DoD's $17M Afghanistan Construction Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $17,066,663 ($17.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2010-12-01

End Date: 2012-10-31

Contract Duration: 700 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 37

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ANA CSB CAMP ZAFAR, HERAT

Plain-Language Summary

Department of Defense obligated $17.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: ANA CSB CAMP ZAFAR, HERAT Key points: 1. Contract awarded for miscellaneous construction services in Afghanistan. 2. Significant spending on infrastructure in a high-risk operational environment. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract duration was substantial, indicating a long-term project.

Value Assessment

Rating: fair

The contract value of $17.07M for construction services is difficult to benchmark without specific scope details. However, given the operational context in Afghanistan, costs may be inflated due to logistical and security challenges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for achieving competitive pricing. This method allows all eligible contractors to bid, theoretically leading to the best value for the government.

Taxpayer Impact: While competition aims for efficiency, the overall cost of $17.07M represents taxpayer funds allocated to support operations in a complex foreign environment.

Public Impact

Taxpayer funds are supporting infrastructure development in a foreign conflict zone. The contract highlights the logistical and security costs associated with operating in Afghanistan. Awarding via full and open competition suggests an effort to maximize value for the investment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical risk in Afghanistan
Logistical challenges for construction
Potential for cost overruns due to security

Positive Signals

Full and open competition utilized
Clear contract type (Firm Fixed Price)

Sector Analysis

This contract falls under the Construction sector, specifically commercial and institutional building construction. Spending in this sector for overseas operations often carries higher risk and cost premiums due to unique environmental and security factors.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). The focus appears to be on larger, potentially international, awardees capable of handling complex overseas projects.

Oversight & Accountability

The use of full and open competition and a firm fixed price contract suggests a structured approach to oversight. However, the remote location and operational context necessitate diligent monitoring to ensure performance and prevent fraud.

Related Government Programs

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

Risk Flags

Geopolitical instability in Afghanistan
High operational and logistical costs
Security risks impacting personnel and assets
Potential for contract scope creep or change orders
Limited visibility into specific project outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to MISCELLANEOUS FOREIGN AWARDEES. ANA CSB CAMP ZAFAR, HERAT

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 $17.1 million.

What is the period of performance?

Start: 2010-12-01. End: 2012-10-31.

What was the specific scope of construction services provided under this contract, and how did it align with the operational needs in Afghanistan?

The provided data categorizes the award as 'MISCELLANEOUS FOREIGN AWARDEES' and 'Commercial and Institutional Building Construction.' Without further details on the specific projects undertaken (e.g., building barracks, repairing facilities, constructing support infrastructure), it's challenging to definitively assess the alignment with operational needs. However, such contracts typically support the logistical and living requirements of military personnel and associated operations in deployed environments.

Given the $17.07M value and the location, what were the primary risk factors that influenced the contract's execution and final cost?

The primary risk factors likely included geopolitical instability, security threats requiring extensive protective measures, complex logistical challenges in delivering materials and personnel, potential for supply chain disruptions, and the inherent difficulties in managing construction projects in a remote and challenging environment. These factors often lead to increased labor, transportation, and security costs, potentially impacting the final price despite a firm fixed price structure.

How effectively did the 'full and open competition' process ensure value for money, considering the unique circumstances of contracting in Afghanistan?

Full and open competition is designed to foster a competitive environment that drives down prices. In Afghanistan, its effectiveness would depend on the number and capability of eligible bidders willing and able to operate under such high-risk conditions. While it provides a framework for price discovery, the actual value achieved is also influenced by the government's ability to accurately define requirements and manage contractor performance amidst significant operational complexities.

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: W917PM09R0097

Offers Received: 37

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,066,663

Exercised Options: $17,066,663

Current Obligation: $17,066,663

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline