State Department Awards $27.5M Contract to Hargrove, LLC for NATO/G8 Summit Staging
Contract Overview
Contract Amount: $27,523,909 ($27.5M)
Contractor: Hargrove, LLC
Awarding Agency: Department of State
Start Date: 2011-12-09
End Date: 2012-09-06
Contract Duration: 272 days
Daily Burn Rate: $101.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS CONTRACT IS FOR THE STAGING OF THE MCCORMICK PLACE CONVENTION CENTER IN SUPPORT OF THE NATO/G8 SUMMITS BEING HELD IN CHICAGO, IL IN MAY, 2012.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60616
State: Illinois Government Spending
Plain-Language Summary
Department of State obligated $27.5 million to HARGROVE, LLC for work described as: THIS CONTRACT IS FOR THE STAGING OF THE MCCORMICK PLACE CONVENTION CENTER IN SUPPORT OF THE NATO/G8 SUMMITS BEING HELD IN CHICAGO, IL IN MAY, 2012. Key points: 1. Contract awarded for staging services at the 2012 NATO/G8 Summits in Chicago. 2. Hargrove, LLC, a convention and trade show organizer, received the award. 3. The contract value is $27.5 million, with a duration of 272 days. 4. Services include staging for a major international event, requiring significant logistical planning.
Value Assessment
Rating: fair
The contract value of $27.5 million for staging services for a major international summit appears within a reasonable range given the scale and complexity. Benchmarking against similar large-scale event staging contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher costs than a fully open process.
Taxpayer Impact: Taxpayer funds are used for staging a significant international diplomatic event, the cost of which is substantial but necessary for hosting such summits.
Public Impact
Ensures successful logistical execution of the high-profile NATO/G8 Summits. Supports international relations and diplomatic efforts by providing necessary infrastructure. Creates temporary employment opportunities related to event staging and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have impacted cost-effectiveness.
- Potential for cost overruns on large-scale event contracts.
Positive Signals
- Supports critical national and international diplomatic events.
- Awarded to a specialized firm with relevant industry experience.
Sector Analysis
The contract falls under the 'Convention and Trade Show Organizers' industry, a sector that experiences significant demand during major international events. Spending benchmarks for similar large-scale event productions can vary widely based on scope and duration.
Small Business Impact
The contract was awarded to Hargrove, LLC, and there is no indication of small business participation or subcontracting in the provided data. Further investigation would be needed to determine if small businesses were involved.
Oversight & Accountability
The Department of State managed this contract. Oversight would focus on ensuring timely and effective delivery of staging services, adherence to budget, and compliance with all contractual terms.
Related Government Programs
- Convention and Trade Show Organizers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for scope creep in large event contracts.
- Dependence on a single vendor for critical event infrastructure.
- Need for robust oversight to ensure quality and timeliness.
Tags
convention-and-trade-show-organizers, department-of-state, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $27.5 million to HARGROVE, LLC. THIS CONTRACT IS FOR THE STAGING OF THE MCCORMICK PLACE CONVENTION CENTER IN SUPPORT OF THE NATO/G8 SUMMITS BEING HELD IN CHICAGO, IL IN MAY, 2012.
Who is the contractor on this award?
The obligated recipient is HARGROVE, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $27.5 million.
What is the period of performance?
Start: 2011-12-09. End: 2012-09-06.
What specific staging elements were included in this $27.5 million contract?
The contract details are limited, but staging for a major international summit like NATO/G8 would typically encompass a wide range of services. This could include the design, setup, and dismantling of stages, platforms, lighting, sound systems, backdrops, and potentially temporary structures for press conferences, meeting rooms, and security perimeters.
What were the risks associated with awarding this contract under limited competition?
Limited competition increases the risk of non-optimal pricing, as fewer vendors are incentivized to offer their best rates. It also raises concerns about whether the most innovative or cost-effective solutions were considered. The government may have missed opportunities for better value or unique capabilities that a broader competition might have revealed.
How effectively did this contract support the overall goals of the NATO/G8 Summits?
Assuming the staging services were delivered as contracted, this award was crucial for the logistical success of the summits. Professional staging ensures a functional and appropriate environment for high-level diplomatic discussions, press briefings, and official proceedings, directly contributing to the summits' operational effectiveness and international image.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › Convention and Trade Show Organizers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 HARGROVE DR, LANHAM, MD, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $27,523,909
Exercised Options: $27,523,909
Current Obligation: $27,523,909
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-12-09
Current End Date: 2012-09-06
Potential End Date: 2012-09-06 00:00:00
Last Modified: 2012-09-17
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