DoD Awards $50.4M for Architectural Services to Foreign Entities Under Firm Fixed Price Contract
Contract Overview
Contract Amount: $50,357,169 ($50.4M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2012-02-22
End Date: 2027-08-12
Contract Duration: 5,650 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PART 3 HS NEW CONSTR. 7.1.2 - 7.1.3 SVC
Plain-Language Summary
Department of Defense obligated $50.4 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: PART 3 HS NEW CONSTR. 7.1.2 - 7.1.3 SVC Key points: 1. Significant contract value of $50.4M awarded. 2. Competition was full and open, but awardees are foreign. 3. Risk of foreign dependency and potential for cost overruns exist. 4. Architectural services sector is critical for infrastructure projects.
Value Assessment
Rating: fair
The contract is firm fixed price, which typically offers good value certainty. However, the lack of specific cost breakdowns and the foreign awardee status make a direct pricing assessment against domestic benchmarks challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to 'MISCELLANEOUS FOREIGN AWARDEES' raises questions about the breadth of domestic participation and potential price discovery limitations.
Taxpayer Impact: Taxpayer funds are being spent on architectural services, with the potential for funds to leave the domestic economy due to foreign awardees.
Public Impact
Potential impact on domestic small businesses in the architectural services sector. Questions regarding the strategic implications of awarding significant contracts to foreign entities. Ensuring quality and compliance with US standards for construction projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Foreign awardees
- Lack of specific domestic benchmarks
- Potential for cost escalation despite FFP
Positive Signals
- Firm Fixed Price contract type
- Full and open competition
Sector Analysis
This contract falls within the architectural services sector, which is essential for government construction and infrastructure projects. Spending benchmarks for this sector can vary widely based on project complexity and location.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. The award to foreign entities may limit opportunities for domestic small businesses in this significant contract.
Oversight & Accountability
Oversight will be crucial to ensure the quality of architectural services and adherence to project timelines, especially given the foreign awardee status and the long contract duration.
Related Government Programs
- Architectural Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for funds to leave the domestic economy.
- Challenges in oversight and quality control with foreign contractors.
- Lack of specific domestic benchmarks for comparison.
- Geopolitical risks impacting contract performance.
Tags
architectural-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.4 million to MISCELLANEOUS FOREIGN AWARDEES. PART 3 HS NEW CONSTR. 7.1.2 - 7.1.3 SVC
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $50.4 million.
What is the period of performance?
Start: 2012-02-22. End: 2027-08-12.
What is the rationale for awarding a significant architectural services contract to foreign entities instead of domestic firms?
The rationale for awarding to foreign entities could stem from specialized expertise, unique capabilities, or potentially more competitive pricing discovered during the full and open competition. However, without further details, it's difficult to ascertain the precise reasons. Agencies often seek the best value, which may sometimes lead to non-domestic awards if they meet all requirements and offer superior proposals.
What are the primary risks associated with awarding this contract to foreign entities?
Key risks include potential challenges in communication, cultural differences, and ensuring compliance with US building codes and standards. There's also a risk of funds leaving the domestic economy, potentially impacting US job creation. Furthermore, geopolitical factors or differing legal frameworks could introduce unforeseen complications or delays.
How does the firm fixed price (FFP) structure mitigate risks for this specific contract, given the foreign awardees?
The FFP structure is intended to provide cost certainty by fixing the price regardless of the contractor's actual costs. This mitigates the risk of cost overruns for the government. However, it places the cost risk on the contractor. For foreign awardees, this FFP might be set based on their own cost structures, which may differ significantly from domestic benchmarks, making direct value comparison difficult.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services
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: 1275 FIRST ST NE, WASHINGTON, DC, 20417
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,357,169
Exercised Options: $50,357,169
Current Obligation: $50,357,169
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-02-22
Current End Date: 2027-08-12
Potential End Date: 2027-08-12 00:00:00
Last Modified: 2022-03-16
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