DoD's $52.9M Security Brigade Complex Project Awarded to Al Tuhama Contracting Co Ltd
Contract Overview
Contract Amount: $52,887,619 ($52.9M)
Contractor: AL Tuhama Contracting CO Ltd
Awarding Agency: Department of Defense
Start Date: 2008-03-24
End Date: 2010-04-05
Contract Duration: 742 days
Daily Burn Rate: $71.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SECURITY BRIGADE COMPLEX PROJECT
Plain-Language Summary
Department of Defense obligated $52.9 million to AL TUHAMA CONTRACTING CO LTD for work described as: SECURITY BRIGADE COMPLEX PROJECT Key points: 1. The project involves commercial and institutional building construction, a sector with significant infrastructure needs. 2. Awarded to Al Tuhama Contracting Co Ltd, the contract value is substantial at $52.9 million. 3. The contract type is a Firm Fixed Price definitive contract, indicating a clear pricing structure. 4. The duration of the contract is 742 days, suggesting a medium-to-long term project. 5. The absence of small business participation is noted.
Value Assessment
Rating: fair
The contract value of $52.9 million for a construction project of this nature requires careful benchmarking against similar DoD construction contracts. Without specific details on the scope and complexity, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source selection process. This can impact price discovery and potentially lead to less competitive pricing compared to full and open competition.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the construction services.
Public Impact
Construction of essential security facilities for the Department of the Army. Potential impact on local employment and businesses during the construction phase. Long-term operational and maintenance costs associated with the new complex.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- No small business participation
Positive Signals
- Firm Fixed Price contract type
- Clear contract duration
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, which is a significant area of government spending, particularly for defense infrastructure. Benchmarks for similar large-scale military construction projects would be relevant for assessing value.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were either not pursued or not available for this specific procurement.
Oversight & Accountability
The definitive contract award for a large construction project necessitates robust oversight to ensure adherence to scope, budget, and timeline. Accountability for project completion and quality rests with the Department of the Army.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- No small business participation
- Potential for overpricing due to limited competition
- Lack of transparency in source selection
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 $52.9 million to AL TUHAMA CONTRACTING CO LTD. SECURITY BRIGADE COMPLEX PROJECT
Who is the contractor on this award?
The obligated recipient is AL TUHAMA CONTRACTING CO LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $52.9 million.
What is the period of performance?
Start: 2008-03-24. End: 2010-04-05.
What specific factors led to the 'not available for competition' determination for this $52.9M construction project?
The determination of 'not available for competition' typically arises from unique circumstances such as urgent needs, proprietary technology, or the existence of only one responsible source. Without further documentation, the exact justification for this limited competition on the Security Brigade Complex Project remains unclear, potentially impacting the government's ability to secure the best possible price.
How does the $52.9M cost compare to similar-sized security complex construction projects within the Department of Defense?
Benchmarking this $52.9 million contract against similar DoD security complex projects is crucial for assessing value. Factors like geographic location, specific security requirements, and the complexity of the build significantly influence costs. A detailed comparison would require access to data on comparable projects to determine if this award represents a fair market price.
What are the potential long-term risks associated with awarding a large construction contract with limited competition?
Awarding a large construction contract with limited competition carries risks such as inflated pricing, reduced quality due to lack of competitive pressure, and potential for contractor lock-in. Over the long term, these factors could lead to higher maintenance costs, performance issues, and a diminished return on taxpayer investment for the Security Brigade Complex.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: MANFALOUTI STREET, RIYADH
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $52,887,619
Exercised Options: $52,887,619
Current Obligation: $52,887,619
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-24
Current End Date: 2010-04-05
Potential End Date: 2010-04-05 00:00:00
Last Modified: 2023-01-28
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