Over $10.8 million contract awarded for basic infrastructure support in West Bank/Gaza, with a 1279-day performance period

Contract Overview

Contract Amount: $10,844,277 ($10.8M)

Contractor: Arab Brothers Company

Awarding Agency: Agency for International Development

Start Date: 2023-09-29

End Date: 2027-03-31

Contract Duration: 1,279 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WBG-EGI- BASIC INFRASTRUCTURE SUPPORT MECHANISM (BISM) ACTIVITY- TO#1 YDRCS TULKAREM AND TUBAS AREAS)

Plain-Language Summary

Agency for International Development obligated $10.8 million to ARAB BROTHERS COMPANY for work described as: WBG-EGI- BASIC INFRASTRUCTURE SUPPORT MECHANISM (BISM) ACTIVITY- TO#1 YDRCS TULKAREM AND TUBAS AREAS) Key points: 1. The contract's value of over $10.8 million for infrastructure support suggests a significant investment in the region's development. 2. Competition dynamics for this contract were 'full and open after exclusion of sources,' indicating a specific reason for limiting the initial pool. 3. The contract's duration of over three years (1279 days) points to a long-term commitment to the project's objectives. 4. Performance is benchmarked against similar infrastructure projects in developing regions, considering factors like project scope and local economic conditions. 5. The sector positioning is within 'Other Heavy and Civil Engineering Construction,' a broad category encompassing essential infrastructure development. 6. Risk indicators will be assessed based on project complexity, geopolitical factors in the region, and the contractor's past performance.

Value Assessment

Rating: fair

The contract value of $10.8 million for infrastructure support in the West Bank/Gaza region appears substantial. Without specific benchmarks for similar projects in this particular geopolitical context, a direct value-for-money assessment is challenging. However, the duration of over three years suggests a phased approach to delivery, which can sometimes lead to better cost control if managed effectively. Further analysis would require comparing the scope of work and deliverables to other USAID-funded infrastructure projects in similar challenging environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be broad, certain sources were excluded, possibly due to specific requirements, security concerns, or prior vetting. The number of bidders is not specified, but the 'exclusion of sources' suggests a more controlled competition than a truly open one, which could potentially impact price discovery and the breadth of innovative solutions considered.

Taxpayer Impact: The limited competition, due to the exclusion of sources, may mean that taxpayers did not benefit from the widest possible range of competitive bids, potentially leading to a higher price than if all qualified sources had been allowed to compete.

Public Impact

The primary beneficiaries are the residents of the Tulkarem and Tubas areas in the West Bank/Gaza, who will receive improved basic infrastructure. Services delivered include the construction and support of essential infrastructure, contributing to the region's development and quality of life. The geographic impact is focused on the specified areas of Tulkarem and Tubas, aiming to address local needs. Workforce implications may include local employment opportunities during the construction and maintenance phases of the infrastructure projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in the West Bank/Gaza region poses a significant risk to project timelines and execution.
The 'exclusion of sources' in the competition process raises questions about the extent of true market competition and potential cost efficiencies.
Dependence on specific local conditions and potential supply chain disruptions could impact project delivery.
Ensuring equitable distribution of benefits across the targeted communities requires careful monitoring.

Positive Signals

The contract addresses critical basic infrastructure needs, which is a fundamental requirement for community development.
The long performance period suggests a commitment to sustained impact and project completion.
The award to Arab Brothers Company, assuming they have a relevant track record, indicates a focus on established entities for critical projects.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which is vital for developing economies. This sector encompasses a wide range of projects, from roads and bridges to utilities and public facilities. Spending in this area is often driven by government initiatives to improve living standards, stimulate economic activity, and enhance resilience. Comparable spending benchmarks would typically involve analyzing the cost per mile of road construction, per unit of water infrastructure, or per square foot of public facility built in similar socio-economic and geopolitical contexts.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the nature and scale of basic infrastructure projects, it is common for prime contracts to be awarded to larger firms. However, the prime contractor, Arab Brothers Company, may be expected to engage small businesses as subcontractors for specialized services or material supply, contributing to the local small business ecosystem. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract is likely managed by the Agency for International Development (USAID), which is responsible for monitoring contract performance, ensuring compliance with terms and conditions, and verifying that funds are used appropriately. Accountability measures would include regular reporting from the contractor, site inspections, and potentially audits. Transparency would be facilitated through public contract databases, although specific project details and challenges might be subject to security or operational sensitivities.

Related Government Programs

USAID Infrastructure Development Programs
Middle East Economic Development Initiatives
West Bank and Gaza Reconstruction Efforts
Civil Engineering and Construction Contracts

Risk Flags

Geopolitical Risk
Limited Competition Concerns
Project Execution Complexity
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $10.8 million to ARAB BROTHERS COMPANY. WBG-EGI- BASIC INFRASTRUCTURE SUPPORT MECHANISM (BISM) ACTIVITY- TO#1 YDRCS TULKAREM AND TUBAS AREAS)

Who is the contractor on this award?

The obligated recipient is ARAB BROTHERS COMPANY.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2023-09-29. End: 2027-03-31.

What is the track record of Arab Brothers Company in executing similar infrastructure projects, particularly in challenging geopolitical environments?

Assessing the track record of Arab Brothers Company is crucial for understanding their capability to deliver on this $10.8 million contract. Information regarding their past performance on similar basic infrastructure projects, especially those funded by international organizations like USAID or in regions with comparable complexities to the West Bank/Gaza, would provide insight into their project management skills, technical expertise, and ability to navigate logistical and security challenges. A review of their project portfolio, client testimonials, and any past performance evaluations or disputes would be necessary to gauge their reliability and suitability for this undertaking. Without specific data on their past projects, it is difficult to definitively assess their preparedness.

How does the awarded amount of $10.8 million compare to the estimated costs for similar basic infrastructure projects in the West Bank/Gaza or comparable regions?

The awarded amount of $10.8 million for basic infrastructure support needs to be benchmarked against similar projects to ascertain its value for money. This comparison should consider the scope of work, the specific types of infrastructure being developed (e.g., water, sanitation, roads), the duration of the project (1279 days), and the prevailing economic and security conditions in the West Bank/Gaza. If comparable projects in similar regions have been executed for significantly less, or if the scope of work for this contract is unusually extensive for the allocated budget, it could indicate potential overpricing or under-delivery. Conversely, if the costs align with or are lower than benchmarks, it suggests efficient procurement and realistic budgeting.

What are the primary risks associated with executing this infrastructure project in the West Bank/Gaza, and what mitigation strategies are in place?

Executing infrastructure projects in the West Bank/Gaza inherently involves significant risks, including political instability, security concerns, potential movement restrictions for personnel and materials, and complex regulatory environments. The 'exclusion of sources' in the competition process might also point to pre-existing risk assessments that influenced bidder selection. Mitigation strategies would typically involve robust security protocols, contingency planning for delays, strong local partnerships, and close coordination with relevant authorities. The Agency for International Development (USAID) likely has established risk management frameworks and requires the contractor to implement specific mitigation plans to address these multifaceted challenges and ensure project continuity and success.

What is the expected effectiveness of the 'basic infrastructure support' in improving the quality of life and economic conditions in Tulkarem and Tubas areas?

The effectiveness of the 'basic infrastructure support' hinges on the specific types of infrastructure being developed and their direct impact on the daily lives of residents in Tulkarem and Tubas. Improvements in areas like water supply, sanitation, waste management, or transportation networks can significantly enhance public health, reduce disease transmission, improve access to services, and facilitate local economic activities. The long-term effectiveness will depend on the quality of construction, the sustainability of the infrastructure, and whether it meets the actual needs of the community. Measuring effectiveness would involve post-project assessments of service delivery, community satisfaction, and observable changes in economic indicators.

How has federal spending on similar infrastructure projects in the Middle East evolved over the past five years, and does this contract represent a continuation or shift in strategy?

Analyzing historical federal spending on similar infrastructure projects in the Middle East over the past five years is essential to contextualize this $10.8 million contract. Trends in spending can reveal shifts in U.S. foreign policy priorities, regional development strategies, and the types of infrastructure projects being funded. For instance, a sustained or increasing investment might indicate a long-term commitment to stability and development in the region. Conversely, a decrease could signal a reallocation of resources. Understanding whether this contract aligns with or deviates from past spending patterns helps in assessing its strategic significance and potential future implications for U.S. engagement in the Middle East.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: KURZA-DURA, HEBRON

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $10,869,277

Exercised Options: $10,869,277

Current Obligation: $10,844,277

Actual Outlays: $4,753,253

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 72029423D00002

IDV Type: IDC

Timeline