DoD Awards $11.1M Contract for Baghdad Police College Construction
Contract Overview
Contract Amount: $11,108,477 ($11.1M)
Contractor: Laguna Construction Company, Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-30
End Date: 2008-11-25
Contract Duration: 422 days
Daily Burn Rate: $26.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 31
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCT/RENOVATE WAREHOUSES, OFFICES, AND BARRACKS, BAGHDAD POLICE COLLEGE, BAGHDAD, IRAQ
Plain-Language Summary
Department of Defense obligated $11.1 million to LAGUNA CONSTRUCTION COMPANY, INC for work described as: CONSTRUCT/RENOVATE WAREHOUSES, OFFICES, AND BARRACKS, BAGHDAD POLICE COLLEGE, BAGHDAD, IRAQ Key points: 1. Contract awarded to Laguna Construction Company, Inc. for warehouse, office, and barracks construction. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The project duration is 422 days, indicating a significant construction timeline.
Value Assessment
Rating: fair
The contract value of $11.1 million for construction in Iraq appears high, especially considering the duration and the Cost Plus Fixed Fee structure. Benchmarking against similar international construction projects would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which typically drives better pricing. However, the Cost Plus Fixed Fee contract type can sometimes lead to higher final costs than fixed-price contracts, as the contractor is reimbursed for costs plus a fixed fee.
Taxpayer Impact: Taxpayer funds are being used for significant construction in a high-risk environment. While competition is positive, the contract type warrants close monitoring to ensure cost efficiency.
Public Impact
Supports U.S. military operations and training infrastructure in Iraq. Potential for job creation, both locally and for the contracting company. Construction in a conflict zone presents inherent risks to personnel and project timelines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Construction in an active theater of operations carries significant risk.
- Project duration is substantial, increasing exposure to changing conditions.
Positive Signals
- Full and open competition utilized.
- Contract supports critical infrastructure development.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction. Spending in this sector, especially for overseas military installations, can vary widely based on location, security requirements, and project scope. The $11.1M value is significant for a single project of this nature.
Small Business Impact
The contract was awarded to Laguna Construction Company, Inc. There is no indication that small businesses were specifically involved or subcontracted in this award, which was subject to full and open competition.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would be critical given the Cost Plus Fixed Fee structure and the operational environment in Iraq to ensure funds are used efficiently and effectively.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Construction in a high-risk environment (Iraq).
- Significant project duration (422 days).
- Lack of specific small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to LAGUNA CONSTRUCTION COMPANY, INC. CONSTRUCT/RENOVATE WAREHOUSES, OFFICES, AND BARRACKS, BAGHDAD POLICE COLLEGE, BAGHDAD, IRAQ
Who is the contractor on this award?
The obligated recipient is LAGUNA CONSTRUCTION COMPANY, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2007-09-30. End: 2008-11-25.
What was the basis for selecting a Cost Plus Fixed Fee contract type over a fixed-price contract for this project?
The selection of a Cost Plus Fixed Fee (CPFF) contract type often occurs when the scope of work is not fully defined or when there is significant uncertainty regarding costs, such as in a complex or hazardous environment like Iraq. This structure allows for flexibility but requires robust government oversight to manage costs and prevent contractor inefficiencies from inflating the final price.
How were risks associated with construction in Baghdad, Iraq, assessed and mitigated during the bidding process?
Risk assessment for construction in Baghdad would likely involve evaluating security threats, logistical challenges, material availability, and political stability. Mitigation strategies could include enhanced security protocols for personnel and equipment, contingency planning for supply chain disruptions, and incorporating risk-related cost factors into the contract. The government's oversight would be crucial in ensuring these mitigation plans are effectively implemented.
What is the projected long-term value or utility of the constructed facilities for the Baghdad Police College?
The constructed warehouses, offices, and barracks are intended to enhance the operational capacity and training environment for the Baghdad Police College. Their long-term value lies in providing essential infrastructure to support Iraqi law enforcement development, contributing to stability and security in the region. The effectiveness will depend on the quality of construction and the sustained use by the Iraqi police forces.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 31
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: I-40 W EXIT 114, LAGUNA, NM, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,108,477
Exercised Options: $11,108,477
Current Obligation: $11,108,477
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8515
IDV Type: IDC
Timeline
Start Date: 2007-09-30
Current End Date: 2008-11-25
Potential End Date: 2008-11-25 00:00:00
Last Modified: 2013-10-11
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