DoD spent $20.1M on Afghan logistics center construction, awarded via full and open competition

Contract Overview

Contract Amount: $20,146,356 ($20.1M)

Contractor: Emta Insaat Taahhut VE Ticaret Anonim Sirketi

Awarding Agency: Department of Defense

Start Date: 2011-04-30

End Date: 2014-09-29

Contract Duration: 1,248 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AN ANP MINISTRY OF INTERIOR REGIONAL LOGISTICS CENTER AND REGIONAL ADMINISTRATION BUILDING AT BESHUD, NANGARHAR, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $20.1 million to EMTA INSAAT TAAHHUT VE TICARET ANONIM SIRKETI for work described as: CONSTRUCTION OF AN ANP MINISTRY OF INTERIOR REGIONAL LOGISTICS CENTER AND REGIONAL ADMINISTRATION BUILDING AT BESHUD, NANGARHAR, AFGHANISTAN Key points: 1. Contract awarded for construction of a logistics center and administration building in Afghanistan. 2. The contract was competed openly, suggesting a competitive bidding process. 3. The duration of the contract was over three years, indicating a significant project timeline. 4. The firm fixed-price contract type suggests cost certainty for the government. 5. The project was managed by the Department of the Army. 6. The North American Industry Classification System (NAICS) code indicates a specialty trade contractor.

Value Assessment

Rating: fair

The total contract value of $20.1 million for the construction of a regional logistics center and administration building in Afghanistan appears to be within a reasonable range for such a project, considering the complexities of operating in a contingency environment. Benchmarking against similar construction projects in similar geopolitical regions would be necessary for a more precise value assessment. However, the firm fixed-price nature of the contract provides a degree of cost control for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bids suggests a moderate level of competition for this project. While four bidders is not exceptionally high, it does provide a basis for price discovery and suggests that the government received multiple offers to consider.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services or goods.

Public Impact

The primary beneficiaries of this contract are the U.S. military and its operational support functions in the Nangarhar region of Afghanistan. The services delivered include the construction of essential infrastructure: a regional logistics center and an administration building. The geographic impact is localized to Beshud, Nangarhar, Afghanistan, supporting regional military operations. The project likely involved local labor and subcontractors, contributing to the Afghan economy, though specific workforce implications are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could pose risks to project timelines and execution.
Logistical challenges in delivering materials and personnel to the remote location.
Potential for cost increases due to unforeseen site conditions or security requirements.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting a competitive pricing environment.
Project duration of over three years allowed for phased execution and management.

Sector Analysis

This contract falls within the construction sector, specifically specialty trade contracting. The market for construction services in contingency operations is often characterized by higher risk premiums and specialized logistical requirements. While specific market size data for construction in Nangarhar is unavailable, the Department of Defense frequently procures such services to support its global mission requirements.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and location of the project, it is unlikely that significant subcontracting opportunities for small businesses were a primary focus, though local Afghan businesses may have been engaged as subcontractors.

Oversight & Accountability

Oversight for this Department of the Army contract would typically fall under the purview of the Army's contracting command and potentially the Special Inspector General for Afghanistan Reconstruction (SIGAR), depending on the period of performance and funding source. Transparency is generally maintained through contract award databases, but specific project oversight details are not provided.

Related Government Programs

Department of Defense Construction Contracts
Afghanistan Reconstruction Projects
Regional Logistics Facility Construction
Contingency Operations Support Contracts

Risk Flags

Geopolitical Risk
Logistical Complexity
Security Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to EMTA INSAAT TAAHHUT VE TICARET ANONIM SIRKETI. CONSTRUCTION OF AN ANP MINISTRY OF INTERIOR REGIONAL LOGISTICS CENTER AND REGIONAL ADMINISTRATION BUILDING AT BESHUD, NANGARHAR, AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is EMTA INSAAT TAAHHUT VE TICARET ANONIM SIRKETI.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2011-04-30. End: 2014-09-29.

What was the track record of EMTA INSAAT TAAHHUT VE TICARET ANONIM SIRKETI with the Department of Defense prior to this contract?

Information regarding EMTA INSAAT TAAHHUT VE TICARET ANONIM SIRKETI's prior track record with the Department of Defense is not detailed in the provided data. A comprehensive assessment would require reviewing historical contract awards, performance evaluations, and any past performance issues or commendations associated with this contractor. Understanding their experience with similar projects, particularly in challenging environments, would be crucial for evaluating their capability to successfully execute this specific contract.

How does the final contract value compare to the initial estimated cost or bid prices?

The provided data shows a final award amount of $20,146,356.35. Without access to the initial estimates or the specific bid prices from the four competing firms, a direct comparison is not possible. However, the fact that it was a firm fixed-price contract suggests that the awarded price was agreed upon before work commenced, aiming to cap the government's financial exposure. Further analysis would involve obtaining the bid data to understand the range of offers and how the selected bid compared to others and any pre-tender cost expectations.

What were the primary risks identified during the bidding process, and how were they mitigated?

Specific risks identified during the bidding process are not detailed in the provided data. However, given the location (Nangarhar, Afghanistan), common risks would likely include security threats, logistical challenges, political instability, and potential for unforeseen site conditions. Mitigation strategies would typically involve robust security plans, detailed logistical support, contingency planning for political changes, and thorough site investigations. The firm fixed-price nature of the contract also serves as a risk mitigation tool for the government by transferring cost overrun risk to the contractor.

What is the assessed effectiveness of the completed logistics center and administration building?

The provided data focuses on the contract award and execution details and does not include information on the operational effectiveness or utilization of the completed logistics center and administration building. Assessing effectiveness would require post-construction evaluations, operational reports from the end-users (likely military units), and potentially audits by oversight bodies. Key metrics could include the facility's capacity, its contribution to operational efficiency, and its overall condition and functionality over time.

What has been the historical spending pattern for similar construction projects in Afghanistan by the Department of Defense?

Historical spending patterns for similar construction projects in Afghanistan by the Department of Defense are not detailed in the provided data. However, it is widely known that the U.S. military invested billions of dollars in infrastructure development and construction in Afghanistan over two decades. This included bases, roads, facilities, and training centers. Analyzing past contracts for similar regional logistics centers or administrative buildings would reveal trends in contract values, durations, competition levels, and the types of contractors engaged, providing context for the $20.1 million award.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W917PM09R0112

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BILKENT PLAZA A3 - BLOK B20, ANKARA

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,827,635

Exercised Options: $20,146,356

Current Obligation: $20,146,356

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W5J9JE10D0006

IDV Type: IDC

Timeline