DoD Army Awards $19.3M Design-Build Contract for Commercial Building Construction

Contract Overview

Contract Amount: $19,275,689 ($19.3M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-04-29

End Date: 2014-03-30

Contract Duration: 1,066 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD

Plain-Language Summary

Department of Defense obligated $19.3 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: DESIGN BUILD Key points: 1. Contract awarded to foreign entities, raising transparency concerns. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. The contract value is moderate within the commercial construction sector. 4. Fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The contract value of $19.3 million for a design-build project appears within a reasonable range for commercial and institutional building construction. However, without specific project scope details or comparable project data, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to better pricing. The presence of foreign awardees, however, might obscure the full competitive landscape and impact price discovery.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by promoting market efficiency. The undisclosed nature of foreign awardees could potentially limit transparency and the full realization of cost savings.

Public Impact

Potential impact on domestic construction firms due to foreign awardees. Transparency concerns regarding the identity and capabilities of foreign contractors. Government's ability to ensure quality and compliance with US standards for foreign contractors. Economic implications of awarding construction contracts to non-US entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding foreign awardees.
Potential for undisclosed foreign influence or security risks.
Difficulty in assessing true competitive landscape with undisclosed foreign entities.

Positive Signals

Utilized full and open competition.
Firm fixed-price contract type for cost control.
Awarded by a major agency (Department of the Army).

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. Benchmarks for similar design-build projects would be needed for a precise comparison.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to foreign entities further suggests that small business participation may have been limited or non-existent.

Oversight & Accountability

The use of full and open competition is a positive oversight mechanism. However, the lack of transparency regarding foreign awardees raises concerns about the thoroughness of due diligence and accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of transparency regarding foreign awardees.
Potential national security implications of foreign involvement in DoD construction.
Difficulty in verifying contractor qualifications and past performance.
Risk of non-compliance with US regulations and standards.
Potential for capital flight and reduced domestic economic benefit.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to FOREIGN AWARDEES (UNDISCLOSED). DESIGN BUILD

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2011-04-29. End: 2014-03-30.

What specific factors contributed to the selection of foreign awardees over domestic firms for this significant construction project?

The selection of foreign awardees could be attributed to various factors, including potentially lower bids, specialized expertise not readily available domestically, or specific international partnership agreements. However, without further disclosure, the exact reasons remain speculative. The government's justification for not prioritizing domestic firms would be crucial for understanding this decision.

How does the government ensure compliance, quality control, and adherence to US labor and safety standards when awarding contracts to undisclosed foreign entities?

Ensuring compliance from foreign entities typically involves stringent contract clauses, performance bonds, and rigorous inspection protocols. The government would need to establish clear mechanisms for oversight, dispute resolution, and verification of adherence to US standards, even if the awardees' identities are not fully public. The effectiveness of these measures is critical.

What is the long-term economic impact on the domestic construction industry when contracts of this magnitude are awarded to foreign companies?

Awarding significant contracts to foreign companies can lead to a diversion of capital and job opportunities away from the domestic economy. While competition can drive down costs, a consistent trend of awarding to foreign entities could stifle growth and innovation within the US construction sector, potentially impacting its competitiveness in the long run.

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: W5J9JE11R0016

Offers Received: 17

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: $19,275,689

Exercised Options: $19,275,689

Current Obligation: $19,275,689

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline