Sources Sought Notice_FINAL.pdf

U.S. Department of State

INTEGRITY | SOLUTIONS-ORIENTED | HIGH-PERFORMING | DETERMINED

SBU - CONTRACTING AND ACQUISITIONS

Base Notice: Sources Sought for Design Build Capital Construction Projects Indefinite

Delivery/Indefinite Quantity Contracts

Notice Type:

Sources Sought

Posted Date:

September 8, 2025

Response Date:

December 5, 2025, EST

3:00pm

Archiving Policy:

15 days after Release

Classification Code:

Y1AA – Construction of Office Buildings

NAICS Code:

236 -- Construction of Buildings/236220 -- Commercial and Institutional Building Construction

NOTICE INFORMATION

Agency/Office:

Acquisition Management Directorate Office of Diplomatic Mission Support, Building Construction & Engineering Division

Location:

Arlington, VA

Title:

US Department of State Design Build Capital Projects Construction Manager Program Indefinite

Delivery/Indefinite Quantity Contracts

Description(s):

Disclaimer

This is a Sources Sought for Planning Purposes Only and is not a notice of solicitation issuance.

Responses to this Sources Sought are strictly voluntary and will not affect any respondent's ability to submit an offer if, and when, a Request for Proposal (RFP) is released. There is NO request for proposal or solicitation document associated with this announcement. The requested information does not constitute a commitment, implied or otherwise, that a procurement action will be issued. No entitlement to payment by the government for direct or indirect costs, or charges will arise because of submission of contractor information. The government shall not be liable for or suffer any consequential damages for any improperly identified proprietary information. Proprietary information, if marked accordingly, will be safeguarded in accordance with, and pursuant to, the applicable federal laws and regulations.

Synopsis

The U.S. Department of State's (DoS), Bureau Office of Overseas Buildings Operations (OBO), is seeking information from qualified U.S. sources interested in, and capable of, providing services under North

American Industry Classification System (NAICS) code 236220 for a Capital Projects Construction

Manager Program. Under this program, the Construction Manager Contractor (“Contractor”) shall manage the project cost and schedule early in the design phase. The Contractor provides the cost and schedule to construct the building during design and assumes the cost and schedule risks while collaborating with owner and advising OBO’s DepArchitect/Engineering (“A/E”) team on constructability early in the design phase.

The types of potential design and construction services are listed below.

Types of design services to be provided may include but not limited to, architecture and urban design;

structural, civil, energy conservation, mechanical, electrical, seismic and geotechnical engineering, space planning and systems furniture integration, interior design, signage, Technical and Physical security, communications, treated environments design, blast protection design, fire protection engineering, potable water treatment and waste water treatment, landscaping design, cost estimating, scheduling, value engineering, and administrative coordination of the various disciplines involved.

Type of construction services may include labor and materials to execute the OBO and Contractor-approved design documents; on-site organization with management of lines of authority to ensure overall project coordination; overall control throughout the life of the project. Required services include required documentation submittals and institution of controlling programs such as: construction scheduling; quality control program, cost control; and project closeout services.

Place of Performance

Outside the Continental United States (OCONUS) at U.S. Embassy and Consulate posts worldwide.

PLEASE TAKE NOTICE: Projects managed under this program require selected offerors to perform both

A/E and construction services that comply with all federal statutes, and in many cases international local laws that will flow-down to the terms and conditions of both the base IDIQ contract and individual Task

Orders (“TO”).

Contract Type

The DoS anticipates awarding 5-7 multiple Indefinite Delivery, Indefinite Quantity (IDIQ) contracts from the issuance of RFPs in Fiscal Year (FY) 2026.

Contract Vehicle: Multiple Award IDIQ Contract

Task Order Ordering Period: 10 years (41 U.S.C. § 4103(d)(3))

Anticipated Program Ceiling: $4.5B–$7.5B

Task Order Range: $100M minimum order threshold; up to $1.5B maximum per order. Anticipated

CLINs and types of TOs are as follows:

• CLIN 0001 – Preconstruction Services (Cost-Plus-Fixed-Fee, CPFF) - A Cost-Plus-Fixed-Fee (CPFF) structure allows the Government to reimburse allowable costs incurred during pre-construction services (cost estimating, schedule modeling, constructability reviews, GMP preparation) while paying a fixed fee for contractor effort. This ensures the contractor is compensated for providing advisory and management services without incentive to inflate pre-construction costs. It provides the Government transparency into cost build-ups and early design risk.

• CLIN 0002 – Construction Services (Cost-Plus-Incentive-Fee, CPIF) - A Cost-Plus-Incentive-Fee (CPIF) structure places the contractor at risk during construction execution by tying final compensation to performance against the negotiated GMP. The incentive arrangement allows the contractor to share in cost savings if performance comes in under target, while also holding them accountable for cost overruns. This aligns contractor incentives with the

Government’s interest in controlling cost growth and schedule performance.

In the event this Sources Sought results in future contract awards, DoS will utilize the Two-Phase Design-

Build Selection Process (as governed by the Federal Acquisition Regulation's (FAR) Subpart 36.3) to select qualified and credentialed contractors for the Capital Project Construction Program. Phase I of the

Solicitation will include consideration of Minimum Mandatory Requirements including SAM.gov registration and eligibility as a U.S. person or U.S. Joint Venture person under the Omnibus Diplomatic

Security and Antiterrorism Act of 1986 (Public Law 99-399) (“Omnibus Act”), as revised. Under Phase 2, DoS will request technical and price proposals.

Acquisition Schedule

The approximate acquisition schedule is as follows: This Sources Sought notice will be posted on SAM.gov

(http://www.sam.gov) for a minimum of thirty (30) days. Respondents must electronically submit (via e-mail) the company profile and statement of capability information requested, in the proper format per the instructions in succeeding paragraphs, no later the 3:00PM EST, Thursday, September 25, 2025.

If this Sources Sought results in the issuance of a Phase I Solicitation for the Capital Project

Construction program IDIQ, the Solicitations will be posted on Sam.gov in FY2026 and which potential offerors will have approximately thirty (30) days to submit proposals.

Please note that all Solicitation dates will be subject to change, and any change will be posted via Sam.gov.

It therefore will be the responsibility of potential offerors to monitor this Government Point of Entry (GPE) for any information pertaining to this Sources Sought notice or future solicitations.

Special Requirements

1. Pursuant to the Omnibus Act, as revised, participation in the acquisition is restricted to “United

States persons” or qualified U.S. joint ventures under Section 402 of the Omnibus Act.. Potential offerors are advised that completion of the Section 402 Statement of Qualifications (SOQ) is mandatory at the time of the Phase 1 Solicitation. The SOQ, updated March 2025, sets forth mandatory certifications for U.S. incorporation, principal place of business, years of operation, relevant similar project experiencer, staffing ratios, and joint venture ownership (if applicable).

2. Preconstruction Services (CLIN 0001): The Contractor shall perform preconstruction services, including cost modeling, scheduling, constructability reviews, and development of a Guaranteed

Maximum Price (GMP) proposal at approximately 65–70 percent design completion.

3. Negotiation of GMP: Following submission of the GMP proposal, the Government will negotiate in good faith with the Contractor. If the Government determines, at its sole discretion, that GMP negotiations do not result in a fair and reasonable price, the Government is not obligated to award or exercise CLIN 0002

(Construction Services).

4. Government Off-Ramp: In the event GMP negotiations fail, the Government reserves the right to:

1. Terminate negotiations with the Contractor; and

2. Resolicit CLIN 0002 construction services among other ID/IQ holders, using design documents developed under the Government’s Architect/Engineer (A/E) contract.

5. Ownership and Use of Design: All design deliverables developed under the Government’s A/E contract are Government property, with rights to use and reproduce in accordance with FAR 52.227-

17 (Rights in Data – Special Works) or other applicable clauses. The Government may provide such design documents to other ID/IQ contractors for purposes of re-competition, without further compensation to the Contractor.

6. Protection of Proprietary Information: The Government shall not disclose the Contractor’s proprietary information, including but not limited to cost estimates, subcontractor pricing, means and methods, or unique analyses developed under CLIN 0001, without the Contractor’s prior written consent. Only design deliverables produced under the Government’s A/E contract may be used in re-competition.

Limitation of Liability: The Contractor is entitled to payment for completed and accepted preconstruction services under CLIN 0001 but shall have no claim for damages or lost profits if CLIN 0002 is not awarded.

7. All contracted personnel, regardless of nationality, will be required to pass a background investigation conducted by the contractor and a separate background investigation conducted by the

DoS to certify their suitability for employment under this contract.

8. EXEMPTION: Local National (LN) personnel, hired to operate in the countries in which they possess citizenship may be exempt from the requirements.

9. Contractor personnel (to include A/E partners and subcontractors) requiring access to classified information domestically must possess Secret facility and personnel clearances.

10. At overseas locations, contractors requiring access to classified information or Controlled Access

Areas (CAA) must possess Secret or Top-Secret personnel security clearances prior to deployment to the site.

NOTE: Specific security clearance requirements will be de-lineated at the TO level. Some TOs will require the contractor to provide Top Secret cleared personnel eligible for COMSEC/crypto access.

Facility Clearance Requirement:

In order to be eligible to receive a contract award and to perform under the contract, the successful offeror(s), including JV offerors, must possess a Defense Counterintelligence and Security Agency (DCSA)

Secret Facility Clearance (FCL), with Secret safeguarding capability, issued in accordance with the National

Industrial Security Program Operating Manual, DOD 5220.22-M.

If an otherwise conditionally eligible offeror (as determined in Phase I) does not possess the necessary FCL, DoS/Diplomatic Security will sponsor the firm for an FCL. A sponsored firm is afforded 120 calendar days from the notice of Phase I conditional eligibility to obtain the necessary FCL for the classified portions of the Phase II RFP. DoS sponsorship does not guarantee that the Offeror will receive the FCL, nor that it will be received within the 120-day period.

The Department will not be obligated to extend the Phase II proposal submission due date, if any of the sponsored firms have not been issued the required clearance prior to the release of the classified construction documents as applicable to the conditionally eligible firms for their use in preparing their offers. DoS will not award the contract to a firm not having been issued an FCL (with appropriate safeguarding capability). DoS is not obligated to extent the acquisition timeframe or delay the contract award to accommodate an offeror’s ability to obtain a FCL.

Foreign firms are not eligible for FCLs and therefore ineligible to participate in this acquisition. Only U.S.

firms organized and operating in the U.S. or Puerto Rico, or a U.S. possession or trusted territory, are eligible for facility clearances. U.S. firms determined to be under Foreign Ownership, Control, or Influence

(FOCI) are not eligible for an FCL unless actions (as directed and approved by DCSA) can be taken to effectively negate or reduce associated FOCI risks to an acceptable level.

Companies and Citizens of countries listed below will not be eligible to perform under this program or any resulting contract or task order in any capacity. DoS reserves the right, in its sole discretion, to determine the suitability of contractor personnel to work on design, construction and other diplomatic facilities contracts.

• Belarus

• Cuba

• Hong Kong

• Iran

• North Korea

• Peoples Republic of China

• Russia

• Venezuela

• Vietnam

NOTICE: After IDIQ contract award, successful offerors must possess or obtain an Information System

(IS) approved by DCSA for processing classified information up to the Secret level. Performance on this contract will require access to the Department’s ProjNet-C, for receipt and transmission of all classified information, and a DCSA approved classified IS for processing classified information.

Sources Sought- Submission Requirements

(1) Respondent should appropriately mark any data that is "proprietary" or deemed "restricted data rights."

(2) Respondent’s capability statement should contain the following:

a) Organization name, physical address, email address, website address, telephone number, point(s) of contact

b) Type of ownership (including country of ownership)

c) SAM Unique Entity Identifier Number (UEI), Commercial & Government Entity (CAGE) Code

d) Identification of small business category(ies) and certification (according to NAICS 236220)

e) Current Facility & Safeguarding clearances (Identify Agency/Department and Year Approved)

(3) Scenario: New Embassy Compound (NEC) in Asia - The Department of State (DoS), Bureau of Overseas

Buildings Operations (OBO), is planning the construction of a New Embassy Compound (NEC) in a major

Asian capital city. The project is anticipated to include:

• A secure Chancery office building of approximately 500,000 square feet, meeting all Department of

State security and blast requirements.

• Marine Security Guard Quarters, support annexes, utilities, and site infrastructure.

• Demolition of existing temporary facilities and phased occupancy requirements.

• Integration of sustainable design features (e.g., solar, rainwater harvesting, reduced embodied carbon materials).

• A target task order value of $700M–$1B.

The project will be delivered through the Construction Manager as a Contractor ID/IQ. The selected contractor will:

• Provide constructability input and cost modeling during design (CLIN 0001).

• Collaborate with the A/E design team and OBO to finalize scope and pricing.

• Establish and negotiate a Guaranteed Maximum Price (GMP) prior to construction.

• Execute construction under CLIN 0002, managing subcontractors and risk.

This scenario is illustrative of the type of capital construction task orders anticipated under the IDIQ and for this Sources Sought Planning Purposes Only and is not a notice of solicitation issuance of a capital Project or future capital project.

Organizational Capacity & Experience Questions:

1. Describe your firm’s experience delivering large secure construction projects (> $100M), particularly overseas or in austere environments.

2. What is your firm’s maximum demonstrated capacity (project size and annual revenue) in the past 5 years?

3. How does your firm structure teams to manage multiple concurrent projects worldwide?

Preconstruction & Construction Manager as a Contractor Methodology Questions:

4. What is your firm’s experience with the Construction Manager Contractor delivery method (or similar GMP contracting models)?

5. What internal processes does your firm use to develop cost models, schedule risk analyses, and GMP proposals?

6. How does your firm integrate with an A/E designer during the design development phase?

Section 402 & Security Requirements Questions:

7. Does your firm currently meet the Omnibus Act Section 402 U.S. person requirements? If not, what barriers exist?

8. Does your firm maintain a DCSA Facility Clearance (FCL) at the SECRET level with safeguarding?

If not, what timeframe is required to obtain clearance?

Industry Input on Multiple Award ID/IQ Structure Questions:

9. What do you see as the primary benefits or challenges of competing for task orders ≥ $100M under this IDIQ?

10. What incentives or contract structures would encourage broader participation from large U.S.

constructors?

11. Are there subcontracting approaches (e.g., joint ventures) that you believe should be encouraged or facilitated?

(4) Any other specific or pertinent information that would enhance the government's consideration of this type of procurement.

(5) Responses are limited to 10 pages, font size 12, in PDF or Word format and shall be submitted to no later than 3:00 PM EST, Saturday, December 5, 2025, to the following email address:

GreeneDL@state.gov.

(6) Include the following title "Capital Project Construction IDIQ Sources Sought" in the email "subject" line.

***Sales brochures, generic capability statements, and other non-related marketing materials will not be accepted from any interested parties. Manufacturer and/or supplier offers will also not be accepted.