State Department awards $23M construction contract in Pakistan, highlighting international facility needs

Contract Overview

Contract Amount: $23,003,396 ($23.0M)

Contractor: Framaco International Inc.

Awarding Agency: Department of State

Start Date: 2010-04-21

End Date: 2013-06-20

Contract Duration: 1,156 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD FOR CONSTRUCTION SERVICES IN ISLAMABAD, PAKISTAN.

Plain-Language Summary

Department of State obligated $23.0 million to FRAMACO INTERNATIONAL INC. for work described as: AWARD FOR CONSTRUCTION SERVICES IN ISLAMABAD, PAKISTAN. Key points: 1. Contract awarded for construction services, indicating a need for infrastructure development abroad. 2. The firm-fixed-price contract type suggests a clear scope and budget, potentially reducing cost overrun risks. 3. Full and open competition was utilized, implying a broad search for qualified contractors. 4. The contract duration of over three years suggests a significant project scope. 5. The award was made by the Department of State, aligning with diplomatic and embassy infrastructure requirements. 6. No small business set-aside was applied, suggesting the scale or nature of the work did not lend itself to such provisions.

Value Assessment

Rating: fair

The award amount of $23 million for construction services in Islamabad, Pakistan, is difficult to benchmark without specific project details. However, for large-scale international construction projects, this figure could represent a reasonable investment for facility development. The firm-fixed-price structure aims to control costs, but the ultimate value for money depends on the quality of execution and adherence to the original scope. Comparing this to similar embassy or consulate construction projects globally would provide a more precise assessment of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was broadly advertised to all responsible prospective contractors. The presence of six bidders suggests a healthy level of interest and a competitive environment for this type of international construction work. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through multiple bids, leading to a more cost-effective outcome for government projects.

Public Impact

The primary beneficiaries are likely the Department of State and its personnel requiring enhanced or new facilities in Islamabad. The services delivered involve the construction of commercial and institutional buildings. The geographic impact is localized to Islamabad, Pakistan, supporting U.S. diplomatic presence. Workforce implications would include employment opportunities for local labor and potentially expatriate construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in Pakistan.
Geopolitical risks associated with operating in Pakistan could impact project timelines and security.
Quality control and oversight challenges for a project located internationally.

Positive Signals

Firm-fixed-price contract helps manage budget certainty.
Full and open competition suggests a robust selection process.
Award by the Department of State indicates alignment with strategic foreign policy objectives.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The global market for such construction is substantial, driven by both public and private sector demand for infrastructure. For government agencies like the State Department, spending in this sector often relates to maintaining and expanding diplomatic facilities abroad, which are critical for international operations. Benchmarking this award against similar international construction projects by government entities would provide further context on its scale and cost-effectiveness.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. This suggests that the project's scope, complexity, or location may have favored larger, specialized construction firms capable of undertaking international projects. The absence of set-asides means that opportunities for small businesses would likely be through direct subcontracting by the prime contractor, if pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General, especially concerning the use of federal funds for overseas construction. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed price. Transparency is facilitated by the public nature of contract awards, though detailed project specifics might be limited.

Related Government Programs

Embassy Construction Projects
Overseas Facility Management
Department of State Construction Contracts
International Infrastructure Development

Risk Flags

Potential for geopolitical instability impacting project timeline.
Logistical challenges in international construction.
Security risks associated with overseas facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.0 million to FRAMACO INTERNATIONAL INC.. AWARD FOR CONSTRUCTION SERVICES IN ISLAMABAD, PAKISTAN.

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 $23.0 million.

What is the period of performance?

Start: 2010-04-21. End: 2013-06-20.

What specific types of commercial and institutional buildings were constructed under this award?

The provided data indicates the award was for 'AWARD FOR CONSTRUCTION SERVICES IN ISLAMABAD, PAKISTAN.' The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' suggests the project involved the erection of buildings intended for commercial or institutional use. This could encompass a range of structures such as office buildings, administrative facilities, support buildings for an embassy or consulate, or other related infrastructure necessary for diplomatic operations in Islamabad. Without more detailed contract documentation, the precise nature of the buildings (e.g., new construction, renovation, specific purpose) remains unspecified.

How does the $23 million award compare to typical construction costs for diplomatic facilities abroad?

Benchmarking the $23 million award against typical construction costs for diplomatic facilities abroad is challenging without granular data on project scope, size, location-specific construction costs, and security requirements. However, constructing facilities for government agencies like the Department of State in foreign countries often involves higher costs due to factors such as security enhancements, specialized materials, logistical challenges, and compliance with both U.S. and local regulations. For a significant project, such as a new building or a major renovation, $23 million could be within the expected range, particularly if it includes substantial infrastructure and security features. A more precise comparison would require analyzing data from similar projects in comparable regions.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this construction contract. However, for a firm-fixed-price construction award, typical deliverables would include the completion of the specified building(s) according to approved architectural and engineering plans, adherence to construction schedules, compliance with quality standards, and final handover of the completed facility. KPIs would likely focus on meeting project milestones, maintaining safety standards on site, and ensuring the final construction meets all contractual specifications and functional requirements within the agreed budget and timeframe.

What is the track record of Framaco International Inc. in executing similar international construction projects for the U.S. government?

Information regarding Framaco International Inc.'s specific track record with similar international construction projects for the U.S. government is not detailed in the provided data. The award amount of $23 million and the duration of over three years suggest a project of considerable scale. To assess their track record, one would need to examine past performance evaluations, other contracts awarded to Framaco International Inc. by U.S. government agencies (particularly the Department of State), and reviews of their project completion history, including adherence to schedule, budget, and quality standards in overseas environments.

Were there any significant risks identified during the bidding process or contract execution for this project?

The provided data does not explicitly detail any significant risks identified during the bidding process or contract execution for this specific award. However, international construction projects, especially those managed by the Department of State, inherently carry risks such as geopolitical instability in the host country (Pakistan, in this case), logistical challenges in sourcing materials and labor, potential for unforeseen site conditions, currency fluctuations, and security concerns. The firm-fixed-price contract structure aims to mitigate financial risks for the government, but the contractor assumes greater risk for cost overruns. A thorough risk assessment would typically be conducted prior to and during the project lifecycle.

How does this contract fit into the broader context of U.S. diplomatic infrastructure spending in the region?

This $23 million construction contract in Islamabad fits into the broader context of U.S. diplomatic infrastructure spending by supporting the physical presence and operational capabilities of U.S. diplomatic missions abroad. Such spending is crucial for maintaining and enhancing facilities that house embassies, consulates, and other government functions, thereby facilitating foreign policy objectives. Awards like this reflect ongoing investments in ensuring secure, modern, and functional diplomatic infrastructure, particularly in regions where U.S. engagement is strategically important. Analyzing historical spending patterns for the Department of State in Pakistan and the wider region would reveal trends and priorities in infrastructure development.

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: SAQMMA10R0050

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 WESTCHESTER AVE, RYE BROOK, NY, 16

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

Financial Breakdown

Contract Ceiling: $23,003,396

Exercised Options: $23,003,396

Current Obligation: $23,003,396

Contract Characteristics

Cost or Pricing Data: NO

Timeline