DoD awards $36M for Afghanistan Army Air Corp construction, URS Group wins contract
Contract Overview
Contract Amount: $36,014,130 ($36.0M)
Contractor: URS Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-15
End Date: 2011-10-30
Contract Duration: 1,140 days
Daily Burn Rate: $31.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCTION OF AFGHANISTAN NATIONAL ARMY (ANA) AIR CORP REGIONAL DETACHMENT PHASE II KANDAHAR, AFGHANISTAN
Plain-Language Summary
Department of Defense obligated $36.0 million to URS GROUP, INC. for work described as: CONSTRUCTION OF AFGHANISTAN NATIONAL ARMY (ANA) AIR CORP REGIONAL DETACHMENT PHASE II KANDAHAR, AFGHANISTAN Key points: 1. Contract awarded to URS Group, Inc. for construction services. 2. Project involves building facilities for the Afghanistan National Army Air Corp. 3. Full and open competition was utilized for this contract. 4. The contract type is Cost Plus Fixed Fee. 5. This project falls under the Commercial and Institutional Building Construction NAICS code.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar construction projects in similar environments is difficult due to unique geopolitical factors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may limit the incentive for the contractor to aggressively control costs.
Taxpayer Impact: Taxpayer funds are being used to build essential infrastructure for allied forces, which has long-term strategic value but carries inherent risks associated with overseas construction.
Public Impact
Supports U.S. foreign policy objectives by building capacity for Afghan security forces. Potential for cost overruns due to contract type and challenging operating environment. Contributes to the development of critical infrastructure in Afghanistan. Contract duration of 1140 days indicates a significant, long-term project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Construction in a high-risk environment (Afghanistan)
- Lack of specific small business participation noted
Positive Signals
- Full and open competition utilized
- Supports critical infrastructure development
- Awarded by Department of Defense
Sector Analysis
This contract falls within the construction sector, specifically commercial and institutional building construction. Spending benchmarks for overseas military construction can vary widely based on location, security requirements, and material costs.
Small Business Impact
The data indicates that small business participation was not a stated requirement or achievement for this contract (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The Department of the Air Force awarded this contract, implying oversight from a major DoD component. However, the effectiveness of oversight in a complex overseas environment like Afghanistan can be challenging.
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 can lead to higher costs.
- Construction in a high-risk, unstable environment.
- Lack of explicit small business participation.
- Potential for cost overruns due to geopolitical factors.
- Limited transparency on specific risk mitigation measures.
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 $36.0 million to URS GROUP, INC.. CONSTRUCTION OF AFGHANISTAN NATIONAL ARMY (ANA) AIR CORP REGIONAL DETACHMENT PHASE II KANDAHAR, AFGHANISTAN
Who is the contractor on this award?
The obligated recipient is URS GROUP, 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 $36.0 million.
What is the period of performance?
Start: 2008-09-15. End: 2011-10-30.
What was the final cost compared to the initial estimate, and how did the fixed fee component perform?
The provided data shows the awarded amount but not a comparison to an initial estimate or the final cost. The Cost Plus Fixed Fee structure means the contractor is reimbursed for allowable costs plus a negotiated fixed fee. Analyzing the actual costs against the estimated costs and the contractor's performance in managing those costs would be crucial for assessing value.
What specific risks were identified and mitigated during the execution of this project in Afghanistan?
Given the location, risks likely included security threats, logistical challenges, political instability, and potential for corruption. The effectiveness of risk mitigation strategies employed by URS Group and the DoD would significantly impact project success and cost. Detailed reporting on risk management plans and incident logs would be necessary for a thorough assessment.
How effectively did this construction project contribute to the operational readiness of the ANA Air Corp?
The project's effectiveness hinges on the quality and timeliness of the completed facilities and their impact on the ANA Air Corp's capabilities. Without post-completion assessments or operational data from the ANA Air Corp, it's difficult to definitively measure the project's contribution to readiness. Successful completion of the facilities is a necessary but not sufficient condition for effectiveness.
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: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 200 ORCHARD RIDGE DRIVE, S, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $36,014,130
Exercised Options: $36,014,130
Current Obligation: $36,014,130
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8520
IDV Type: IDC
Timeline
Start Date: 2008-09-15
Current End Date: 2011-10-30
Potential End Date: 2011-10-30 00:00:00
Last Modified: 2018-11-05
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