DoD awards $16.9M for Afghanistan construction, highlighting firm fixed-price contract with full and open competition
Contract Overview
Contract Amount: $16,895,498 ($16.9M)
Contractor: Technologists Inc
Awarding Agency: Department of Defense
Start Date: 2010-07-31
End Date: 2012-11-02
Contract Duration: 825 days
Daily Burn Rate: $20.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GENERAL CONSTRUCTION AFGHANISTAN, 3 SF KANDAK, KUNDUZ
Plain-Language Summary
Department of Defense obligated $16.9 million to TECHNOLOGISTS INC for work described as: GENERAL CONSTRUCTION AFGHANISTAN, 3 SF KANDAK, KUNDUZ Key points: 1. Contract value of $16.9M for general construction in Afghanistan. 2. Awarded under full and open competition, suggesting market availability. 3. Firm Fixed Price contract type aims to control costs. 4. Sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $16.9M for construction in a high-risk environment like Afghanistan requires careful benchmarking against similar projects. Without specific per-unit cost data, a precise comparison is difficult, but the scale suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple vendors to bid. This method generally leads to more competitive pricing compared to limited or sole-source approaches.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by fostering a competitive bidding environment.
Public Impact
Supports military infrastructure development in Afghanistan. Potential impact on local employment and economy in Kunduz. Ensures facilities for Afghan National Army units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risk in Afghanistan.
- Logistical challenges for construction in a remote theater.
- Potential for cost overruns despite fixed-price contract.
Positive Signals
- Full and open competition.
- Firm fixed-price contract.
- Supports a key strategic objective.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on economic conditions and government priorities, particularly for overseas construction projects which often carry higher risk premiums.
Small Business Impact
The data does not indicate if small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award was made by the Department of the Army, suggesting adherence to established procurement regulations. Oversight would focus on project execution, quality control, and adherence to the contract terms in a challenging environment.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geopolitical instability in Afghanistan.
- Logistical complexity of overseas construction.
- Potential for security-related cost increases.
- Contract duration of 825 days.
- Lack of specific per-unit cost data for benchmarking.
Tags
commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to TECHNOLOGISTS INC. GENERAL CONSTRUCTION AFGHANISTAN, 3 SF KANDAK, KUNDUZ
Who is the contractor on this award?
The obligated recipient is TECHNOLOGISTS 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 $16.9 million.
What is the period of performance?
Start: 2010-07-31. End: 2012-11-02.
What was the specific scope of work for the 3 SF Kandak facilities, and how did it align with the $16.9M budget?
The specific scope of work would detail the types of buildings, infrastructure, and amenities required for the 3 SF Kandak in Kunduz. This would include construction of barracks, training facilities, administrative buildings, and potentially utilities. The $16.9M budget would be assessed against the detailed requirements, considering material costs, labor, transportation, security, and profit margins, to determine if it represented fair value for the intended purpose and location.
What were the primary risks identified during the procurement process for this construction project in Afghanistan?
Primary risks likely included security threats to personnel and materials, logistical challenges in delivering supplies to Kunduz, potential for political instability impacting project continuity, currency fluctuations affecting costs, and the inherent difficulties of construction in a non-permissive or austere environment. Mitigation strategies for these risks would have been crucial for successful contract execution and cost control.
How effectively did the firm fixed-price contract mitigate cost overruns given the volatile conditions in Afghanistan?
A firm fixed-price contract aims to transfer cost overrun risk to the contractor. However, in volatile environments like Afghanistan, unforeseen circumstances (e.g., security incidents, supply chain disruptions, regulatory changes) could still lead to claims for equitable adjustments or contract modifications, potentially increasing the final cost. The effectiveness hinges on the contractor's risk management and the government's diligence in managing contract scope and change orders.
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: W917PM07R0105
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Technologists Inc - Afghanista N Construction (UEI: 850527567)
Address: 1700 N MOORE ST, ARLINGTON, VA, 22209
Business Categories: Category Business, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $16,895,498
Exercised Options: $16,895,498
Current Obligation: $16,895,498
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W917PM07D0016
IDV Type: IDC
Timeline
Start Date: 2010-07-31
Current End Date: 2012-11-02
Potential End Date: 2012-11-02 00:00:00
Last Modified: 2018-07-18
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