State Department spent $23.75M on Montreal tenant fit-out, awarded via full and open competition

Contract Overview

Contract Amount: $23,754,707 ($23.8M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2014-08-13

End Date: 2019-10-31

Contract Duration: 1,905 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF. MONTREAL TENANT FIT-OUT OF LEASED FACILITY, MONTREAL, QUEBEC

Plain-Language Summary

Department of State obligated $23.8 million to DESBUILD INCORPORATED for work described as: IGF::OT::IGF. MONTREAL TENANT FIT-OUT OF LEASED FACILITY, MONTREAL, QUEBEC Key points: 1. The contract value of $23.75 million for a tenant fit-out appears substantial for a single facility modification. 2. Awarded through full and open competition, suggesting a competitive bidding process was utilized. 3. The contract duration of 1905 days (over 5 years) indicates a long-term project or service requirement. 4. The fixed-price contract type shifts performance risk to the contractor, DESBUILD INCORPORATED. 5. The lack of small business set-aside or subcontracting information warrants further investigation into small business participation. 6. The geographic location in Montreal, Quebec, suggests a need for facilities supporting U.S. diplomatic or consular operations abroad.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of the fit-out. However, a $23.75 million expenditure for modifying leased space, even for a significant facility, warrants scrutiny. Comparing this to similar international facility fit-out projects by the State Department or other agencies could reveal if the pricing is within expected ranges. The fixed-price nature suggests that the contractor bore the risk of cost overruns, which can sometimes lead to higher initial bids.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources may have been excluded prior to the final solicitation. The presence of 2 bids suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through a wide range of offers. However, the exclusion of sources prior to the main competition could potentially limit the number of competitive bids received.

Public Impact

The primary beneficiaries are likely U.S. government personnel and operations housed within the Montreal facility, ensuring a functional and secure workspace. The services delivered involved the construction and fit-out of leased commercial space, adapting it to specific government requirements. The geographic impact is localized to Montreal, Quebec, Canada, supporting U.S. diplomatic or consular presence. Workforce implications would include employment opportunities for construction and trade workers in the Montreal area during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific reasons for excluding certain sources prior to the 'full and open' competition.
Potential for limited competition if the exclusion criteria significantly narrowed the field of eligible bidders.
The substantial contract value raises questions about cost-effectiveness and whether alternative solutions were considered.
Absence of readily available data on small business participation or subcontracting plans.

Positive Signals

Awarded through a full and open competition process, which generally promotes competitive pricing.
The fixed-price contract type transfers cost overrun risk to the contractor.
The contract duration suggests a long-term need, potentially indicating strategic planning for overseas facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for such services is global, with significant activity driven by government agencies requiring facilities abroad. Benchmarking against similar international construction and fit-out projects for government entities would be necessary to fully assess value for money. The size of this specific contract suggests a significant project within this sector.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans or actual small business participation. Further investigation would be needed to determine if small businesses had opportunities to participate as subcontractors and what the overall impact on the small business ecosystem was for this project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's Bureau of Overseas Buildings Operations (OBO) or equivalent internal oversight bodies responsible for managing diplomatic facilities. Accountability measures are inherent in the fixed-price contract structure, requiring DESBUILD INCORPORATED to deliver the specified fit-out within the agreed price. Transparency could be enhanced by making detailed project reports and cost breakdowns publicly available.

Related Government Programs

Department of State Facilities Management
Overseas Diplomatic Construction Projects
International Leased Facility Modernization
Commercial Building Fit-Out Contracts

Risk Flags

Potential for limited competition due to source exclusion
Lack of detailed cost breakdown for value assessment
Absence of small business subcontracting data
Unknown contractor performance history

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.8 million to DESBUILD INCORPORATED. IGF::OT::IGF. MONTREAL TENANT FIT-OUT OF LEASED FACILITY, MONTREAL, QUEBEC

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 $23.8 million.

What is the period of performance?

Start: 2014-08-13. End: 2019-10-31.

What were the specific requirements and scope of work for the Montreal tenant fit-out?

The specific requirements and scope of work for the Montreal tenant fit-out are not detailed in the provided data. However, based on the contract description 'MONTREAL TENANT FIT-OUT OF LEASED FACILITY,' it can be inferred that the project involved adapting a leased commercial space to meet the operational and security needs of a U.S. government entity, likely the Department of State. This typically includes interior construction, installation of necessary utilities, security enhancements, and potentially specialized equipment or systems to support diplomatic functions. The substantial value of $23.75 million suggests a comprehensive renovation or build-out rather than minor modifications.

How did the two bids received compare in terms of price and technical approach?

The provided data indicates that two bids were received for this contract. However, specific details regarding the comparison of these bids, including their pricing, technical proposals, and the rationale for selecting DESBUILD INCORPORATED's bid, are not available. Typically, a contracting officer would evaluate bids based on pre-defined criteria outlined in the solicitation. Understanding the difference between the two bids would shed light on the competitiveness of the process and whether the government secured optimal value. Without this information, it's difficult to assess if the winning bid was significantly lower or higher than the alternative.

What is the typical cost per square foot for similar international facility fit-out projects by the U.S. government?

Determining a precise 'typical' cost per square foot for international facility fit-outs by the U.S. government is complex due to significant variations in location, labor costs, material prices, security requirements, and the specific scope of work. However, for significant renovations or fit-outs in major international cities, costs can range widely, often from $300 to $1000+ per square foot, especially when factoring in specialized security and technological infrastructure common in diplomatic facilities. Without knowing the square footage of the leased facility in Montreal and the detailed scope of DESBUILD INCORPORATED's work, a direct comparison to establish value for money is not feasible with the current data.

What is the track record of DESBUILD INCORPORATED with the Department of State or other federal agencies?

The provided data identifies DESBUILD INCORPORATED as the contractor but does not offer details on their past performance or track record with the Department of State or other federal agencies. A comprehensive assessment of contractor reliability and past performance is crucial for evaluating contract risk and ensuring successful project execution. Further research into federal procurement databases and past performance reviews would be necessary to ascertain DESBUILD INCORPORATED's history, including any previous contracts, their value, and client satisfaction ratings.

Were there any performance issues or contract modifications during the 5-year period?

The provided data does not include information on contract modifications, performance issues, or disputes that may have occurred during the 1905-day (approximately 5.2 years) duration of this contract. Contracts, especially those of long duration and significant value, often undergo modifications to adjust scope, schedule, or funding. Analyzing these modifications and any associated performance reviews or issue logs would provide a clearer picture of the contractor's execution and the overall success of the project.

What is the rationale behind 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this specific contract?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain potential sources were excluded prior to the main solicitation phase. The specific reasons for this exclusion are not detailed in the provided data. Typically, such exclusions might occur due to reasons like the need for specific security clearances, unique capabilities, or prior performance issues with certain contractors. Understanding the justification for excluding sources is important for assessing whether the competition was truly as open as possible and if it potentially limited the range of competitive offers received by the government.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $23,754,707

Exercised Options: $23,754,707

Current Obligation: $23,754,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA14D0063

IDV Type: IDC

Timeline