State Department Spends $92.3M on Malta Embassy Construction, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $92,301,435 ($92.3M)

Contractor: American International Contractors (special Projects) Inc.

Awarding Agency: Department of State

Start Date: 2007-09-28

End Date: 2013-09-05

Contract Duration: 2,169 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW EMBASSY COMPOUND, VALLETTA MALTA

Plain-Language Summary

Department of State obligated $92.3 million to AMERICAN INTERNATIONAL CONTRACTORS (SPECIAL PROJECTS) INC. for work described as: NEW EMBASSY COMPOUND, VALLETTA MALTA Key points: 1. The contract for the New Embassy Compound in Valletta, Malta, totaled $92.3 million. 2. Awarded to American International Contractors (Special Projects) Inc. under full and open competition. 3. The project spanned nearly seven years, from September 2007 to September 2013. 4. The sector is Commercial and Institutional Building Construction. 5. No small business participation was reported.

Value Assessment

Rating: fair

The final award amount of $92.3 million for the embassy construction project appears to be within a reasonable range for a large-scale international infrastructure project of this nature. Benchmarking against similar embassy constructions or large commercial buildings would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value and price through a wide range of potential bidders.

Public Impact

Construction of a new embassy compound signifies a significant investment in diplomatic infrastructure and U.S. presence abroad. The long duration of the project (nearly 7 years) suggests potential complexities in execution, scope, or unforeseen challenges. The absence of small business participation might indicate a lack of opportunities or barriers for smaller firms in this specific large-scale construction contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2169 days)
No small business participation reported

Positive Signals

Full and open competition utilized
Firm fixed price contract type

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, which involves the building of non-residential structures. Spending in this sector can vary significantly based on project scale, location, and specific requirements, such as those for diplomatic facilities.

Small Business Impact

The contract data indicates that no small business participation was reported for this project. This could be due to the specialized nature of the work, the large contract value, or the specific requirements of the embassy construction, which may have favored larger, more experienced contractors.

Oversight & Accountability

The Department of State, as the contracting agency, is responsible for overseeing the execution of this contract. The long duration and significant value warrant thorough oversight to ensure project completion, adherence to specifications, and responsible use of taxpayer funds.

Related Government Programs

Commercial and Institutional Building Construction
Department of State Contracting
Department of State Programs

Risk Flags

Long project duration
No small business participation reported
High contract value
Potential for cost overruns or delays in large construction projects

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $92.3 million to AMERICAN INTERNATIONAL CONTRACTORS (SPECIAL PROJECTS) INC.. NEW EMBASSY COMPOUND, VALLETTA MALTA

Who is the contractor on this award?

The obligated recipient is AMERICAN INTERNATIONAL CONTRACTORS (SPECIAL PROJECTS) INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $92.3 million.

What is the period of performance?

Start: 2007-09-28. End: 2013-09-05.

What were the primary drivers for the nearly seven-year duration of this embassy construction project?

The extended duration of the embassy construction project could be attributed to several factors, including complex site conditions in Valletta, unforeseen architectural or engineering challenges, lengthy procurement processes for specialized materials, changes in project scope during execution, or coordination issues with local authorities and international standards. Detailed project management records would be needed to pinpoint the exact reasons.

Given the full and open competition, how does the final award price compare to initial cost estimates or industry benchmarks for similar projects?

Without access to initial cost estimates or specific industry benchmarks for comparable international embassy constructions, a precise comparison is difficult. However, the final award of $92.3 million for a project spanning almost seven years suggests a substantial undertaking. A detailed cost-benefit analysis and comparison with other large-scale government construction projects would be necessary to assess value for money.

What steps, if any, were taken to encourage small business participation in subcontracting opportunities for this large federal contract?

The data explicitly states 'sb': false, indicating no small business participation was reported. Federal contracts of this magnitude often include small business subcontracting goals. The absence of reported participation suggests either that no such goals were set, they were not met, or that the prime contractor did not report them. Further investigation into the contract's specific clauses and the contractor's reporting would be needed.

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: SEALED BID

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4600 N FAIRFAX DR 1005, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,301,435

Exercised Options: $92,301,435

Current Obligation: $92,301,435

Timeline