Snapshot: State Dept Overseas Real Property Acquisitions & Disposals (FY2008-2013)

— Domani Spero
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 Via GAO

Our analysis of State’s real property portfolio indicated that the overall inventory has increased. State reported its leased properties, which make up approximately 75 percent of the inventory, increased from approximately 12,000 to 14,000 between 2008 and 2013. However, comparing the total number of owned properties between years can be misleading because State’s method of counting these properties has been evolving over the past several years. OBO officials explained that in response to changes in OMB’s and FRPP’s reporting guidance, they have made efforts to count properties more precisely. For example, OBO has focused on separately capturing structural assets previously recorded as part of another building asset, such as perimeter walls, guard booths, and other ancillary structures. As a result of this effort, State recorded approximately 650 additional structural assets in its fiscal year 2012 FRPP report and approximately 900 more structures the following year in its fiscal year 2013 FRPP report, according to OBO officials.

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Acquisitions: State reported spending more than $600 million to acquire nearly 300 properties from fiscal year 2008 through 2013 (see fig.1).11 State uses two sources of funding to acquire real property. It acquires land for building new embassy compounds (NEC) with funding from the CSCS program. It acquires residences, offices, and other functional facilities with proceeds from the disposal of unneeded property. In fiscal years 2008 through 2013, State reported spending approximately $400 million of these disposal proceeds to acquire approximately 230 properties.

Disposals: From fiscal years 2008 through 2013, State reported selling approximately 170 properties. In doing so, it received approximately $695 million in proceeds (see fig.1). According to State, property vacated when personnel move into newly constructed facilities is the largest source of property that can be disposed of. When State completes construction of a NEC, personnel previously working in different facilities at multiple locations are then collocated into the same NEC, a move that provides State an opportunity to dispose of its former facilities. Further information on State’s acquisitions and disposals from fiscal year 2008 through 2013, can be found in figures 1 and 2 below.

Leases: The majority of State’s leased properties are residences. State reported spending approximately $500 million on leases in 2013 and projects a potential increase to approximately $550 million by 2016 as growing populations in urban centers around the world push rental costs higher and the U.S. government’s overseas presence increases.

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Dawn of Libya militia holds pool party at U.S. Embassy Libya Annex; they’ll cut the grass, too?

— Domani Spero
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Updated on 8/31/14 at 2302 PST:  AP and Reuters have an update on this here including additional photos of the rooms in the annex that appear to be in the condition they were left behind; the pantry appears to still have food items, the kitchen and gym did not look looted and the compound did not show signs of the reported “storming.”

Updated on 9/1/14 at 9:26pm PST: ABC News has additional photos of the annex here. Plus this: “Another commander said the group had asked cleaners to come spruce up the grounds and that U.S. staff were welcome to reside in the embassy while it was under Dawn of Libya control.”

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A commander of the Dawn of Libya militia, an Islamist-allied group in control of Tripoli has told an AP reporter that it has “secured” a U.S. Embassy residential compound in the capital city.  The AP report says that a walk-through in the compound shows some broken windows, but that “it appeared most of the equipment there remained untouched. The journalist saw treadmills, food, televisions and computers still inside.”

On July 26, the State Department suspended all embassy operations in Libya and evacuated all its staff overland to Tunisia (see State Dept Suspends All Embassy Operations in Libya, Relocates Staff Under Armed Escorts).  The U.S. Ambassador to Libya Deborah Jones is currently based at the U.S. Embassy in Malta.


Meanwhile, at the pool party at Embassy Tripoli’s compound residential annex:


And because Ambassador Jones is now reachable via Twitter, she was asked about it:


We don’t know what that means.  Who told these guys to “safeguard” a U.S. diplomatic property?  Did they bring their own whiskey to the pool party?

The good news is —  the Dawn of Libya militia apparently wrestled the compound from a rivaled militia and neither group set the compound on fire.  The bad news is “securing” the compound was apparently done to avenge U.S. airstrikes. If true, just “securing” the compound, a sip of whiskey and having a dip in the pool may not be enough.

The other good news , of course, if the U.S. needs to, DOD knows where  exactly to send its Predator drones and Navy F-18 fighter jets.

Not that we want the Pentagon to do that for many reasons.  Perhaps the uninvited guests can be persuaded to cut the grass, too, while they’re there?

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Congress to State Dept: We Want All Your Stuff on New London Embassy Except Paperclips

— Domani Spero
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We recently blogged about the congressional hearing on the new embassy construction (see New Embassy Construction Hearing: Witnesses Not Invited, and What About the Blast-Proof Glass?).  Well, a couple of weeks ago, the  House Oversight and Government Reform Committee sent a letter to Secretary Kerry asking for documents and information on the new embassy construction.  Presumably in preparation for the hearing.  Almost half of the docs requested were related to the New London Embassy.  Did not look like the Committee got the docs that they wanted in time for the hearing.  In any case, below is a partial list; it looks like they wanted everything including drafts and all, except paperclips.

Giant paper clip at BI Commercial College near...

Giant paper clip at BI Commercial College near Oslo (Photo credit: Wikipedia)

We must say that the HOGR has not been short on its version of HPD … way too much emotion and drama that draws attention to themselves and the nearest camera for our taste.  Really, if they just do their jobs without too much theatrics, our institutions would be a lot better for it.  Having said that, it’s the only Congress we’ve got and they have an oversight role to play even if more than one in five Americans (22%) are ready to start over entirely after all members are fired.  For now, we’re stuck with these folks.  Luckily for us, not all of them will stay in Congress for life. So — please give these angry folks the documents they need even if they occasionally drive you nuts; they may not be there next year. They want a cost/benefit analysis, give it to them, too. We suspect the analysis would be useful anyways, and these folks would have to write their own scripts on what to say on teevee.

Oh hey, they want to know about the blast testing of the curtain wall, so do we!


20.   All Action Memoranda and Information Memoranda, including drafts, referring or relating to the New Embassy Compound in London, United Kingdom.

21.   All documents referring or relating to Value Engineering Studies relating to the New Embassy Compound in London, United Kingdom, including all versions of any Value Engineering Studies.

22.   All documents and communications relating to changes and notices to proceed relating to the New Embassy Compound in London, United Kingdom, including, but not limited to, all such communications with: a) KieranTimberlake Architects; b) B.L. Harbert International;  and, c) Weidlinger and Associates.

23.   All documents referring or relating to congressional Construction Security Certification for the New Embassy Compound in London, United Kingdom, including, but not limited to, all communications with the Office of the Director of National Intelligence.

24.   All documents and communications referring or relating to Value Added Tax (VAT) relating to the New Embassy Compound in London, United Kingdom.

25.   All documents and communications referring or relating to blast testing of the curtain wall, and curtain wall components, of the New Embassy Compound in London, United Kingdom, including, but not limited to, all such communications with: a) the Bureau of Diplomatic Security; b) KieranTimberlake Architects; c) B.L. Harbert International; d) Weidlinger and Associates.

26.   All documents and communications referring or relating to the application of General Services Administration (GSA) Performance Conditions to blast testing of the curtain wall, and curtain wall components, of the New Embassy Compound in London, United Kingdom, including, but not limited to, communications between OBO and the Bureau of Diplomatic Security.

27.   All documents and communications relating to the engineering and legal justifications for applying standards other than those of the Bureau of Diplomatic Security to blast testing of the curtain wall, and curtain wall components, of the New Embassy Compound in London, United Kingdom.

28.   A document identifying all State Department overseas properties, the physical security of which were designed, tested or certified to GSA standards.

29.   All documents and communications relating to the decision to conduct blast testing of the curtain wall, and curtain wall components, of the New Embassy Compound in London, United Kingdom, in both Ft. Polk, Louisiana and Socorro, New Mexico.

30.   The U.S. Army Engineer Research and Development Center report relating to blast testing of the curtain wall or curtain wall components, of the New Embassy Compound in London, United Kingdom which occurred in Fort Polk, Louisiana.

31.   All reports prepared for the Committees on Appropriations on the New Embassy Compound in London, United Kingdom which, pursuant to P.L. 112-74, Section 7004 (f)(2), were to be delivered every six months from 60 days after enactment, and which were to include revenue and cost projections, cost containment efforts, project schedule and actual project status, the impact of currency exchange rate fluctuations on project revenue and costs, and options for modifying the scope of the project in the event that proceeds of real property sales in London fall below the total cost of the project.

32.   The estimated cost per square meter to rent office space in the vicinity of the current U.S. Embassy in London, United Kingdom.

33.   All documents related to any lease-back of current U.S. Embassy in London, United Kingdom if the New Embassy Compound in London is not completed on schedule.


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New Embassy Mexico City Estimated to Cost $350-$450M Now More Pricey At $763 Million

— Domani Spero
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On June 20, 2014, the U.S. Embassy in Mexico City announced the 50thanniversary of the building of the chancery in Mexico
City´s  Reforma Avenue. According to Embassy Mexico City, the building began in 1960 during the Kennedy Administration and under then Ambassador Thomas Mann. The building reportedly cost 5 million dollars and in 1964 became the second largest U.S. embassy in the world.

In 2011, the State Department solicitation on fedbiz announced that the New Embassy Compound (NEC) in Mexico City, Mexico will be a design-bid-build project estimated to cost between $350 million and $450 million.

The new Embassy compound will be constructed on U.S. Government-owned property located in the Nuevo Polanco neighborhood of Mexico City. It will be in the range of 40,000-45,000 gross square meters in area and will include a new Chancery, General Services Office/support buildings, parking structures, Marine Security Guard Quarters, and vehicular/pedestrian screening facilities.

In 2012, the estimated construction cost was $450 – $500 million.

In November 2013, FP’s The Cable reported that the State Department has quietly reversed course, saying its initial solicitation to industry is “cancelled in its entirety” because plans have been altered. The State Department did not explain why in its announcement, but said a new, future solicitation to industry for the project “is under acquisition review.” (See State Department Quietly Reverses Course On Its $500 Million Mexican Embassy).

Yesterday, the House Appropriations Committee’s draft report on the fiscal 2015 State and foreign aid spending bill notes that the new construction cost estimate of NEC Mexico City is now at $763,500,000.  The following is the section of the Committee draft report on the new embassy that will soon join our list of most expensive embassies in the world:

Enhanced notification requirements.—The  Congressional Budget Justification for Department of State Operations, Fiscal Year 2015 estimates the cost for construction of the New Embassy Compound in Mexico City, Mexico at $763,500,000. The Committee is troubled that this is an escalation in cost of more than 38 percent in the two years since the initial estimate was provided. Cost increases of this magnitude, as well as reports of other new embassy project cost escalations, are of great concern to the Committee. Accordingly, in order to enhance the oversight of new construction projects, the Committee recommendation modifies and expands section 7004(d) of the bill to require that all notifications for the purchase of land and for the award of construction contracts be subject to the regular notification procedures of, and prior approval by, the Committees on Appropriations.

Notifications made pursuant to section 7004(d) shall include the following information, at a minimum: (1) the location and size of the property to be acquired, including the proximity to existing United States diplomatic facilities and host government ministries; (2) the justification of need for acquiring the property and construction of new facilities; (3) the total projected cost of the project delineated by site acquisition, project development, design/construction, and any other relevant costs; (4) any unique requirements of the project which may drive up the cost of the project, such as consular workload, legal environment, physical and/or security requirements, and seismic capabilities; (5) any religious, cultural, or political factors which may affect the cost, location, or construction timeline; (6) the current and projected number of desks, agency presence, and the projected number of United States direct hire staff, Locally Engaged Staff, and Third Country Nationals; (7) the current and projected number of beds, if applicable; (8) the most recent rightsizing analysis; and (9) a justification for exceeding the staffing projections of such rightsizing analysis, if applicable.

Additionally, the Committee directs the Department of State to carefully review the design and cost of the Mexico City new embassy compound and to provide updated design plans and options for reducing the cost of the facility to the Committees on Appropriations prior to the obligation of additional funds for this project from funds made available in this Act or prior Acts.


In 2013, State/OBO awarded the New U.S. Embassy Mexico City project to Tod Williams Billie Tsien/ Davis Brody Bond Architects and Planners Joint Venture. It is listed as a capital program project for FY2015 (pdf).

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US Embassy Belgrade: Ambassador Michael Kirby Dedicates $149M New Embassy Compound

 By Domani Spero

The US Ambassador to Serbia Michael Kirby recently dedicated the new embassy compound in Belgrade.  The project which, according to State/OBO had an original completion date of May 10, 2012 was dedicated on July 1, 2013.


Photo from

Photo from


In an important symbol of America’s commitment to an enduring friendship with the Republic of Serbia, U.S. Ambassador to the Republic of Serbia, Michael D. Kirby, dedicated the new U.S. Embassy in Belgrade today.

Occupying a 10-acre site adjacent to the Beli Dvor, the $149 million multi-building complex provides a secure, state-of-the-art, environmentally-sustainable workplace for over 350 embassy personnel.

Zimmer Gunsul Frasca Architects, LLP was the concept design architect and The Louis Berger Group of Washington, D.C. was the architect of record. The project was constructed by Framaco International of Rye Brook, New York.

The new facility incorporates numerous sustainable features to reduce operating costs and conserve resources, most notably a storm water detention pond; solar hot water technology; low-flow plumbing fixtures; and the careful selection of plantings to reduce the amount of irrigation needed. The facility has been registered with the U.S. Green Building Council for Leadership in Energy and Environmental Design (LEED®) certification.