State Department's $124M Belgrade Embassy Construction Awarded to Framaco International Inc
Contract Overview
Contract Amount: $123,982,229 ($124.0M)
Contractor: Framaco International Inc.
Awarding Agency: Department of State
Start Date: 2009-03-10
End Date: 2015-02-26
Contract Duration: 2,179 days
Daily Burn Rate: $56.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF A NEW EMBASSY COMPOUND (NEC) IN BELGRADE, SERBIA
Plain-Language Summary
Department of State obligated $124.0 million to FRAMACO INTERNATIONAL INC. for work described as: DESIGN AND CONSTRUCTION OF A NEW EMBASSY COMPOUND (NEC) IN BELGRADE, SERBIA Key points: 1. The project involved the design and construction of a new embassy compound in Belgrade, Serbia. 2. Framaco International Inc. was the contractor for this significant infrastructure project. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract utilized a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor.
Value Assessment
Rating: fair
The contract value of $123,982,228.69 for a new embassy compound is substantial. Benchmarking against similar large-scale construction projects for diplomatic facilities would be necessary for a precise value assessment, but the scale suggests significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process.
Public Impact
Significant taxpayer investment in diplomatic infrastructure abroad. Potential impact on local Serbian economy through construction jobs and material sourcing. Enhances U.S. diplomatic presence and security in the region. Long-term asset for the U.S. government.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Contract duration significantly exceeded initial estimates.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. The construction of diplomatic facilities is a specialized niche within this sector, often involving stringent security and design requirements.
Small Business Impact
The data indicates that small business participation was not a factor in this contract, as the 'sb' field is false. Larger infrastructure projects like this often involve prime contractors who may or may not subcontract to small businesses.
Oversight & Accountability
The Department of State, as the contracting agency, is responsible for overseeing the construction of its facilities. Oversight would typically involve project management, quality assurance, and ensuring compliance with contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Contract duration significantly exceeded initial estimates.
- No small business participation noted.
- Potential for cost overruns if FFP terms were not strictly managed.
- Complexity of international construction projects.
Tags
commercial-and-institutional-building-co, department-of-state, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $124.0 million to FRAMACO INTERNATIONAL INC.. DESIGN AND CONSTRUCTION OF A NEW EMBASSY COMPOUND (NEC) IN BELGRADE, SERBIA
Who is the contractor on this award?
The obligated recipient is FRAMACO INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $124.0 million.
What is the period of performance?
Start: 2009-03-10. End: 2015-02-26.
What was the primary driver for the significant contract duration of 2179 days?
The extended duration of 2179 days (approximately 6 years) for the Belgrade Embassy compound construction suggests potential complexities beyond standard building timelines. Factors could include extensive design phases, unforeseen site conditions, permitting challenges, geopolitical considerations, or phased construction requirements to maintain ongoing embassy operations during the build.
Given the Firm Fixed Price contract, what were the potential risks to the government if costs escalated beyond Framaco International's estimates?
With a Firm Fixed Price (FFP) contract, the primary risk of cost escalation is borne by the contractor, Framaco International. The government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. However, the government could face risks related to contractor performance, quality compromises, or potential disputes if the contractor struggles to absorb unexpected cost increases.
How does the lack of small business participation impact the overall effectiveness of this contract in terms of economic impact?
The absence of small business participation means that a portion of the contract value did not directly flow to smaller enterprises, potentially limiting broader economic stimulus. While large projects often utilize large contractors, a lack of small business involvement can reduce opportunities for specialized smaller firms and limit the diversity of economic benefits derived from the project.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 WESTCHESTER STE 430, PORT CHESTER, NY, 16
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $123,982,229
Exercised Options: $123,982,229
Current Obligation: $123,982,229
Timeline
Start Date: 2009-03-10
Current End Date: 2015-02-26
Potential End Date: 2015-02-26 00:00:00
Last Modified: 2015-02-26
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