State Department's $44.8M consulate project in Brazil awarded to Vistas Group Global Inc

Contract Overview

Contract Amount: $44,771,420 ($44.8M)

Contractor: THE Vistas Group Global Inc

Awarding Agency: Department of State

Start Date: 2015-02-06

End Date: 2017-06-30

Contract Duration: 875 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF LEASE FIT-OUT NEW CONSULATE OFFICE PROJECT IN PORTO ALEGRE, BRAZIL.

Plain-Language Summary

Department of State obligated $44.8 million to THE VISTAS GROUP GLOBAL INC for work described as: IGF::OT::IGF LEASE FIT-OUT NEW CONSULATE OFFICE PROJECT IN PORTO ALEGRE, BRAZIL. Key points: 1. The contract value represents a significant investment in overseas infrastructure. 2. Competition dynamics for this project warrant further examination given the contract type. 3. Performance risks are moderate, typical for large-scale construction projects in foreign locations. 4. The project's timeline of approximately two years is standard for such undertakings. 5. This contract falls within the broader category of federal construction and facilities management.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns for materials, labor, and overhead in Porto Alegre. The fixed-price nature suggests an attempt to control costs, but the final price could deviate if unforeseen issues arise. Compared to similar overseas consulate construction or renovation projects, the cost per square foot would be a key metric to assess value, which is not provided here. The total award amount of $44.8 million is substantial for a single project of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing than true full and open competition. The number of bidders is not specified, making it difficult to fully assess the level of competition.

Taxpayer Impact: The exclusion of certain sources, even if justified, may have reduced competitive pressure, potentially leading to a higher price for taxpayers than if all qualified vendors had been allowed to bid.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel, who will gain a new or improved consulate facility. The project delivers construction services for a new consulate office, enhancing diplomatic presence and operations. The geographic impact is localized to Porto Alegre, Brazil, but supports broader U.S. foreign policy objectives. Workforce implications include job creation for construction labor and related trades in the project's vicinity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur.
Risks associated with managing a large construction project in a foreign country, including logistical and regulatory challenges.
The 'exclusion of sources' in the competition process could indicate a less competitive environment than ideal.

Positive Signals

The definitive contract award provides a clear framework for project execution.
A fixed-price contract structure aims to provide cost certainty for the government.
The project addresses a clear need for enhanced diplomatic infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. Federal spending in this area often supports government operations, both domestically and internationally. The market for large-scale government construction projects is competitive, with specialized firms capable of handling complex, high-value contracts. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government facilities built in comparable regions.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the scale and nature of the project, it is likely that the prime contractor is a large business. There is no explicit information to suggest a direct positive or negative impact on the small business ecosystem, though large federal contracts can sometimes indirectly benefit small businesses through subcontracting opportunities if mandated or pursued by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General. The definitive contract structure implies a defined scope and payment terms, which aids in accountability. Transparency is facilitated by public contract databases, but detailed project-specific oversight reports or performance reviews are not readily available in this summary.

Related Government Programs

Overseas Buildings Operations (OBO) Projects
Department of State Facilities Management
International Construction Contracts
Federal Building and Renovation Projects

Risk Flags

Potential for cost escalation due to foreign location
Limited competition due to source exclusion
Contract performance risks in international settings

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $44.8 million to THE VISTAS GROUP GLOBAL INC. IGF::OT::IGF LEASE FIT-OUT NEW CONSULATE OFFICE PROJECT IN PORTO ALEGRE, BRAZIL.

Who is the contractor on this award?

The obligated recipient is THE VISTAS GROUP GLOBAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.8 million.

What is the period of performance?

Start: 2015-02-06. End: 2017-06-30.

What is the track record of The Vistas Group Global Inc. on similar federal contracts?

Information regarding The Vistas Group Global Inc.'s specific track record on federal contracts, particularly those of similar scale and complexity to the Porto Alegre consulate project, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Without this data, it's difficult to gauge their experience and reliability for large-scale international construction projects. Further research into federal procurement databases and contractor performance systems would be necessary to establish a detailed profile of their past performance.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data only includes the awarded amount ($44,771,420.45) and does not specify the initial estimated cost or the allocated budget for the consulate office project in Porto Alegre. Therefore, a direct comparison to assess whether the contract was awarded within, above, or below the estimated cost is not possible. Understanding the relationship between the awarded value and the initial budget is crucial for evaluating the effectiveness of the procurement process and the government's ability to secure favorable pricing. This information would typically be available in internal agency procurement documents.

What are the key performance indicators (KPIs) used to measure the success of this construction project?

The provided data does not specify the key performance indicators (KPIs) that will be used to measure the success of the consulate office project. Typically, for construction projects, KPIs would include adherence to schedule, budget compliance, quality of workmanship, safety record, and stakeholder satisfaction. For an overseas project like this, additional KPIs might relate to navigating local regulations, managing international logistics, and ensuring the facility meets all security and operational requirements of the Department of State. These KPIs are usually detailed in the contract's statement of work and performance standards.

Are there any specific risks identified by the Department of State or its Inspector General related to this contract?

The provided data summary does not explicitly list any specific risks identified by the Department of State or its Inspector General for this particular contract. However, general risks associated with large overseas construction projects, such as geopolitical instability, currency fluctuations, logistical challenges, and adherence to local building codes and labor laws, are inherent. The contract type (Firm Fixed Price) suggests an effort to mitigate financial risks for the government. A thorough risk assessment would typically be conducted during the planning and procurement phases and documented internally.

What is the historical spending pattern for similar overseas construction projects by the Department of State?

The provided data focuses on a single contract and does not offer historical spending patterns for similar overseas construction projects by the Department of State. To analyze historical spending, one would need access to broader datasets encompassing multiple contracts over several fiscal years. This analysis would involve identifying comparable projects (e.g., new consulates, embassy renovations, facility upgrades abroad), examining their award values, contract types, durations, and the agencies involved. Such a review could reveal trends in cost per square foot, average project duration, and the prevalence of different contracting approaches used by the State Department for its international infrastructure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11458 S COTTAGE GROVE AVE, CHICAGO, IL, 60628

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,771,420

Exercised Options: $44,771,420

Current Obligation: $44,771,420

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline