State Department Awards $56M Construction Contract to DESBUILD INCORPORATED via Full and Open Competition

Contract Overview

Contract Amount: $55,994,836 ($56.0M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2013-09-27

End Date: 2022-12-31

Contract Duration: 3,382 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT AWARD IGF::OT::IGF

Plain-Language Summary

Department of State obligated $56.0 million to DESBUILD INCORPORATED for work described as: CONTRACT AWARD IGF::OT::IGF Key points: 1. Contract value of $55.99 million for commercial and institutional building construction. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. DESBUILD INCORPORATED is the sole awardee. 4. The contract duration is 3382 days, spanning from 2013 to 2022.

Value Assessment

Rating: fair

The contract value of $55.99 million is significant for a construction project. Without specific benchmarks for similar institutional building construction contracts of this scale and complexity, a precise pricing assessment is difficult. However, the duration suggests a long-term engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Ensures infrastructure development and maintenance for the Department of State. Supports the construction industry and associated labor. Long-term contract may indicate ongoing needs for facility management or upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (3382 days) could lead to cost overruns or scope creep if not managed effectively.
Lack of small business participation noted (ss: false, sb: false).

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector is driven by government infrastructure needs, facility upgrades, and new construction projects. Benchmarks vary widely based on project scope, location, and complexity.

Small Business Impact

The data indicates no specific set-aside for small businesses (ss: false, sb: false). This suggests that the competition was not specifically targeted towards small business participation, and larger firms were likely the primary bidders.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of State to ensure project milestones are met, costs remain controlled, and the final deliverables meet specifications. Regular performance reviews are crucial.

Related Government Programs

Commercial and Institutional Building Construction
Department of State Contracting
Department of State Programs

Risk Flags

Long contract duration (3382 days).
No indication of small business participation.
Potential for cost escalation over the contract term.
Need for strong government oversight due to contract length.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $56.0 million to DESBUILD INCORPORATED. CONTRACT AWARD IGF::OT::IGF

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 $56.0 million.

What is the period of performance?

Start: 2013-09-27. End: 2022-12-31.

What specific types of commercial and institutional buildings were constructed or renovated under this contract, and how does the final cost compare to the initial scope and market rates for similar p

The provided data does not detail the specific types of buildings constructed or renovated. To assess value, a comparison with market rates for similar institutional building construction projects of comparable size, complexity, and location would be necessary. Analyzing the initial bid versus the final cost, considering any change orders, is also crucial for a comprehensive value assessment.

Given the 3382-day duration, what risk mitigation strategies were in place to manage potential cost escalations, material price fluctuations, and unforeseen site conditions?

A firm fixed price contract offers some cost control, but the long duration inherently carries risks. Effective mitigation would involve detailed contract clauses addressing escalation, contingency planning for unforeseen conditions, and regular performance reviews to identify and address potential issues early. The government's oversight team plays a critical role in managing these risks throughout the contract lifecycle.

How did the full and open competition process ensure the most effective and efficient use of taxpayer funds for this significant construction award?

Full and open competition allows multiple qualified contractors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The effectiveness is measured by whether the chosen contractor offered the best value considering price, technical approach, and past performance. The Department of State's evaluation process would have been key to ensuring this outcome.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4744 BALTIMORE AVENUE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,994,836

Exercised Options: $55,994,836

Current Obligation: $55,994,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline