State Department awards $13.1M for planning services to KARN CHARUHAS CHAPMAN & TWOHEY PC over 15 years

Contract Overview

Contract Amount: $13,104,457 ($13.1M)

Contractor: Karn Charuhas Chapman & Twohey PC

Awarding Agency: Department of State

Start Date: 2009-01-12

End Date: 2024-05-29

Contract Duration: 5,616 days

Daily Burn Rate: $2.3K/day

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PLANNING SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $13.1 million to KARN CHARUHAS CHAPMAN & TWOHEY PC for work described as: PLANNING SERVICES. Key points: 1. Contract value represents significant long-term investment in planning expertise. 2. Extended duration suggests a need for sustained architectural and engineering support. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. Performance period spans over a decade, indicating a stable, ongoing requirement. 5. Focus on architectural services points to infrastructure development or modernization. 6. Geographic concentration in DC may reflect agency headquarters or key operational areas.

Value Assessment

Rating: fair

The total award of $13.1 million over 15 years averages approximately $873,623 annually. Without specific deliverables or comparable contracts for similar planning services, it is difficult to definitively benchmark value. However, the extended duration and sole-source nature warrant scrutiny to ensure pricing remains competitive and reflects fair market value throughout the contract's life. The firm fixed-price structure provides some cost certainty, but the overall value proposition depends heavily on the quality and necessity of the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning KARN CHARUHAS CHAPMAN & TWOHEY PC was the only vendor considered. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. While sole-source awards can be justified for unique capabilities or urgent needs, they limit opportunities for other qualified firms and may result in higher prices than a competed contract.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution available. Without competitive pressure, there is a risk of overpayment for the planning services provided.

Public Impact

The Department of State benefits from specialized planning and architectural expertise. Services likely support the design, development, and potentially renovation of government facilities. The primary geographic impact is in Washington D.C., where the Department of State is headquartered. The contract supports a professional services workforce in the architectural and engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Extended contract duration of 15 years may not reflect current market conditions or evolving needs.
Lack of transparency in the justification for sole-source award.
Firm fixed-price contract over such a long period could lead to cost overruns if initial estimates were inaccurate.

Positive Signals

Long-term contract provides stability and continuity for essential planning services.
Firm fixed-price contract offers budget predictability for the Department of State.
Specialized expertise from KARN CHARUHAS CHAPMAN & TWOHEY PC ensures quality in planning services.
The extended duration suggests a strong, established relationship and proven performance.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically architectural and engineering services. This sector is crucial for government infrastructure projects, facility management, and urban planning. The market for these services is competitive, with numerous firms offering specialized expertise. The Department of State's spending on such services is typical for an agency managing a large portfolio of domestic and international facilities. Benchmarking would require comparing the scope and duration against similar large-scale planning contracts within federal agencies.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a specific small business set-aside. The prime contractor is a firm, KARN CHARUHAS CHAPMAN & TWOHEY PC. There is no explicit information regarding subcontracting plans for small businesses within this award. Without such provisions, the direct impact on the small business ecosystem from this specific contract is likely minimal, though the firm itself may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a firm fixed-price contract, oversight would focus on ensuring the delivery of contracted services meets the specified requirements and quality standards. Transparency is limited due to the sole-source nature. There is no specific mention of an Inspector General's involvement, but the Department of State's IG typically has jurisdiction over agency contracts.

Related Government Programs

Department of State Facilities Management
Architectural and Engineering Services
Professional and Technical Services
Government Planning Contracts

Risk Flags

Sole-source award lacks competition
Extended contract duration may not reflect current market value
Lack of detailed justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $13.1 million to KARN CHARUHAS CHAPMAN & TWOHEY PC. PLANNING SERVICES.

Who is the contractor on this award?

The obligated recipient is KARN CHARUHAS CHAPMAN & TWOHEY PC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2009-01-12. End: 2024-05-29.

What specific planning services are being provided under this contract, and how do they align with the Department of State's mission?

The contract is broadly categorized under 'PLANNING SERVICES' with a North American Industry Classification System (NAICS) code of 541310 for Architectural Services. While specific deliverables are not detailed in the provided data, these services typically encompass feasibility studies, site analysis, conceptual design, master planning, and regulatory compliance assessments for facilities. For the Department of State, these services are critical for the planning, design, and modernization of its embassies, consulates, and other domestic facilities worldwide, ensuring they are secure, functional, and meet diplomatic requirements. The long duration suggests these services are integral to ongoing infrastructure development and maintenance strategies.

What is the justification for awarding this contract sole-source to KARN CHARUHAS CHAPMAN & TWOHEY PC?

The provided data indicates a sole-source award, but the specific justification is not detailed. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique qualifications, proprietary technology, or a critical need that cannot be fulfilled through competition within a reasonable timeframe. For architectural services, it might relate to specialized expertise in secure government facilities, historical preservation requirements, or a specific project phase that logically follows prior work by the same firm. A formal justification document (e.g., a Justification and Approval, J&A) would normally be required and publicly accessible for such awards.

How does the $13.1 million contract value compare to similar architectural planning services contracts awarded by the federal government?

Benchmarking the $13.1 million contract value requires comparing it against similar contracts for architectural planning services, considering factors like duration, scope, agency, and complexity. The average annual value of this contract is approximately $873,623 over 15 years. Large federal agencies like the General Services Administration (GSA) or the Department of Defense (DoD) often award multi-year contracts for architectural and engineering services. However, without knowing the specific deliverables, number of facilities, or geographic scope covered by this Department of State contract, a precise comparison is challenging. Sole-source awards, by their nature, may not reflect the most competitive pricing found in the market.

What are the potential risks associated with a 15-year firm fixed-price contract for planning services?

A 15-year firm fixed-price contract for planning services presents several risks. Firstly, the fixed price may become unrepresentative of current market rates over such an extended period, potentially leading to the government overpaying if costs decrease or underpaying if costs significantly increase, though the latter is less common with fixed prices. Secondly, the contractor might face challenges in accurately estimating costs for services that far into the future, potentially leading to scope creep or disputes if unforeseen issues arise. Thirdly, the long duration could reduce the agency's flexibility to adapt to changing needs or technological advancements in planning and design. Finally, the lack of periodic re-competition means less opportunity to incentivize innovation or efficiency gains from the contractor.

What is the historical spending pattern for architectural and planning services by the Department of State?

The provided data only details one specific contract. To understand historical spending patterns for architectural and planning services by the Department of State, one would need to analyze multiple contract awards over several fiscal years. This would involve examining the total annual spending on NAICS code 541310 (Architectural Services) and related codes, the number of contracts awarded, the average contract value, and the distribution between competed and sole-source awards. Such an analysis would reveal trends in agency investment in facilities planning, identify key contractors, and assess the overall procurement strategy for these essential services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Contractor Details

Address: 1120 CONNECTICUT AVE NW, STE 1250, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $13,104,457

Exercised Options: $13,104,457

Current Obligation: $13,104,457

Actual Outlays: $491,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA08D0084

IDV Type: IDC

Timeline