DOD's $30M Al Hasah Range Complex Upgrade Awarded to Foreign Contractor Amidst Limited Competition

Contract Overview

Contract Amount: $29,968,865 ($30.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2011-07-05

End Date: 2015-01-31

Contract Duration: 1,306 days

Daily Burn Rate: $22.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADE OF SHADGUM RANGE COMPLEX - AL HASA

Plain-Language Summary

Department of Defense obligated $30.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: UPGRADE OF SHADGUM RANGE COMPLEX - AL HASA Key points: 1. Significant investment of $29.97M for a range complex upgrade. 2. Awarded to 'MISCELLANEOUS FOREIGN AWARDEES', raising questions about competition and oversight. 3. Construction falls under 'Other Heavy and Civil Engineering Construction', a sector with varying cost benchmarks. 4. The contract's limited competition raises concerns about potential overpricing and taxpayer value.

Value Assessment

Rating: questionable

The contract value of $29.97M for a range complex upgrade is substantial. Without specific benchmarks for similar projects or detailed cost breakdowns, assessing its value for money is difficult, especially given the limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited solicitation process. This lack of open competition may have limited price discovery and potentially led to a higher price than if multiple bidders had been involved.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this significant infrastructure investment.

Public Impact

Military readiness and training capabilities may be enhanced by the upgraded range complex. The use of foreign awardees could have geopolitical implications or raise security concerns. Transparency in the procurement process is reduced due to the limited competition, impacting public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Foreign awardee
  • Lack of transparency in pricing

Positive Signals

  • Potential enhancement of military training capabilities

Sector Analysis

This contract falls within the heavy civil engineering construction sector. Spending in this sector can vary widely based on project complexity, location, and material costs. The $29.97M value is significant for a single complex upgrade.

Small Business Impact

The data indicates no specific allocation or consideration for small businesses in this award. The nature of the project and the awardee suggest it was not targeted towards small business participation.

Oversight & Accountability

The limited competition and award to foreign entities warrant close oversight to ensure the project's successful completion, adherence to specifications, and responsible use of funds. Accountability for cost and performance is crucial.

Related Government Programs

  • Other Heavy and Civil Engineering Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of competitive bidding
  • Award to foreign entity
  • Potential for cost overruns
  • Oversight challenges
  • Limited transparency

Tags

other-heavy-and-civil-engineering-constr, department-of-defense, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to MISCELLANEOUS FOREIGN AWARDEES. UPGRADE OF SHADGUM RANGE COMPLEX - AL HASA

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 $30.0 million.

What is the period of performance?

Start: 2011-07-05. End: 2015-01-31.

What specific factors justified the limited competition for this substantial range complex upgrade, and how was the price determined to be fair and reasonable under these circumstances?

The justification for limited competition is not provided in the data. Typically, such justifications might include unique capabilities of the awardee, urgent needs, or specific geopolitical considerations. Without this information, it's impossible to assess the price discovery mechanism. A thorough review would require access to the contract's justification and approval documents to understand the rationale and the process used to ensure a fair price.

What are the potential risks associated with awarding a significant construction contract to 'MISCELLANEOUS FOREIGN AWARDEES', particularly concerning quality control, security, and long-term maintena

Awarding to foreign entities can introduce risks related to differing quality standards, potential security vulnerabilities, logistical challenges for oversight and maintenance, and currency fluctuations impacting costs. Ensuring compliance with US standards and establishing robust oversight mechanisms are critical. The long-term implications for maintenance and support also need careful consideration to avoid future cost overruns or performance issues.

How does the $29.97M expenditure for the Al Hasah Range Complex upgrade align with the Department of Defense's strategic goals for training infrastructure and force readiness?

The data does not provide details on how this upgrade aligns with strategic goals. However, range complexes are fundamental to military training and readiness. An upgrade suggests an investment in maintaining or improving these capabilities. Assessing the strategic alignment would require understanding the specific improvements made, their impact on training realism and efficiency, and how they support current and future operational requirements.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

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

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: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $29,968,865

Exercised Options: $29,968,865

Current Obligation: $29,968,865

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2011-07-05

Current End Date: 2015-01-31

Potential End Date: 2015-01-31 00:00:00

Last Modified: 2015-01-28

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