DOD's $19.2M HQ Building Construction Awarded to Foreign Firm Amidst Full and Open Competition

Contract Overview

Contract Amount: $19,205,498 ($19.2M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2010-05-23

End Date: 2012-07-16

Contract Duration: 785 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT HQ BUIILDING (1)

Plain-Language Summary

Department of Defense obligated $19.2 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: CONSTRUCT HQ BUIILDING (1) Key points: 1. The contract awarded to 'MISCELLANEOUS FOREIGN AWARDEES' for $19.2M highlights potential risks associated with foreign contractors. 2. Despite full and open competition, the selection of foreign awardees warrants scrutiny regarding national security and economic impact. 3. The project duration of 785 days suggests a significant undertaking with potential for cost overruns or delays. 4. The 'Commercial and Institutional Building Construction' sector is prone to fluctuations in material costs and labor availability.

Value Assessment

Rating: questionable

The contract's value of $19.2M for building construction appears within a reasonable range for a headquarters facility. However, the lack of specific details on the scope of work and the foreign awardee makes a direct pricing comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were considered. However, the selection of 'MISCELLANEOUS FOREIGN AWARDEES' raises questions about the effectiveness of the competition in securing domestic bids or the most advantageous pricing for the government.

Taxpayer Impact: The use of taxpayer funds for a project awarded to foreign entities could have implications for domestic job creation and economic benefit.

Public Impact

Taxpayer funds are being used for a significant construction project, raising questions about the return on investment. The reliance on foreign contractors for critical infrastructure projects could pose national security concerns. The long project duration may lead to extended disruptions and potential cost escalations, impacting the public purse.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Foreign awardee
Potential national security risk
Lack of domestic economic benefit

Positive Signals

Awarded under full and open competition

Sector Analysis

The construction sector, particularly for institutional buildings, is subject to market volatility in material and labor costs. This $19.2M contract falls within the typical range for large-scale government construction projects, but the foreign awardee is an unusual factor.

Small Business Impact

The contract does not indicate any specific provisions or set-asides for small businesses. The award to 'MISCELLANEOUS FOREIGN AWARDEES' suggests that small businesses, domestic or otherwise, were not primary recipients of this contract.

Oversight & Accountability

Oversight of this contract would involve monitoring the construction progress, adherence to specifications, and financial expenditures. The foreign nature of the awardee necessitates careful vetting and ongoing scrutiny to ensure compliance and security.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Foreign awardee raises national security and economic concerns.
Lack of transparency regarding the specific foreign awardee.
Potential for reduced domestic economic impact.
Long project duration increases risk of delays and cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to MISCELLANEOUS FOREIGN AWARDEES. CONSTRUCT HQ BUIILDING (1)

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2010-05-23. End: 2012-07-16.

What specific criteria were used to evaluate bids under full and open competition, and why were foreign awardees selected over domestic ones for this significant construction project?

The selection process under full and open competition typically involves evaluating bids based on factors such as price, technical qualifications, past performance, and socioeconomic considerations. The specific criteria for this contract are not detailed, but the selection of foreign awardees suggests they may have offered a more competitive proposal in terms of price or specific capabilities, or that domestic options were deemed less suitable for reasons not publicly disclosed.

What are the potential national security implications of awarding a headquarters building construction contract to foreign entities, and what mitigation strategies are in place?

Awarding construction of a headquarters building to foreign entities can introduce national security risks related to data security, access to sensitive areas, and potential foreign influence. Mitigation strategies would typically involve stringent background checks, enhanced security protocols during construction, limitations on access to classified information, and potentially requiring domestic oversight or partnership.

How does the $19.2M contract value compare to similar headquarters construction projects, and what is the projected taxpayer return on investment given the foreign awardee?

Benchmarking the $19.2M contract value requires detailed comparison with similar-sized headquarters construction projects, considering location, complexity, and materials. Without specific project details, it's difficult to assess value definitively. The taxpayer return on investment is primarily measured by the functionality and longevity of the completed building, but the foreign awardee may reduce direct domestic economic benefits like job creation.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W5J9JE10R0051

Offers Received: 33

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $19,205,498

Exercised Options: $19,205,498

Current Obligation: $19,205,498

Contract Characteristics

Cost or Pricing Data: NO

Timeline