State Department awards $135.8M construction contract for Bucharest NEC project

Contract Overview

Contract Amount: $135,833,822 ($135.8M)

Contractor: American International Contractors (special Projects) Inc.

Awarding Agency: Department of State

Start Date: 2008-09-30

End Date: 2012-09-19

Contract Duration: 1,450 days

Daily Burn Rate: $93.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD OF THE BUCHAREST, ROMANIA NEC PROJECT.

Plain-Language Summary

Department of State obligated $135.8 million to AMERICAN INTERNATIONAL CONTRACTORS (SPECIAL PROJECTS) INC. for work described as: AWARD OF THE BUCHAREST, ROMANIA NEC PROJECT. Key points: 1. Contract value represents a significant investment in diplomatic infrastructure. 2. Full and open competition suggests a robust bidding process. 3. Fixed-price contract type aims to control costs and manage risk. 4. Project duration of nearly four years indicates a complex undertaking. 5. The award falls within the commercial and institutional building construction sector.

Value Assessment

Rating: fair

The contract value of $135.8 million for the Bucharest NEC project appears substantial. Benchmarking against similar large-scale construction projects for diplomatic facilities is challenging without more specific project scope details. However, the award amount suggests a significant investment. The fixed-price nature of the contract provides some cost certainty, but the overall value-for-money assessment would benefit from a comparison of the final build cost against initial estimates and the quality of the delivered facility.

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 bids. With three bidders participating, the competition level suggests a reasonable degree of market interest. This open process is generally expected to foster price discovery and encourage competitive pricing among bidders, potentially leading to a more favorable outcome for the government.

Taxpayer Impact: A competitive bidding process for this large construction project helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel, who will utilize the new facility. The project delivers essential construction services for a critical diplomatic infrastructure project. The geographic impact is concentrated in Bucharest, Romania, enhancing U.S. diplomatic presence. Workforce implications include job creation for construction labor and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on large, complex international construction projects.
Ensuring adherence to construction quality standards in a foreign jurisdiction.
Managing logistical challenges associated with international procurement and labor.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type helps mitigate cost escalation risks.
The project addresses a critical need for diplomatic infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The market for such services, particularly for government facilities abroad, is specialized and often involves international contractors with experience in complex, high-security projects. Comparable spending benchmarks would typically be found in large-scale embassy or consulate construction projects managed by agencies like the State Department or Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large-scale international construction project, the primary contractor is likely a large firm. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized services or materials, which is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the project's contracting officer's representative (COR) within the Department of State. Accountability measures are inherent in the firm fixed-price contract terms, with penalties or incentives potentially tied to performance and completion. Transparency is facilitated by the public nature of contract awards, though detailed project oversight reports may not be publicly available.

Related Government Programs

Worldwide Diplomatic Construction
Embassy and Consulate Construction
International Facilities Management
Department of State Capital Security Construction Program

Risk Flags

International Construction Complexity
Large Contract Value
Long Project Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $135.8 million to AMERICAN INTERNATIONAL CONTRACTORS (SPECIAL PROJECTS) INC.. AWARD OF THE BUCHAREST, ROMANIA NEC PROJECT.

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 $135.8 million.

What is the period of performance?

Start: 2008-09-30. End: 2012-09-19.

What was the specific scope of work for the Bucharest NEC project?

The provided data identifies the award as 'AWARD OF THE BUCHAREST, ROMANIA NEC PROJECT' and categorizes the North American Industry Classification System (NAICS) code as 236220, which pertains to Commercial and Institutional Building Construction. While the data confirms the project's location and general construction nature, it does not detail the specific scope of work. Typically, NEC (New Embassy Compound) projects involve the construction of new, secure, and functional facilities to house diplomatic personnel and operations, often including office spaces, residential areas, security infrastructure, and support facilities. A full scope would detail building specifications, site development, utilities, and security features.

How did the final award price compare to the initial estimated cost, if available?

The provided data only includes the final award amount of $135,833,822. There is no information available regarding the initial estimated cost for the Bucharest, Romania NEC project. Therefore, a direct comparison to assess potential cost savings or overruns at the award stage cannot be made. To perform such an analysis, historical budget documents or pre-solicitation cost estimates would be required. Without this baseline, it's impossible to determine if the contract was awarded significantly above, below, or at the anticipated cost.

What is the track record of American International Contractors (Special Projects) Inc. on similar government construction projects?

American International Contractors (Special Projects) Inc. was awarded this $135.8 million contract for the Bucharest NEC project. To assess their track record, one would need to examine their past performance on similar large-scale international construction projects, particularly those for government agencies like the Department of State. This would involve reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Without access to these specific performance records, it is difficult to definitively gauge their experience and reliability on projects of this magnitude and complexity.

Were there any significant contract modifications or change orders during the project's performance period?

The provided data indicates an award date of September 30, 2008, and an estimated completion date of September 19, 2012, for a duration of 1450 days. However, this data does not include information on contract modifications or change orders that may have occurred during the project's lifecycle. Large construction projects, especially those conducted internationally, often experience modifications due to unforeseen site conditions, design changes, or evolving requirements. A comprehensive analysis would require access to the contract's modification history to understand any adjustments to the scope, schedule, or cost.

How does the per-square-foot construction cost of this project compare to industry benchmarks for similar facilities?

The provided data does not include the total square footage of the Bucharest NEC project, making it impossible to calculate a per-square-foot construction cost. Therefore, a direct comparison to industry benchmarks for similar facilities cannot be performed. To conduct such an analysis, the total constructed area would need to be known. Benchmarking would then involve comparing this calculated cost against average costs for constructing diplomatic facilities, secure government buildings, or large commercial/institutional structures in similar geographic regions or with comparable specifications.

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: TWO STEP

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American International Contractors Inc. (UEI: 131381402)

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

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

Financial Breakdown

Contract Ceiling: $135,833,822

Exercised Options: $135,833,822

Current Obligation: $135,833,822

Timeline