DoD's $19.8M Kabul Airport Construction Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $19,833,917 ($19.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-02-18

End Date: 2014-06-05

Contract Duration: 838 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOUTH KABUL AFGHANISTAN INTERNATIONAL AIRPORT (SKAIA), GROUND FORCES COMMAND (GFC)&ARMY SUPPORT COMMAND (ASC) CONSTRUCTION, KABUL, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $19.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: SOUTH KABUL AFGHANISTAN INTERNATIONAL AIRPORT (SKAIA), GROUND FORCES COMMAND (GFC)&ARMY SUPPORT COMMAND (ASC) CONSTRUCTION, KABUL, AFGHANISTAN Key points: 1. The contract for construction at SKAIA, GFC, and ASC in Kabul, Afghanistan, was awarded for $19.8 million. 2. Full and open competition was utilized, suggesting a broad search for qualified contractors. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The project falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The $19.8 million award for commercial and institutional building construction appears within a reasonable range for a project of this nature, though specific benchmarks are difficult without detailed scope and location specifics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition suggests efforts to secure value for taxpayer funds by encouraging a competitive bidding process.

Public Impact

Construction services for critical infrastructure at the Kabul International Airport. Supports ground forces and army support command operations in Afghanistan. Potential impact on local employment and economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed domestic awardees limit transparency.
Geopolitical risks associated with operating in Afghanistan.
Contract duration of 838 days indicates a significant project timeline.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Full and open competition promotes competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scale, location, and security requirements, especially in complex environments like Afghanistan.

Small Business Impact

The data indicates 'Domestic Awardees (Undisclosed)' and does not specify if small businesses were involved or subcontracted. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Army awarded this contract. Oversight would typically involve project management, quality assurance, and financial monitoring to ensure contract compliance and taxpayer value.

Related Government Programs

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

Risk Flags

Undisclosed awardee identity limits transparency.
Operating environment in Afghanistan presents significant security risks.
Long contract duration (838 days) increases exposure to changing conditions.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to DOMESTIC AWARDEES (UNDISCLOSED). SOUTH KABUL AFGHANISTAN INTERNATIONAL AIRPORT (SKAIA), GROUND FORCES COMMAND (GFC)&ARMY SUPPORT COMMAND (ASC) CONSTRUCTION, KABUL, AFGHANISTAN

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 $19.8 million.

What is the period of performance?

Start: 2012-02-18. End: 2014-06-05.

What specific factors contributed to the final contract price of $19.8 million, considering the location and scope?

The final price was likely influenced by the extensive scope of construction required for ground forces and army support command facilities at a major international airport. Factors such as material costs, labor rates (potentially including hazard pay), logistical challenges in Afghanistan, security requirements, and the specific technical specifications of the buildings would all contribute to the overall cost. The firm fixed-price nature of the contract also means the contractor absorbed these variables.

What were the primary risks identified during the solicitation process for this contract, and how were they mitigated?

Key risks likely included security threats in Kabul, logistical complexities for material and personnel transport, potential for cost overruns due to unforeseen site conditions or inflation, and the availability of qualified domestic contractors willing to operate in a high-risk environment. Mitigation strategies might have involved stringent security protocols, detailed site assessments, robust contract clauses for managing changes, and potentially higher bid prices from contractors to account for these risks.

How effectively did the full and open competition process ensure the best value was achieved for this construction project?

The full and open competition process theoretically maximizes the chances of achieving best value by allowing all responsible sources to submit bids. This broadens the pool of potential contractors, fostering competition that can drive down prices and encourage innovation. However, the ultimate effectiveness depends on the clarity of the solicitation, the evaluation criteria used, and the actual number and quality of bids received. The undisclosed nature of the awardee makes a definitive assessment challenging without further details.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W5J9JE12R0015

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: $19,833,917

Exercised Options: $19,833,917

Current Obligation: $19,833,917

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline