DOD's $640M Afghanistan Facilities Support Contract Awarded to Fluor Intercontinental Amidst Full and Open Competition
Contract Overview
Contract Amount: $639,920,457 ($639.9M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2008-12-19
End Date: 2011-09-30
Contract Duration: 1,015 days
Daily Burn Rate: $630.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: AFGHANISTAN SOUTH EXPANSION
Plain-Language Summary
Department of Defense obligated $639.9 million to FLUOR INTERCONTINENTAL, INC for work described as: AFGHANISTAN SOUTH EXPANSION Key points: 1. Significant contract value of $640 million for facilities support services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risks associated with long-term contracts in volatile regions. 4. Services fall under Facilities Support, a broad category within government contracting.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for performance-based incentives. However, without specific performance metrics and award fee payouts, assessing value for money is challenging. Benchmarking against similar large-scale facilities support contracts in contingency environments is difficult due to unique operational complexities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically aims to secure the best value for the government by soliciting bids from all qualified sources.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more efficient pricing and better service delivery.
Public Impact
Impacts military operations and personnel well-being through essential facility services. Supports economic activity through contractor employment and resource utilization in the region. Highlights the significant financial commitment of the U.S. government in Afghanistan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Afghanistan.
- Contract duration and potential for cost overruns.
- Limited visibility into performance metrics for award fee.
Positive Signals
- Awarded via full and open competition.
- Clear delineation of services (Facilities Support).
- Defined contract period.
Sector Analysis
This contract falls within the Facilities Support Services sector, which encompasses a wide range of services essential for maintaining government facilities. Spending in this sector can fluctuate significantly based on operational needs and geopolitical factors, with large contracts often awarded for overseas operations.
Small Business Impact
The data indicates this contract was awarded to Fluor Intercontinental, Inc., a large business. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific award, which warrants further investigation.
Oversight & Accountability
Oversight of this contract would likely involve the Department of the Army and potentially higher levels within the Department of Defense, focusing on performance, cost control, and adherence to contract terms, especially given the operational environment.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value.
- Extended contract duration.
- Operating in a high-risk environment (Afghanistan).
- Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
- Lack of specific small business subcontracting information.
Tags
facilities-support-services, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $639.9 million to FLUOR INTERCONTINENTAL, INC. AFGHANISTAN SOUTH EXPANSION
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $639.9 million.
What is the period of performance?
Start: 2008-12-19. End: 2011-09-30.
What were the key performance indicators (KPIs) used to determine award fees for Fluor Intercontinental, and how did their performance against these KPIs compare to the awarded fees?
Understanding the specific KPIs is crucial for assessing value. These would likely include metrics related to facility maintenance, operational readiness, safety compliance, and responsiveness to emergent needs. Without this data, it's difficult to determine if the award fees truly reflect exceptional performance or if they were awarded based on less stringent criteria, potentially impacting overall cost-effectiveness for the taxpayer.
What specific risks were identified during the solicitation process for this contract, and what mitigation strategies were implemented by the Department of Defense?
Given the operational context in Afghanistan, risks could include security threats to personnel and facilities, logistical challenges, political instability, and currency fluctuations. Mitigation strategies might involve robust security protocols, contingency planning for supply chain disruptions, flexible contract clauses to address changing political landscapes, and close monitoring of economic factors to manage financial risks.
How does the cost per unit of service for this contract compare to similar facilities support contracts awarded in other regions or during different phases of the Afghanistan mission?
A comparative cost analysis is essential for evaluating efficiency. Benchmarking against similar contracts, adjusted for regional cost differences and operational complexities, would reveal if this contract represents a fair price. Without such a benchmark, it's challenging to definitively state whether taxpayers received optimal value for the services rendered over the contract's duration.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation
Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $639,920,457
Exercised Options: $639,920,457
Current Obligation: $639,920,457
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J07D0008
IDV Type: IDC
Timeline
Start Date: 2008-12-19
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 12:09:00
Last Modified: 2022-11-14
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