Department of State awarded $21.9M for construction services to Dynamic Corporation, spanning nearly 8 years

Contract Overview

Contract Amount: $21,909,844 ($21.9M)

Contractor: Dynamic Corporation

Awarding Agency: Department of State

Start Date: 2006-09-29

End Date: 2014-07-03

Contract Duration: 2,834 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES

Plain-Language Summary

Department of State obligated $21.9 million to DYNAMIC CORPORATION for work described as: CONSTRUCTION SERVICES Key points: 1. The contract's duration and total value suggest a significant construction project, requiring careful management of resources and timelines. 2. While the contract was fully competed, the number of bids received (6) provides a baseline for assessing market interest. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to higher initial bids but predictable final costs. 4. The absence of small business set-asides or reported subcontracting may indicate limited direct opportunities for smaller firms on this specific award. 5. Performance context is crucial; understanding the specific construction services rendered and their successful completion is key to evaluating value. 6. Benchmarking this contract against similar large-scale construction projects for federal agencies can reveal cost-effectiveness.

Value Assessment

Rating: fair

The total award of $21.9 million over nearly 8 years averages to approximately $2.7 million per year. Without specific details on the scope of construction services, it's challenging to benchmark against similar contracts. However, for large-scale federal construction projects, this annual spend might be considered moderate. The firm-fixed-price nature suggests the government sought cost certainty, but the ultimate value depends on the quality and timeliness of the delivered construction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bids received. This level of competition suggests a reasonably healthy market for the services sought. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government. However, the specific nature of the construction services required might limit the pool of qualified bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of obtaining the best value.

Public Impact

The primary beneficiaries are likely the Department of State, receiving essential construction services for its facilities. The contract facilitated the delivery of commercial and institutional building construction, potentially involving new builds, renovations, or maintenance. The geographic impact is tied to the location of the Department of State facilities requiring construction services. Workforce implications include employment opportunities for construction laborers, tradespeople, project managers, and administrative staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding specific construction deliverables and project milestones.
Potential for cost overruns if unforeseen issues arise in construction, despite fixed-price contract.
Limited visibility into subcontracting opportunities for small businesses.
The long duration of the contract could lead to contractor complacency or performance degradation over time.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor, Dynamic Corporation, has a track record of federal contract awards.
The contract was awarded by the Department of State, a major federal agency.

Sector Analysis

This contract falls within the Construction Services sector, specifically Commercial and Institutional Building Construction. The federal government is a significant consumer of construction services, with spending distributed across various agencies for infrastructure, facilities, and specialized projects. Benchmarks for similar large-scale federal construction projects can vary widely based on scope, location, and complexity, but multi-million dollar awards are common for significant building endeavors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans or performance. This suggests that larger firms likely competed for and performed the majority of the work, potentially limiting direct opportunities for small businesses to participate as prime contractors or significant subcontractors on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed price. Transparency is often limited for specific construction projects unless publicly disclosed through agency reports or press releases. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings Fund
Military Construction
General Services Administration (GSA) Public Buildings Service
Department of Defense Facilities Construction

Risk Flags

Long contract duration may increase risk of performance degradation.
Lack of explicit small business subcontracting requirements.
Potential for unforeseen construction issues impacting fixed-price contract.
Limited public information on specific project scope and deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.9 million to DYNAMIC CORPORATION. CONSTRUCTION SERVICES

Who is the contractor on this award?

The obligated recipient is DYNAMIC CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2006-09-29. End: 2014-07-03.

What specific construction services were performed under this contract, and what was the final scope of work?

The contract NAICS code 236220 indicates 'Commercial and Institutional Building Construction.' This broad category can encompass a wide range of activities, including the construction of new buildings, major renovations, additions, and alterations to existing commercial and institutional structures. Without further details from the Department of State's contract file or performance reports, the precise nature of the services—whether it involved office buildings, embassies, specialized facilities, or other structures—remains unspecified. Understanding the exact deliverables is crucial for assessing the contractor's performance and the overall value received by the agency.

How does the average annual cost of this contract compare to similar construction projects undertaken by the Department of State or other federal agencies?

The contract's total value of $21.9 million spread over approximately 2834 days (about 7.76 years) results in an average annual expenditure of roughly $2.82 million. Benchmarking this figure requires comparing it to construction projects of similar scale and complexity managed by the Department of State or agencies like the General Services Administration (GSA). Factors such as geographic location, specific building type (e.g., office, embassy, research facility), and the extent of work (new construction vs. renovation) significantly influence costs. A direct comparison would necessitate identifying comparable projects and adjusting for these variables. However, for large-scale federal construction, this annual average appears moderate, suggesting it might represent a sustained, but not exceptionally high, level of activity.

What was the track record of Dynamic Corporation in executing previous federal construction contracts prior to this award?

Dynamic Corporation has a history of receiving federal contracts, as indicated by its presence in federal procurement databases. To assess its track record for this specific $21.9 million Department of State contract, a review of its past performance on similar construction projects would be necessary. This would involve examining past contract awards, completion records, any documented performance issues, and payment histories. A positive history of timely completion, adherence to budget (especially relevant for fixed-price contracts), and quality of work would suggest a lower risk profile for this award. Conversely, past performance issues could indicate potential risks for the Department of State.

Given the firm-fixed-price contract type, what mechanisms were in place to manage potential cost overruns or scope creep?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor, meaning Dynamic Corporation is obligated to complete the work for the agreed-upon price. However, mechanisms to manage potential issues still exist. The Department of State would have oversight through contract administration, requiring detailed progress reports, site inspections, and adherence to the defined scope of work. Change orders, if necessary due to unforeseen conditions or legitimate scope adjustments, would require formal negotiation and modification of the contract, potentially impacting the price and timeline. Robust project management and clear communication channels are essential to prevent scope creep and address any emerging issues proactively, ensuring the FFP terms are upheld while achieving project objectives.

How did the six bids received in the full and open competition compare in terms of price and proposed technical solutions?

The fact that six bids were received indicates a competitive marketplace for the construction services sought by the Department of State. A detailed analysis of these bids would reveal the range of pricing proposed by the contractors and the technical approaches they intended to employ. Ideally, the government would have evaluated these bids based on a combination of price and non-price factors (e.g., technical approach, past performance, management plan). The lowest bidder may not always be selected if other bidders offer superior technical solutions or a stronger performance record. Understanding the variance in pricing and technical proposals among the six bidders would provide insight into the market's assessment of the project's cost and complexity.

What is the historical spending pattern for commercial and institutional building construction by the Department of State over the last decade?

Analyzing the Department of State's historical spending on commercial and institutional building construction (NAICS 236220) over the past decade would provide context for the $21.9 million award to Dynamic Corporation. This would involve aggregating spending data from various contracts within this category. Such an analysis could reveal trends in annual spending, identify major projects, and highlight fluctuations based on agency priorities, budget allocations, and global security needs. Comparing the size and frequency of this contract against the historical average would indicate whether this award represents a typical investment or a particularly significant undertaking for the Department of State in the construction domain.

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

Solicitation ID: SALMEC06R0003

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5133 LAWRENCE PLACE, HYATTSVILLE, MD, 04

Business Categories: Black American Owned Business, Category Business, Emerging Small Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,909,844

Exercised Options: $21,909,844

Current Obligation: $21,909,844

Timeline