DoD's $21.4M Afghanistan Construction Contract Awarded to Undisclosed Foreign Entity

Contract Overview

Contract Amount: $21,412,032 ($21.4M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-08-23

End Date: 2019-06-05

Contract Duration: 2,477 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TRANSPORTATION BRIGADE HEADQUARTERS&FOUR TRANSPORTATION BATTALIONS MAIDEN SHAHR, WARDAK, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $21.4 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: TRANSPORTATION BRIGADE HEADQUARTERS&FOUR TRANSPORTATION BATTALIONS MAIDEN SHAHR, WARDAK, AFGHANISTAN Key points: 1. The contract's value of over $21 million was awarded to an undisclosed foreign entity, raising transparency concerns. 2. Awarded under full and open competition, the contract saw 15 bids, suggesting a potentially competitive process. 3. The duration of the contract (2477 days) indicates a long-term need for construction services in Afghanistan. 4. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility. 5. The lack of disclosed contractor information hinders a thorough assessment of past performance and risk. 6. This contract falls under the broad category of Commercial and Institutional Building Construction. 7. The geographic location in Afghanistan highlights the complex operational environment for such contracts.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed nature of the foreign awardee and the specific services rendered. However, a $21.4 million contract for construction services over nearly seven years in a high-risk environment like Afghanistan warrants scrutiny. Without comparable data on similar projects or detailed cost breakdowns, it's difficult to definitively assess value for money. The firm-fixed-price structure offers some cost certainty, but the lack of transparency around the contractor prevents a comprehensive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 15 bids received. This indicates a broad solicitation process, which typically fosters price discovery and potentially leads to more competitive pricing. The significant number of bidders suggests that the market was receptive to this opportunity, despite the challenging operating environment.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging efficiency from contractors seeking to win the award.

Public Impact

The primary beneficiaries are likely the U.S. Department of Defense and its personnel stationed in Afghanistan, who would utilize the constructed facilities. The contract delivered construction services for the Transportation Brigade Headquarters and four Transportation Battalions. The geographic impact is concentrated in Maiden Shahr, Wardak province, Afghanistan. Workforce implications would include the employment of construction labor, potentially both local and foreign, depending on the contractor's sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the foreign awardee's identity and track record.
Potential risks associated with operating in a conflict zone, including security and logistical challenges.
Difficulty in verifying the quality and cost-effectiveness of services due to limited information.
The long contract duration could introduce risks related to changing requirements or unforeseen geopolitical shifts.

Positive Signals

Awarded through full and open competition, indicating a potentially robust bidding process.
The firm-fixed-price contract type provides cost certainty for the government.
The large number of bids (15) suggests market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for construction services in conflict zones is often characterized by higher risk premiums, specialized logistical requirements, and a limited pool of qualified contractors willing to operate in such environments. Spending benchmarks for similar projects in Afghanistan would be highly variable due to security costs and logistical complexities, making direct comparisons difficult.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the nature and location of the work, it is unlikely that small businesses were primary awardees, though they may have participated as subcontractors to the foreign prime contractor. The lack of specific subcontracting plans or reporting makes it difficult to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for contracts in Afghanistan are typically robust, involving contracting officers, quality assurance personnel, and potentially Inspector General offices. However, the effectiveness of oversight can be challenged by the operational environment. Transparency is a concern due to the undisclosed foreign awardee. Accountability would primarily be enforced through contract terms and performance evaluations, but the lack of public information limits external scrutiny.

Related Government Programs

Afghanistan Infrastructure Projects
DoD Construction Contracts
Foreign Military Sales Support
Logistics and Base Support Contracts

Risk Flags

Lack of Contractor Transparency
Geographic Risk (Afghanistan)
Undisclosed Foreign Awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to FOREIGN AWARDEES (UNDISCLOSED). TRANSPORTATION BRIGADE HEADQUARTERS&FOUR TRANSPORTATION BATTALIONS MAIDEN SHAHR, WARDAK, AFGHANISTAN

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 $21.4 million.

What is the period of performance?

Start: 2012-08-23. End: 2019-06-05.

What is the track record of the undisclosed foreign awardee for similar construction projects, particularly in challenging environments?

The provided data does not disclose the identity of the foreign awardee, making it impossible to assess their track record. This lack of transparency is a significant limitation. Typically, federal agencies vet contractors based on past performance, financial stability, and technical capabilities. Without knowing who this entity is, we cannot determine if they have successfully completed similar projects, managed risks effectively, or adhered to quality standards in other contracts, especially those in high-risk or conflict zones like Afghanistan. This information gap prevents a thorough risk assessment and a reliable evaluation of the contractor's suitability for this significant construction undertaking.

How does the per-square-foot construction cost of this contract compare to similar projects in Afghanistan or other high-cost operational theaters?

Determining a precise per-square-foot cost is not feasible with the available data. The contract value is $21,412,031.98, and the duration is 2477 days. However, the specific scope of work, including the type and size of facilities constructed (Transportation Brigade Headquarters and four Transportation Battalions), the quality of materials, and the specific location within Wardak province, are not detailed. Construction costs in conflict zones are significantly inflated by security, logistics, transportation, and risk premiums, making direct comparisons to domestic projects or even other international projects highly unreliable without granular details on the construction scope and associated overheads. The lack of a disclosed contractor also hinders access to potential cost breakdowns.

What specific risks were identified by the Department of the Army prior to awarding this contract, and what mitigation strategies were put in place?

The provided data does not contain specific details regarding the risks identified by the Department of the Army or the mitigation strategies employed for this contract. However, given the location (Afghanistan) and the nature of construction work, common risks would likely include security threats to personnel and assets, logistical challenges in delivering materials and equipment, potential for corruption, political instability, and the risk of substandard work or project delays. Mitigation strategies typically involve rigorous security protocols, detailed logistical planning, robust oversight and quality assurance processes, and potentially incorporating specific clauses in the contract to address these risks. The undisclosed nature of the awardee further complicates the assessment of risk mitigation effectiveness.

What was the intended operational impact of the constructed facilities for the Transportation Brigade Headquarters and Battalions?

The construction of facilities for the Transportation Brigade Headquarters and four Transportation Battalions was intended to provide essential infrastructure to support military logistics and transportation operations in the specified region of Afghanistan. These facilities would likely include administrative buildings, vehicle maintenance areas, storage depots, and potentially living quarters, all designed to enhance the operational readiness and efficiency of the transportation units. Improved infrastructure directly supports the brigade's mission by ensuring that personnel and equipment are adequately housed, maintained, and supplied, thereby facilitating the movement of troops, supplies, and equipment critical to broader military objectives in the area.

How has historical spending by the Department of the Army on construction in Afghanistan trended over the past decade, and does this contract align with those patterns?

Historical spending data for construction in Afghanistan by the Department of the Army is not provided in this dataset. However, it is generally understood that significant resources were allocated to infrastructure development and base support in Afghanistan throughout the period of U.S. military involvement. Contracts of this magnitude (over $21 million) for construction services were not uncommon during peak operational periods. Without specific historical spending figures, it's difficult to definitively state whether this contract aligns with past patterns. Factors such as the year of award (2012), the duration, and the specific needs of the deployed forces would influence its place within the broader spending context.

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: W5J9JE12R0099

Offers Received: 15

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 and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,525,282

Exercised Options: $21,412,032

Current Obligation: $21,412,032

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline