DoD awarded $31M for Kandahar facility construction, a firm-fixed-price contract with 8 bidders

Contract Overview

Contract Amount: $30,970,851 ($31.0M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-03-31

End Date: 2012-10-01

Contract Duration: 184 days

Daily Burn Rate: $168.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF RPTC KANDAHAR FOR THE ANP, KANDAHAR PROVINCE, KANDAHAR, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $31.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: DESIGN AND CONSTRUCTION OF RPTC KANDAHAR FOR THE ANP, KANDAHAR PROVINCE, KANDAHAR, AFGHANISTAN Key points: 1. The contract utilized a firm-fixed-price structure, aiming to control costs for the construction project. 2. With 8 bidders, the competition level suggests a reasonable market interest in this type of work. 3. The project's location in Afghanistan presents inherent logistical and security risks. 4. This contract falls under the broad category of commercial and institutional building construction. 5. The relatively short duration of 184 days indicates a focused scope of work. 6. The award was made by the Department of the Army, a major component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its unique location and the nature of construction in a conflict zone. The firm-fixed-price type suggests an attempt to cap costs, but without detailed cost breakdowns or comparisons to similar projects in comparable environments, assessing true value-for-money is difficult. The undisclosed domestic awardee also limits transparency in price assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 8 bidders participating. This indicates a healthy level of interest from the market for this type of construction service. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Afghan National Police (ANP) who will utilize the RPTC facility. The contract delivered construction services for a Regional Police Training Center. The geographic impact is concentrated in Kandahar Province, Afghanistan. The project likely involved a construction workforce, potentially including local labor, though specific details are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact project timelines and costs.
Logistical challenges in delivering materials and personnel to Kandahar.
Security risks associated with operating in the region.
Limited transparency regarding the specific domestic awardee.

Positive Signals

Firm-fixed-price contract type helps manage cost uncertainty.
Full and open competition suggests a robust bidding process.
Awarded by a major defense agency (Department of the Army).

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for such services in overseas contingency operations can be specialized, often involving significant logistical and security considerations. Comparable spending benchmarks are difficult to establish due to the unique operating environment, but the award amount is moderate for a significant construction project.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting plans for this contract. As a firm-fixed-price contract awarded under full and open competition, the primary focus was likely on the best overall value from all eligible bidders, rather than specific small business participation goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms. Given the overseas location, specific oversight challenges related to logistics, security, and quality assurance would be paramount. Transparency is somewhat limited by the undisclosed domestic awardee.

Related Government Programs

Department of Defense Construction Contracts
Afghanistan Reconstruction Projects
Regional Police Training Centers
Army Corps of Engineers Construction

Risk Flags

Geopolitical Risk
Logistical Complexity
Security Concerns
Overseas Operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to DOMESTIC AWARDEES (UNDISCLOSED). DESIGN AND CONSTRUCTION OF RPTC KANDAHAR FOR THE ANP, KANDAHAR PROVINCE, KANDAHAR, 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 $31.0 million.

What is the period of performance?

Start: 2012-03-31. End: 2012-10-01.

What is the track record of the undisclosed domestic awardee for similar construction projects, particularly in overseas or high-risk environments?

The provided data does not identify the specific domestic awardee, making it impossible to assess their track record. To evaluate this, one would need to identify the contractor through other means (e.g., contract award databases, agency procurement records) and then research their past performance on similar projects. Key factors to consider would include their history of on-time and on-budget delivery, quality of work, safety record, and any past performance issues or disputes, especially in challenging operational theaters like Afghanistan.

How does the per-square-foot construction cost of this facility compare to similar training centers built in other regions or countries, adjusting for logistical and security premiums?

Direct comparison of per-square-foot costs is difficult without knowing the facility's size and specific features, as well as detailed cost breakdowns. However, construction in Afghanistan, particularly in provinces like Kandahar, typically incurs significant premiums due to security, logistics, and the need for specialized materials and personnel. These premiums can substantially inflate costs compared to domestic projects. To perform a meaningful benchmark, one would need to identify comparable projects, gather their cost data, and then attempt to quantify the additional costs associated with the Kandahar environment, which is a complex analytical task.

What were the primary risk mitigation strategies employed by the Department of the Army for this construction project, given the operational environment?

While specific risk mitigation strategies are not detailed in the provided summary, typical approaches for construction in high-risk environments like Afghanistan include robust security protocols for personnel and materials, contingency planning for supply chain disruptions, establishing strong local partnerships where feasible, employing experienced project managers familiar with the region, and incorporating flexible contract clauses to address unforeseen challenges. The firm-fixed-price nature of the contract suggests a focus on cost certainty, but underlying risks related to security, political stability, and logistical access would have required significant management attention and potentially separate risk-sharing or contingency funding mechanisms.

What is the long-term sustainability plan for the RPTC Kandahar facility, and what role does this initial construction contract play in that plan?

The provided data focuses solely on the initial design and construction contract and does not offer insights into the long-term sustainability plan for the RPTC Kandahar facility. Typically, sustainability would involve plans for maintenance, operations, staffing, and potentially future upgrades or expansions. This construction contract represents the foundational phase, delivering the physical infrastructure. Subsequent phases or separate contracts would likely address the operational aspects and ongoing support required to ensure the facility remains functional and serves its intended purpose for the Afghan National Police over time.

How did the number of bidders (8) influence the final contract price compared to scenarios with fewer or more bidders?

Having 8 bidders suggests a competitive market for this type of construction service in the relevant geographic scope. Generally, a higher number of bidders tends to drive prices down as companies compete to win the contract. While it's impossible to state definitively how much lower the price was without a counterfactual analysis (e.g., simulating bids with fewer competitors), 8 bidders typically indicates that the government likely secured a reasonably competitive price. Conversely, if there had been only 1-2 bidders, the price might have been significantly higher due to reduced competitive pressure.

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: W5J9LE11R0011

Offers Received: 8

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: $30,970,851

Exercised Options: $30,970,851

Current Obligation: $30,970,851

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline