Fluor Intercontinental awarded $80.8M for construction services in Afghanistan, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $80,793,701 ($80.8M)

Contractor: Fluor Intercontinental, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-06

End Date: 2008-04-29

Contract Duration: 1,089 days

Daily Burn Rate: $74.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 60

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: TAS::21 2020::TAS 200508!500844!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !N!0013 ! !20050506!20060130!130757870!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !6000 FAIRVIEW RD !CHARLOTTE !NC!28210!00000! !AF!* !* !AFGHANISTA!+000053572848!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!S! ! ! !20200930!B! ! !A! !A!U!J!2!060!B! !Z!N!A! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $80.8 million to FLUOR INTERCONTINENTAL, INC. for work described as: TAS::21 2020::TAS 200508!500844!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !N!0013 ! !20050506!20060130!130757870!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !6000 FAIRVIEW RD !CHARLOTTE !NC!28210!00000! !AF!* … Key points: 1. Contract value represents a substantial investment in infrastructure development. 2. Full and open competition suggests a competitive bidding process. 3. The contract duration indicates a long-term commitment to the project. 4. Construction services are critical for rebuilding and stabilization efforts. 5. The specific NAICS code points to a focus on commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $80.8 million for construction services in Afghanistan appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects in complex environments is challenging due to unique risk factors and logistical costs. However, the fixed-price nature of the contract suggests an effort to control costs. Further analysis would require comparing specific deliverables and project complexity to other awarded contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of a competitive process is generally positive for price discovery and ensuring value for money. The number of bidders, if available, would provide further insight into the level of market interest and competition.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are likely the U.S. military and government personnel operating in Afghanistan, who will utilize the constructed facilities. Services delivered include the construction of buildings and related infrastructure. The geographic impact is concentrated in Afghanistan, supporting U.S. operations and reconstruction efforts. Workforce implications include employment opportunities for both U.S. and local labor, contributing to economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan presents inherent risks to project execution and personnel safety.
Logistical challenges in delivering materials and personnel to remote locations can increase costs and timelines.
Potential for cost overruns if unforeseen site conditions or security issues arise.

Positive Signals

Award under full and open competition suggests a robust bidding process.
Fixed-price contract type helps to mitigate cost escalation risks.
The contractor, Fluor Intercontinental, has a history of performing large-scale government contracts.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional building construction. The market for such services in conflict zones is often characterized by high risk but also significant demand driven by government objectives. Comparable spending benchmarks are difficult to establish precisely due to the unique operational environment, but large-scale infrastructure projects for defense and reconstruction typically involve substantial financial commitments.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large scale and specialized nature of construction in a challenging environment, it is possible that subcontracting opportunities may exist for smaller firms, but this would require further investigation into the contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, potentially involving contracting officers, project managers, and quality assurance representatives. Transparency is facilitated through contract award databases, but detailed project-specific oversight mechanisms are not fully detailed in the provided data. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Afghanistan Reconstruction Contracts
Department of Defense Construction Projects
USACE Construction Contracts
Global Contingency Construction

Risk Flags

Geopolitical Risk
Logistical Complexity
Security Concerns
Environmental Factors

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.8 million to FLUOR INTERCONTINENTAL, INC.. TAS::21 2020::TAS 200508!500844!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !N!0013 ! !20050506!20060130!130757870!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !6000 FAIRVIEW RD !CHARLOTTE !NC!28210!00000! !AF!* !* !AFGHANISTA!+000053572848!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E

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 $80.8 million.

What is the period of performance?

Start: 2005-05-06. End: 2008-04-29.

What is Fluor Intercontinental's track record with similar large-scale construction contracts for the Department of Defense, particularly in overseas or high-risk environments?

Fluor Intercontinental has a significant history of executing large-scale construction and engineering projects for the Department of Defense and other government agencies, often in challenging overseas locations. They have been involved in numerous projects related to base construction, infrastructure development, and facility support in regions like Afghanistan, Iraq, and other areas requiring robust logistical and security considerations. Their experience typically includes managing complex supply chains, ensuring personnel safety, and adhering to strict government standards and timelines. While specific project performance data for every contract is not publicly detailed, their continued selection for major contracts suggests a generally positive track record in delivering complex projects under demanding conditions.

How does the awarded amount of $80.8 million compare to the estimated value or initial bids for this construction project?

The provided data indicates the final awarded amount was $80,793,701. Without access to the initial solicitation, estimated value, or details of other bids, a direct comparison is not possible. However, the fact that it was awarded under full and open competition suggests that this amount was deemed competitive and represented good value among the submitted proposals. The fixed-price contract type also implies that the awarded amount was intended to cover all costs associated with the project, including profit, within a defined scope. Further analysis would require accessing pre-award estimates and bid tabulations, which are typically not publicly available.

What are the primary risks associated with a construction contract of this magnitude in Afghanistan, and what mitigation strategies were likely employed?

Construction contracts in Afghanistan face significant risks including security threats to personnel and assets, logistical challenges in transporting materials and equipment, political instability, potential for corruption, and environmental hazards. Mitigation strategies likely employed by Fluor Intercontinental and overseen by the Department of the Army would include robust security protocols, detailed logistical planning, contingency budgeting, strong quality control measures, and close coordination with military and local authorities. The fixed-price nature of the contract also incentivizes the contractor to manage these risks effectively to maintain profitability. The contract duration of over three years suggests a phased approach to mitigate immediate risks and adapt to changing conditions.

What specific types of buildings or infrastructure were constructed under this contract, and what was their intended purpose?

The contract specifies the NAICS code 236220, which covers Commercial and Institutional Building Construction. The data also notes 'OTHER MISCELLANEOUS BUILDINGS'. This suggests the contract was for the construction of various facilities that could include administrative buildings, barracks, maintenance facilities, training centers, or other support structures essential for military or governmental operations in Afghanistan. The exact purpose would be tied to the specific needs of the U.S. forces or agencies operating in the region at the time of the contract award, likely supporting mission objectives and personnel welfare.

How has Fluor Intercontinental's involvement in Afghanistan construction contracts evolved over time, and what is the historical spending trend for similar services?

Fluor Intercontinental has been a consistent provider of construction and support services in Afghanistan for many years, often undertaking large, complex projects. Historical spending trends for similar services in Afghanistan have been substantial, driven by the prolonged U.S. military presence and reconstruction efforts. While this specific contract was awarded in 2005 for work concluding in 2008, Fluor has continued to receive significant contracts in subsequent years for various support and construction roles. Overall government spending on construction in Afghanistan has fluctuated based on strategic priorities and troop levels, but has historically represented a significant portion of reconstruction budgets.

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

Offers Received: 60

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 6000 FAIRVIEW AT J A JON, CHARLOTTE, NC, 28210

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912ER04D0004

IDV Type: IDC

Timeline