DoD Awards $23.9M for Afghanistan Logistics Center Construction, Full and Open Competition

Contract Overview

Contract Amount: $23,886,867 ($23.9M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-08-27

End Date: 2014-03-05

Contract Duration: 555 days

Daily Burn Rate: $43.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REGIONAL LOGISTICS CENTER AND UP REGIONAL HQ @ LASHKAR GAH, AFGHANISTAN IGF::OT::IGF

Plain-Language Summary

Department of Defense obligated $23.9 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: REGIONAL LOGISTICS CENTER AND UP REGIONAL HQ @ LASHKAR GAH, AFGHANISTAN IGF::OT::IGF Key points: 1. Significant investment in infrastructure for military operations in Afghanistan. 2. Full and open competition suggests potential for competitive pricing. 3. Contract awarded to foreign entities, raising questions about transparency and oversight. 4. Construction sector spending, subject to geopolitical and logistical risks.

Value Assessment

Rating: fair

The contract value of $23.9M for a logistics center and HQ is substantial. Benchmarking against similar construction projects in conflict zones is difficult due to unique risk factors and limited comparable data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the widest possible pool of bidders and promotes price discovery. However, the undisclosed foreign awardees limit transparency into the competitive process and final pricing.

Taxpayer Impact: Taxpayer funds were used for a critical infrastructure project. While competition was sought, the ultimate cost-effectiveness and value for money are obscured by the undisclosed foreign awardees.

Public Impact

Supports military logistics and operational readiness in a high-risk environment. Potential for job creation, though primarily for foreign workers given awardee status. Highlights the significant financial commitment to infrastructure in overseas operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding foreign awardees.
Geopolitical instability in Afghanistan impacting project execution and cost.
Potential for cost overruns due to unforeseen circumstances in a conflict zone.

Positive Signals

Awarded under full and open competition.
Addresses critical logistical needs for military operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector, especially for overseas military installations, is heavily influenced by geopolitical factors, security costs, and logistical challenges, often leading to higher price points than domestic projects.

Small Business Impact

The data indicates the contract was not set aside for small businesses and was awarded to foreign entities, suggesting minimal direct benefit to U.S. small businesses from this specific award.

Oversight & Accountability

Oversight is crucial given the significant funds and the location of the project. The undisclosed nature of the foreign awardees presents a challenge for accountability and ensuring compliance with contract terms and U.S. interests.

Related Government Programs

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

Risk Flags

Lack of transparency in awardee identification.
High-risk operational environment (Afghanistan).
Potential for cost overruns due to unforeseen circumstances.
Geopolitical instability impacting project continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to FOREIGN AWARDEES (UNDISCLOSED). REGIONAL LOGISTICS CENTER AND UP REGIONAL HQ @ LASHKAR GAH, AFGHANISTAN IGF::OT::IGF

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 $23.9 million.

What is the period of performance?

Start: 2012-08-27. End: 2014-03-05.

What was the specific rationale for awarding to undisclosed foreign entities despite full and open competition, and how was their capability vetted?

The rationale for awarding to undisclosed foreign entities under full and open competition is not detailed in the provided data. Typically, such awards might occur if foreign firms offer unique capabilities, specialized expertise, or a more cost-effective solution that meets all requirements. However, the lack of transparency makes it difficult to assess the vetting process and ensure the award was based on merit and best value for the U.S. government.

What are the primary risks associated with constructing a major facility in a conflict zone like Afghanistan, and how were these mitigated?

Key risks include security threats to personnel and assets, logistical challenges in delivering materials and equipment, potential for political instability to disrupt work, and currency fluctuations. Mitigation strategies typically involve robust security protocols, detailed logistical planning, contingency budgeting, and close coordination with local authorities and military forces. The contract's duration and firm fixed-price nature suggest some risk was transferred to the contractor.

How does the $23.9M expenditure compare to similar logistics and HQ construction projects undertaken by the DoD in comparable operational environments?

Direct comparison is challenging due to the unique risks and operational context of Afghanistan. However, $23.9M for a regional logistics center and HQ is a significant investment. Without detailed breakdowns of scope, materials, and security costs, it's difficult to benchmark against other projects. The firm-fixed-price contract aims to control costs, but the foreign awardees and location introduce variables that could inflate the price compared to stateside construction.

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: W5J9LE12B0008

Offers Received: 16

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: $23,886,867

Exercised Options: $23,886,867

Current Obligation: $23,886,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline