State Department's $10.8M New Delhi Embassy Renovation Awarded to DESBUILD INCORPORATED

Contract Overview

Contract Amount: $10,766,569 ($10.8M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2007-09-27

End Date: 2010-06-30

Contract Duration: 1,007 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW DELHI RENOVATION. WEST OFFICE ANNEX RENOVATION AT U.S. EMBASSY IN NEW DELHI, INDIA.

Plain-Language Summary

Department of State obligated $10.8 million to DESBUILD INCORPORATED for work described as: NEW DELHI RENOVATION. WEST OFFICE ANNEX RENOVATION AT U.S. EMBASSY IN NEW DELHI, INDIA. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. DESBUILD INCORPORATED secured the $10.8 million contract for the West Office Annex renovation. 3. The project duration was 1007 days, indicating a significant, long-term construction effort. 4. The award was made by the Department of State, highlighting infrastructure spending in diplomatic facilities.

Value Assessment

Rating: fair

The contract value of $10.8 million for a major embassy renovation appears within a reasonable range for such projects. However, without specific details on the scope of work and comparable international embassy renovation costs, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest possible range of bidders and can lead to more competitive pricing. The impact on price discovery is generally positive as multiple bids are considered.

Taxpayer Impact: Taxpayer funds were used for this renovation, with the expectation that competition helped secure a fair price for the services rendered.

Public Impact

Enhances U.S. diplomatic presence and operational capacity in New Delhi. Supports infrastructure development for U.S. government facilities abroad. Potential for job creation through construction activities. Ensures a secure and functional working environment for embassy staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration significantly exceeded initial estimates (1007 days vs. implied shorter period).
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for government facilities, especially embassies, is often driven by security, modernization, and diplomatic needs, with costs influenced by location and project complexity.

Small Business Impact

The data indicates that small businesses did not participate in this contract (sb: false). This suggests the project's scale or requirements may have favored larger, more established construction firms.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Oversight would typically involve monitoring project progress, quality of work, and adherence to contract terms to ensure taxpayer funds are used effectively and the renovation meets its objectives.

Related Government Programs

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

Risk Flags

Extended project duration.
No small business participation.
Potential for cost overruns if scope changed significantly.
Overseas construction complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.8 million to DESBUILD INCORPORATED. NEW DELHI RENOVATION. WEST OFFICE ANNEX RENOVATION AT U.S. EMBASSY IN NEW DELHI, INDIA.

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 $10.8 million.

What is the period of performance?

Start: 2007-09-27. End: 2010-06-30.

What was the primary driver for the significant project duration of 1007 days, and were there any cost implications associated with this extended timeline?

The extended duration of 1007 days for the New Delhi embassy renovation likely stemmed from complex logistical challenges inherent in overseas construction, security requirements, and potentially unforeseen site conditions or scope changes. While a firm fixed price contract offers cost certainty, extended timelines can still indirectly impact taxpayers through prolonged resource allocation and potential delays in realizing the benefits of the improved facility.

Given the 'fair' value assessment, what specific factors might have led to a less than 'excellent' rating, and how do they relate to risk?

A 'fair' rating suggests that while the price may be reasonable, it might not represent the absolute best value achievable. Factors contributing to this could include a lack of intense competition despite being 'full and open,' or potential inefficiencies in the bidding or execution process. This introduces a moderate risk that the government may have overpaid slightly or not received the most optimal solution for the investment.

How effective was the 'full and open competition' in achieving optimal pricing and contractor performance for this embassy renovation?

Full and open competition is designed to maximize the pool of potential bidders, theoretically driving down prices and improving performance through market forces. While it was employed here, the 'fair' value assessment and the significant project duration suggest that either the competition was not as robust as it could have been, or other factors (like logistical complexities) limited the ability to achieve peak efficiency and cost savings. Effectiveness is thus moderate.

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: SALMEC07R0064

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4744 BALTIMORE AVE, HYATTSVILLE, MD, 04

Business Categories: Category Business, Minority Owned Business, Not Designated a Small 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: $10,766,569

Exercised Options: $10,766,569

Current Obligation: $10,766,569

Timeline