Army awards $20.6M for ammunition supply points and warehouses, completed in 2010

Contract Overview

Contract Amount: $20,643,377 ($20.6M)

Contractor: Atiah M AL Thobaiti & Bros CO

Awarding Agency: Department of Defense

Start Date: 2005-01-07

End Date: 2010-02-24

Contract Duration: 1,874 days

Daily Burn Rate: $11.0K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AMMUNITION SUPPLY POINTS, WEAPONS STORAGE WAREHOUSES, AND ASSOCIATED FACILITIES & GENERAL SUPPLY MAINTENANCE UNIT

Plain-Language Summary

Department of Defense obligated $20.6 million to ATIAH M AL THOBAITI & BROS CO for work described as: CONSTRUCTION OF AMMUNITION SUPPLY POINTS, WEAPONS STORAGE WAREHOUSES, AND ASSOCIATED FACILITIES & GENERAL SUPPLY MAINTENANCE UNIT Key points: 1. Contract awarded to ATIAH M AL THOBAITI & BROS CO for construction services. 2. Project involved building ammunition supply points, weapons storage, and associated facilities. 3. The contract was a firm fixed price, indicating a defined cost structure. 4. Completion date was February 24, 2010, with a duration of 1874 days.

Value Assessment

Rating: fair

The contract value of $20.6 million for construction of specialized facilities appears within a reasonable range for such projects. However, without specific details on the scope and complexity of the ammunition supply points and warehouses, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition method is not specified, which makes it difficult to assess the effectiveness of price discovery. If the contract was not fully and openly competed, there's a potential for higher costs than might be achieved through broader market engagement.

Taxpayer Impact: The total taxpayer impact is the $20.6 million awarded. The efficiency of this spending depends on the level of competition and the final value delivered.

Public Impact

Ensures secure storage and efficient distribution of ammunition and weapons. Supports military readiness and operational capabilities. Contributes to infrastructure development within military installations. Potential for long-term maintenance and operational costs associated with the facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specified competition method
  • Long contract duration (1874 days)

Positive Signals

  • Firm fixed price contract type
  • Clear project scope (construction of specific facilities)

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for defense-related infrastructure can vary significantly based on geopolitical needs and base development plans. Benchmarks are highly project-specific.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

Oversight would have been managed by the Department of the Army. Accountability for project completion, quality, and adherence to the firm fixed price would be key oversight functions.

Related Government Programs

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

Risk Flags

  • Potential for uncompetitive pricing due to unknown competition method.
  • Risk of cost escalation if change orders were approved beyond the initial scope.
  • Long contract duration may indicate complexity or potential for delays.
  • Lack of small business participation noted.

Tags

commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to ATIAH M AL THOBAITI & BROS CO. CONSTRUCTION OF AMMUNITION SUPPLY POINTS, WEAPONS STORAGE WAREHOUSES, AND ASSOCIATED FACILITIES & GENERAL SUPPLY MAINTENANCE UNIT

Who is the contractor on this award?

The obligated recipient is ATIAH M AL THOBAITI & BROS CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2005-01-07. End: 2010-02-24.

What was the specific justification for the chosen procurement method, and how did it impact the final price?

The specific justification for the procurement method is not detailed in the provided data. If the contract was not fully and openly competed, it could limit price discovery and potentially lead to a higher cost for taxpayers. Understanding the rationale behind the competition strategy is crucial for assessing value for money.

Were there any cost overruns or significant change orders during the contract's execution, given its long duration?

The provided data does not specify if there were cost overruns or change orders. A firm fixed price contract aims to mitigate such risks, but extensive projects over long periods can sometimes encounter unforeseen issues. A review of contract modifications and final costs would be necessary to assess this.

How does the completed infrastructure compare to modern standards for ammunition and weapons storage in terms of security and efficiency?

The data does not provide details on the comparison of the completed infrastructure to modern standards. While the facilities were built, their current effectiveness and compliance with evolving security and efficiency requirements would necessitate a separate assessment of the physical assets and their operational performance.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Contractor Details

Address: FIRST STREET, DAMMAM

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,643,377

Exercised Options: $20,643,377

Current Obligation: $20,643,377

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2005-01-07

Current End Date: 2010-02-24

Potential End Date: 2010-02-24 00:00:00

Last Modified: 2021-10-30

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending