DoD's $37.4M Afghanistan Mail Transportation Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $37,370,141 ($37.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-09-10

End Date: 2018-07-30

Contract Duration: 2,880 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST NO FEE

Sector: Other

Official Description: THIS EFFORT IS FOR MAIL TRANSPORTATION FROM BAGRAM AIRFIELD TO VARIOUS FORWARD OPERATING BASES (FOBS) AND FROM KABUL TO NEARBY CAMPS. THE PLACE AND PERIOD OF PERFORMANCE FOR THIS EFFORT WILL OCCUR IN AFGHANISTAN AREA OF OPERATIONS (AO). CONTRACT PERFORMANCE FOR THE BAGRAM GROUND TRANSPORT WILL BE A 12 MONTH BASE PERIOD. THE KABUL GROUND TRANSPORT BASE YEAR PERFORMANCE WILL NOT START UNTIL 01 APRIL 2011 AND WILL EXPIRE CONCURRENTLY WITH THE BAGRAM GROUND TRANSPORT SERVICE. BOTH SERVICES WILL INCLUDE 4 ADDITIONAL 1 YEAR OPTION PERIODS.

Plain-Language Summary

Department of Defense obligated $37.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: THIS EFFORT IS FOR MAIL TRANSPORTATION FROM BAGRAM AIRFIELD TO VARIOUS FORWARD OPERATING BASES (FOBS) AND FROM KABUL TO NEARBY CAMPS. THE PLACE AND PERIOD OF PERFORMANCE FOR THIS EFFORT WILL OCCUR IN AFGHANISTAN AREA OF OPERATIONS (AO). CONTRACT PERFORMANCE FOR THE BAGRAM GROUND … Key points: 1. Contract focuses on critical mail transportation within Afghanistan's operational areas. 2. Performance spans multiple years with base periods and multiple option periods. 3. Awardee information is undisclosed, limiting transparency on contractor selection. 4. The contract type is a Definitive Contract, indicating a firm commitment. 5. Services include ground transportation from Bagram Airfield and Kabul. 6. The contract's duration extends through July 2018, covering significant operational periods.

Value Assessment

Rating: fair

The total contract value of $37.4 million for mail transportation services in Afghanistan over nearly eight years appears reasonable given the operational complexities and risks involved in the Area of Operations. However, without specific details on the volume of mail transported or the exact routes and security measures required, a precise value-for-money assessment is challenging. Benchmarking against similar logistics contracts in high-risk environments would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, suggesting that multiple bidders were likely considered. The fact that it was competed openly is a positive indicator for price discovery and potentially achieving a competitive price. However, the undisclosed nature of the domestic awardees prevents a detailed analysis of the number of bids received or the specific competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Service members and personnel operating in Afghanistan benefit from reliable mail delivery. Ensures the delivery of mail from major hubs like Bagram Airfield to various forward operating bases. Supports morale and operational readiness by facilitating communication through mail. The contract has implications for transportation and logistics workforces within the Area of Operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed awardee information limits transparency and accountability.
Operating in an Area of Operations (Afghanistan) presents inherent security and logistical risks.
The extended performance period could lead to cost escalations if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating potential for competitive pricing.
Addresses a critical logistical need for personnel in a challenging operational environment.
Multiple option periods allow for flexibility and sustained support.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on specialized mail and cargo movement within a military operational theater. The market for such services in conflict zones is often characterized by high risk, significant security requirements, and specialized logistical capabilities. Comparable spending would involve other Department of Defense contracts for transportation and base support services in similar operational environments, which can be substantial due to the inherent costs of operating in austere and high-threat locations.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting plans for this contract. As a Definitive Contract awarded through full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors, but this information is not detailed. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the Department of Defense's contracting and inspection agencies. Given the operational environment, robust oversight would be crucial to ensure service delivery, accountability, and proper use of funds. Transparency is somewhat limited by the undisclosed awardee. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Mail Services
Afghanistan Area of Operations Logistics Support
Transportation Services Contracts
Forward Operating Base Support

Risk Flags

Undisclosed Awardee
High-Risk Operational Environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to DOMESTIC AWARDEES (UNDISCLOSED). THIS EFFORT IS FOR MAIL TRANSPORTATION FROM BAGRAM AIRFIELD TO VARIOUS FORWARD OPERATING BASES (FOBS) AND FROM KABUL TO NEARBY CAMPS. THE PLACE AND PERIOD OF PERFORMANCE FOR THIS EFFORT WILL OCCUR IN AFGHANISTAN AREA OF OPERATIONS (AO). CONTRACT PERFORMANCE FOR THE BAGRAM GROUND TRANSPORT WILL BE A 12 MONTH BASE PERIOD. THE KABUL GROUND TRANSPORT BASE YEAR PERFORMANCE WILL NOT START UNTIL 01 APRIL 2011 AND WILL EXPIRE CONCURRENTLY WITH THE BAGRAM GROUND TRANSPORT SERVICE. BOTH SERVICES WILL INCL

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 $37.4 million.

What is the period of performance?

Start: 2010-09-10. End: 2018-07-30.

What was the specific nature of the mail transportation services provided under this contract?

This contract was specifically for mail transportation services within the Afghanistan Area of Operations. It involved ground transportation of mail from Bagram Airfield to various Forward Operating Bases (FOBs) and from Kabul to nearby camps. The services were structured with a 12-month base period for Bagram ground transport, and the Kabul ground transport services were set to begin on April 1, 2011, expiring concurrently with the Bagram services. Both services included four additional 1-year option periods, indicating a need for sustained mail delivery throughout the operational period.

How does the total contract value of $37.4 million compare to similar mail transportation contracts in operational theaters?

Direct comparison of this $37.4 million contract to similar mail transportation contracts in operational theaters is challenging without more granular data on the scope, volume, and specific risks associated with each contract. However, contracts for logistics and transportation in conflict zones like Afghanistan are generally more expensive than those in stable environments due to heightened security, specialized equipment, and personnel risks. The value appears to be within a plausible range for supporting critical communication lines for military personnel over an extended period in a high-risk area, but a definitive benchmark would require access to comparable contract details.

What are the primary risks associated with this mail transportation contract?

The primary risks associated with this contract are multifaceted, stemming largely from its operational environment in Afghanistan. These include significant security risks to personnel and assets involved in transportation, potential disruptions to supply chains due to local conditions or conflict, logistical challenges in reaching remote Forward Operating Bases, and the risk of contract performance issues due to the complexities of operating in a war zone. Furthermore, the extended duration and multiple option periods introduce risks related to cost escalation and the need for continuous oversight to ensure value for money.

What does the 'full and open competition' designation imply for the cost-effectiveness of this contract?

The designation of 'full and open competition' implies that the contract was solicited from all responsible sources, and any responsible contractor could submit an offer. This process is generally expected to foster competition, which in turn can drive down prices and improve the quality of services offered. For taxpayers, this means that the government likely received multiple bids, allowing for a comparison of prices and capabilities, and potentially securing the services at a more competitive rate than if it had been a sole-source or limited competition award. However, the ultimate cost-effectiveness also depends on the specific terms of the contract and the execution by the awarded contractor.

What is the significance of the contract being a 'Definitive Contract'?

A Definitive Contract is a type of fixed-price or cost-reimbursement contract that is considered final and binding. In this context, it signifies a firm commitment by the Department of Defense to procure the mail transportation services. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts or basic ordering agreements, a definitive contract typically specifies all the terms and conditions, including price, quantity, and delivery schedule, upfront. This provides a clear framework for the service provider and the government, reducing ambiguity and establishing a clear contractual obligation for the duration of the contract.

How does the undisclosed nature of the awardee impact the assessment of this contract?

The undisclosed nature of the awardee significantly limits a comprehensive assessment of this contract. Transparency is a key component of accountability in government contracting. Without knowing the identity of the contractor, it is difficult to evaluate their past performance record, financial stability, or specific expertise in handling logistics in complex operational environments. This lack of information also hinders the ability to conduct thorough due diligence, assess potential conflicts of interest, or understand the specific capabilities that led to their selection over other potential bidders. It makes it harder to benchmark against known entities and assess the overall value proposition.

Industry Classification

NAICS: Transportation and Warehousing › Other Support Activities for Transportation › All Other Support Activities for Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J10R0139

Offers Received: 13

Pricing Type: COST NO FEE (S)

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: $37,370,141

Exercised Options: $37,370,141

Current Obligation: $37,370,141

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline