DoD Awards $20.5M for Afghanistan Air Detachment Construction, Facing Potential Overruns

Contract Overview

Contract Amount: $20,482,810 ($20.5M)

Contractor: Ecci-C Metag JV

Awarding Agency: Department of Defense

Start Date: 2011-08-18

End Date: 2015-01-10

Contract Duration: 1,241 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT AIR DETACHMENT AT MAZAR-E-SHARIF, BALKH PROVINCE, AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $20.5 million to ECCI-C METAG JV for work described as: CONSTRUCT AIR DETACHMENT AT MAZAR-E-SHARIF, BALKH PROVINCE, AFGHANISTAN. Key points: 1. Significant investment in infrastructure for military operations in Afghanistan. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Project duration of 1241 days indicates a complex and lengthy undertaking. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The awarded amount of $20.5M for constructing an air detachment is substantial. Without specific benchmarks for similar projects in austere environments, a precise value assessment is difficult. However, the extended duration and potential for unforeseen issues in Afghanistan suggest a need for careful cost monitoring.

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 range of potential bidders and can lead to more competitive pricing. The impact on price discovery is generally positive in such scenarios.

Taxpayer Impact: Taxpayer funds are being utilized for critical infrastructure supporting military operations. The effectiveness of the spending will depend on the successful completion of the project and its contribution to mission objectives.

Public Impact

Supports U.S. military presence and operations in Afghanistan. Infrastructure development in a high-risk, complex operational environment. Potential for follow-on contracts or sustainment activities. Impact on local economy and labor in Balkh Province.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan impacting project timeline and costs.
Logistical challenges of delivering construction materials and personnel.
Potential for scope creep or change orders in a long-term project.
Contractor performance risk in a remote and demanding environment.

Positive Signals

Firm Fixed Price contract limits government cost exposure.
Full and open competition potentially yielded a competitive initial price.
Essential infrastructure development for strategic military objectives.

Sector Analysis

This project falls under commercial and institutional building construction, a sector often characterized by significant capital investment and project management complexity. Benchmarks for similar military construction in overseas, high-risk environments are scarce, making direct cost comparisons challenging.

Small Business Impact

The data does not indicate any specific involvement or set-asides for small businesses in this particular contract award. Larger construction projects, especially those in overseas locations, often involve prime contractors with the capacity to manage complex logistics and large-scale operations.

Oversight & Accountability

Oversight would typically involve the Department of the Army, potentially through contracting officers' representatives (CORs) and quality assurance personnel on the ground in Afghanistan. Ensuring accountability for funds spent in such a remote location requires robust reporting and inspection mechanisms.

Related Government Programs

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

Risk Flags

Geopolitical instability in Afghanistan.
Logistical challenges for construction materials and personnel.
Extended project duration increases risk of cost escalation.
Potential for security threats impacting operations.
Limited visibility and oversight in a remote location.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to ECCI-C METAG JV. CONSTRUCT AIR DETACHMENT AT MAZAR-E-SHARIF, BALKH PROVINCE, AFGHANISTAN.

Who is the contractor on this award?

The obligated recipient is ECCI-C METAG JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2011-08-18. End: 2015-01-10.

What was the final cost compared to the initial bid or estimated value, considering the project's duration?

The final awarded amount was $20,482,809.98. Without access to initial bids or estimates, it's impossible to determine if this represents an overrun or underrun. The extended duration of 1241 days suggests potential for cost fluctuations due to market changes, logistical challenges, or unforeseen site conditions common in Afghanistan.

What specific risks were identified during the full and open competition phase that might have influenced the final price?

While full and open competition aims for competitive pricing, risks inherent to construction in Afghanistan, such as security threats, logistical hurdles, and political instability, likely influenced bids. Contractors would have factored in higher contingency costs to mitigate these risks, potentially impacting the final price despite the competitive bidding process.

How effectively did the firm fixed price contract protect taxpayer interests given the project's complexity and location?

A firm fixed price contract generally protects taxpayers by capping the government's financial liability. However, in complex, long-term projects in high-risk environments like Afghanistan, contractors may build significant contingency into their price. If unforeseen issues arise, the government might still face pressure for change orders, potentially eroding some of the FFP benefits.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W917PM09R0112

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 BAYSHORE HWY, BURLINGAME, CA, 94010

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,901,355

Exercised Options: $20,482,810

Current Obligation: $20,482,810

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W5J9JE10D0007

IDV Type: IDC

Timeline