DoD's $29.7M Afghanistan construction contract awarded via full and open competition

Contract Overview

Contract Amount: $29,724,823 ($29.7M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-03-13

End Date: 2010-07-11

Contract Duration: 485 days

Daily Burn Rate: $61.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD ISR RAMP, KANDAHAR AIRFIELD, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $29.7 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: DESIGN/BUILD ISR RAMP, KANDAHAR AIRFIELD, AFGHANISTAN Key points: 1. Contract awarded for design and build of an ISR ramp in Afghanistan. 2. Full and open competition suggests a competitive bidding process. 3. The contract was a firm fixed price award, indicating price certainty. 4. The contract duration was 485 days, suggesting a medium-term project. 5. The awardee is listed as domestic, but specific company is undisclosed. 6. The project falls under commercial and institutional building construction.

Value Assessment

Rating: fair

Benchmarking construction costs in Afghanistan is challenging due to unique logistical and security risks. The firm fixed price nature of the contract suggests the contractor bore the risk of cost overruns. Without specific details on the scope of work and materials, a direct value-for-money assessment is difficult. However, the award amount of approximately $29.7 million for a design/build project of this nature in a high-risk environment warrants careful consideration of the underlying cost drivers.

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 a bid. The presence of 11 bids suggests a healthy level of interest and competition for this project. This competitive environment is generally expected to drive more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality through a robust bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring enhanced Intelligence, Surveillance, and Reconnaissance (ISR) capabilities. The contract delivered a critical infrastructure component: an ISR ramp at Kandahar Airfield. The geographic impact is specific to Kandahar Airfield in Afghanistan. Workforce implications would include construction labor, engineering, and project management, likely a mix of domestic and potentially local Afghan labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed awardee raises concerns about transparency and potential for future issues if track record is unknown.
Construction in a conflict zone presents inherent risks related to security, logistics, and material availability, which could impact cost and schedule.

Positive Signals

Firm fixed price contract shifts cost overrun risk to the contractor.
Full and open competition with 11 bids suggests a competitive market and potentially better pricing.
The project addresses a specific operational need for ISR capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for construction services in support of military operations, particularly in overseas contingency environments, is specialized. While specific benchmarks for ramp construction in Afghanistan are scarce, the overall construction sector sees significant government spending. This contract represents a discrete investment in critical infrastructure to support military intelligence gathering.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the nature and scale of the project, it is likely that larger, established construction firms with experience in complex, overseas projects were the primary bidders. Subcontracting opportunities for small businesses may have existed, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms. Given the location in Afghanistan, oversight may have also involved specific task forces or Inspector General offices focused on reconstruction and security. Transparency is limited by the undisclosed awardee, but the firm fixed price nature and competition level provide some accountability.

Related Government Programs

Military Construction
Afghanistan Reconstruction
Intelligence, Surveillance, and Reconnaissance (ISR) Support
Base Infrastructure Development

Risk Flags

Undisclosed Awardee
Contingency Environment Operations
Potential for Cost Overruns (despite FFP)
Logistical Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to DOMESTIC AWARDEES (UNDISCLOSED). DESIGN/BUILD ISR RAMP, KANDAHAR AIRFIELD, 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 $29.7 million.

What is the period of performance?

Start: 2009-03-13. End: 2010-07-11.

What was the specific scope of work for the ISR ramp design and build?

The provided data indicates the contract was for the 'DESIGN/BUILD ISR RAMP, KANDAHAR AIRFIELD, AFGHANISTAN.' However, the specific details of the scope of work, such as the dimensions of the ramp, materials to be used, required specifications for aircraft support, and any associated facilities (e.g., lighting, drainage, security features), are not detailed in the summary data. A comprehensive understanding of the project's requirements is necessary for a thorough cost-benefit analysis and to assess if the final deliverable met all intended operational needs.

How does the award amount compare to similar construction projects in high-risk environments?

Directly comparing the $29.7 million award to similar projects is difficult without more granular data on the scope, location, and specific risks involved. Construction in Afghanistan is inherently more expensive than in stable domestic environments due to logistical challenges, security costs, potential for delays, and the need for specialized materials or labor. While the firm fixed price structure aimed to cap costs, the initial award amount reflects the perceived market cost under these challenging conditions. Further analysis would require benchmarking against other DoD construction contracts in similar theaters or for comparable infrastructure.

What were the key risk factors identified for this project, and how were they mitigated?

Key risk factors for a project like this in Afghanistan would include security threats to personnel and assets, logistical disruptions (transportation of materials and equipment), potential for political instability impacting project continuity, currency fluctuations, and the availability of skilled labor. The firm fixed price contract mitigates financial risk for the government by transferring cost overrun potential to the contractor. However, the government still bears risks related to contractor performance, quality of work, and adherence to schedule. Mitigation strategies would likely involve robust security protocols, detailed logistical planning, and potentially contingency clauses within the contract, though these are not specified in the summary.

What is the track record of the undisclosed domestic awardee in similar projects?

The provided data does not disclose the identity of the awardee, making it impossible to assess their track record. In a typical federal contract analysis, identifying the contractor is crucial for evaluating past performance, experience with similar projects (especially in contingency environments), financial stability, and any history of performance issues or disputes. The lack of this information limits the ability to gauge the reliability and capability of the entity responsible for executing this significant construction project.

What were the historical spending patterns for ISR ramp construction or similar infrastructure at Kandahar Airfield prior to this award?

The provided data focuses solely on this specific contract award and does not offer historical spending patterns for ISR ramp construction or related infrastructure at Kandahar Airfield. To understand historical trends, one would need to access databases of previous contracts awarded by the Department of Defense or other agencies for projects at that location. Analyzing past spending could reveal cost trends, identify recurring contractors, and provide a baseline for evaluating the reasonableness of this $29.7 million award in the context of long-term investment at the airfield.

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: W912ER09R0012

Offers Received: 11

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: $33,944,902

Exercised Options: $29,724,823

Current Obligation: $29,724,823

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline