DoD's $59M Afghanistan Ministry of Defense Complex Construction Contract Awarded to Gilbane Federal

Contract Overview

Contract Amount: $59,028,269 ($59.0M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2014-08-01

End Date: 2016-02-05

Contract Duration: 553 days

Daily Burn Rate: $106.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION OF AFGHANISTAN MINISTRY OF DEFENSE COMPLEX IN KABUL, AFGHANISTAN

Place of Performance

Location: WALNUT CREEK, CONTRA COSTA County, CALIFORNIA, 94598

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $59.0 million to GILBANE FEDERAL for work described as: IGF::OT::IGF CONSTRUCTION OF AFGHANISTAN MINISTRY OF DEFENSE COMPLEX IN KABUL, AFGHANISTAN Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract was a firm-fixed-price delivery order, providing cost certainty for the government. 3. The project involved commercial and institutional building construction, a common category for federal spending. 4. The duration of the contract was 553 days, indicating a medium-term construction project. 5. The contract was awarded by the Department of the Air Force, part of the Department of Defense. 6. The project was located in Kabul, Afghanistan, highlighting its role in international security assistance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and location in Afghanistan. The firm-fixed-price structure suggests an attempt to control costs. However, without comparable projects in similar environments, assessing true value-for-money is difficult. The contract's total value of approximately $59 million for a complex construction project in a high-risk area may be within a reasonable range, but detailed cost breakdowns and comparisons to similar international construction efforts would be needed for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was a delivery order suggests it might have been part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a competitive bid for a specific project. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider range of contractors to participate, potentially leading to better quality and innovation.

Public Impact

The primary beneficiaries of this contract were the Afghan Ministry of Defense and its personnel, who received a new complex. The services delivered included the construction of a significant building complex, likely encompassing administrative, operational, and support facilities. The geographic impact was concentrated in Kabul, Afghanistan, contributing to the development of local infrastructure. Workforce implications would include the employment of construction workers, engineers, and project managers, potentially including both local Afghan labor and international personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could pose risks to project timelines, budget, and personnel safety.
Logistical challenges in a remote and potentially insecure environment can increase costs and complexity.
Quality control and oversight in a foreign construction environment require robust mechanisms to ensure standards are met.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Awarding through full and open competition suggests a structured procurement process aimed at achieving best value.
The project addresses a critical need for infrastructure development for the Afghan Ministry of Defense.

Sector Analysis

This contract falls within the Construction sector, specifically commercial and institutional building construction. The federal government is a significant consumer of construction services, both domestically and internationally, for a wide range of facilities including military bases, government offices, and infrastructure projects. Spending in this area is influenced by geopolitical needs, domestic infrastructure requirements, and agency operational demands. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects awarded by the Department of Defense or other federal agencies for similar types of facilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary focus was on full and open competition to secure the best offer for the project. Consequently, there are no direct subcontracting implications for small businesses mandated by this award, though the prime contractor, Gilbane Federal, may engage small businesses as subcontractors at its discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Given the international location and nature of the project, additional oversight might have been provided by military personnel on the ground and potentially by the Department of Defense's Inspector General, especially concerning the use of funds and project execution in a complex environment. Transparency would be facilitated through contract award databases and reporting requirements.

Related Government Programs

Afghanistan Security Forces Fund
Department of Defense Construction Contracts
International Security Assistance Programs
Ministry of Defense Infrastructure Development

Risk Flags

Geopolitical Risk
Logistical Complexity
Security Concerns
International Operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.0 million to GILBANE FEDERAL. IGF::OT::IGF CONSTRUCTION OF AFGHANISTAN MINISTRY OF DEFENSE COMPLEX IN KABUL, 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 $59.0 million.

What is the period of performance?

Start: 2014-08-01. End: 2016-02-05.

What was the specific scope of work for the Ministry of Defense Complex?

The provided data indicates the contract was for the 'CONSTRUCTION OF AFGHANISTAN MINISTRY OF DEFENSE COMPLEX IN KABUL, AFGHANISTAN.' While the exact scope is not detailed, such a complex typically includes administrative buildings, command centers, barracks, training facilities, and support infrastructure. The project aimed to provide essential facilities to enhance the operational capabilities and capacity of the Afghan Ministry of Defense. The firm-fixed-price nature suggests a well-defined scope was established prior to bidding to ensure cost control.

How does the $59 million cost compare to similar international construction projects?

Directly comparing the $59 million cost is difficult without specific details on the size, complexity, and exact location of comparable projects. Construction costs in conflict zones or areas with significant logistical challenges are typically higher than in stable, developed regions. Factors such as security, transportation of materials, specialized labor, and political risk premiums all contribute to elevated costs. This contract was awarded by the Department of the Air Force, and while specific benchmarks for Afghan construction are scarce, the firm-fixed-price award suggests the government sought to contain costs within a competitive bidding process for the defined scope.

What were the primary risks associated with this construction project in Afghanistan?

The primary risks associated with this construction project in Afghanistan would have been substantial. These include significant security risks to personnel and assets due to the volatile political and security environment. Logistical challenges related to transporting materials, equipment, and personnel into Kabul would have been considerable. Furthermore, potential for corruption, political instability impacting project continuity, and difficulties in ensuring consistent quality control in a challenging operational setting were also major concerns. The duration of 553 days also implies a prolonged exposure to these risks.

What is the significance of this contract within the broader context of US involvement in Afghanistan?

This contract is significant as it represents a tangible investment in building the capacity and infrastructure of the Afghan National Security Forces, specifically the Ministry of Defense. It aligns with broader US foreign policy and security objectives aimed at stabilizing Afghanistan and enabling its self-sufficiency. The construction of a dedicated complex would have provided a more secure and functional base for the ministry's operations, contributing to its effectiveness and professionalism. The award by the Department of the Air Force underscores the military's role in supporting these nation-building efforts.

What was the track record of Gilbane Federal in similar international construction projects?

Gilbane Federal, as a subsidiary of Gilbane Building Company, has a substantial track record in large-scale construction projects, including significant international and government contracts. While specific details on their prior work in Afghanistan for the Ministry of Defense complex are not provided in this data snippet, the company has extensive experience in military construction, secure facilities, and complex projects globally. Their history often includes projects for various branches of the US military and federal agencies, suggesting they possess the expertise and capacity to manage challenging overseas construction endeavors.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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, 94598

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $59,028,269

Exercised Options: $59,028,269

Current Obligation: $59,028,269

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300208D0008

IDV Type: IDC

Timeline