DoD's $24.15M Kandahar Air Field construction contract awarded via full and open competition

Contract Overview

Contract Amount: $24,151,968 ($24.2M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-12-13

End Date: 2014-04-21

Contract Duration: 494 days

Daily Burn Rate: $48.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE 3RD AIR SQ SPECIAL MISSION WING AND ASSOCIATED INFRUSTRUCTURE LOCATED AT KANDAHAR AIR FIELD KANSAHAR, AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $24.2 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: CONSTRUCTION OF THE 3RD AIR SQ SPECIAL MISSION WING AND ASSOCIATED INFRUSTRUCTURE LOCATED AT KANDAHAR AIR FIELD KANSAHAR, AFGHANISTAN. Key points: 1. Contract awarded for construction of specialized facilities and infrastructure at Kandahar Air Field. 2. The contract was competed using a full and open process, suggesting broad market participation. 3. A firm fixed-price contract type was used, which shifts cost risk to the contractor. 4. The contract duration was approximately 494 days, indicating a medium-term project. 5. The awardee is listed as 'Domestic Awardees (Undisclosed)', limiting transparency on specific contractor. 6. The project falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the undisclosed domestic awardee and the specific nature of the project in a deployed environment. The firm fixed-price structure is generally favorable for cost control. However, without comparable projects or detailed cost breakdowns, a precise value-for-money assessment is difficult. The total award amount of $24.15 million for specialized infrastructure in a high-risk area suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders (no.) suggests a competitive environment for this project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are likely military personnel and operations at Kandahar Air Field, Afghanistan, through improved facilities. The contract delivered specialized mission wing facilities and associated infrastructure. The geographic impact is localized to Kandahar Air Field, Afghanistan. The project likely supported construction sector jobs, though the specific workforce implications are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific domestic awardee hinders full assessment of contractor track record.
The remote and potentially high-risk operational environment in Afghanistan could introduce unforeseen costs or delays not fully captured in the initial contract.
Specific details on the 'special mission wing' functionality are not provided, making it difficult to assess the necessity and efficiency of the constructed facilities.

Positive Signals

The use of 'Full and Open Competition' indicates a commitment to leveraging market competition for the best value.
The 'Firm Fixed Price' contract type aligns with government objectives to control costs and manage budget predictability.
The award involved multiple bidders (7), suggesting a healthy level of interest and competition for the work.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for large-scale infrastructure projects, particularly in support of defense operations in overseas locations, is specialized. While specific benchmarks for Afghan construction projects are scarce, the scale of the award is substantial for a single facility build-out. Comparable spending might be seen in large public works or infrastructure development projects within the US, adjusted for the unique logistical and security costs associated with overseas operations.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (sb: false). There is no information provided regarding subcontracting plans or actual performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is unclear, but it did not appear to be a primary focus for set-aside.

Oversight & Accountability

Oversight for this Department of Defense contract would typically fall under the purview of the awarding agency (Department of the Army) and potentially the Special Inspector General for Afghanistan Reconstruction (SIGAR), given the location and nature of the work. Transparency is limited by the undisclosed awardee. Accountability would be managed through contract performance monitoring and reporting requirements.

Related Government Programs

Afghanistan Infrastructure Projects
Department of Defense Construction Contracts
Kandahar Air Field Operations Support
Special Mission Wing Facilities

Risk Flags

Undisclosed Awardee
Overseas Construction Risks
Specialized Facility Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to DOMESTIC AWARDEES (UNDISCLOSED). CONSTRUCTION OF THE 3RD AIR SQ SPECIAL MISSION WING AND ASSOCIATED INFRUSTRUCTURE LOCATED AT KANDAHAR AIR FIELD KANSAHAR, AFGHANISTAN.

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2012-12-13. End: 2014-04-21.

What is the specific nature and purpose of the '3rd Air Sq Special Mission Wing' being constructed?

The provided data does not specify the exact function or operational purpose of the '3rd Air Sq Special Mission Wing.' This designation suggests a unit or capability focused on air operations, potentially involving specialized aircraft or intelligence, surveillance, and reconnaissance (ISR) missions. Without further details, it's difficult to ascertain the precise requirements that drove the construction and the specific capabilities the new infrastructure is intended to support. Understanding the wing's mission would allow for a more informed assessment of the facility's necessity and its contribution to overall operational effectiveness at Kandahar Air Field.

How does the $24.15 million cost compare to similar specialized facility constructions in similar operational environments?

Direct cost comparisons for specialized military facilities in active overseas theaters like Afghanistan are challenging due to unique logistical, security, and environmental factors that significantly inflate costs compared to domestic construction. The $24.15 million award for a 'Special Mission Wing and associated infrastructure' over approximately 494 days (about 1.35 years) suggests a substantial investment. However, without detailed breakdowns of construction scope, materials, labor, and the specific security/logistical premiums applied, benchmarking against other projects is speculative. Projects of this nature often carry a premium due to the inherent risks and complexities of operating in such environments, making direct comparisons with standard commercial or institutional building costs misleading.

What are the potential risks associated with constructing facilities in Kandahar Air Field, Afghanistan, and how were they mitigated?

Constructing facilities in Kandahar Air Field, Afghanistan, presents significant risks including security threats (e.g., attacks, sabotage), logistical challenges (e.g., transportation of materials and personnel, supply chain disruptions), political instability, and environmental factors (e.g., extreme weather, terrain). Mitigation strategies typically involve robust security protocols, secure supply chain management, use of experienced contractors familiar with the operating environment, and potentially higher contingency funding within the contract. The firm fixed-price nature of this contract suggests that the contractor assumed a significant portion of these cost-related risks, but schedule and performance risks would still be present. The undisclosed nature of the awardee makes it difficult to assess their specific experience and risk mitigation capabilities.

What is the track record of the undisclosed domestic awardee in executing similar large-scale construction projects for the Department of Defense?

The provided data identifies the awardee only as 'DOMESTIC AWARDEES (UNDISCLOSED).' Consequently, it is impossible to assess the specific track record of the contractor responsible for this project. Without knowing the identity of the company, we cannot research their past performance on similar Department of Defense construction contracts, their history of meeting deadlines and budgets, their safety records, or any past performance issues or commendations. This lack of transparency significantly limits the ability to evaluate the contractor's reliability and suitability for undertaking such a critical infrastructure project in a challenging environment.

How does the number of bidders (7) reflect the competitiveness of the market for specialized construction in Afghanistan?

Receiving 7 bids for a specialized construction project in Afghanistan, awarded under full and open competition, suggests a moderately competitive market. While 7 bidders indicate that multiple firms were interested and capable of undertaking the work, the specific nature of the project (special mission wing) and the location (Afghanistan) likely limited the pool of potential bidders to those with specific experience in overseas military construction or those willing to assume the associated risks. A higher number of bidders might typically be expected for more standardized construction projects in less complex environments. The level of competition is crucial for ensuring fair pricing and value for taxpayer money.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DQ13R4011

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,384,665

Exercised Options: $24,151,968

Current Obligation: $24,151,968

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline