DoD Awards $154M Construction Contract in Afghanistan to YUKSEL-METAG-TEPE-YENIGUN-ZAFER JV

Contract Overview

Contract Amount: $15,412,677 ($15.4M)

Contractor: Yuksel-Metag-Tepe-Yenigun-Zafer Joint Venture

Awarding Agency: Department of Defense

Start Date: 2008-04-29

End Date: 2010-07-27

Contract Duration: 819 days

Daily Burn Rate: $18.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GENERAL CONSTRUCTION AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $15.4 million to YUKSEL-METAG-TEPE-YENIGUN-ZAFER JOINT VENTURE for work described as: GENERAL CONSTRUCTION AFGHANISTAN Key points: 1. Significant contract value for construction services in a challenging operational environment. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract spans over two years, indicating a substantial project duration. 4. Risk associated with construction in Afghanistan is inherently high due to security and logistical factors.

Value Assessment

Rating: fair

The contract was awarded as a delivery order under a larger contract. Without knowing the total value of the parent contract and other similar delivery orders, a precise pricing assessment is difficult. However, the base value of $154M for construction services over two years in Afghanistan suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. The use of a joint venture as the awardee indicates a consolidation of resources and capabilities.

Taxpayer Impact: The substantial value of this contract represents a significant taxpayer investment in infrastructure development and support services in Afghanistan.

Public Impact

Impacts local economy in Afghanistan through job creation and material sourcing. Contributes to the logistical and operational support for military operations. Potential for long-term infrastructure development and stability in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan
Logistical challenges for construction materials and personnel
Security risks for workers and assets

Positive Signals

Utilized full and open competition
Awarded to a joint venture with potentially diverse capabilities

Sector Analysis

This contract falls under general construction, specifically commercial and institutional building construction. Spending in this sector, particularly in conflict zones, is often driven by defense needs and reconstruction efforts, with costs significantly influenced by security and logistical premiums.

Small Business Impact

The award went to a joint venture, which may include small businesses as partners. However, the primary awardee is a large joint venture, and there is no explicit indication of specific set-asides for small businesses in the provided data.

Oversight & Accountability

Oversight would typically be managed by the Department of the Army, focusing on contract performance, quality of work, and adherence to schedule and budget. Given the location, robust security and logistical oversight are critical.

Related Government Programs

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

Risk Flags

High-risk operating environment (Afghanistan)
Long contract duration (over 2 years)
Potential for cost overruns due to unforeseen circumstances
Dependence on complex logistical chains
Security concerns for personnel and assets

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to YUKSEL-METAG-TEPE-YENIGUN-ZAFER JOINT VENTURE. GENERAL CONSTRUCTION AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is YUKSEL-METAG-TEPE-YENIGUN-ZAFER JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 2008-04-29. End: 2010-07-27.

What was the total value of the parent contract under which this delivery order was issued, and how does this delivery order's value compare to other similar orders?

The provided data only details this specific delivery order's value ($154M). To fully assess value for money, information on the parent contract's total ceiling, the number of other delivery orders issued against it, and their respective values would be necessary. Benchmarking against similar construction projects in comparable environments would also provide crucial context for a comprehensive value assessment.

What specific risks were identified and mitigated by the Department of Defense and the joint venture during the bidding and execution phases?

Given the operational environment in Afghanistan, significant risks likely include security threats to personnel and assets, logistical hurdles in material and equipment delivery, political instability, and potential for corruption. Mitigation strategies would involve robust security protocols, detailed logistical planning, contingency budgeting, and strict oversight mechanisms to ensure contract compliance and project success.

How effectively did the full and open competition process ensure competitive pricing and contractor performance for this substantial construction project?

Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing and contractor selection. However, the effectiveness in this specific case depends on the number and quality of bids received, the complexity of the requirements, and the contractor's ability to navigate the challenging Afghan environment. Post-award performance monitoring is key to determining the ultimate effectiveness.

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: W917PM07R0105

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: NO: 14/A SOGUTOZU CADDESI, ANKARA

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,412,677

Exercised Options: $15,412,677

Current Obligation: $15,412,677

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W917PM07D0017

IDV Type: IDC

Timeline