State Department Awards $28.8M Lease-Fit-Out Contract for Wuhan Consulate
Contract Overview
Contract Amount: $28,774,587 ($28.8M)
Contractor: Williams Building Company, Inc.
Awarding Agency: Department of State
Start Date: 2016-06-15
End Date: 2020-12-31
Contract Duration: 1,660 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF. WUHAN, CHINA. CONSULAR AFFAIR LEASE-FIT-OUT.(CA LFO). CONTRACT AWARD.
Plain-Language Summary
Department of State obligated $28.8 million to WILLIAMS BUILDING COMPANY, INC. for work described as: IGF::OT::IGF. WUHAN, CHINA. CONSULAR AFFAIR LEASE-FIT-OUT.(CA LFO). CONTRACT AWARD. Key points: 1. Significant investment in diplomatic infrastructure. 2. Competition was full and open, suggesting market availability. 3. Fixed-price contract aims to control costs. 4. Construction sector spending benchmark needs further analysis.
Value Assessment
Rating: fair
The contract value of $28.8M for a lease-fit-out project in Wuhan appears substantial. Benchmarking against similar international facility construction projects is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are utilized for essential diplomatic operations and infrastructure maintenance abroad.
Public Impact
Ensures continued U.S. diplomatic presence and operations in Wuhan. Supports local economy through construction jobs and material sourcing. Modernization of consular facilities can improve service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex international construction.
- Geopolitical factors in Wuhan could impact project timeline or costs.
- Long project duration (2016-2020) may have led to scope creep or price escalation.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive bidding process.
- Project aims to modernize critical diplomatic infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can fluctuate based on economic conditions and government infrastructure needs. The $28.8M award is a significant project within this category.
Small Business Impact
The data indicates the award went to WILLIAMS BUILDING COMPANY, INC. There is no specific information provided regarding small business participation or subcontracting goals for this contract.
Oversight & Accountability
Oversight would typically involve regular progress reports, site inspections, and financial reviews by the Department of State to ensure contract compliance and quality of work.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost escalation due to long project duration.
- Geopolitical risks associated with operating in Wuhan, China.
- Complexity of international construction projects.
- Lack of explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $28.8 million to WILLIAMS BUILDING COMPANY, INC.. IGF::OT::IGF. WUHAN, CHINA. CONSULAR AFFAIR LEASE-FIT-OUT.(CA LFO). CONTRACT AWARD.
Who is the contractor on this award?
The obligated recipient is WILLIAMS BUILDING COMPANY, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2016-06-15. End: 2020-12-31.
What was the specific scope of work for this lease-fit-out project, and how did it align with the final cost?
The specific scope of work for the Wuhan Consulate lease-fit-out would detail the renovations, installations, and modifications required to make the leased space suitable for consular operations. This could include office build-outs, security enhancements, IT infrastructure, and utility upgrades. The final cost reflects the sum of these activities, including labor, materials, and contractor profit, over the project's duration.
What were the primary risks identified during the bidding process for this international construction project?
Primary risks for an international construction project like this often include logistical challenges in sourcing materials and labor, navigating local regulations and permitting, currency exchange rate fluctuations, and potential political instability or unforeseen geopolitical events impacting operations. Security risks for personnel and the facility itself are also a significant consideration.
How effectively did the firm fixed-price contract manage cost fluctuations given the project's long duration?
A firm fixed-price contract is designed to transfer most cost overrun risk to the contractor. However, for a long-duration project (2016-2020), the initial price might not fully account for inflation, material price volatility, or significant changes in labor costs. Effective management would depend on the contractor's ability to absorb these, or if contract modifications were necessary and justified.
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
Solicitation Procedures: TWO STEP
Solicitation ID: SAQMMA15R0145
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 196 OLD TOWN HOUSE RD, WEST YARMOUTH, MA, 02673
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $28,774,587
Exercised Options: $28,774,587
Current Obligation: $28,774,587
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-15
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2023-04-03
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