DoD's $71.9M Afghan Detention Facility Expansion: Gilbane Federal Awarded Firm Fixed Price Contract

Contract Overview

Contract Amount: $71,901,407 ($71.9M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2012-04-26

End Date: 2014-01-30

Contract Duration: 644 days

Daily Burn Rate: $111.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION AFGHAN NATIONAL DETENTION FACILITY EXPANSION POL-E-CHARKI AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $71.9 million to GILBANE FEDERAL for work described as: CONSTRUCTION AFGHAN NATIONAL DETENTION FACILITY EXPANSION POL-E-CHARKI AFGHANISTAN Key points: 1. Significant investment in infrastructure for Afghan security forces. 2. Gilbane Federal, a large contractor, secured the deal. 3. Potential risks include geopolitical instability and project execution in a challenging environment. 4. Construction sector spending, with a focus on institutional building.

Value Assessment

Rating: fair

The contract value of $71.9 million for an expansion project is substantial. Benchmarking against similar large-scale construction projects in complex environments is difficult without more granular cost data. The firm fixed-price nature suggests a defined scope, but potential for change orders exists.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices, but the specific pricing outcomes depend on the number and quality of bids received.

Taxpayer Impact: Taxpayer funds are being utilized for a significant infrastructure project aimed at supporting Afghan national security. The effectiveness and long-term utility of the facility will determine the ultimate value for taxpayers.

Public Impact

Supports U.S. foreign policy objectives by strengthening Afghan security capabilities. Potential for job creation both domestically for the contractor and locally in Afghanistan. Raises questions about long-term sustainability and maintenance of the facility post-construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Geopolitical instability in Afghanistan.
  • Execution risks in a challenging operational environment.
  • Potential for cost overruns despite firm fixed price.
  • Long-term sustainability of the facility.

Positive Signals

  • Awarded under full and open competition.
  • Firm fixed-price contract limits cost uncertainty.
  • Supports strategic foreign policy goals.

Sector Analysis

This contract falls within the commercial and institutional building construction sector. Spending in this area can fluctuate based on government needs, economic conditions, and geopolitical priorities. Benchmarks for similar projects in conflict zones are scarce.

Small Business Impact

The contract was awarded to Gilbane Federal, a large business. There is no indication that small businesses were significantly involved as subcontractors on this specific award, which is common for large prime contracts.

Oversight & Accountability

Oversight would typically involve the Department of the Air Force ensuring project milestones are met and quality standards are maintained. Accountability for project success rests with the contracting officer and the contractor's performance.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Geopolitical instability and security risks in Afghanistan.
  • Logistical challenges of construction in a remote and potentially hostile environment.
  • Potential for scope creep or change orders impacting final cost.
  • Long-term viability and maintenance of the facility.
  • Dependency on Afghan government capacity for future operations.

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 $71.9 million to GILBANE FEDERAL. CONSTRUCTION AFGHAN NATIONAL DETENTION FACILITY EXPANSION POL-E-CHARKI 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 $71.9 million.

What is the period of performance?

Start: 2012-04-26. End: 2014-01-30.

What is the projected long-term operational cost and sustainability plan for the detention facility after its expansion?

The provided data does not detail the long-term operational costs or sustainability plans for the expanded detention facility. This information is crucial for assessing the full lifecycle cost and the enduring value of the investment. Future oversight should focus on securing these details from the Afghan authorities or relevant U.S. agencies.

How effectively did the full and open competition process ensure competitive pricing given the unique and challenging location?

While the contract was awarded under full and open competition, the effectiveness of this process in ensuring optimal pricing for a project in Afghanistan is difficult to ascertain without bid data. The inherent risks and logistical complexities of operating in such an environment may have limited the number of competitive bids, potentially impacting price discovery.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of this facility expansion?

The data does not specify the KPIs for measuring the success of the facility expansion. Typically, KPIs for such projects would include adherence to schedule, quality of construction, and meeting the functional requirements of the facility. Effectiveness would also be measured by its contribution to Afghan security force capabilities and operational efficiency.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $71,901,407

Exercised Options: $71,901,407

Current Obligation: $71,901,407

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8513

IDV Type: IDC

Timeline

Start Date: 2012-04-26

Current End Date: 2014-01-30

Potential End Date: 2015-03-30 00:00:00

Last Modified: 2014-01-31

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