DoD's $25.8M A-TEMP contract for Afghan technical equipment maintenance saw limited competition and fair value

Contract Overview

Contract Amount: $25,763,217 ($25.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-12-30

End Date: 2018-02-01

Contract Duration: 2,590 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AFGHANISTAN - TECHNICAL EQUIPMENT MAINTENANCE PROGRAM (A-TEMP) ANA/ANP TRAINING.

Plain-Language Summary

Department of Defense obligated $25.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: AFGHANISTAN - TECHNICAL EQUIPMENT MAINTENANCE PROGRAM (A-TEMP) ANA/ANP TRAINING. Key points: 1. The contract aimed to provide essential maintenance for Afghan National Army and Police technical equipment. 2. While the contract was awarded under full and open competition, the number of bidders was not specified, raising questions about the extent of actual market engagement. 3. The firm-fixed-price structure suggests a defined scope, but the long duration could introduce cost escalation risks if not managed carefully. 4. Performance context is limited without specific metrics on equipment uptime or repair turnaround times. 5. This contract falls within the broader category of defense support services, crucial for maintaining operational readiness of allied forces. 6. The total value of approximately $25.8 million over its lifespan indicates a significant investment in a critical security assistance program.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to the unique operational context in Afghanistan and the specialized nature of the services. The firm-fixed-price contract type suggests an attempt to control costs, but the extended performance period (over 7 years) could have masked inefficiencies. Without detailed performance data or comparable contracts for similar support in comparable environments, it's difficult to definitively assess if the pricing was optimal. However, the absence of significant cost overruns or contract modifications might suggest a reasonable, albeit not exceptional, value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the provided data does not specify the number of bids received. A low number of bids, even under full and open competition, could suggest limited market interest or capability, potentially impacting price discovery and leading to less competitive pricing than ideal.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the actual level of competition achieved is critical. If only a few entities bid, taxpayers may not have benefited from the full range of potential cost savings that robust competition typically provides.

Public Impact

The primary beneficiaries were the Afghan National Army (ANA) and Afghan National Police (ANP), who received maintained technical equipment essential for their operations. Services delivered included general automotive repair and maintenance for various technical equipment, ensuring operational readiness. The geographic impact was concentrated within Afghanistan, supporting the security infrastructure of the country. Workforce implications include the potential employment of local Afghan technicians and support staff, as well as U.S. or third-country personnel involved in oversight and specialized repairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge or parts are required.
Geopolitical instability in Afghanistan could impact contractor performance and safety.
Difficulty in verifying the quality and necessity of all maintenance performed in a complex operational environment.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
Long-term contract allows for sustained support, crucial for equipment longevity.
Awarded under full and open competition, theoretically maximizing the pool of potential offerors.

Sector Analysis

This contract falls within the Defense sector, specifically supporting security assistance programs. The market for defense maintenance and logistics services is substantial, with numerous companies specializing in providing support for military equipment, often in challenging overseas environments. Comparable spending benchmarks would typically involve other contracts for similar maintenance and repair services provided to allied forces or in contingency operations, though direct comparisons are often difficult due to unique operational contexts and equipment types.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is listed as 'DOMESTIC AWARDEES (UNDISCLOSED)', it's possible that small businesses could have participated as subcontractors. However, without specific subcontracting plans or reporting, the direct impact on the small business ecosystem is unclear. Larger prime contractors often utilize small businesses, but the extent of this contract's contribution to small business subcontracting opportunities is not detailed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. Accountability measures would be tied to the firm-fixed-price contract terms, requiring delivery of specified maintenance services. Transparency is often limited in defense contracts, especially those involving operations in conflict zones. Inspector General jurisdiction would apply to investigate fraud, waste, and abuse related to the contract.

Related Government Programs

Afghan National Army (ANA) Training and Support
Afghan National Police (ANP) Training and Support
Foreign Military Sales (FMS) Equipment Maintenance
Logistics and Technical Support Services (Overseas)

Risk Flags

Limited Competition Indication
Extended Performance Period Risk
Geopolitical Instability Context

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to DOMESTIC AWARDEES (UNDISCLOSED). AFGHANISTAN - TECHNICAL EQUIPMENT MAINTENANCE PROGRAM (A-TEMP) ANA/ANP TRAINING.

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 $25.8 million.

What is the period of performance?

Start: 2010-12-30. End: 2018-02-01.

What was the specific technical equipment covered under the A-TEMP program, and what was the criticality of its maintenance to Afghan security forces' operations?

The A-TEMP program focused on the maintenance and repair of general automotive and technical equipment utilized by the Afghan National Army (ANA) and Afghan National Police (ANP). This likely included a wide range of vehicles, communication systems, and potentially specialized operational gear. The criticality of this maintenance cannot be overstated; ensuring that these assets were operational was fundamental to the effectiveness and sustainability of Afghan security forces in their counter-insurgency and law enforcement roles. Without reliable equipment, their ability to conduct patrols, respond to threats, and maintain public order would be severely compromised, directly impacting the overall security situation in Afghanistan and the success of U.S. stabilization efforts.

How many bids were received for this contract, and what does this suggest about the competitive landscape for defense maintenance services in support of international operations?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' but does not specify the number of bids received (no: 4). A number like 4 bids suggests a moderate level of competition. While more than a sole-source or limited competition scenario, it might not represent the highest degree of market engagement achievable. This could imply that the market for specialized maintenance services in complex overseas environments is relatively concentrated, or that the specific requirements of the A-TEMP program limited the number of capable and interested bidders. This level of competition is generally acceptable but warrants scrutiny to ensure taxpayers received the best possible value.

What were the primary risks associated with performing technical equipment maintenance in Afghanistan during the contract period (2010-2018)?

Performing technical equipment maintenance in Afghanistan between 2010 and 2018 presented numerous significant risks. Foremost among these was the volatile security environment, characterized by ongoing conflict, insurgent activity, and potential threats to personnel and assets. This necessitated robust security protocols and potentially increased operational costs. Furthermore, logistical challenges were substantial, including difficulties in transporting parts, equipment, and personnel to remote or insecure locations. Infrastructure limitations, such as unreliable power or maintenance facilities, could also impede service delivery. Political instability and evolving operational requirements could lead to scope changes or unforeseen demands. Finally, the risk of corruption or misuse of funds in a complex, high-stakes environment required stringent oversight.

How does the firm-fixed-price (FFP) contract type align with the nature of technical equipment maintenance services, and what are its implications for cost control?

The firm-fixed-price (FFP) contract type is generally well-suited for services with a clearly defined scope, such as routine maintenance and repair of specific equipment types. Its primary implication for cost control is that the contractor assumes the majority of the risk for cost overruns. This incentivizes the contractor to perform efficiently and manage their resources effectively to maximize profit. For the government, an FFP contract provides budget certainty, as the price is fixed regardless of the contractor's actual costs. However, if the scope is not well-defined or if unforeseen technical issues arise, the contractor might be disincentivized from performing necessary work beyond the strict contract terms, or conversely, might have built significant contingency into the price, potentially leading to a higher overall cost than a cost-reimbursable contract if managed poorly.

What was the historical spending trend for similar technical equipment maintenance programs supporting allied security forces prior to or concurrent with A-TEMP?

Historical spending on technical equipment maintenance for allied security forces, particularly in post-conflict or stability operations, has generally been substantial and often characterized by long-term commitments. Programs supporting forces in Iraq and Afghanistan, for instance, have historically involved billions of dollars dedicated to maintaining vehicles, communications, and other critical military hardware. These programs often span multiple years and involve complex logistical chains. Spending trends are influenced by the size and nature of the supported forces, the types of equipment in use, the duration of the mission, and the prevailing security conditions. Contracts like A-TEMP represent a segment of this broader spending, focused on ensuring the operational readiness of partner nations' security apparatus.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J10R0098

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: $25,763,217

Exercised Options: $25,763,217

Current Obligation: $25,763,217

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline