State Dept. Awards $18.5M Construction Contract to Undisclosed Foreign Entities via Full and Open Competition

Contract Overview

Contract Amount: $18,537,524 ($18.5M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2009-07-02

End Date: 2012-12-14

Contract Duration: 1,261 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $18.5 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Significant contract value of $18.5 million for overseas construction. 2. Competition method was 'Full and Open', but awardees are undisclosed foreign entities. 3. Risk associated with foreign awardees and lack of transparency. 4. Construction sector contract with a firm fixed price type.

Value Assessment

Rating: questionable

The contract value of $18.5 million is substantial for overseas construction. Without knowing the specific nature of the construction and the foreign market, a direct pricing assessment is difficult. However, the lack of disclosed awardees raises concerns about potential overpricing or lack of competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' which theoretically allows all responsible sources to submit offers. However, the fact that the awardees are undisclosed foreign entities makes it difficult to assess the true breadth and effectiveness of this competition in driving down costs.

Taxpayer Impact: Taxpayer funds are being used for overseas construction. While competition was intended, the lack of transparency regarding awardees makes it challenging to ensure optimal value for taxpayer money.

Public Impact

Taxpayer funds are being spent on construction projects in undisclosed overseas locations. Lack of transparency regarding the specific foreign entities receiving these funds raises accountability questions. Potential for funds to support foreign economies without clear benefit or oversight for US interests.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed foreign awardees
Lack of transparency in competition outcome
Potential for funds to be used in politically sensitive regions

Positive Signals

Firm Fixed Price contract type
Full and Open Competition was utilized

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector. Overseas construction projects can be complex and costly due to logistical challenges, differing regulatory environments, and geopolitical factors. Benchmarking is difficult without specific project details and location.

Small Business Impact

The data indicates no specific set-aside for small businesses. Given the nature of overseas heavy construction contracts, it is unlikely that small businesses would be primary awardees, though they might participate as subcontractors.

Oversight & Accountability

The 'undisclosed foreign awardees' is a significant oversight flag. Robust oversight is needed to ensure funds are used appropriately, projects are completed to standard, and there are no conflicts of interest or misuse of taxpayer money.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of State Contracting
Department of State Programs

Risk Flags

Lack of transparency regarding awardees
Potential for undisclosed foreign entities to lack accountability
Difficulty in verifying fair pricing and competition effectiveness
Geopolitical risks associated with overseas contracts
Limited visibility into project execution and quality control

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $18.5 million to FOREIGN AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2009-07-02. End: 2012-12-14.

What specific construction services were procured, and what was the justification for using foreign awardees?

The specific construction services are categorized broadly as 'Other Heavy and Civil Engineering Construction.' A detailed justification for selecting foreign awardees, especially when undisclosed, would be crucial. This could involve unique expertise, specific regional requirements, or cost-effectiveness not available domestically. Without this information, it's difficult to ascertain if the procurement truly served the best interests of the government.

How was the 'Full and Open Competition' process managed to ensure fair pricing and prevent collusion, given the undisclosed foreign awardees?

The management of the 'Full and Open Competition' process is critical here. While the mechanism was used, the lack of transparency regarding the awardees makes it impossible to verify if the process truly led to the best possible price discovery. Agencies must ensure that bid evaluation criteria are clear, and that the selection process, even for foreign entities, is documented and defensible to ensure taxpayer value and prevent potential fraud or favoritism.

What mechanisms are in place to ensure accountability and quality control for construction projects performed by undisclosed foreign entities overseas?

Accountability and quality control for overseas projects by foreign entities typically rely on contract clauses, performance bonds, and on-site government representatives. However, with undisclosed awardees, the effectiveness of these mechanisms is harder to gauge. The Department of State would need rigorous inspection protocols and clear recourse for non-performance or substandard work to mitigate risks associated with foreign execution and lack of direct oversight.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,537,524

Exercised Options: $18,537,524

Current Obligation: $18,537,524

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline