DoD spent $32.6M on Afghan National Army logistics school construction, a sole-source award with no disclosed foreign contractor

Contract Overview

Contract Amount: $32,567,929 ($32.6M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-12-19

End Date: 2016-03-10

Contract Duration: 1,177 days

Daily Burn Rate: $27.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AFGHAN NATIONAL ARMY (ANA), OFFICER LOGISTICS SCHOOL AT KABUL MILITARY TRAINING CENTER, KABUL, KABUL PROVINCE, AFGHANISTAN (PROJECT NUMBER 12-C004)

Plain-Language Summary

Department of Defense obligated $32.6 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: AFGHAN NATIONAL ARMY (ANA), OFFICER LOGISTICS SCHOOL AT KABUL MILITARY TRAINING CENTER, KABUL, KABUL PROVINCE, AFGHANISTAN (PROJECT NUMBER 12-C004) Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price inflation and lack of competitive pressure. 2. Limited transparency regarding the foreign contractor's identity and pricing structure hinders a thorough value-for-money assessment. 3. The extended duration of nearly four years suggests potential complexities or delays in project execution. 4. The contract's focus on building critical infrastructure for the Afghan National Army highlights its strategic importance in a volatile region. 5. The absence of small business participation indicates a focus on large-scale construction capabilities. 6. The firm-fixed-price contract type shifts cost risk to the contractor, but oversight is crucial given the sole-source nature.

Value Assessment

Rating: questionable

Benchmarking this contract's value is challenging due to the sole-source award and the undisclosed foreign contractor. Without competitive bids or transparent pricing, it's difficult to ascertain if the $32.6 million price reflects fair market value for constructing a logistics school in Afghanistan. The lack of comparable contract data for similar projects in the region further complicates a robust value assessment. The extended performance period of over three years might also indicate unforeseen cost escalations that were not adequately controlled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential contractors. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. However, the lack of competition significantly limits the government's ability to leverage market forces to achieve the best possible price and terms. It also raises concerns about whether alternative, more cost-effective solutions were explored.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium, as there was no pressure on the contractor to offer the lowest possible price. This lack of price discovery is a direct detriment to the efficient use of public funds.

Public Impact

The primary beneficiaries are the Afghan National Army (ANA) officer corps, who will receive training at the new logistics school. The contract delivers critical infrastructure development in Afghanistan, supporting the long-term sustainability of Afghan security forces. The geographic impact is concentrated in Kabul, Afghanistan, a key hub for military training and operations. Workforce implications include potential employment opportunities for local Afghan labor during the construction phase, though specific details are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the foreign contractor's identity and qualifications.
Sole-source award limits competitive pricing and potential for cost savings.
Difficulty in benchmarking costs due to unique operating environment and undisclosed contractor.
Extended contract duration may indicate project management challenges or scope creep.
Limited public information on performance metrics and project outcomes.

Positive Signals

Contract supports a critical strategic objective: building the capacity of Afghan security forces.
Firm-fixed-price contract type generally provides cost certainty for the government.
Project addresses a tangible need for improved logistics training infrastructure.
Awarded by the Department of the Army, indicating established procurement processes.

Sector Analysis

This contract falls within the Construction sector, specifically focused on institutional building. The global market for military infrastructure construction is substantial, driven by defense spending worldwide. Projects like this, aimed at building capacity for allied forces, are common in regions with ongoing security assistance programs. Benchmarking is difficult due to the unique geopolitical context and the sole-source nature of the award, but similar large-scale construction projects for government entities can range from tens to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by the 'sb' field being false. The nature of large-scale international construction projects often requires specialized capabilities and resources typically held by larger firms. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless specific subcontracts were later awarded to small businesses, which is not detailed here.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. However, as a Department of Defense contract, it would typically fall under the purview of the Department of the Army's contracting command and potentially the Special Inspector General for Afghanistan Reconstruction (SIGAR) during the period of performance. Transparency is limited due to the sole-source nature and the undisclosed foreign contractor, making independent assessment of accountability challenging.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
Department of Defense Construction Contracts
Foreign Military Sales Infrastructure Projects
Kabul Military Training Center Development

Risk Flags

Sole-source award lacks competitive pricing.
Undisclosed contractor raises transparency and accountability concerns.
High value contract in a high-risk environment.
Extended performance period may indicate execution challenges.
Lack of public data on performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to FOREIGN AWARDEES (UNDISCLOSED). AFGHAN NATIONAL ARMY (ANA), OFFICER LOGISTICS SCHOOL AT KABUL MILITARY TRAINING CENTER, KABUL, KABUL PROVINCE, AFGHANISTAN (PROJECT NUMBER 12-C004)

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 $32.6 million.

What is the period of performance?

Start: 2012-12-19. End: 2016-03-10.

What specific criteria justified the sole-source award for this construction project?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Justification for sole-source procurements typically falls under specific exceptions outlined in federal acquisition regulations, such as the existence of only one responsible source, urgent and compelling needs, or international agreements. Without further documentation from the Department of the Army, the precise justification remains undisclosed. This lack of transparency makes it difficult to assess whether the sole-source decision was appropriate and if it resulted in a fair and reasonable price for the government and taxpayers.

Can the value of this contract be benchmarked against similar construction projects in Afghanistan or similar environments?

Benchmarking this $32.6 million contract is exceptionally difficult. The unique geopolitical context of Afghanistan, coupled with the undisclosed foreign contractor and the sole-source nature of the award, creates significant data limitations. Comparable projects would ideally involve similar scope (logistics school construction), scale, and location. However, the lack of competitive bidding means the awarded price may not reflect market rates. Furthermore, security costs, logistical challenges, and varying labor rates in Afghanistan can drastically influence project costs, making direct comparisons unreliable without detailed cost breakdowns and context.

What are the known risks associated with constructing military facilities in Afghanistan, and how might they have impacted this contract?

Constructing military facilities in Afghanistan carries substantial risks, including security threats (insurgency, terrorism), political instability, corruption, logistical challenges (transportation, supply chain), and potential for fraud and waste. These risks can significantly inflate costs due to the need for enhanced security measures, specialized insurance, and contingency planning. The extended performance period (1177 days) suggests these risks may have materialized, leading to delays and potential cost overruns, even under a firm-fixed-price contract, if scope changes or unforeseen circumstances necessitated contract modifications.

What was the track record of the undisclosed foreign contractor prior to this award?

The provided data explicitly states 'FOREIGN AWARDEES (UNDISCLOSED)' for the contractor. Consequently, there is no information available regarding the contractor's track record, past performance, or qualifications. This lack of transparency is a significant concern, as it prevents an assessment of the contractor's reliability, experience in similar projects, and history of compliance with contract terms and quality standards. Such information is typically crucial for evaluating the risk associated with a large-scale construction contract.

How does this spending compare to other Department of the Army construction projects in the region during the same period?

Comparing this $32.6 million contract requires access to a broader dataset of Department of the Army construction projects in Afghanistan or similar regions between 2012 and 2016. Without such comparative data, it's difficult to definitively state whether this spending was high, low, or average. However, given the strategic importance of building Afghan National Army capacity, significant investment was expected. The sole-source nature and lack of transparency make it harder to judge efficiency relative to potentially competed projects, which might have yielded lower prices for comparable infrastructure.

What oversight mechanisms were in place to ensure the effective use of funds for this project, especially given the sole-source award?

Oversight for Department of Defense contracts, particularly those in complex environments like Afghanistan, typically involves multiple layers. This could include contracting officer representatives (CORs), quality assurance personnel, and potentially the Special Inspector General for Afghanistan Reconstruction (SIGAR) for audits and investigations. However, the effectiveness of these mechanisms is often hampered by sole-source awards and limited contractor transparency. Without knowing the specific oversight plan and the contractor's cooperation, it's challenging to definitively assess the level of accountability and assurance regarding the effective use of the $32.6 million.

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: W5J9JE13R0015

Offers Received: 1

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: $40,122,345

Exercised Options: $32,567,929

Current Obligation: $32,567,929

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline