State Department awards $36.1M contract for Bangladesh compound security upgrade to DESBUILD INCORPORATED

Contract Overview

Contract Amount: $36,114,802 ($36.1M)

Contractor: Desbuild Incorporated

Awarding Agency: Department of State

Start Date: 2017-09-29

End Date: 2021-05-11

Contract Duration: 1,320 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD FOR COMPOUND SECURITY UPGRADE LOCATED IN DHAKA, BANGLADESH.IGF::OT::IGF

Plain-Language Summary

Department of State obligated $36.1 million to DESBUILD INCORPORATED for work described as: AWARD FOR COMPOUND SECURITY UPGRADE LOCATED IN DHAKA, BANGLADESH.IGF::OT::IGF Key points: 1. Contract awarded for a significant security infrastructure project in a high-risk environment. 2. The contract utilized full and open competition, suggesting a broad market search. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration spans over three years, indicating a substantial scope of work. 5. The award represents a notable investment in diplomatic facility security abroad.

Value Assessment

Rating: fair

The contract value of $36.1 million for a compound security upgrade is substantial. Benchmarking this against similar projects is challenging without specific details on the scope of security enhancements (e.g., blast resistance, access control systems, perimeter hardening). However, the fixed-price nature suggests an attempt to cap costs. The duration of 1320 days (approx. 3.6 years) indicates a long-term commitment, and the total value divided by the duration suggests an average annual spend of roughly $10 million, which appears within a reasonable range for major construction and security projects of this scale, though specific cost-effectiveness requires deeper analysis of deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data shows 2 offers were received. While the number of bidders is low, the 'full and open' designation suggests the government actively sought competition. The limited number of offers could imply a specialized market or high barriers to entry for potential bidders, which might impact price discovery and potentially lead to higher prices than if more bids were received.

Taxpayer Impact: A full and open competition was intended to ensure the best value for taxpayers. However, with only two offers received, the level of competition may not have been sufficient to drive prices down as much as possible.

Public Impact

The primary beneficiaries are the U.S. Department of State personnel and operations in Dhaka, Bangladesh, through enhanced security. The contract delivers critical infrastructure improvements and security upgrades to a diplomatic compound. The geographic impact is localized to the U.S. Embassy in Dhaka, Bangladesh. The project likely involves a significant construction workforce, potentially including local labor and specialized security contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (2) despite full and open competition could indicate potential market concentration or high barriers to entry, possibly impacting price.
Long contract duration (1320 days) increases exposure to potential cost overruns or scope creep if not managed tightly.
Fixed-price contract type, while good for cost control, can sometimes lead to reduced scope or quality if unforeseen issues arise and the contractor seeks to minimize losses.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
Firm Fixed Price contract type provides cost certainty for the government.
The project addresses critical security needs for a U.S. diplomatic facility abroad.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to security infrastructure. The global market for diplomatic security construction is specialized, driven by geopolitical risks and the need for robust, often custom-built facilities. Spending in this area is directly tied to government security priorities and international relations. Comparable benchmarks would involve other U.S. embassy or consulate construction and upgrade projects worldwide, which often involve significant capital investment due to stringent security requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary contractor, DESBUILD INCORPORATED, is presumably a larger entity capable of undertaking such a significant project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Diplomatic Security and its contracting officers. Given the overseas location and nature of the work, there may also be involvement from the Office of the Inspector General (OIG) for audits and investigations. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance.

Related Government Programs

Worldwide Diplomatic Security Upgrades
Embassy Construction and Renovation Projects
Overseas Facility Security Contracts
Department of State Construction Contracts

Risk Flags

Potential for cost overruns due to long duration
Limited competition may impact final price
Security risks inherent in overseas construction projects
Need for robust quality assurance on security features

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $36.1 million to DESBUILD INCORPORATED. AWARD FOR COMPOUND SECURITY UPGRADE LOCATED IN DHAKA, BANGLADESH.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 $36.1 million.

What is the period of performance?

Start: 2017-09-29. End: 2021-05-11.

What specific security enhancements does the $36.1 million award cover for the Dhaka compound?

The provided data does not specify the exact security enhancements included in the $36.1 million award for the Dhaka compound. However, typical compound security upgrades for diplomatic facilities often encompass a range of measures such as perimeter hardening (e.g., reinforced walls, anti-climb fencing), access control systems (e.g., biometric scanners, vehicle barriers), surveillance and monitoring systems (e.g., CCTV, intrusion detection), blast-resistant features for buildings, and potentially improvements to internal security protocols. The scope is likely tailored to the specific threat assessment for the U.S. Embassy in Dhaka, Bangladesh, and aims to meet or exceed established security standards for diplomatic missions abroad.

How does the price of $36.1 million compare to similar overseas compound security upgrades?

Directly comparing the $36.1 million award to similar overseas compound security upgrades is challenging without detailed project scope and location-specific cost factors. However, major security construction projects for diplomatic facilities can range from tens to hundreds of millions of dollars, depending on the size of the compound, the level of threat, and the specific technologies and materials employed. For instance, projects involving new embassy construction or significant retrofitting for enhanced force protection often exceed this amount. The $36.1 million for a 'compound security upgrade' suggests a substantial but potentially focused scope, possibly involving upgrades to existing structures and perimeter rather than a complete new build. The fixed-price nature and full and open competition are positive indicators for value, but a true benchmark requires comparing specific deliverables and security standards.

What are the key risks associated with a long-duration construction contract in Bangladesh?

Key risks associated with a long-duration construction contract like this (1320 days) in Bangladesh include geopolitical instability, potential changes in local regulations or labor laws, currency fluctuations affecting material costs if not fully hedged, supply chain disruptions (both international and local), and the physical security of the worksite and personnel. For a diplomatic facility, security risks are paramount, requiring robust measures to protect workers and the site itself. Furthermore, managing a project over an extended period increases the likelihood of encountering unforeseen site conditions, material degradation, or the need to adapt to evolving security threats, all of which can impact schedule and cost if not proactively managed through strong contract oversight and risk mitigation strategies.

What is the track record of DESBUILD INCORPORATED in executing large-scale government construction contracts?

Information on DESBUILD INCORPORATED's specific track record with large-scale government construction contracts, particularly those involving diplomatic security infrastructure, is not detailed in the provided data. As the awardee, they would have presumably met the qualifications outlined in the solicitation. A comprehensive assessment would require reviewing their past performance evaluations (e.g., CPARS), project portfolio, financial stability, and experience with similar international projects and security requirements. Without this external data, it's difficult to definitively assess their capability to successfully execute this $36.1 million contract, although the government's selection implies they met the necessary criteria at the time of award.

How does the fixed-price contract type influence the government's risk exposure on this project?

The Firm Fixed Price (FFP) contract type generally shifts the majority of the cost risk to the contractor, DESBUILD INCORPORATED. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases related to labor, materials, or other direct costs. This provides significant cost certainty for the Department of State. However, the government retains risks related to scope definition and performance. If the scope is poorly defined or changes significantly, change orders may be necessary, potentially increasing the total cost. Additionally, the government bears the risk that the contractor might cut corners on quality or safety to maintain profitability under the fixed price, necessitating robust government oversight and quality assurance measures to ensure the security objectives are met.

What is the historical spending pattern for compound security upgrades by the Department of State?

The provided data focuses on a single contract award and does not offer historical spending patterns for compound security upgrades by the Department of State. To analyze historical spending, one would need to examine contract data over multiple fiscal years, filtering for similar contract types (e.g., construction, security systems), objectives (e.g., facility security, upgrades), and geographic regions (e.g., high-risk posts). Such an analysis would reveal trends in contract values, frequency of awards, average contract durations, and the distribution of spending across different security initiatives. This single award of $36.1 million represents one data point within the broader context of the State Department's ongoing investments in securing its global presence.

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

Solicitation ID: SAQMMA17R0199

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4744 BALTIMORE AVE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,114,802

Exercised Options: $36,114,802

Current Obligation: $36,114,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline