DoD's $27.3M irrigation project in Afghanistan faced full and open competition, awarded to undisclosed foreign entities

Contract Overview

Contract Amount: $27,335,843 ($27.3M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2013-01-25

End Date: 2016-09-03

Contract Duration: 1,317 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KAJAKI IRRIGATION TUNNEL WORKS, HELMAND PROVINCE, AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $27.3 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: KAJAKI IRRIGATION TUNNEL WORKS, HELMAND PROVINCE, AFGHANISTAN. Key points: 1. The contract aimed to improve irrigation infrastructure, potentially boosting agricultural output and local livelihoods. 2. Award to foreign entities raises questions about long-term sustainability and local capacity building. 3. The firm fixed-price contract structure aimed to control costs, but final expenditure was within the awarded amount. 4. A duration of 1317 days suggests a complex, long-term project with potential for unforeseen challenges. 5. The lack of specific contractor information hinders a detailed assessment of past performance and accountability. 6. The project's success hinges on effective management and the stability of the operating environment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specific nature of international development projects and the undisclosed foreign awardees. The total expenditure of $27.3 million for a large-scale irrigation project in a challenging environment like Helmand Province suggests a significant investment. Without comparable projects or detailed cost breakdowns, it's difficult to definitively assess if this represented excellent value for money. However, the firm fixed-price nature indicates an attempt to manage costs upfront.

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 likely considered. However, the disclosure that the awardees were 'undisclosed foreign' entities limits transparency and makes it difficult to ascertain the number of actual bidders and their origins. This level of competition is generally positive for price discovery, but the lack of specific bidder information prevents a thorough analysis of the competitive landscape.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices. However, the lack of transparency regarding the specific foreign awardees makes it difficult to confirm if the most competitive bids were indeed selected and if taxpayer funds were used in the most cost-effective manner.

Public Impact

Beneficiaries include local farmers and communities in Helmand Province through improved water access for agriculture. Services delivered include the construction and rehabilitation of irrigation infrastructure, such as tunnels. Geographic impact is concentrated in Helmand Province, Afghanistan, a region historically reliant on agriculture. Workforce implications could include local employment during construction phases, though details are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the identity of the foreign awardees.
Potential challenges in ensuring long-term maintenance and sustainability of the irrigation system.
Geopolitical instability in Afghanistan could impact project execution and long-term benefits.
Limited information on local capacity building and knowledge transfer to Afghan entities.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type helps to control costs and budget certainty.
Aimed to address critical infrastructure needs for agricultural development.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on infrastructure development. The market for such projects, particularly in post-conflict or developing regions, is often characterized by specialized firms capable of handling complex logistical and security challenges. Comparable spending benchmarks are difficult to establish due to the unique geographic and geopolitical context. The scale of the project suggests a significant investment in agricultural infrastructure.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the nature of the project and the award to undisclosed foreign entities, it is unlikely that small businesses played a significant role, either as prime contractors or major subcontractors. This contract does not appear to have been designed to foster the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. Given the international nature and the award to foreign entities, oversight would likely involve a combination of Department of Defense contracting officers, potentially international organizations, and possibly host nation authorities. Transparency is limited by the undisclosed nature of the awardees. Inspector General jurisdiction would typically apply to DoD contracts, but the extent of its application to foreign awardees and projects in Afghanistan may vary.

Related Government Programs

US Army Corps of Engineers projects
Afghanistan Reconstruction Funds
International Development Aid
Infrastructure Projects in Conflict Zones

Risk Flags

Lack of Transparency in Awardee Identification
Geopolitical Instability Risk
Potential for Cost Overruns (despite FFP)
Sustainability of Infrastructure Post-Project

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to FOREIGN AWARDEES (UNDISCLOSED). KAJAKI IRRIGATION TUNNEL WORKS, HELMAND 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 $27.3 million.

What is the period of performance?

Start: 2013-01-25. End: 2016-09-03.

What specific irrigation improvements were undertaken, and what was the expected impact on agricultural output?

The contract data indicates 'KAJAKI IRRIGATION TUNNEL WORKS' in Helmand Province, Afghanistan. While the specific improvements are not detailed, the objective of irrigation tunnel works is typically to enhance water delivery systems for agricultural lands. This could involve repairing existing tunnels, constructing new ones, or improving associated canal networks. The expected impact would be increased water availability for crops, potentially leading to higher yields, diversification of crops, and improved livelihoods for local farmers. However, without specific project reports or impact assessments, the precise quantitative impact on agricultural output remains unquantified in the available data.

Why were the foreign awardees undisclosed, and what are the implications for accountability?

The reason for the undisclosed foreign awardees is not provided in the contract data. This lack of transparency significantly hinders accountability. It makes it difficult to ascertain the contractor's track record, financial stability, and adherence to contractual obligations. For taxpayers, it raises concerns about whether the selection process was truly competitive and if the chosen entities were the most capable and cost-effective. In future procurements, greater transparency regarding awardee identities, especially for significant public investments, is crucial for ensuring accountability and public trust.

How does the $27.3 million expenditure compare to similar large-scale irrigation projects in developing or conflict regions?

Comparing the $27.3 million expenditure for this irrigation project is challenging due to the unique context of Helmand Province, Afghanistan, and the undisclosed nature of the awardees. Large-scale irrigation projects globally can range widely in cost depending on factors like terrain, existing infrastructure, technology used, and security requirements. Projects in conflict zones often incur higher costs due to logistical complexities and security measures. While $27.3 million represents a substantial investment, without specific details on the scope of work and comparable project data from similar regions or contexts, it is difficult to definitively benchmark its value for money. However, it is a significant sum that warrants scrutiny regarding its effectiveness and impact.

What risks were associated with executing a construction project of this magnitude in Afghanistan during the contract period (2013-2016)?

Executing a large-scale construction project like the KAJAKI IRRIGATION TUNNEL WORKS in Afghanistan between 2013 and 2016 involved substantial risks. These included significant security risks due to the ongoing conflict, potential for insurgent activity, and the need for robust force protection measures. Logistical challenges were also high, involving the transportation of materials and personnel in a difficult terrain with limited infrastructure. Political and economic instability within Afghanistan posed further risks, potentially impacting project timelines, resource availability, and the long-term sustainability of the completed infrastructure. Furthermore, managing a project with undisclosed foreign awardees could introduce complexities in communication, cultural understanding, and adherence to international standards.

What is the historical spending pattern for similar infrastructure projects by the Department of the Army in Afghanistan?

The Department of the Army, particularly through entities like the U.S. Army Corps of Engineers, has historically undertaken numerous infrastructure projects in Afghanistan aimed at reconstruction and development. Spending patterns for these projects have varied significantly based on the type of infrastructure (roads, buildings, power, water), the security environment, and the strategic objectives at different phases of the conflict. While specific historical spending figures for 'irrigation tunnel works' are not readily available without deeper database queries, the overall investment in Afghan infrastructure by the DoD has been in the billions of dollars over the years. This $27.3 million contract represents one component of a broader, long-term commitment to rebuilding and stabilizing the country through infrastructure development.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: W5J9LE13R0002

Offers Received: 3

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: $27,335,843

Exercised Options: $27,335,843

Current Obligation: $27,335,843

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline