DoD's $31.6M Afghanistan Construction Contract with Gilbane Federal Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $31,588,250 ($31.6M)
Contractor: Gilbane Federal
Awarding Agency: Department of Defense
Start Date: 2011-03-15
End Date: 2014-07-08
Contract Duration: 1,211 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 19
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCTION 1ST SPECIAL FORCES KANDAK, GARDEZ AFGHANISTAN
Place of Performance
Location: WALNUT CREEK, CONTRA COSTA County, CALIFORNIA, 94598
Plain-Language Summary
Department of Defense obligated $31.6 million to GILBANE FEDERAL for work described as: CONSTRUCTION 1ST SPECIAL FORCES KANDAK, GARDEZ AFGHANISTAN Key points: 1. Contract awarded for construction services in Afghanistan. 2. Gilbane Federal is the prime contractor. 3. The contract was awarded by the Department of the Air Force. 4. It falls under the Commercial and Institutional Building Construction NAICS code. 5. The contract utilized a Cost Plus Fixed Fee pricing structure.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. The final award amount of $31.6M is significant for a construction project in a challenging environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may have limited the price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds were used for this construction project in Afghanistan. The effectiveness of the spending depends on the successful completion of the facility and its long-term utility.
Public Impact
Supports military infrastructure development in Afghanistan. Provides construction services in a high-risk operational environment. Potential for job creation through subcontracting opportunities. Ensures facilities are available for special forces operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing can lead to higher costs.
- Operating in Afghanistan presents significant logistical and security risks.
- Long contract duration (1211 days) increases exposure to changing conditions.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical military infrastructure.
- Experienced contractor (Gilbane Federal) likely involved.
Sector Analysis
This contract falls within the construction sector, specifically for institutional buildings. Construction spending in conflict zones often carries higher risk premiums and logistical complexities compared to domestic projects.
Small Business Impact
The data does not indicate specific subcontracting goals or awards to small businesses for this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The contract's duration and location suggest a need for robust oversight to manage costs, schedule, and performance 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 pricing structure.
- Contract performed in a high-risk environment (Afghanistan).
- Long contract duration.
- Lack of specific small business participation data.
- Potential for cost overruns due to operational complexities.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.6 million to GILBANE FEDERAL. CONSTRUCTION 1ST SPECIAL FORCES KANDAK, GARDEZ AFGHANISTAN
Who is the contractor on this award?
The obligated recipient is GILBANE FEDERAL.
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 $31.6 million.
What is the period of performance?
Start: 2011-03-15. End: 2014-07-08.
What was the final cost compared to the initial estimate, and how did the fixed fee component impact contractor profit?
The contract was awarded at $31,588,250. Without the initial estimate or detailed breakdown of the fixed fee, it's difficult to assess the final cost's efficiency or the contractor's profit margin. Cost Plus Fixed Fee contracts aim to incentivize efficiency by allowing the contractor to retain a portion of any cost savings below a target, but the fixed fee itself is guaranteed.
What specific risks were identified during the bidding process, and how were they mitigated in the contract terms?
Given the location in Afghanistan, risks likely included security, logistical challenges, political instability, and potential for material shortages or delays. Mitigation strategies might involve specific security clauses, force majeure provisions, detailed delivery schedules, and robust quality assurance protocols. The Cost Plus Fixed Fee structure could also be seen as a way to share risk.
How effectively did the full and open competition process ensure the best value for taxpayer dollars in this challenging environment?
Full and open competition is generally the best method for ensuring value. However, the specific challenges of contracting in Afghanistan (security, logistics) might have limited the number of truly competitive bids or increased the baseline costs for all bidders. The Cost Plus Fixed Fee structure, while allowing for flexibility, can sometimes lead to higher overall costs than fixed-price contracts if not managed diligently.
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: 19
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gilbane, Inc. (UEI: 022726165)
Address: 2730 SHADELANDS DR # 100, WALNUT CREEK, CA, 10
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,588,250
Exercised Options: $31,588,250
Current Obligation: $31,588,250
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8513
IDV Type: IDC
Timeline
Start Date: 2011-03-15
Current End Date: 2014-07-08
Potential End Date: 2014-07-08 00:00:00
Last Modified: 2013-07-18
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