DoD's $102M Postal Operations Contract in Afghanistan: Full and Open Competition, Firm Fixed Price

Contract Overview

Contract Amount: $102,027,634 ($102.0M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-09-10

End Date: 2016-09-15

Contract Duration: 2,197 days

Daily Burn Rate: $46.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POSTAL OPERATIONS IN AFGHANISTAN AOR

Plain-Language Summary

Department of Defense obligated $102.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: POSTAL OPERATIONS IN AFGHANISTAN AOR Key points: 1. Significant investment in postal services for a complex operational environment. 2. Full and open competition suggests a potentially competitive pricing landscape. 3. Firm Fixed Price contract type aims to control costs, but scope creep is a risk. 4. The contract duration of nearly 6 years indicates a long-term need. 5. Lack of disclosed domestic awardees raises questions about transparency and local impact.

Value Assessment

Rating: fair

The contract value of $102M over 6 years is substantial. Without specific per-unit cost data or benchmarks for similar international postal operations, a precise value assessment is difficult. The firm fixed price structure provides cost certainty, but the broad scope could mask inefficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the widest range of potential bidders and promotes competitive pricing. However, the undisclosed domestic awardees make it difficult to assess the actual level of competition and the effectiveness of price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential logistical support in a high-cost operational theater. While competition aims for efficiency, the overall cost effectiveness depends on contract management and performance.

Public Impact

Ensures delivery of mail and packages to military personnel and operations in Afghanistan. Supports morale and operational readiness by maintaining communication channels. Potential for job creation within the awarded domestic companies and their subcontractors. Contributes to the overall logistical framework of military operations in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed domestic awardees limit transparency.
Long contract duration could lead to cost overruns if not managed.
Operational risks in Afghanistan could impact service delivery.
Potential for scope creep in a complex environment.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type for cost control.
Supports critical military operations.

Sector Analysis

This contract falls under general support services for military operations, specifically postal logistics. Spending benchmarks for international postal operations are scarce, but the scale suggests a significant operational requirement. The $102M over nearly 6 years indicates a substantial, long-term commitment.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. The focus appears to be on larger domestic awardees, and the lack of specific small business participation data makes assessment difficult.

Oversight & Accountability

Oversight would typically involve contract performance monitoring, financial audits, and ensuring compliance with terms and conditions. Given the operational environment, robust oversight is crucial to manage risks and ensure value for money. The undisclosed awardees complicate public accountability.

Related Government Programs

Postal Service
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of transparency regarding awardees.
Potential for cost overruns due to contract duration and operational environment.
Difficulty in assessing true competition and price discovery.
Operational risks in Afghanistan impacting service delivery.
Limited insight into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.0 million to DOMESTIC AWARDEES (UNDISCLOSED). POSTAL OPERATIONS IN AFGHANISTAN AOR

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $102.0 million.

What is the period of performance?

Start: 2010-09-10. End: 2016-09-15.

What was the specific scope of services provided under this postal operations contract, and how did it align with the actual needs of military personnel in Afghanistan?

The contract likely encompassed mail sorting, transportation, delivery, and potentially package handling services for DoD personnel and operations within the Afghanistan Area of Responsibility. The alignment with actual needs would depend on factors like troop presence, operational tempo, and the security environment, which are not detailed in the provided data.

Given the firm fixed price structure, what mechanisms were in place to prevent or manage scope creep and ensure the contractor did not incur excessive costs due to unforeseen operational challenges?

Effective contract management, including clear performance metrics, regular progress reviews, and a well-defined change order process, would be crucial. The government contracting officer would need to diligently monitor performance and control any requested modifications to the original scope to prevent uncontrolled cost increases.

How did the 'full and open competition' process effectively ensure competitive pricing, especially considering the unique logistical challenges and potential risks associated with operating in Afghani

Full and open competition theoretically allows multiple bidders to propose solutions, driving down prices. However, the effectiveness in this context depends on whether the solicitation clearly defined requirements and evaluation criteria, and if sufficient qualified bidders were willing and able to compete despite the inherent risks and complexities of the operational environment.

Industry Classification

NAICS: Transportation and Warehousing › Postal Service › Postal Service

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J10R0050

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,027,634

Exercised Options: $102,027,634

Current Obligation: $102,027,634

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline