DoD spent $19.7M on Afghan police facility construction, raising questions about foreign awardee transparency and value

Contract Overview

Contract Amount: $19,747,524 ($19.7M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-08-08

End Date: 2014-03-18

Contract Duration: 587 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JOINT REGIONAL AFGHAN NATIONAL POLICE CENTER (JRAC) INGRASTRUCTURE AND FACILITY ENHANCEMENTS, KANDAHAR PROVINCE, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $19.7 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: JOINT REGIONAL AFGHAN NATIONAL POLICE CENTER (JRAC) INGRASTRUCTURE AND FACILITY ENHANCEMENTS, KANDAHAR PROVINCE, AFGHANISTAN Key points: 1. Contract awarded to undisclosed foreign entities, limiting transparency and accountability. 2. Full and open competition was utilized, but the impact of foreign awardees on price discovery is unclear. 3. The contract duration of 587 days suggests a significant project scope. 4. Fixed-price contract type aims to control costs, but performance risks remain. 5. The project falls under commercial and institutional building construction, a common category for infrastructure development. 6. Lack of specific performance metrics makes assessing value for money challenging.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult due to the undisclosed foreign awardees and the unique operational context in Afghanistan. The fixed-price nature suggests an attempt to control costs, but without clear performance metrics or comparable domestic projects, assessing whether $19.7 million represented a fair price for the infrastructure and facility enhancements is challenging. The lack of transparency surrounding the contractor's identity and potential overheads further complicates a value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to participate. However, the fact that the awardees are undisclosed foreign entities raises concerns about the effectiveness of this competition in ensuring the best value for the U.S. taxpayer. It is unclear how many bids were received or how the competition among foreign entities translated into competitive pricing.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the lack of transparency regarding the awardees makes it difficult to ascertain if competitive pressures truly drove down costs or if there were hidden inefficiencies.

Public Impact

The primary beneficiaries were intended to be the Afghan National Police (ANP) in Kandahar Province, Afghanistan, through improved facilities. Services delivered included infrastructure and facility enhancements for the JRAC. The geographic impact is localized to Kandahar Province, Afghanistan. The project likely involved local labor for construction activities, contributing to the Afghan economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding foreign awardees.
Difficulty in verifying performance and value for money.
Potential for cost overruns or quality issues due to the complex operating environment.
Limited insight into the specific enhancements provided.
Unclear impact on local workforce development and fair labor practices.

Positive Signals

Awarded under full and open competition, theoretically promoting competitive pricing.
Fixed-price contract type aims to provide cost certainty.
Project aimed to improve critical infrastructure for Afghan security forces.
Contract duration suggests a substantial and potentially impactful project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. Globally, government spending on infrastructure and facility development, particularly in post-conflict or developing regions, is a significant market. While specific benchmarks for construction in Afghanistan are scarce, comparable projects in other regions might involve costs ranging from hundreds to thousands of dollars per square foot, depending on complexity, materials, and security requirements.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the award to undisclosed foreign entities, it is unlikely that U.S. small businesses were directly involved as prime contractors. Subcontracting opportunities for U.S. small businesses are not specified and likely limited, especially given the foreign awardee status.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. Given the location and the nature of foreign awardees, oversight would likely have been managed by the Department of the Army through contracting officers and potentially through on-the-ground representatives. Transparency is limited by the undisclosed nature of the awardees, making independent assessment of accountability challenging.

Related Government Programs

Afghanistan Security Forces Fund
Commander's Emergency Response Program (CERP)
Provincial Reconstruction Teams (PRTs)
Base Realignment and Closure (BRAC) Program

Risk Flags

Lack of transparency regarding foreign awardees.
Difficulty in assessing value for money.
Potential for inadequate oversight in a complex operational environment.
Limited public information on project scope and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to FOREIGN AWARDEES (UNDISCLOSED). JOINT REGIONAL AFGHAN NATIONAL POLICE CENTER (JRAC) INGRASTRUCTURE AND FACILITY ENHANCEMENTS, KANDAHAR PROVINCE, AFGHANISTAN

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 $19.7 million.

What is the period of performance?

Start: 2012-08-08. End: 2014-03-18.

What specific infrastructure and facility enhancements were undertaken for the JRAC?

The provided data does not specify the exact nature of the 'infrastructure and facility enhancements.' This could range from new building construction, renovation of existing structures, installation of utilities (power, water, sanitation), security upgrades, or improvements to living quarters and operational spaces. Without a detailed statement of work or project reports, it is impossible to ascertain the precise scope of work performed under this $19.7 million contract. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary to detail the specific improvements made.

What is the track record of the undisclosed foreign awardees?

The identity of the foreign awardees is undisclosed, making it impossible to assess their track record. This lack of transparency is a significant concern. Typically, government contracts are awarded to entities with a demonstrated history of successful performance, financial stability, and compliance with regulations. Without knowing who the contractors were, their past performance, any previous issues with U.S. government contracts, or their capacity to execute such a project cannot be evaluated. This anonymity hinders accountability and makes it difficult to determine if the contract was awarded to responsible parties.

How does the $19.7 million cost compare to similar construction projects in Afghanistan or similar environments?

Direct comparison of this $19.7 million contract to similar projects in Afghanistan is challenging due to the unique and often volatile operating environment, which typically inflates costs for security, logistics, and specialized personnel. Furthermore, the undisclosed nature of the foreign awardees prevents an analysis of their specific cost structures or profit margins. Generally, construction costs in conflict zones are significantly higher than in stable regions. Without detailed project specifications (e.g., square footage, type of construction, specific amenities) and knowledge of the awardees' overheads, a precise cost-per-unit benchmark is not feasible. However, the total sum suggests a substantial undertaking.

What were the primary risks associated with this contract, and how were they managed?

Key risks associated with this contract likely included security threats to personnel and assets in Afghanistan, logistical challenges in delivering materials and equipment, potential for corruption or fraud given the large sum and complex environment, quality control issues in construction, and political instability impacting project continuity. The fixed-price contract type attempts to mitigate cost overrun risks for the government. However, the effectiveness of risk management strategies is difficult to assess without knowing the specific mitigation plans implemented by the Department of the Army and the contractors, especially given the foreign awardees' limited transparency.

What is the historical spending pattern for JRAC infrastructure and facility enhancements by the Department of Defense?

The provided data only pertains to a single contract awarded on August 8, 2012, for $19.7 million. It does not offer insight into historical spending patterns for JRAC infrastructure and facility enhancements. To understand historical spending, one would need to analyze contract awards for the JRAC or similar facilities over multiple fiscal years. This would involve searching databases like USAspending.gov for all relevant contracts, identifying trends in award amounts, contract types, and durations, and assessing whether this $19.7 million contract represents a significant deviation or a continuation of established spending levels.

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: W5J9LE12B0009

Offers Received: 6

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: $19,747,524

Exercised Options: $19,747,524

Current Obligation: $19,747,524

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline