DoD spent $24.8M on Afghan base construction, a sole-source award with limited competition

Contract Overview

Contract Amount: $24,826,373 ($24.8M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2011-07-29

End Date: 2012-05-30

Contract Duration: 306 days

Daily Burn Rate: $81.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPROCUREMENT OF AN ANA GAMBERI GARRISON CSB, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $24.8 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: REPROCUREMENT OF AN ANA GAMBERI GARRISON CSB, AFGHANISTAN Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating defined cost expectations. 2. Awarded to a miscellaneous foreign entity, raising questions about domestic economic impact. 3. The contract duration was 306 days, suggesting a focused, short-term construction project. 4. This procurement was not competed, limiting price discovery and potentially increasing costs. 5. The project involved construction services for a base in Afghanistan, a high-risk operational environment.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging due to its specific nature and foreign awardee. The firm-fixed-price structure suggests cost certainty, but the lack of competition prevents a direct comparison to market rates or other bids. Without more data on the scope of work and comparable projects in Afghanistan during that period, assessing the overall value for money is difficult. The significant dollar amount for a single base construction project warrants scrutiny, especially given the procurement method.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically reserved for situations where only one vendor can provide the required goods or services, or in urgent circumstances. The lack of competition means that taxpayers did not benefit from a competitive bidding process, which could have led to lower prices.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these construction services, as there was no market pressure to drive down costs.

Public Impact

The primary beneficiaries were the U.S. Department of Defense, which received construction services for a military base. The services delivered included the construction of facilities at the Anah Gambari Garrison in Afghanistan. The geographic impact was localized to Afghanistan, supporting military operations in that region. Workforce implications are unclear, but likely involved local labor and potentially specialized foreign construction crews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Award to a foreign entity raises questions about oversight and economic benefit.
Construction in a conflict zone presents inherent risks to project completion and cost.
Lack of competition hinders ability to benchmark pricing effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Project addressed a specific military infrastructure need.
Awarded to a miscellaneous foreign awardee, suggesting a specific capability or presence in the region.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The global construction market is vast, but specific benchmarks for military base construction in Afghanistan during 2011-2012 are difficult to ascertain. Spending in this sector by the Department of Defense is substantial, often driven by operational needs in various theaters. This particular award represents a small fraction of overall defense construction spending.

Small Business Impact

The contract details do not indicate any small business set-aside provisions. Given the nature of the work and the awardee being a 'miscellaneous foreign awardee,' it is unlikely that small businesses were directly involved as prime contractors. Subcontracting opportunities for U.S. small businesses are not specified and likely minimal, given the foreign awardee and location.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and potentially through on-site representatives in Afghanistan. Accountability measures would be tied to the firm-fixed-price contract terms and performance requirements. Transparency is limited due to the sole-source nature and the foreign awardee.

Related Government Programs

Afghanistan Base Construction Contracts
Department of Defense Foreign Construction
Firm Fixed Price Construction Awards
Sole Source Military Contracts

Risk Flags

Sole Source Award
Limited Competition
Foreign Awardee
Construction in Conflict Zone

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to MISCELLANEOUS FOREIGN AWARDEES. REPROCUREMENT OF AN ANA GAMBERI GARRISON CSB, AFGHANISTAN

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 $24.8 million.

What is the period of performance?

Start: 2011-07-29. End: 2012-05-30.

What was the specific scope of work for the Anah Gambari Garrison CSB?

The contract, identified by NAICS code 236220, pertains to Commercial and Institutional Building Construction. While the specific details of the 'CSB' (likely Combat Support Base or similar) are not fully elaborated in the provided data, it implies the construction or renovation of facilities essential for military operations. This could include barracks, administrative buildings, security infrastructure, or support facilities. The firm-fixed-price nature suggests a defined scope was agreed upon at the time of award, aiming to deliver specific construction outcomes within a set budget and timeframe of 306 days.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded to 'MISCELLANEOUS FOREIGN AWARDEES.' A sole-source award typically occurs when only one responsible source is available or capable of meeting the agency's needs. For military construction in a foreign, potentially high-risk environment like Afghanistan, specific logistical capabilities, local presence, security clearances, or specialized expertise might have been prerequisites that only a limited number of entities possessed. Without further justification documentation, the precise reason remains speculative, but it suggests a perceived lack of viable alternatives through a competitive process.

How does the $24.8 million cost compare to similar construction projects in Afghanistan during that period?

Directly comparing the $24.8 million cost is challenging without more granular data on the specific scope of work and comparable projects. Construction costs in Afghanistan were historically high due to logistical complexities, security risks, and the demand for materials and labor. However, the sole-source nature of this award means there was no competitive bidding to establish a market price. To assess value, one would need to compare the deliverables (e.g., square footage built, type of facility, amenities) against other military construction projects in similar operational theaters or against independent cost estimates for such work, factoring in the unique challenges of the Afghan environment.

What are the risks associated with awarding construction contracts to 'miscellaneous foreign awardees' in conflict zones?

Awarding contracts to 'miscellaneous foreign awardees' in conflict zones like Afghanistan presents several risks. These include challenges in oversight and quality control due to distance and differing regulatory environments, potential difficulties in ensuring compliance with labor laws and ethical standards, and security risks associated with personnel and operations. Furthermore, the economic benefit may not accrue to the awarding nation's economy. Financial transparency and the prevention of fraud or corruption can also be more complex. The 'miscellaneous' designation itself implies a lack of established, pre-vetted contractors, potentially increasing vetting and risk management burdens.

What was the historical spending pattern for base construction in Afghanistan by the Department of Defense?

The Department of Defense historically spent billions of dollars on construction projects in Afghanistan to build and maintain military bases, infrastructure, and support facilities throughout the U.S. presence there. This spending peaked during the surge years and involved numerous contracts, ranging from small facility upgrades to massive base developments. The $24.8 million for the Anah Gambari Garrison CSB represents one project within this larger, multi-year effort. Analyzing historical spending reveals a pattern of significant investment driven by operational requirements, often facing challenges related to cost overruns, security, and contractor performance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W5J9JE11R0097

Offers Received: 1

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: $24,826,373

Exercised Options: $24,826,373

Current Obligation: $24,826,373

Contract Characteristics

Cost or Pricing Data: NO

Timeline