DoD awards $31.5M for Kuwait Artillery Site Security Upgrades, a sole-source contract

Contract Overview

Contract Amount: $31,542,971 ($31.5M)

Contractor: DWC Building Construction Company

Awarding Agency: Department of Defense

Start Date: 2018-12-27

End Date: 2026-03-03

Contract Duration: 2,623 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KUWAIT ARTILLERY SITES SECURITY UPGRADES

Plain-Language Summary

Department of Defense obligated $31.5 million to DWC BUILDING CONSTRUCTION COMPANY for work described as: KUWAIT ARTILLERY SITES SECURITY UPGRADES Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Long performance period (2018-2026) suggests a complex, multi-phase project. 3. Firm Fixed Price contract type aims to control costs, but initial award details are limited. 4. Focus on security upgrades indicates a critical need for force protection in the region. 5. Contractor has a history with the Department of Defense, but specific performance data is not detailed here. 6. No small business set-aside, suggesting the prime contractor is not a small business.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and limited public data. Without competitive bids, it's difficult to assess if the $31.5 million price represents a fair market value. The long duration and specific nature of security upgrades in a potentially high-risk environment could justify a higher cost, but the lack of transparency prevents a definitive value-for-money assessment. Comparison to similar international security infrastructure projects would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one contractor is deemed capable of performing the work, often due to specialized expertise, proprietary technology, or urgent national security needs. The lack of competition means there was no opportunity for multiple bidders to offer proposals, potentially limiting price discovery and the government's ability to secure the lowest possible price.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government's negotiating position is weakened without alternative offers.

Public Impact

The primary beneficiaries are the U.S. military personnel stationed in Kuwait, with enhanced security at artillery sites. The contract delivers critical infrastructure improvements and security enhancements. Geographic impact is localized to specific artillery sites within Kuwait. Workforce implications may include employment for construction and security personnel, potentially both U.S. and local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration increases risk of cost overruns or scope creep.
Limited public information on contractor's specific experience for this type of project.
Potential geopolitical risks associated with operating in Kuwait could impact project timelines and costs.

Positive Signals

Firm Fixed Price contract type provides cost certainty if scope is well-defined.
Contract awarded to a known entity (DWC Building Construction Company) suggests some level of pre-qualification.
Focus on security upgrades addresses a clear operational requirement.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on specialized security infrastructure. The global market for defense construction and security upgrades is substantial, driven by geopolitical stability concerns and the need to protect military assets. This particular contract represents a niche within that market, addressing unique requirements for force protection in a specific international location. Comparable spending benchmarks would likely involve other overseas military construction projects or security fortification contracts.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contractor, DWC Building Construction Company, is likely a large business. There is no information provided regarding subcontracting plans or goals, making it difficult to assess the potential impact on the small business ecosystem. Without specific subcontracting requirements, opportunities for small businesses to participate in this project may be limited.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army contracting officers, project managers, and potentially the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is limited due to the sole-source nature and the sensitive security aspects of the project. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Overseas Military Construction
Force Protection Contracts
Base Operations Support
International Security Assistance

Risk Flags

Sole-source award
Long contract duration
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to DWC BUILDING CONSTRUCTION COMPANY. KUWAIT ARTILLERY SITES SECURITY UPGRADES

Who is the contractor on this award?

The obligated recipient is DWC BUILDING CONSTRUCTION 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 $31.5 million.

What is the period of performance?

Start: 2018-12-27. End: 2026-03-03.

What is the specific nature of the 'artillery sites' and the security upgrades required?

The provided data does not specify the exact nature of the artillery sites or the detailed security upgrades. However, in a military context, 'artillery sites' typically refer to locations where artillery pieces are deployed or stored. Security upgrades could encompass a range of measures such as perimeter fencing, blast-resistant structures, surveillance systems (CCTV, sensors), access control points, lighting, and potentially defensive emplacements. The 'Other Heavy and Civil Engineering Construction' classification suggests physical infrastructure modifications and enhancements rather than electronic security systems alone. The specific requirements would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this dataset.

How does the $31.5 million cost compare to similar international security infrastructure projects?

Direct comparison of the $31.5 million cost is difficult without more specific details on the scope of work and location. However, large-scale military construction and security upgrades in overseas locations can range significantly. Projects involving significant civil engineering, such as building hardened structures or extensive perimeter defenses, can easily run into tens of millions of dollars. For instance, similar projects in other high-threat environments might involve constructing new facilities, upgrading existing ones with advanced materials, and integrating sophisticated surveillance and access control systems. The long duration (nearly 8 years) also suggests a phased approach or a very comprehensive scope, which would naturally increase the total contract value. Without access to comparable project data from the DoD or other agencies undertaking similar work, a precise benchmark is not feasible.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts, especially those of significant value and long duration like this $31.5 million award running from 2018 to 2026, carry inherent risks. The primary risk is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or optimize costs. Without competing bids, the government may overpay compared to what could have been achieved in an open market. Furthermore, a long duration increases the risk of scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns. There's also a risk that the sole-source justification might be based on outdated information or that alternative solutions were not adequately explored. Finally, reliance on a single contractor can create vulnerabilities if that contractor experiences financial difficulties, performance issues, or faces unforeseen challenges.

What is DWC Building Construction Company's track record with the Department of Defense?

The provided data identifies DWC Building Construction Company as the contractor. While the data doesn't offer a detailed performance history, its selection for a significant sole-source contract by the Department of the Army suggests it has prior experience and potentially a positive track record with the DoD. Companies awarded sole-source contracts often possess specialized capabilities or have previously demonstrated successful performance on related projects. To fully assess their track record, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues with the DoD or other federal agencies.

How does the $31.5M spending compare to overall DoD spending on construction and security in the Middle East?

The $31.5 million for Kuwait Artillery Sites Security Upgrades represents a specific investment within the broader context of Department of Defense spending. The DoD allocates billions annually to construction, infrastructure, and security initiatives globally, with a significant portion directed towards the Middle East due to ongoing operational requirements and strategic interests. While $31.5 million is a substantial sum for a single project, it is a relatively small fraction of the total DoD budget for construction and security in the region. For example, major base construction or renovation projects can easily exceed hundreds of millions of dollars. This contract addresses a specific, albeit critical, need for security enhancements at particular sites, rather than a large-scale base development or overarching security program.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912BU19R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 209, BLOCK 2, HOUSE 8, EGAILA

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

Financial Breakdown

Contract Ceiling: $31,542,971

Exercised Options: $31,542,971

Current Obligation: $31,542,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline