Road and bridge construction task order awarded for $132.4M to support infrastructure development in Afghanistan

Contract Overview

Contract Amount: $132,414,313 ($132.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Agency for International Development

Start Date: 2007-02-01

End Date: 2010-12-12

Contract Duration: 1,410 days

Daily Burn Rate: $93.9K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE ROAD AND BRIDGE CONSTRUCTION 105 KM. FROM KISHEM TO FAIZABAD RDTAS::72 1037::TAS

Plain-Language Summary

Agency for International Development obligated $132.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE ROAD AND BRIDGE CONSTRUCTION 105 KM. FROM KISHEM TO FAIZABAD RDTAS::72 1037::TAS Key points: 1. Significant investment in critical infrastructure, aiming to improve transportation networks. 2. Contract awarded via a non-competitive process, raising questions about price discovery. 3. Long duration of 1410 days suggests a complex and extensive project. 4. Focus on a specific geographic region (Kishem to Faizabad) indicates targeted development. 5. Cost-plus-fixed-fee contract type may incentivize cost escalation. 6. Lack of disclosed awardee details hinders transparency and accountability assessment.

Value Assessment

Rating: questionable

The contract value of $132.4 million for 105 km of road and bridge construction appears substantial. Without comparable projects in similar conflict/post-conflict zones or detailed cost breakdowns, it is difficult to benchmark value for money. The cost-plus-fixed-fee structure, while common in complex projects, carries inherent risks of cost overruns if not rigorously managed. The absence of disclosed awardee information further complicates a thorough value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded on a non-competitive basis, indicated as a 'NON-COMPETITIVE DELIVERY ORDER'. This suggests that either only one source was capable of fulfilling the requirement, or the circumstances did not permit a competitive solicitation. The lack of competition means there was no opportunity for multiple vendors to bid, potentially leading to higher costs than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The justification for the sole-source award needs to be robust to ensure funds were used efficiently.

Public Impact

The primary beneficiaries are the residents and businesses in the Kishem and Faizabad regions of Afghanistan, who will gain improved transportation access. The project delivers essential road and bridge construction services, vital for economic development and security. Geographic impact is concentrated in the specified 105 km corridor, aiming to connect key areas. Potential for local employment during the construction phase, though specific workforce implications are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits transparency and potential for cost savings.
Cost-plus-fixed-fee contract type can lead to cost overruns if not closely monitored.
Lack of disclosed awardee information impedes assessment of contractor performance and accountability.
Long project duration increases exposure to changing conditions and potential for scope creep.

Positive Signals

Addresses critical infrastructure needs in a developing region.
Potential for significant positive impact on local economy and connectivity.
Long-term asset creation through road and bridge construction.

Sector Analysis

This contract falls within the construction and infrastructure development sector, specifically focusing on transportation networks. The global market for infrastructure development is vast, with significant government investment worldwide. Projects of this scale, particularly in challenging environments, often require specialized expertise and can be awarded through various procurement methods. Benchmarking against similar international development projects would be necessary for a comprehensive assessment.

Small Business Impact

Information regarding small business participation, set-asides, or subcontracting plans is not available for this contract. Given the non-competitive nature and the scale of the project, it is unlikely that small business concerns were a primary focus of the award strategy, though they may have participated as subcontractors if the prime awardee was a larger entity.

Oversight & Accountability

Oversight mechanisms for this task order are not explicitly detailed in the provided data. Given the award was through the Agency for International Development (USAID), it is likely subject to USAID's internal oversight processes and potentially audits by the USAID Office of Inspector General. However, the lack of transparency regarding the awardee and specific performance metrics makes a thorough assessment of accountability challenging.

Related Government Programs

Afghanistan Infrastructure Projects
USAID Construction Contracts
Road and Bridge Development Programs
International Development Assistance

Risk Flags

Non-competitive award
Cost-plus-fixed-fee contract type
Lack of disclosed awardee
Long project duration

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $132.4 million to DOMESTIC AWARDEES (UNDISCLOSED). THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE ROAD AND BRIDGE CONSTRUCTION 105 KM. FROM KISHEM TO FAIZABAD RDTAS::72 1037::TAS

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

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 $132.4 million.

What is the period of performance?

Start: 2007-02-01. End: 2010-12-12.

What is the track record of the undisclosed awardee in managing large-scale infrastructure projects, particularly in post-conflict environments?

The provided data does not disclose the identity of the awardee, making it impossible to assess their track record. Typically, federal agencies conduct pre-award reviews to evaluate a contractor's past performance, financial stability, and technical capabilities. Without knowing who received this $132.4 million contract, any analysis of their experience or suitability for such a significant infrastructure project in Afghanistan is purely speculative. Future transparency regarding awardee information would be crucial for accountability.

How does the cost per kilometer for this road and bridge construction compare to similar projects funded by international development agencies?

The contract covers 105 km at a total cost of $132.4 million, equating to approximately $1.26 million per kilometer. Benchmarking this figure requires careful consideration of project specifics, such as terrain, complexity of bridges, materials used, security costs, and the prevailing economic conditions in Afghanistan during the contract period (2007-2010). Projects in challenging environments often incur higher costs than those in stable regions. Without detailed cost breakdowns and comparable project data from agencies like the World Bank or other bilateral donors operating in similar contexts, a definitive comparison is difficult. However, this rate appears substantial and warrants scrutiny, especially given the non-competitive award.

What specific risks were identified and mitigated for this non-competitive award, given the potential for cost overruns with a Cost Plus Fixed Fee contract?

The data does not detail the specific risks identified or the mitigation strategies employed for this non-competitive award. However, common risks associated with non-competitive sole-source procurements include lack of price competition, potential for inflated costs, and reduced vendor accountability. For Cost Plus Fixed Fee (CPFF) contracts, risks include contractor incentive to increase costs to maximize the fixed fee, and potential for scope creep. Effective mitigation typically involves robust government oversight, detailed cost analysis, clear performance metrics, and stringent change control processes. The long duration (1410 days) further amplifies the need for diligent risk management and oversight throughout the project lifecycle.

What was the justification for awarding this contract on a non-competitive basis, and were alternative sources considered?

The provided data states the contract was awarded as a 'NON-COMPETITIVE DELIVERY ORDER'. The specific justification for this non-competitive award is not detailed. Generally, non-competitive awards are permissible under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source exists, or in cases of urgent and compelling need. For a project of this magnitude and duration, a thorough justification and documentation of market research to confirm the lack of alternatives would be expected. The absence of this information raises concerns about the procurement process and potential missed opportunities for competitive bidding.

What are the expected long-term economic and social impacts of this 105 km road and bridge construction in the Kishem to Faizabad region?

The construction of 105 km of roads and bridges is expected to yield significant long-term economic and social benefits for the Kishem to Faizabad region. Improved transportation infrastructure facilitates the movement of goods and people, potentially reducing travel times and costs for local businesses and residents. This can stimulate economic activity by connecting markets, improving access to services like healthcare and education, and potentially attracting investment. Socially, enhanced connectivity can foster community integration and improve overall quality of life. However, the realization of these benefits depends on factors such as ongoing maintenance, security, and the broader economic and political stability of the region.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $132,414,313

Exercised Options: $132,414,313

Current Obligation: $132,414,313

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AID306I000600517

IDV Type: IDC

Timeline