State Department's $35.9M Consulate Renovation Contract Awarded to Enviro-Management & Research, Inc

Contract Overview

Contract Amount: $35,932,186 ($35.9M)

Contractor: Enviro-Management & Research, Inc.

Awarding Agency: Department of State

Start Date: 2011-09-30

End Date: 2014-11-16

Contract Duration: 1,143 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE 2 OF MAJOR RENOVATION AT US CONSULATE FRANKFURT

Plain-Language Summary

Department of State obligated $35.9 million to ENVIRO-MANAGEMENT & RESEARCH, INC. for work described as: PHASE 2 OF MAJOR RENOVATION AT US CONSULATE FRANKFURT Key points: 1. The contract represents a significant investment in diplomatic infrastructure. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance history of the contractor will be a key indicator of successful project completion. 4. The project's duration and firm-fixed-price nature suggest a defined scope and budget. 5. This contract falls within the broader category of federal spending on facility modernization and maintenance.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without detailed cost breakdowns and scope comparisons. The total award amount of $35.9 million for a consulate renovation suggests a substantial project. However, without comparable projects of similar scale and complexity, assessing whether this represents excellent value for money is difficult. The firm-fixed-price contract type offers some cost certainty, but the final value depends on the contractor's efficiency and management of unforeseen issues.

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 likely had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and encourage innovation. The presence of three bidders, as indicated, suggests a reasonable level of competition for this specialized construction service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for services rendered, preventing potential overpricing associated with less competitive scenarios.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel, who will utilize the renovated consulate facilities. The project delivers essential infrastructure improvements, ensuring the operational capacity and security of the U.S. diplomatic mission in Frankfurt. The geographic impact is localized to Frankfurt, Germany, enhancing U.S. diplomatic presence in the region. Workforce implications include employment opportunities for construction workers, project managers, and support staff, both directly and indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Ensuring timely completion within the 1143-day duration is critical to avoid extended disruption of consulate operations.
Quality control and adherence to construction standards for a diplomatic facility require rigorous oversight.

Positive Signals

The firm-fixed-price contract structure provides a degree of budget predictability.
Awarding under full and open competition suggests a robust vetting of potential contractors.
The project addresses critical infrastructure needs for a key diplomatic outpost.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The federal government is a significant consumer of construction services for its vast portfolio of domestic and international facilities. Spending in this area often involves large, complex projects requiring specialized expertise. Comparable spending benchmarks would include other major renovation or new construction projects for federal buildings or embassies abroad.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the scale and nature of the project, it is likely that the prime contractor, Enviro-Management & Research, Inc., would be responsible for subcontracting portions of the work. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Department of State's Bureau of Overseas Buildings Operations (OBO) or a designated contracting officer's representative. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Federal Building Construction
Embassy and Consulate Construction/Renovation
Department of State Facilities Management
Overseas Infrastructure Projects

Risk Flags

Potential for cost overruns
Schedule delays
Quality control issues
Security compliance challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $35.9 million to ENVIRO-MANAGEMENT & RESEARCH, INC.. PHASE 2 OF MAJOR RENOVATION AT US CONSULATE FRANKFURT

Who is the contractor on this award?

The obligated recipient is ENVIRO-MANAGEMENT & RESEARCH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2011-09-30. End: 2014-11-16.

What is the track record of Enviro-Management & Research, Inc. on similar federal construction projects?

A review of federal contract databases indicates that Enviro-Management & Research, Inc. has a history of performing various construction and environmental services for government agencies. Specific details on past performance for projects of similar scale and complexity to the Frankfurt consulate renovation would require a deeper dive into contract award histories, performance evaluations (if publicly available), and any documented disputes or claims. Understanding their experience with international construction standards and security requirements for diplomatic facilities is particularly important for assessing their suitability for this project.

How does the awarded amount compare to the estimated cost or market rates for similar consulate renovations?

Without access to the original solicitation, the government's cost estimate, or detailed project specifications, a direct comparison of the $35.9 million award to market rates is difficult. However, the firm-fixed-price nature suggests that the bids received were considered acceptable within the government's budget expectations at the time of award. To benchmark effectively, one would need data on recent renovations of comparable U.S. diplomatic facilities in terms of size, age, scope of work (e.g., structural, MEP, security upgrades), and geographic location. The number of bidders (three) suggests some level of competitive pricing was achieved.

What are the primary risks associated with a large-scale international construction project like this?

Key risks include unforeseen site conditions (e.g., soil issues, hazardous materials), fluctuations in local labor and material costs (though mitigated by fixed-price), currency exchange rate volatility if applicable, logistical challenges in procuring and transporting materials, security concerns in the host country, and potential delays due to local regulations or permitting processes. For a diplomatic facility, ensuring compliance with stringent security and operational standards adds another layer of complexity. Contractor performance and project management are critical to mitigating these risks.

How effective are firm-fixed-price contracts in managing costs for complex construction projects?

Firm-fixed-price (FFP) contracts are generally preferred when the scope of work is well-defined and risks can be reasonably assessed. They offer the government the most cost certainty, as the contractor assumes most of the risk for cost overruns. However, for highly complex projects with potential for unforeseen issues, FFP contracts can sometimes lead contractors to build in significant contingencies, potentially increasing the initial price. Effective management and clear contract specifications are crucial to ensure the FFP structure delivers value without stifling necessary project adjustments.

What is the historical spending pattern for U.S. Department of State facility renovations abroad?

The U.S. Department of State consistently invests significant funds in the maintenance, renovation, and construction of its diplomatic facilities worldwide through its Bureau of Overseas Buildings Operations (OBO). Historical spending reflects a continuous need to modernize aging infrastructure, enhance security, and adapt facilities to evolving diplomatic requirements. Annual budgets allocated to OBO often run into the billions of dollars, covering a wide range of projects from minor repairs to major new embassy constructions and extensive renovations like the one in Frankfurt. This contract represents one component of that larger, ongoing investment strategy.

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

Address: 5915-B BACKLICK RD, SPRINGFIELD, VA, 22150

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,932,186

Exercised Options: $35,932,186

Current Obligation: $35,932,186

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline