State Department awards $26.5M for building renovation, with 5 bidders competing

Contract Overview

Contract Amount: $26,519,600 ($26.5M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2010-12-22

End Date: 2013-01-31

Contract Duration: 771 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING RENOVATION CONSTRUCTION

Plain-Language Summary

Department of State obligated $26.5 million to DESBUILD INCORPORATED for work described as: BUILDING RENOVATION CONSTRUCTION Key points: 1. Value for money appears reasonable given the contract's scope and duration. 2. Strong competition among five bidders likely contributed to competitive pricing. 3. Contract duration of 771 days suggests a significant renovation project. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. This contract falls within the broad commercial and institutional building construction sector.

Value Assessment

Rating: good

The contract value of $26.5 million for building renovation over 771 days appears to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale renovation projects for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five distinct bidders submitting proposals. This level of competition is a positive indicator, suggesting that multiple capable firms were interested and able to compete for the work. A robust competitive process typically leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value. This reduces the risk of overpayment and encourages cost-consciousness from the winning bidder.

Public Impact

The primary beneficiaries are the Department of State personnel who will utilize the renovated facilities. The contract delivers essential building renovation and construction services. The geographic impact is localized to the facility being renovated by the State Department. The project likely supported jobs in the construction and related trades during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements were not clearly defined upfront.
Ensuring quality of work over a multi-year renovation project requires diligent oversight.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a healthy market response and competitive pricing.
The contractor, DESBUILD INCORPORATED, has experience in commercial and institutional building construction.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses establishments primarily engaged in the construction or remodeling of nonresidential buildings. The market for federal construction contracts is substantial, with agencies like the Department of State frequently undertaking renovation and new construction projects to maintain and upgrade their facilities. Spending in this sector is influenced by infrastructure needs, security requirements, and modernization efforts across government.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is DESBUILD INCORPORATED, there is no explicit information on subcontracting plans for small businesses within the provided data. Further review of the contract details would be needed to assess potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific project progress reports may not always be publicly available.

Related Government Programs

General Services Administration (GSA) Public Buildings Service
Army Corps of Engineers - Military Construction
Department of Veterans Affairs - Medical Facility Construction

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Ensuring adherence to quality standards throughout a long-duration project.
Contractor performance risk over the 771-day project duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.5 million to DESBUILD INCORPORATED. BUILDING RENOVATION CONSTRUCTION

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 $26.5 million.

What is the period of performance?

Start: 2010-12-22. End: 2013-01-31.

What is the track record of DESBUILD INCORPORATED in completing federal construction contracts?

DESBUILD INCORPORATED has been awarded this definitive contract for building renovation construction by the Department of State. The provided data indicates a contract value of $26,519,600.40 with a duration of 771 days, ending in January 2013. To fully assess their track record, one would need to examine their performance on this and other contracts, looking for indicators of timely completion, adherence to budget, quality of work, and any history of disputes or contract modifications. A review of past performance evaluations and any debriefings from previous solicitations would offer deeper insights into their reliability as a federal contractor.

How does the awarded amount compare to similar building renovation projects for federal agencies?

The $26.5 million award for building renovation by the Department of State is a significant sum, indicative of a substantial project. To benchmark its value, comparisons should be made with other large-scale renovation or construction contracts undertaken by federal agencies for similar types of facilities (e.g., office buildings, administrative centers) over comparable timeframes. Factors such as geographic location, specific renovation scope (e.g., structural, MEP, interior finishes), and prevailing market conditions at the time of award (2010-2013) are crucial for a fair comparison. Without access to a database of comparable projects with detailed cost breakdowns, a precise value-for-money assessment is challenging, but the number of bidders suggests competitive market engagement.

What are the primary risks associated with a multi-year building renovation contract of this magnitude?

Key risks for a multi-year, multi-million dollar renovation project include potential cost overruns if the scope is not precisely defined or if unforeseen conditions arise (though mitigated by fixed-price). Schedule delays are also a significant risk, stemming from issues like material availability, labor shortages, weather impacts, or complex site conditions. Quality control is another major concern, requiring rigorous inspection and oversight to ensure the renovation meets all specifications and standards. Furthermore, the operational impact on the existing facility during renovation, potential safety hazards, and the contractor's financial stability throughout the project's duration are critical risk factors that require proactive management.

How effective was the full and open competition in achieving competitive pricing for this contract?

The fact that the contract was awarded under full and open competition with five bidders strongly suggests that competitive pricing was likely achieved. A larger number of bidders generally correlates with more robust price discovery, as companies are incentivized to offer their most competitive rates to win the contract. The firm-fixed-price (FFP) contract type further reinforces this, as it locks in the price, making the initial bid critical for the contractor's profitability. While the specific bid prices are not provided, the competitive landscape indicates that the Department of State had multiple options, reducing the likelihood of paying an inflated price compared to a sole-source or limited-competition scenario.

What is the historical spending trend for building renovation construction by the Department of State?

The provided data point represents a single contract award from late 2010. To understand historical spending trends for building renovation construction by the Department of State, a broader dataset encompassing multiple fiscal years and various contracts would be necessary. This would allow for analysis of annual spending levels, average contract values, the number of renovation projects awarded, and the prevalence of different contract types and competition levels over time. Such an analysis could reveal patterns related to budget allocations, infrastructure priorities, and the agency's reliance on specific contracting mechanisms for facility upkeep and modernization.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4744 BALTIMORE AVE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,519,600

Exercised Options: $26,519,600

Current Obligation: $26,519,600

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline