DoD spent $24.2M on Afghanistan base construction, awarded via full and open competition

Contract Overview

Contract Amount: $24,229,699 ($24.2M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-12-28

End Date: 2013-12-12

Contract Duration: 715 days

Daily Burn Rate: $33.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF THE 6/3/215TH CAMP GERESHK INFANTRY KANDAK, HELMAND PROVINCE, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $24.2 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: DESIGN AND CONSTRUCTION OF THE 6/3/215TH CAMP GERESHK INFANTRY KANDAK, HELMAND PROVINCE, AFGHANISTAN Key points: 1. The contract aimed to build essential infrastructure for Afghan National Security Forces. 2. Construction services were procured through a competitive process, suggesting potential for price discovery. 3. The project duration of 715 days indicates a significant, multi-year undertaking. 4. Fixed-price contract terms likely shifted cost overrun risks to the contractor. 5. The award was made by the Department of the Army, part of the Department of Defense. 6. The specific contractor is undisclosed, limiting transparency on performance history. 7. The project was located in Helmand Province, Afghanistan, a region with inherent security risks.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to the undisclosed contractor and the unique operational context in Afghanistan. The total value of $24.2 million for a significant construction project like a military base suggests a substantial investment. However, without comparable projects in similar high-risk environments or detailed cost breakdowns, a definitive value-for-money assessment is difficult. The firm-fixed-price nature of the contract implies that the initial price was intended to cover all costs, but the actual value realized depends on the contractor's efficiency and the absence of significant change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. With 7 bidders participating, the competition level appears healthy, which typically fosters competitive pricing and encourages contractors to offer their best value. This approach is generally favored for maximizing taxpayer benefit by ensuring a wide range of potential providers can compete for the work, leading to potentially lower prices and higher quality outcomes.

Taxpayer Impact: A full and open competition suggests that taxpayers benefited from a robust bidding process, likely resulting in a more competitive price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries were the Afghan National Security Forces, who received improved operational facilities. The project delivered critical infrastructure for the 6/3/215th Camp Gereshk Infantry Kandak. The geographic impact was concentrated in Helmand Province, Afghanistan. The construction activities likely supported local employment and the broader Afghan economy during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed contractor makes it difficult to assess past performance and reliability.
Construction in a conflict zone like Afghanistan presents inherent security and logistical risks.
The remote location may have increased costs due to transportation and specialized labor requirements.
Lack of specific details on the construction scope makes it hard to benchmark against similar projects.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive price.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
The project aimed to enhance the capabilities of Afghan security forces, a strategic objective.
The contract duration suggests a comprehensive build-out rather than a minor upgrade.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The global market for military construction is substantial, driven by defense spending worldwide. Projects like this, involving the development of military bases in operational theaters, are often complex and high-value. Comparable spending benchmarks are difficult to establish precisely due to the unique geopolitical context and the specific requirements of military infrastructure, but such projects typically involve significant capital investment.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the nature and scale of constructing a military base, it is likely that larger, more experienced construction firms were the primary participants. Subcontracting opportunities for small businesses may have existed, but without details on the prime contractor or subcontracting plans, their impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and auditing mechanisms. The firm-fixed-price nature suggests that financial oversight would focus on ensuring the contractor met the contract's specifications within the agreed-upon price. Accountability measures would involve performance reviews and adherence to delivery schedules. Transparency is limited by the undisclosed nature of the prime contractor.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
US Army Corps of Engineers Construction Projects
Base Realignment and Closure (BRAC) Construction
Foreign Military Sales Construction Support

Risk Flags

Undisclosed Contractor
High-Risk Operational Environment (Afghanistan)
Geopolitical Instability Impacting Project Execution
Limited Transparency on Specific Deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to DOMESTIC AWARDEES (UNDISCLOSED). DESIGN AND CONSTRUCTION OF THE 6/3/215TH CAMP GERESHK INFANTRY KANDAK, HELMAND PROVINCE, 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 $24.2 million.

What is the period of performance?

Start: 2011-12-28. End: 2013-12-12.

What is the track record of the undisclosed contractor for this project?

The provided data does not disclose the identity of the contractor awarded this $24.2 million construction contract. Consequently, it is impossible to assess their specific track record, past performance on similar projects, or any history of successful or problematic contract execution. This lack of transparency regarding the prime contractor is a significant limitation in evaluating the overall reliability and potential risks associated with this award. Future analysis would require identifying the contractor to research their performance history with the Department of Defense or other government agencies.

How does the cost of this base construction compare to similar projects in Afghanistan or other conflict zones?

Direct cost comparison is challenging due to the unique and high-risk environment of Helmand Province, Afghanistan, which inherently inflates costs for security, logistics, and specialized labor. Furthermore, the specific scope of 'DESIGN AND CONSTRUCTION OF THE 6/3/215TH CAMP GERESHK INFANTRY KANDAK' is not detailed enough to allow for precise benchmarking against other military base constructions. Projects in stable, developed nations are typically significantly less expensive per square foot or per facility type. The $24.2 million figure represents the total contract value, and without a breakdown of costs per unit or facility type, a robust value comparison is not feasible.

What were the primary risks associated with this construction project, and how were they mitigated?

The primary risks associated with this project were undoubtedly related to the security situation in Helmand Province, Afghanistan. These include threats to personnel and equipment, logistical challenges in delivering materials, potential for project delays due to instability, and the overall high-risk operational environment. Mitigation strategies would typically involve robust security protocols, coordination with military forces for protection, careful logistical planning, and potentially incorporating contingency time and funds into the contract. The firm-fixed-price nature of the contract also shifts some financial risk to the contractor, incentivizing them to manage operational risks effectively.

How effective was the construction of Camp Gereshk in supporting the mission of the Afghan National Security Forces?

The effectiveness of the Camp Gereshk construction in supporting the Afghan National Security Forces (ANSF) is difficult to quantify solely from the contract data. The project's objective was to provide necessary infrastructure, which presumably enhanced the operational capabilities, living conditions, and training environment for the 6/3/215th Infantry Kandak. Its ultimate effectiveness would depend on factors such as the quality of construction, the usability of the facilities, the security situation post-construction, and the overall strategic role of that specific ANSF unit. Without post-construction assessments or operational reports, a definitive statement on effectiveness cannot be made.

What has been the historical spending pattern for similar base construction projects by the Department of the Army in Afghanistan?

Historical spending on base construction by the Department of the Army in Afghanistan, particularly during the period this contract was active (2011-2013), was substantial. Numerous projects were undertaken to build and upgrade facilities for both US and Afghan forces. While specific figures for 'Camp Gereshk Infantry Kandak' construction are $24.2 million, overall spending in this category ran into billions of dollars throughout the US presence in Afghanistan. This contract represents one component of a much larger, sustained investment in establishing and maintaining military infrastructure in the region.

What does the number of bidders (7) suggest about the market for military construction in Afghanistan at the time?

The participation of seven bidders in this full and open competition suggests a reasonably active market for military construction services in Afghanistan around 2011-2013, at least among firms capable of undertaking such projects. This number indicates that multiple companies were willing and able to compete for contracts in a challenging operational environment. It implies a degree of market maturity and availability of contractors experienced in or willing to engage in high-risk, high-reward construction work for the Department of Defense in that region.

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: SEALED BID

Solicitation ID: W5J9LE12B0001

Offers Received: 7

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: $24,440,338

Exercised Options: $24,229,699

Current Obligation: $24,229,699

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline