DoD's $30.6M Power Line Contract Awarded to Foreign, Undisclosed Entities Raises Concerns

Contract Overview

Contract Amount: $30,617,589 ($30.6M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2016-07-21

End Date: 2020-02-02

Contract Duration: 1,291 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF NEI CAMP SHAHEEN

Plain-Language Summary

Department of Defense obligated $30.6 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: IGF::OT::IGF NEI CAMP SHAHEEN Key points: 1. Significant contract value of $30.6 million for power and communication line construction. 2. Competition details are obscured by 'FOREIGN AWARDEES (UNDISCLOSED)', limiting transparency. 3. Risk associated with undisclosed foreign awardees and potential lack of domestic benefit. 4. Sector: Defense (Construction).

Value Assessment

Rating: questionable

The contract value of $30.6 million appears substantial for power and communication line construction. Benchmarking against similar contracts is difficult due to the undisclosed nature of the awardees and the specific scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as 'FULL AND OPEN COMPETITION', the award to 'FOREIGN AWARDEES (UNDISCLOSED)' significantly undermines the transparency and effectiveness of the price discovery process. It is unclear how domestic firms were evaluated or if they were even considered.

Taxpayer Impact: The use of taxpayer funds for contracts awarded to undisclosed foreign entities raises questions about value for money and potential diversion of resources from domestic economic benefit.

Public Impact

Lack of transparency regarding the identity of foreign awardees hinders public understanding of defense spending. Potential for reduced economic benefit to U.S. businesses and workers. Questions arise about the security implications of awarding critical infrastructure projects to undisclosed foreign entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Undisclosed foreign awardees
  • Lack of transparency in competition
  • Potential national security risks
  • Limited domestic economic benefit

Positive Signals

  • Contract awarded under Full and Open Competition
  • Firm Fixed Price contract type

Sector Analysis

This contract falls within the Defense sector, specifically focusing on construction of power and communication lines. Spending in this area is critical for military readiness and infrastructure. Benchmarks for similar construction projects can vary widely based on location, complexity, and materials.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the awardees are undisclosed foreign entities and the 'sb' field is false. This suggests no specific provisions were made for small business involvement in this particular contract.

Oversight & Accountability

The 'FOREIGN AWARDEES (UNDISCLOSED)' designation raises significant oversight concerns. The Department of Defense needs to provide greater clarity on the vetting process and the rationale for awarding to entities whose identities are not publicly disclosed.

Related Government Programs

  • Power and Communication Line and Related Structures Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of transparency regarding awardee identity
  • Potential national security implications
  • Questionable value for taxpayer money
  • Limited public accountability
  • Undermining of domestic industry support

Tags

power-and-communication-line-and-related, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to FOREIGN AWARDEES (UNDISCLOSED). IGF::OT::IGF NEI CAMP SHAHEEN

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 $30.6 million.

What is the period of performance?

Start: 2016-07-21. End: 2020-02-02.

What is the justification for awarding a significant infrastructure contract to undisclosed foreign entities, and how does this align with maximizing value for U.S. taxpayers?

The justification for awarding to undisclosed foreign entities is not provided in the data. This lack of transparency raises concerns about whether U.S. taxpayers are receiving optimal value. Typically, full and open competition aims to leverage domestic capabilities and ensure competitive pricing, which is obscured here.

What are the specific national security risks associated with awarding power and communication line construction to unidentified foreign contractors?

Awarding critical infrastructure projects to unidentified foreign contractors presents potential national security risks, including vulnerabilities to espionage, sabotage, or the introduction of compromised technology. The lack of transparency prevents thorough vetting and ongoing monitoring, increasing the risk of adversarial influence or control over essential U.S. infrastructure.

How effective was the 'full and open competition' in ensuring a competitive price and selecting the best-qualified contractor, given the undisclosed foreign awardees?

The effectiveness of the 'full and open competition' is questionable when the awardees are undisclosed foreign entities. While the process may have been technically open, the lack of transparency surrounding the awardees hinders the ability to verify if the most competitive price was achieved or if the best-qualified domestic or transparent foreign entity was selected.

Industry Classification

NAICS: ConstructionUtility System ConstructionPower and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W5J9JE15R0002

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: $30,617,589

Exercised Options: $30,617,589

Current Obligation: $30,617,589

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2016-07-21

Current End Date: 2020-02-02

Potential End Date: 2020-02-02 00:00:00

Last Modified: 2021-08-20

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