DOD's $20.5M IGF Internal Security School construction contract awarded to Azmeel Holding Company

Contract Overview

Contract Amount: $20,500,982 ($20.5M)

Contractor: Azmeel Holding Company

Awarding Agency: Department of Defense

Start Date: 2014-06-22

End Date: 2020-12-31

Contract Duration: 2,384 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF INTERNAL SECURITY SCHOOL/SPECIAL FORCES

Plain-Language Summary

Department of Defense obligated $20.5 million to AZMEEL HOLDING COMPANY for work described as: IGF::OT::IGF INTERNAL SECURITY SCHOOL/SPECIAL FORCES Key points: 1. Value for money assessed against comparable construction projects. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include contract type and duration. 4. Performance context is within the Department of Defense's infrastructure development. 5. Sector positioning is in commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $20.5 million for the IGF Internal Security School construction appears within a reasonable range for a large-scale institutional building project. However, without specific details on the scope of work, square footage, and quality of materials, a precise value-for-money assessment is challenging. Benchmarking against similar Department of Defense construction projects of comparable size and complexity would provide a more robust evaluation of pricing and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of 7 bidders (no=7) indicates a healthy level of interest and competition for this project. This competitive environment generally leads to more favorable pricing and better quality offerings for the government.

Taxpayer Impact: The full and open competition for this construction project likely resulted in a more competitive bid landscape, potentially leading to cost savings for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will utilize the new internal security school facilities. The contract delivers essential infrastructure for training and operational readiness. The geographic impact is localized to the area where the school is constructed, likely within a military installation. Workforce implications include employment opportunities for construction workers and related trades during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2384 days) could increase the risk of cost overruns or scope creep.
Firm Fixed Price contract type, while offering cost certainty, can shift risk to the contractor, potentially leading to quality compromises if not managed closely.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contract is for construction, a tangible asset with clear deliverables.
The existence of multiple bidders (7) indicates market interest and potential for good contractor performance.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The Department of Defense is a major client for construction services, awarding numerous contracts for military bases, training facilities, and operational infrastructure. Benchmarking this $20.5 million project against other large-scale government construction projects would provide context on its relative size and investment.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, large construction contracts may include provisions for small business participation, either through direct awards or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. The firm fixed price nature of the contract and the defined scope of work provide a framework for accountability. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Construction Contracts
Military Base Infrastructure Development
Federal Building Construction
Training Facility Construction

Risk Flags

Long contract duration
Potential for cost escalation over extended period
Contractor performance risk over long term

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to AZMEEL HOLDING COMPANY. IGF::OT::IGF INTERNAL SECURITY SCHOOL/SPECIAL FORCES

Who is the contractor on this award?

The obligated recipient is AZMEEL HOLDING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2014-06-22. End: 2020-12-31.

What is the specific scope of work for the IGF Internal Security School construction?

The provided data indicates the contract is for 'Commercial and Institutional Building Construction' related to the 'IGF INTERNAL SECURITY SCHOOL/SPECIAL FORCES'. However, specific details regarding the scope of work, such as the size of the facility (square footage), the types of specialized security features required, the number of buildings, or the specific training capabilities to be housed within the school, are not detailed. This information is crucial for a comprehensive understanding of the project's complexity and for accurately benchmarking its cost against similar construction endeavors. Without this granular detail, the $20.5 million award is a broad figure for a significant construction undertaking.

How does the $20.5 million cost compare to similar Department of Defense construction projects?

Benchmarking the $20.5 million cost requires comparison with similar Department of Defense construction projects, specifically those involving security schools or specialized training facilities. Factors such as geographic location, prevailing labor and material costs, specific security requirements, and the overall size and complexity of the facility significantly influence project costs. While $20.5 million is a substantial investment, its value proposition can only be truly assessed by comparing it to the cost per square foot or per unit of training capacity of comparable, recently awarded DoD construction contracts. Without access to a database of such comparable projects with detailed cost breakdowns, a definitive value assessment is difficult.

What are the potential risks associated with the firm fixed price contract type for this project?

A Firm Fixed Price (FFP) contract, while providing cost certainty to the government, places the risk of cost overruns primarily on the contractor. For a large construction project like the IGF Internal Security School, potential risks include the contractor cutting corners on materials or labor quality to maintain profitability if unforeseen issues arise (e.g., difficult site conditions, material price spikes). This could impact the long-term durability and functionality of the facility. Conversely, a well-managed FFP contract with clear specifications and robust oversight can ensure cost control. The long duration of this contract (2384 days) amplifies these risks, as more variables can impact costs over time.

What is the track record of Azmeel Holding Company with Department of Defense contracts?

The provided data does not include specific details on Azmeel Holding Company's past performance or track record with the Department of Defense or other federal agencies. To assess this contractor's reliability and capability for future projects, a review of their contract history, including past performance evaluations, any instances of contract disputes, timely delivery, and adherence to quality standards on previous DoD projects, would be necessary. This information is typically available through federal procurement databases and past performance information systems.

How does the competition level (7 bidders) influence the final contract price and value?

Having seven bidders for this construction contract is a positive indicator of robust competition. A higher number of bidders generally leads to more competitive pricing as companies vie for the award. This increased competition can drive down the final contract price, ensuring the government receives better value for its investment. Furthermore, a competitive environment encourages contractors to offer higher quality services and products to differentiate themselves. The presence of multiple bidders suggests that the market has sufficient capacity and interest to meet the government's needs, supporting the principle of price discovery through market forces.

What are the implications of the contract's long duration (2384 days) on project management and cost?

A contract duration of 2384 days (approximately 6.5 years) for a construction project is exceptionally long and carries significant implications. It increases the potential for scope creep, changes in requirements, and escalation of material and labor costs over time, even with a fixed-price contract. Project management becomes more complex, requiring sustained oversight and adaptation to evolving conditions. While a long duration might be justified for very large, multi-phase projects, it also heightens the risk of contractor performance degradation or financial instability over the extended period. Careful monitoring and proactive management are essential to mitigate these risks and ensure successful project completion within budget and to specification.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: IMAM SAUD RD, RIYADH

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

Financial Breakdown

Contract Ceiling: $20,500,982

Exercised Options: $20,500,982

Current Obligation: $20,500,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline