DoD's $26.8M construction contract for ANA 215TH COMBAT LOGISTICS BATTALION awarded to foreign entities

Contract Overview

Contract Amount: $26,844,243 ($26.8M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-08-04

End Date: 2014-10-19

Contract Duration: 806 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ANA 215TH COMBAT LOGISTICS BATTALION.

Plain-Language Summary

Department of Defense obligated $26.8 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: ANA 215TH COMBAT LOGISTICS BATTALION. Key points: 1. The contract's value of $26.8 million represents a significant investment in logistical support infrastructure. 2. Awarding to foreign entities raises questions about domestic economic impact and potential security considerations. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a complex procurement process. 4. The duration of 806 days suggests a substantial construction or renovation project. 5. The firm-fixed-price contract type aims to control costs, but the final price is fixed regardless of actual costs incurred. 6. Lack of specific details on the foreign awardees hinders a comprehensive value-for-money assessment.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed foreign awardees and the specific nature of military logistical support construction. Without comparable domestic projects or detailed cost breakdowns, it's difficult to definitively assess if the $26.8 million represents fair market value. The firm-fixed-price nature suggests an attempt to cap costs, but the absence of transparency regarding the contractor's pricing structure limits a thorough value analysis. The exclusion of domestic sources also raises concerns about potentially foregoing more competitive pricing available within the U.S. market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be open, certain sources were excluded. The specific reasons for this exclusion are not detailed, making it difficult to ascertain the full extent of competition. With only 4 bids received, the level of competition appears moderate, which could influence price discovery. The exclusion of certain sources, however, limits the potential for broader price competition.

Taxpayer Impact: The limited competition and exclusion of sources may have resulted in a higher price for taxpayers than if a truly open and unrestricted competition had been conducted. This procurement strategy warrants scrutiny to ensure maximum value was achieved.

Public Impact

The primary beneficiaries are the ANA 215TH COMBAT LOGISTICS BATTALION, receiving improved infrastructure for their operations. The contract delivers construction services essential for military logistical support. The geographic impact is likely concentrated in the region where the ANA 215TH COMBAT LOGISTICS BATTALION operates, potentially in a theater of operations. Workforce implications could involve both foreign labor for construction and potential indirect benefits to U.S. defense logistics capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding foreign awardees prevents assessment of their track record and potential risks.
The exclusion of sources in the competition process raises concerns about potential limitations on competitive pricing.
The firm-fixed-price contract, while managing cost certainty, offers no upside for cost savings to the government.
The specific nature of military construction in potentially austere environments can introduce unforeseen risks and cost overruns.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government once awarded.
The contract was awarded after a competitive process, suggesting some level of vetting and selection.
The duration of the contract indicates a significant project with the potential for substantial operational impact.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on institutional and commercial building. The Department of Defense is a major client for construction services, often requiring specialized facilities for logistical, operational, and training purposes. The market for defense construction is substantial, with significant spending allocated annually. This contract represents a portion of that spending, aimed at enhancing the capabilities of allied forces through infrastructure development.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information about subcontracting opportunities for small businesses. Given the award to foreign entities, the direct impact on the U.S. small business ecosystem is likely minimal to none. The focus appears to be on fulfilling a specific defense need rather than promoting domestic small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms. Accountability measures would be tied to the terms of the firm-fixed-price definitive contract, with performance monitored against project milestones and quality standards. Transparency is limited by the undisclosed nature of the foreign awardees and the specific details of the competition. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Foreign Military Sales Support
Logistics Infrastructure
Combat Support Facilities

Risk Flags

Lack of transparency regarding foreign awardees.
Exclusion of sources in competition.
Potential for higher costs due to limited competition.
Uncertainty about contractor's track record and reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to FOREIGN AWARDEES (UNDISCLOSED). ANA 215TH COMBAT LOGISTICS BATTALION.

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 $26.8 million.

What is the period of performance?

Start: 2012-08-04. End: 2014-10-19.

What is the specific nature of the construction project for the ANA 215TH COMBAT LOGISTICS BATTALION?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' and is associated with the 'ANA 215TH COMBAT LOGISTICS BATTALION.' While the exact nature of the construction is not detailed, it likely involves building or renovating facilities essential for the battalion's logistical operations. This could include warehouses, maintenance facilities, administrative buildings, or other support infrastructure required for a combat logistics unit. The duration of 806 days suggests a project of considerable scope and complexity, potentially involving new construction or extensive upgrades to existing structures within a military base or operational area.

Why were foreign awardees selected, and what are the implications of this decision?

The data states the awardees are 'FOREIGN AWARDEES (UNDISCLOSED)' and the contract type is 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition occurred, domestic sources were intentionally excluded. The reasons for this exclusion are not specified but could relate to factors such as specialized expertise available only internationally, strategic partnerships, or specific operational requirements in a particular geographic region where foreign contractors have a presence or capability. The implications include potential impacts on U.S. job creation and the domestic construction industry, as well as considerations regarding security, oversight, and long-term maintenance if the facilities are located abroad. It also raises questions about whether U.S. taxpayers are receiving the best value compared to domestic competition.

How does the firm-fixed-price contract type affect cost control and risk for this project?

A firm-fixed-price (FFP) contract means the contractor agrees to a total price for a well-defined job. This provides the government with cost certainty, as the final price is fixed regardless of the contractor's actual costs. The risk of cost overruns is primarily borne by the contractor. For this $26.8 million construction project, the FFP structure aims to prevent budget blowouts. However, it also means the government does not benefit from any cost savings the contractor might achieve. The success of an FFP contract hinges on a clear and complete scope of work; any ambiguities or changes can lead to disputes or costly change orders, shifting risk back to the government.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' signify for this contract?

This procurement term indicates a nuanced approach to competition. 'Full and Open Competition' generally means all responsible sources are permitted to submit offers. However, the addition of 'AFTER EXCLUSION OF SOURCES' signifies that specific, responsible sources were deliberately excluded from the bidding process. The reasons for exclusion are not provided in the data but could stem from national security concerns, specific technological requirements, or unique capabilities possessed by the remaining bidders. This approach aims to balance the desire for broad competition with the need to select contractors with particular qualifications or to meet specific strategic objectives, though it inherently limits the pool of potential bidders and may impact price competitiveness.

What is the significance of the contract duration (806 days) in relation to its value?

A contract duration of 806 days (approximately 2.2 years) for a $26.8 million construction project suggests a substantial undertaking. This extended timeline is typical for complex construction projects, especially those involving significant infrastructure development, potentially in challenging environments or requiring specialized logistical support. The duration implies that the project involves multiple phases, detailed planning, execution, and potentially testing or commissioning. When considering the value, the cost per day is approximately $33,280 ($26.8M / 806 days). This metric helps in comparing the project's cost intensity over time against similar construction endeavors, although it doesn't account for the complexity or criticality of the specific work being performed.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: W5J9LE12B0014

Offers Received: 4

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: $26,844,243

Exercised Options: $26,844,243

Current Obligation: $26,844,243

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline