Army awards $154.6M construction contract for Afghan facilities, highlighting significant infrastructure investment

Contract Overview

Contract Amount: $15,949,651 ($15.9M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2005-09-29

End Date: 2007-12-04

Contract Duration: 796 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200512!501688!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER05C0020 !A!N! !N! ! !20050929!20061115!154591549!154591549!154591549!N!CONTRACK INTERNATIONAL INC !1001 19TH ST N STE 1220 !ARLINGTON !VA!22209!00000! !AF!* !* !AFGHANISTA!+000016270889!N!N!000017534940!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!002!B! !Z!N!A!B!AF!N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $15.9 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: 200512!501688!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER05C0020 !A!N! !N! ! !20050929!20061115!154591549!154591549!154591549!N!CONTRACK INTERNATIONAL INC !1001 19TH ST N STE 1220 !ARLINGTON !VA!22209!00000! !AF!* !* … Key points: 1. Contract value represents a substantial investment in Afghan infrastructure development. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The contract duration of over two years indicates a long-term project. 5. Awardee's specific experience in similar complex, overseas construction is a key performance indicator. 6. The project's success is tied to geopolitical stability and logistical capabilities in Afghanistan.

Value Assessment

Rating: fair

The contract value of $154.6 million for construction services in Afghanistan is significant. Benchmarking this against similar overseas construction contracts is challenging due to unique logistical and security costs. However, the fixed-price nature suggests an attempt to control costs, though the final price could be impacted by unforeseen circumstances in a high-risk environment. Further analysis would require comparing the scope of work and unit pricing to other projects of similar complexity and location.

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. This approach is generally expected to foster a competitive environment, potentially leading to better pricing and value for the government. The number of bidders is not specified, but the open competition suggests multiple entities vied for this significant project.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of contractors to participate, potentially driving down costs.

Public Impact

The primary beneficiaries are the U.S. Army and its operational needs in Afghanistan, requiring facilities for personnel and equipment. Services delivered include the construction of miscellaneous buildings and related infrastructure. The geographic impact is concentrated in Afghanistan, supporting U.S. military operations. Workforce implications include potential employment opportunities for local labor and specialized construction personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact project timelines and costs.
Logistical challenges in delivering materials and personnel to the worksite.
Potential for cost overruns on fixed-price contracts in complex environments.
Ensuring quality control and adherence to specifications in a remote location.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Fixed-price contract type aims to provide cost predictability.
The Army's engagement in infrastructure development is crucial for mission support.
Contractor's ability to manage complex overseas projects is a positive signal.

Sector Analysis

This contract falls within the construction sector, specifically for commercial and institutional buildings. The market for overseas construction, particularly in support of military operations, is specialized and often involves significant logistical and security considerations. The value of this single contract is substantial, reflecting the scale of infrastructure needs in complex operational theaters. Comparable spending benchmarks would likely be found in other Department of Defense contracts for similar construction projects in austere environments.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The primary awardee is CONTRACK INTERNATIONAL INC. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, likely involving contracting officers, project managers, and potentially the Army Corps of Engineers. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated by contract databases, but detailed project-specific oversight reports may not be publicly available.

Related Government Programs

Afghanistan Infrastructure Projects
Department of Defense Construction Contracts
Overseas Military Construction
US Army Engineering and Construction

Risk Flags

High-risk operational environment
Logistical complexity
Potential for cost overruns
Security concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to DOMESTIC AWARDEES (UNDISCLOSED). 200512!501688!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER05C0020 !A!N! !N! ! !20050929!20061115!154591549!154591549!154591549!N!CONTRACK INTERNATIONAL INC !1001 19TH ST N STE 1220 !ARLINGTON !VA!22209!00000! !AF!* !* !AFGHANISTA!+000016270889!N!N!000017534940!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !3! ! ! ! ! !202

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 $15.9 million.

What is the period of performance?

Start: 2005-09-29. End: 2007-12-04.

What is the specific scope of work for the 'OTHER MISCELLANEOUS BUILDINGS' under this contract?

The provided data categorizes the work under 'OTHER MISCELLANEOUS BUILDINGS' (NAICS 236220) and 'CONSTRUCTION' (PSC C2). While the specific types of buildings are not detailed, this classification typically encompasses a range of structures such as administrative facilities, barracks, storage units, workshops, or other support buildings necessary for military operations. The contract's fixed-price nature suggests a defined scope, but the 'miscellaneous' descriptor implies a degree of variability or a collection of different building types rather than a single, uniform structure. Detailed architectural plans and specifications would normally accompany such a contract to fully define the scope.

How does the awarded price of $154.6 million compare to similar construction projects in Afghanistan or similar operational environments?

Directly comparing the $154.6 million award to similar projects in Afghanistan is challenging without more specific data on the scope, size, and exact location of the facilities constructed. Construction costs in Afghanistan are significantly inflated due to high logistical expenses, security risks, and the need for specialized labor and materials. Projects of this magnitude typically involve substantial infrastructure development supporting military bases or reconstruction efforts. Benchmarking would require identifying contracts with comparable square footage, complexity of construction, and duration, while accounting for the unique risk premiums associated with operating in that region. The fixed-price nature suggests an attempt to cap costs, but the total expenditure could vary.

What are the key performance indicators (KPIs) and potential risks associated with this fixed-price construction contract in Afghanistan?

Key performance indicators for this contract would likely include timely completion, adherence to quality standards and specifications, safety compliance, and effective budget management. For a fixed-price contract, the primary risk for the government is that the contractor may cut corners on quality or safety to maintain profitability if costs escalate unexpectedly. Conversely, the contractor bears the risk of cost overruns. In Afghanistan, significant risks include geopolitical instability, security threats to personnel and assets, logistical challenges in supply chain management, potential for corruption, and currency fluctuations. Effective project management, robust oversight, and clear communication channels are crucial to mitigate these risks.

What is the track record of CONTRACK INTERNATIONAL INC. in executing large-scale construction projects for the U.S. military, particularly in overseas or complex environments?

CONTRACK INTERNATIONAL INC. has a history of performing construction services for the U.S. military, often in challenging overseas locations. Information available through federal contract databases often shows them as a recipient of numerous contracts, including significant awards for construction and facility support in regions like Afghanistan, Iraq, and other areas with military deployments. Their experience typically involves building and renovating various types of facilities, including operational bases, administrative buildings, and infrastructure. Assessing their specific track record on projects of similar scale and complexity to this $154.6 million award would involve reviewing past performance evaluations, any reported contract disputes or terminations, and the overall success rate in meeting project objectives within budget and schedule.

How has historical spending on construction in Afghanistan by the Department of Defense evolved, and does this contract align with those trends?

Historical spending by the Department of Defense (DoD) on construction in Afghanistan has been substantial, particularly during periods of heightened military presence and nation-building efforts. Significant investments were made in building and maintaining bases, logistical hubs, and essential infrastructure to support operations and the Afghan National Security Forces. Spending patterns have generally correlated with the scale and nature of U.S. involvement, often peaking during surge periods and declining as troop levels or strategic objectives shifted. This $154.6 million contract, awarded in 2005, aligns with the trend of significant infrastructure investment during that era, reflecting the ongoing need for facilities to support U.S. forces and related activities in the country.

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

Offers Received: 2

Pricing Type: 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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline