DoD's $28M Industrial Building Construction Contract for ANA Lacked Small Business Participation

Contract Overview

Contract Amount: $28,146,400 ($28.1M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-05-07

End Date: 2014-12-17

Contract Duration: 1,320 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AFGHAN NATIONAL ARMY (ANA)

Plain-Language Summary

Department of Defense obligated $28.1 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: AFGHAN NATIONAL ARMY (ANA) Key points: 1. Significant spending on industrial building construction for foreign security forces. 2. Contract awarded through full and open competition, but details on foreign awardees are undisclosed. 3. No small business participation was reported, raising concerns about economic impact. 4. The contract duration was 1320 days, indicating a substantial, long-term project.

Value Assessment

Rating: fair

The contract value of $28.1 million for industrial building construction is substantial. Benchmarking against similar DoD construction contracts would be necessary to fully assess value, but the lack of specific details on the awardee and the nature of the construction makes direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the undisclosed nature of the foreign awardees limits transparency and makes it difficult to assess the effectiveness of price discovery.

Taxpayer Impact: Taxpayer funds were used for construction services for a foreign military. While intended for security cooperation, the lack of small business involvement and undisclosed awardee details reduce the direct economic benefit to domestic businesses.

Public Impact

Funds allocated for building infrastructure for the Afghan National Army, impacting international security efforts. The absence of small business participation means potential missed opportunities for domestic economic contribution and job creation. Transparency concerns arise due to undisclosed foreign awardees, making it harder to track accountability and value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Undisclosed foreign awardees
Limited transparency on specific construction details

Positive Signals

Awarded through full and open competition
Long-term project with defined duration

Sector Analysis

This contract falls under industrial building construction, a sector often involving significant capital investment and long project timelines. DoD spending in this area is typically for operational facilities, training centers, or support infrastructure, with benchmarks varying widely based on project scope and location.

Small Business Impact

The contract explicitly states no small business participation. This is a missed opportunity for small businesses to engage in significant federal construction projects and contribute to the economy. Future contracts should explore avenues for small business subcontracting.

Oversight & Accountability

Oversight of this contract would involve monitoring the construction progress, adherence to specifications, and financial expenditures. The undisclosed nature of the foreign awardees presents a challenge for direct oversight and accountability regarding the use of taxpayer funds.

Related Government Programs

Industrial Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of transparency regarding awardees
No small business participation
Potential quality control issues with foreign contractors
Security risks associated with undisclosed entities
Difficulty in benchmarking costs due to limited project details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to FOREIGN AWARDEES (UNDISCLOSED). AFGHAN NATIONAL ARMY (ANA)

Who is the contractor on this award?

The obligated recipient is FOREIGN 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 $28.1 million.

What is the period of performance?

Start: 2011-05-07. End: 2014-12-17.

What specific types of industrial buildings were constructed, and how did their complexity influence the final cost?

The data provided does not specify the types of industrial buildings constructed. This information is crucial for a thorough value assessment, as the complexity, size, and intended use of facilities like barracks, maintenance depots, or training centers significantly impact construction costs. Without these details, it's difficult to benchmark the $28.1 million expenditure effectively against industry standards.

What risks were associated with awarding a large construction contract to undisclosed foreign entities, particularly concerning quality control and security?

Awarding contracts to undisclosed foreign entities carries inherent risks, including challenges in ensuring adherence to quality standards, compliance with U.S. labor and safety regulations, and potential security vulnerabilities. Without knowing the awardees, it's difficult to assess the vetting process and mitigation strategies employed by the DoD to manage these risks effectively.

How effective was the full and open competition in achieving competitive pricing, given the undisclosed nature of the awardees?

While full and open competition is designed to foster competitive pricing, the undisclosed nature of the foreign awardees limits our ability to fully evaluate its effectiveness. Transparency in the bidding and award process is key to ensuring genuine price discovery. The lack of clarity here raises questions about whether the most cost-effective solutions were truly secured.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W5J9JE11R0021

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $28,146,400

Exercised Options: $28,146,400

Current Obligation: $28,146,400

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline