DoD's $20.5M Aircraft Logistics Contract Awarded to Kandahar Constructors, LLC
Contract Overview
Contract Amount: $20,517,010 ($20.5M)
Contractor: Kandahar Constructors, LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-21
End Date: 2014-07-21
Contract Duration: 577 days
Daily Burn Rate: $35.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P217 AIRCRAFT LOGISTICS
Plain-Language Summary
Department of Defense obligated $20.5 million to KANDAHAR CONSTRUCTORS, LLC for work described as: P217 AIRCRAFT LOGISTICS Key points: 1. Significant contract value of over $20.5 million for aircraft logistics. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks associated with construction and logistics in a challenging environment. 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $20.5 million is substantial. Without specific per-unit cost data or benchmarks for similar aircraft logistics contracts, a precise value assessment is difficult. The award amount appears reasonable given the scope but requires further comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a broad range of potential bidders. This method aims to achieve the best value for the government.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by encouraging multiple bids and driving down costs through market forces.
Public Impact
Supports critical military operations by ensuring aircraft readiness and maintenance. Impacts the construction and logistics industries, potentially creating jobs. Ensures the availability of essential services for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex logistics and construction projects.
- Geopolitical risks associated with operating in or supporting operations in regions like Kandahar.
- Dependence on a single contractor for critical logistics functions.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract duration of over 500 days indicates a significant operational need.
- Firm fixed price contract type can provide cost certainty.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, with a significant portion likely dedicated to logistics infrastructure and support services for aircraft. Spending benchmarks for similar large-scale construction and logistics projects in defense contexts are typically in the millions.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not explicitly detailed.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Navy to ensure Kandahar Constructors, LLC meets all specified requirements, timelines, and quality standards. Accountability is maintained through contract clauses and performance reviews.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded in a high-risk operational environment.
- Potential for performance issues given the complexity of logistics and construction.
- Lack of small business participation.
- Limited information on specific performance metrics and oversight mechanisms.
Tags
commercial-and-institutional-building-co, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to KANDAHAR CONSTRUCTORS, LLC. P217 AIRCRAFT LOGISTICS
Who is the contractor on this award?
The obligated recipient is KANDAHAR CONSTRUCTORS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2012-12-21. End: 2014-07-21.
What specific logistics services are included in this $20.5M contract, and how do they align with the Department of Defense's strategic aircraft readiness goals?
The contract likely encompasses a range of services such as maintenance, repair, supply chain management, and potentially infrastructure development for aircraft operating in or supported by the Kandahar region. These services are crucial for maintaining operational readiness, ensuring aircraft are mission-capable, and supporting the overall strategic objectives of the Department of Defense in that area.
What are the primary risks associated with awarding a large construction and logistics contract in a region like Kandahar, and what mitigation strategies were likely employed?
Key risks include security threats, logistical challenges due to remote location, potential for political instability, and contractor performance issues. Mitigation strategies likely involved rigorous security protocols, robust supply chain planning, close coordination with military forces, and performance-based contract incentives to ensure successful delivery.
How does the firm fixed price contract type impact the government's ability to manage costs and ensure the effectiveness of aircraft logistics services?
A firm fixed price contract provides cost certainty for the government, as the contractor assumes most of the risk for cost overruns. This encourages efficiency from the contractor. However, it requires very clear and detailed scope definition upfront to ensure the services delivered are effective and meet all requirements without scope creep.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3319112R0406
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4445 CORPORATION LN STE 150, VIRGINIA BEACH, VA, 02
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,517,010
Exercised Options: $20,517,010
Current Obligation: $20,517,010
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-12-21
Current End Date: 2014-07-21
Potential End Date: 2014-07-21 00:00:00
Last Modified: 2014-09-28
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