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2005-09-07. End: 2014-06-23.

What was the original scope of work for the USAID Annex Building and how did it evolve over the contract's duration?

The provided data does not detail the original scope of work or any modifications that may have occurred during the contract's extensive 3211-day period. Typically, a USAID Annex Building project would involve the design and construction of office space, support facilities, and potentially security infrastructure. The long duration suggests either a very complex build, phased construction, or significant changes/delays. Further investigation into contract modifications, performance reports, and project close-out documentation would be necessary to understand the scope evolution and its impact on the final cost and timeline.

How does the cost per square foot of this building compare to similar construction projects in Jamaica or the Caribbean region?

Without specific data on the building's square footage, materials, and finishes, a direct cost-per-square-foot comparison is not feasible. The total contract value of $12.9 million spread over approximately 8.8 years averages to about $1.47 million annually. To perform a meaningful benchmark, one would need to obtain the final building size and compare it against recent commercial or institutional construction projects in Kingston or similar economic environments in the Caribbean, considering factors like labor rates, material costs, and prevailing market conditions for construction services.

What were the key performance indicators (KPIs) for this construction contract, and did DESBUILD INCORPORATED meet them?

The provided data does not include specific Key Performance Indicators (KPIs) established for this contract or performance metrics related to DESBUILD INCORPORATED's execution. For a construction project of this magnitude and duration, KPIs would typically relate to schedule adherence, quality of workmanship, safety compliance, and adherence to budget (within the fixed-price framework). Assessing performance would require reviewing contractually mandated reports, inspection records, and potentially post-occupancy evaluations. The long duration itself might suggest challenges in meeting initial schedule expectations.

Were there any significant delays or cost overruns associated with this contract, despite the firm fixed-price structure?

While a firm fixed-price contract is designed to cap costs for the government, delays can still occur and may lead to claims or disputes. The exceptionally long contract duration of 3211 days (over 8.8 years) strongly suggests potential delays, which could stem from various factors such as unforeseen site conditions, weather, material availability, labor issues, or changes in requirements. Without access to contract modification history, inspection reports, or correspondence logs, it's impossible to definitively state whether cost overruns occurred beyond the initial award amount, though delays themselves represent a form of inefficiency.

What is DESBUILD INCORPORATED's track record with the Department of State and other federal agencies for similar construction projects?

The provided data indicates DESBUILD INCORPORATED was awarded this $12.9 million contract by the Department of State. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to identify other contracts awarded to DESBUILD INCORPORATED, particularly by the Department of State or other agencies involved in overseas construction. Analyzing past performance ratings, contract values, types of projects, and any history of disputes or contract terminations would provide a clearer picture of their reliability and capability in executing similar federal construction projects.

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

Address: 4744 BALTIMORE AVE, HYATTSVILLE, MD, 04

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,904,610

Exercised Options: $12,904,610

Current Obligation: $12,904,610

Contract Characteristics

Cost or Pricing Data: NO

Timeline