Department of Defense awarded $31.6M for roadway construction in a non-competitive contract

Contract Overview

Contract Amount: $31,578,446 ($31.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2010-09-12

End Date: 2013-04-02

Contract Duration: 933 days

Daily Burn Rate: $33.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DBE BORDER ROADS, SEGMENT 2A - ROADWAY

Plain-Language Summary

Department of Defense obligated $31.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: DBE BORDER ROADS, SEGMENT 2A - ROADWAY Key points: 1. Contract awarded through a sole-source procurement, limiting price competition. 2. The contract duration of 933 days suggests a significant project scope. 3. Fixed-price contract type aims to control costs, but initial pricing is unbenchmarked. 4. The awardee is a foreign entity, potentially impacting domestic economic benefits. 5. No small business set-aside was utilized, indicating limited direct support for small businesses. 6. The project falls under highway, street, and bridge construction, a critical infrastructure sector.

Value Assessment

Rating: questionable

The contract value of $31.6 million for roadway construction is difficult to assess without comparable project data or a clear understanding of the scope. As a sole-source award, there was no competitive bidding process to establish a benchmark for value for money. The fixed-price nature of the contract provides some cost certainty, but the initial pricing could be higher than if competition had been present. Further analysis would require details on the specific construction tasks and their associated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential bidders. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances where full and open competition is not feasible. The lack of competition means that taxpayers did not benefit from the price discovery that typically occurs in a competitive bidding environment, potentially leading to a higher overall cost.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices.

Public Impact

The primary beneficiaries are likely the foreign awardee and potentially the Department of Defense through the completion of necessary roadway infrastructure. The service delivered is the construction of roadway infrastructure, specifically identified as 'DBE BORDER ROADS, SEGMENT 2A - ROADWAY'. The geographic impact is likely concentrated in the area where the border roads are being constructed, which is not specified. Workforce implications would include employment for construction workers, engineers, and project managers, though the extent of domestic vs. foreign labor is unclear.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Sole-source awards can reduce transparency and accountability.
Foreign awardee may limit domestic economic benefits and job creation.
Project scope and specific deliverables are not fully detailed, hindering performance assessment.

Positive Signals

Fixed-price contract type offers cost certainty for the government.
The contract addresses a specific infrastructure need for the Department of Defense.
The project duration suggests a commitment to completing a substantial infrastructure task.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy and civil engineering construction, including highways, streets, and bridges. The global construction market is vast, with significant government spending allocated to infrastructure projects. Comparable spending benchmarks would typically involve analyzing the cost per mile or per square foot of similar roadway construction projects, adjusted for location, complexity, and material costs. However, without more specific details on the project's scope and location, precise benchmarking is challenging.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no information provided regarding subcontracting plans or goals for small businesses. This suggests that the primary awardee is expected to perform the work, and there may be limited opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and potentially the Inspector General's office. Accountability measures would be tied to the contract's performance clauses and the fixed-price terms. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed performance reports. The Inspector General's office may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Department of Defense Infrastructure Projects
Highway and Roadway Construction Contracts
Foreign Military Sales Support
Civil Engineering and Construction Services

Risk Flags

Sole-source procurement limits competition and price discovery.
Vague awardee identification ('MISCELLANEOUS FOREIGN AWARDEES') raises transparency and vetting concerns.
Lack of specified domestic economic benefit or small business participation.
Potential challenges in oversight and quality assurance with foreign entities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to MISCELLANEOUS FOREIGN AWARDEES. DBE BORDER ROADS, SEGMENT 2A - ROADWAY

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2010-09-12. End: 2013-04-02.

What is the specific geographic location and scope of the 'DBE BORDER ROADS, SEGMENT 2A - ROADWAY' project?

The provided data does not specify the geographic location or the detailed scope of the 'DBE BORDER ROADS, SEGMENT 2A - ROADWAY' project. The designation 'DBE' might refer to a specific program or region, but without further context, it's impossible to determine the exact location. The scope is broadly defined as roadway construction. To understand the project fully, one would need access to the contract's statement of work, which would detail the specific tasks, deliverables, engineering requirements, and the precise geographical area of construction. This information is crucial for assessing the value, risks, and performance of the contract.

How was the awardee, 'MISCELLANEOUS FOREIGN AWARDEES', identified and selected for this sole-source contract?

The data indicates the awardee is 'MISCELLANEOUS FOREIGN AWARDEES' and the contract type is 'NOT AVAILABLE FOR COMPETITION' (sole-source). The selection process for a sole-source contract typically involves a justification from the contracting agency explaining why full and open competition is not practicable. This could be due to the unique capabilities of the sole source, urgent and compelling needs, or other specific circumstances outlined in federal acquisition regulations. The term 'MISCELLANEOUS FOREIGN AWARDEES' suggests a category rather than a specific entity, which raises further questions about the procurement process and the vetting of the actual contractor performing the work. Detailed justification documents would be required to understand the rationale behind this sole-source selection.

What are the key performance indicators (KPIs) and milestones associated with this contract, and how was performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. However, as a fixed-price contract with a duration of 933 days (approximately 2.5 years), performance would likely be measured against the timely completion of defined construction phases and adherence to quality standards outlined in the contract's statement of work. The Department of Defense would have assigned a contracting officer's representative (COR) to monitor progress and ensure compliance. Without access to the contract's performance work statement (PWS) or inspection reports, a detailed assessment of performance measurement is not possible. The fixed-price nature implies that the contractor is responsible for delivering the specified outcome within the agreed budget.

What is the historical spending pattern for similar roadway construction projects by the Department of Defense, particularly those involving foreign awardees?

The provided data does not offer historical spending patterns for similar projects. Analyzing historical spending would require accessing databases of past Department of Defense (DoD) contracts, filtering for roadway construction (NAICS code 237310), and examining contract values, award types (competitive vs. sole-source), and awardees (domestic vs. foreign). Generally, DoD infrastructure spending can be substantial, but specific patterns for sole-source foreign awards in roadway construction are not readily available in this dataset. Such analysis would typically involve extensive data mining and comparative studies to identify trends, average costs, and the prevalence of non-competitive awards to foreign entities.

What are the potential risks associated with awarding a significant infrastructure contract to a 'miscellaneous foreign awardee' on a sole-source basis?

Awarding a significant infrastructure contract to a 'miscellaneous foreign awardee' on a sole-source basis presents several potential risks. Firstly, the lack of competition can lead to higher costs for taxpayers. Secondly, there may be challenges in oversight, quality control, and ensuring compliance with U.S. standards and regulations when dealing with foreign entities, especially if they are not regularly contracted by the DoD. Security risks, including data security and the integrity of the infrastructure itself, could also be a concern. Furthermore, using sole-source foreign awards may bypass opportunities for U.S. small businesses and potentially impact domestic job creation in the construction sector. The vague identification of the awardee adds a layer of uncertainty regarding their capabilities, reliability, and adherence to ethical business practices.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W5K9ZM10R0007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $39,366,446

Exercised Options: $31,578,446

Current Obligation: $31,578,446

Contract Characteristics

Cost or Pricing Data: NO

Timeline