DoD Awards $31.5M for Afghanistan Runway Construction Under Full and Open Competition

Contract Overview

Contract Amount: $31,470,059 ($31.5M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-04-23

End Date: 2010-01-30

Contract Duration: 282 days

Daily Burn Rate: $111.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD TO CONSTRUCT RUNWAY, AIRLIFT APRON, AND ROTARY WING PARKING & TAXIWAYS IN SHANK, AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $31.5 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: DESIGN/BUILD TO CONSTRUCT RUNWAY, AIRLIFT APRON, AND ROTARY WING PARKING & TAXIWAYS IN SHANK, AFGHANISTAN. Key points: 1. The contract was awarded for runway, apron, and taxiway construction in Shank, Afghanistan. 2. Competition was full and open, indicating broad market access. 3. The award was a definitive contract with a firm fixed price. 4. The project duration was 282 days, completed in January 2010.

Value Assessment

Rating: fair

The firm fixed price contract of $31.5M was awarded for construction services. Benchmarking against similar infrastructure projects in conflict zones is difficult due to unique logistical and security costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. The firm fixed price structure aimed to control costs, but the final price reflects the complexities of the project's location.

Taxpayer Impact: Taxpayer funds were used for critical infrastructure development in a foreign operational theater, with costs influenced by security and logistical challenges.

Public Impact

Supports military operations by providing essential airfield infrastructure. Contributes to reconstruction efforts in Afghanistan. Represents a significant investment in a high-risk operational environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical risk associated with Afghanistan operations.
Logistical challenges of construction in a remote and active theater.
Potential for cost overruns despite firm fixed price due to unforeseen circumstances.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.
Clear project scope for airfield infrastructure.

Sector Analysis

This contract falls under the Highway, Street, and Bridge Construction sector. Spending in this sector for military construction, especially in overseas contingency operations, can be highly variable and subject to geopolitical factors and security requirements.

Small Business Impact

The data indicates foreign awardees and does not specify small business participation. Given the nature and location of the project, it is unlikely that small businesses were primary contractors, though they may have been subcontractors.

Oversight & Accountability

The Department of the Army awarded this contract. Oversight would typically involve contract management teams on the ground and reporting mechanisms to ensure project completion and adherence to specifications.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of transparency regarding foreign awardees.
High-risk operational environment (Afghanistan).
Potential for unforeseen cost increases despite firm fixed price.
Logistical complexities of construction in a remote theater.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to FOREIGN AWARDEES (UNDISCLOSED). DESIGN/BUILD TO CONSTRUCT RUNWAY, AIRLIFT APRON, AND ROTARY WING PARKING & TAXIWAYS IN SHANK, AFGHANISTAN.

Who is the contractor on this award?

The obligated recipient is FOREIGN 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 $31.5 million.

What is the period of performance?

Start: 2009-04-23. End: 2010-01-30.

What was the specific nature of the 'foreign awardees (undisclosed)' and their capacity to perform such a large-scale construction project in Afghanistan?

The disclosure of 'foreign awardees (undisclosed)' raises concerns about transparency and accountability. Understanding the specific entities involved, their past performance, and their relationship with the DoD is crucial for assessing the value and risk associated with this contract. Without this information, it's difficult to verify if the selection process truly maximized competition and ensured the best value for taxpayers.

How did the firm fixed price contract account for the inherent risks and logistical complexities of construction in a conflict zone like Afghanistan?

A firm fixed price contract aims to cap costs, but its effectiveness in high-risk environments depends on accurate initial cost estimation and robust contingency planning. The significant award amount suggests that the DoD anticipated substantial costs related to security, transportation, and potential disruptions. The success of this pricing strategy would be measured by whether the final cost remained within the anticipated range despite the volatile operational context.

What was the long-term strategic value of constructing this specific airfield infrastructure in Shank, Afghanistan, beyond immediate operational needs?

The strategic value of the airfield infrastructure likely extended beyond immediate tactical requirements, potentially supporting long-term stability operations, humanitarian aid delivery, or facilitating troop rotations and equipment movement. Assessing its lasting impact requires understanding the broader military and reconstruction strategy for the region at the time of the award and whether the infrastructure continues to serve its intended purpose or has been maintained.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912ER09R0002

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $31,470,059

Exercised Options: $31,470,059

Current Obligation: $31,470,059

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline