DoD spent over $36M on lease/fuel storage buildings in Afghanistan, awarded via full and open competition

Contract Overview

Contract Amount: $10,019,204 ($10.0M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2005-04-09

End Date: 2013-04-08

Contract Duration: 2,921 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200505!006174!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !SP060004C5426 !A!N! !N! ! !20050222!20090331!360302640!360302640!360302640!N!TRYCO INTERNATIONAL, LTD. !NEW AIRPORT ROAD !KABUL !AF! !00000! !AF!* !* !AFGHANISTA!+000000950000!N!N!000000000000!X173!LEASE/FUEL STORAGE BUILDINGS !S1 !SERVICES !000 !* !493190!E! !3!A!S! ! ! !20200930!B! ! !B! !A!U!J!2!003!B! !Z!N!Z!B!AF!Y!L!U! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $10.0 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: 200505!006174!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !SP060004C5426 !A!N! !N! ! !20050222!20090331!360302640!360302640!360302640!N!TRYCO INTERNATIONAL, LTD. !NEW AIRPORT ROAD !KABUL !AF! !00000! !AF!* !* … Key points: 1. Contract awarded for lease and fuel storage buildings in Afghanistan. 2. Significant expenditure on infrastructure support in a challenging operational environment. 3. Full and open competition was utilized, suggesting a broad search for qualified bidders. 4. The contract duration was substantial, spanning over 8 years. 5. The awardee is listed as a foreign entity, with specific details undisclosed. 6. The contract falls under the 'Other Warehousing and Storage' NAICS code.

Value Assessment

Rating: fair

The total value of $36,030,264 for lease and fuel storage buildings over an eight-year period in Afghanistan presents a complex value proposition. While the firm-fixed-price structure offers cost certainty, the lack of detailed cost breakdowns and the foreign, undisclosed nature of the awardee make direct benchmarking difficult. The per-square-foot cost or per-unit storage capacity would be necessary for a more precise value assessment against similar infrastructure projects in comparable regions or for similar military support functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The presence of three bidders suggests a degree of competition, though the specific details of the bidding process and the nature of the competitors are not fully elaborated. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the ultimate benefit depends on the effectiveness of the competition and the pricing achieved relative to the actual need and market conditions.

Public Impact

The primary beneficiaries are likely U.S. military operations in Afghanistan requiring fuel storage infrastructure. Services delivered include the leasing and maintenance of fuel storage facilities. The geographic impact is concentrated in Afghanistan, supporting logistical operations. Workforce implications are unclear but may involve local labor for construction and maintenance, alongside the primary contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Awardee is a foreign entity with undisclosed details, raising potential transparency and accountability concerns.
Contract duration is long, increasing the risk of cost overruns or changing requirements.
Operating in Afghanistan presents inherent security and logistical risks that could impact performance and cost.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests an effort to obtain competitive pricing.
The contract was awarded by the Defense Logistics Agency, a key logistics provider for the DoD.

Sector Analysis

This contract falls within the 'Other Warehousing and Storage' sector, specifically related to energy infrastructure support. The market for such services in conflict zones is highly specialized and often involves significant logistical and security considerations. Comparable spending benchmarks are difficult to establish due to the unique operating environment and the nature of the services provided (leasing of specialized facilities).

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the nature of the requirement (large-scale infrastructure in a foreign, high-risk environment) and the awardee being a foreign entity, it is unlikely that small businesses were primary awardees. Subcontracting opportunities for small businesses are not specified.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm-fixed-price contract, but the foreign and undisclosed nature of the awardee may complicate direct oversight and performance verification. Transparency is limited by the lack of detailed information on the awardee and specific cost breakdowns.

Related Government Programs

Defense Logistics Agency Contracts
Afghanistan Reconstruction Contracts
Fuel Storage and Distribution Contracts
Foreign Military Support Contracts

Risk Flags

Foreign Awardee Transparency
Operational Risk in Afghanistan
Long Contract Duration
Limited Cost Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to FOREIGN AWARDEES (UNDISCLOSED). 200505!006174!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !SP060004C5426 !A!N! !N! ! !20050222!20090331!360302640!360302640!360302640!N!TRYCO INTERNATIONAL, LTD. !NEW AIRPORT ROAD !KABUL !AF! !00000! !AF!* !* !AFGHANISTA!+000000950000!N!N!000000000000!X173!LEASE/FUEL STORAGE BUILDINGS !S1 !SERVICES !000 !* !493190!E! !3!A!S! ! ! !202

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2005-04-09. End: 2013-04-08.

What specific types of fuel storage buildings were leased, and what were their capacities?

The provided data indicates the contract was for 'LEASE/FUEL STORAGE BUILDINGS' under NAICS code 493190 (Other Warehousing and Storage). However, specific details regarding the types of fuel, storage capacities, construction standards, or security features of these buildings are not available in the summary data. Understanding these specifics would be crucial for assessing the adequacy of the leased facilities for their intended purpose and for benchmarking the value against industry standards for fuel storage infrastructure.

Who was the specific foreign awardee, and what is their track record in providing similar services?

The data identifies the awardee as 'TRYCO INTERNATIONAL, LTD.' located in Kabul, Afghanistan, with the contract value listed as $36,030,264. However, the 'co' field indicates 'FOREIGN AWARDEES (UNDISCLOSED)', which appears to be a contradiction or an indication that while a name is provided, further details about the entity's ownership, operational history, or specific qualifications are not publicly disclosed or were not required to be disclosed in this context. A lack of transparency regarding the awardee's background makes it difficult to assess their track record, reliability, and experience in managing complex fuel storage projects, especially in a challenging operational environment.

How does the total contract value of $36M compare to similar infrastructure projects in Afghanistan or other conflict zones?

Benchmarking this $36 million contract for lease/fuel storage buildings over eight years in Afghanistan against similar projects is challenging due to the unique operational context, security risks, and logistical complexities inherent in that region. Standard construction and leasing costs in stable environments are not directly comparable. Factors such as heightened security requirements, transportation of materials, potential for delays, and the specialized nature of fuel storage likely inflate costs significantly compared to domestic projects. Without detailed cost breakdowns or data on comparable projects in similar high-risk environments, a precise value-for-money assessment relative to benchmarks is difficult.

What were the key performance metrics and evaluation criteria used during the full and open competition?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' with three bidders. However, it does not specify the key performance metrics (KPIs) or the evaluation criteria used to assess the proposals. Typically, for such contracts, evaluation criteria would likely include factors such as technical approach, past performance, management capability, security plan, and price. The specific weighting of these factors and the detailed KPIs would have been outlined in the solicitation documents (e.g., Request for Proposal - RFP) to ensure a fair and objective selection process that aligns with the government's requirements for fuel storage and leasing in Afghanistan.

What is the historical spending pattern for fuel storage and related infrastructure by the Defense Logistics Agency in Afghanistan?

The provided data represents a single contract award of $36,030,264 for lease/fuel storage buildings from 2005 to 2013. To understand the historical spending pattern, one would need to analyze broader contract data from the Defense Logistics Agency (DLA) and potentially other Department of Defense (DoD) entities operating in Afghanistan over a longer period. This would involve searching for contracts related to fuel infrastructure, warehousing, base support, and logistics services awarded to various contractors, including foreign entities. Analyzing trends in spending, contract types, and awardees over time would reveal patterns and the scale of investment in such facilities.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060004R0083

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $10,191,536

Exercised Options: $10,191,536

Current Obligation: $10,019,204

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline