Army awards $57.8M construction contract for Kandahar CCA FBO, highlighting full and open competition

Contract Overview

Contract Amount: $57,847,864 ($57.8M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-04-24

End Date: 2011-10-31

Contract Duration: 920 days

Daily Burn Rate: $62.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KANDAHAR CCA FBO

Plain-Language Summary

Department of Defense obligated $57.8 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: KANDAHAR CCA FBO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The definitive contract type indicates a firm commitment for services rendered. 3. The contract duration of 920 days suggests a significant construction project. 4. The award was made by the Department of the Army, a major defense spender. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded to domestic awardees, though specific entities are undisclosed.

Value Assessment

Rating: fair

The total award amount of $57.8 million for a construction project of this scope and duration appears within a reasonable range for large-scale government contracts. However, without specific details on the scope of work, location specifics beyond 'Kandahar CCA FBO', and the exact deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale construction projects in similar geopolitical or operational environments would be necessary for a more definitive comparison. The firm fixed-price contract type generally aims to control costs, but the final value is fixed regardless of actual costs incurred by the contractor.

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. This suggests a robust bidding process where multiple contractors had the opportunity to compete for the work. The presence of 7 bids, as indicated by the 'no' field, further supports the notion of a competitive environment. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it is expected to drive down costs through competitive bidding and ensure the government receives the best value for its investment.

Public Impact

The primary beneficiaries are likely military personnel and support staff at the Kandahar CCA FBO, who will utilize the constructed facilities. The contract delivers essential infrastructure development, likely including buildings and associated facilities, to support military operations. The geographic impact is concentrated in Kandahar, Afghanistan, supporting U.S. military presence and operations in the region. The contract implies a need for construction labor and potentially the use of local resources, impacting the regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific contractor identification makes it difficult to assess past performance or track record.
Geopolitical instability in Afghanistan could pose risks to project timelines and execution.
The 'undisclosed' nature of domestic awardees raises questions about transparency and potential for concentrated awards.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type helps to manage cost certainty.
The contract duration suggests a significant and potentially impactful project.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The global construction market is vast, with government contracts forming a significant portion. This award represents spending on infrastructure development to support military operations in a challenging environment. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects awarded by the Department of Defense in similar operational theaters or for similar facility types.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary awardee is expected to be a larger entity capable of undertaking such a substantial project. Further investigation into subcontracting opportunities would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and auditing mechanisms. Given the location, specific oversight might involve contingency contracting oversight bodies. Transparency is limited by the undisclosed nature of the awardees. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Construction Contracts
Afghanistan Reconstruction Projects
Military Base Infrastructure Development
Global Construction Services

Risk Flags

Geopolitical Risk
Logistical Challenges
Security Concerns
Contractor Performance Uncertainty (due to undisclosed awardee)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.8 million to DOMESTIC AWARDEES (UNDISCLOSED). KANDAHAR CCA FBO

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 $57.8 million.

What is the period of performance?

Start: 2009-04-24. End: 2011-10-31.

What specific types of buildings or facilities were constructed under this contract?

The provided data does not specify the exact types of buildings or facilities constructed. The NAICS code 236220 indicates 'Commercial and Institutional Building Construction,' which is broad and could encompass administrative buildings, barracks, hangars, training facilities, or support structures. To understand the precise deliverables, one would need to consult the contract's statement of work (SOW) or detailed project descriptions, which are not included in the abbreviated data. This information is crucial for assessing the contract's impact and value.

How does the $57.8 million award compare to similar construction projects in Afghanistan or similar operational environments?

Benchmarking this $57.8 million contract requires comparing it to similar large-scale construction projects undertaken by the U.S. military or other international bodies in Afghanistan or comparable conflict/post-conflict zones. Factors such as security costs, logistical challenges, material sourcing, and labor rates in such environments significantly influence project costs. Without access to detailed cost breakdowns and project scopes for comparable contracts, it's difficult to definitively state if this award represents a competitive price. However, given the inherent complexities and risks of operating in Afghanistan, the cost appears plausible for a significant infrastructure project.

What are the potential risks associated with a construction contract of this magnitude in Kandahar, Afghanistan?

Construction projects in Kandahar, Afghanistan, carry significant risks including security threats to personnel and equipment, logistical challenges in transporting materials and personnel, potential for corruption, political instability affecting project continuity, and environmental factors. The 920-day duration (approximately 2.5 years) amplifies these risks, as conditions can change dramatically over time. The firm fixed-price nature of the contract, while aiming for cost control, could also expose the contractor to financial losses if unforeseen issues lead to substantial cost overruns, potentially impacting project completion.

What is the track record of the 'undisclosed' domestic awardees in executing large-scale overseas construction projects?

The provided data lists 'DOMESTIC AWARDEES (UNDISCLOSED)' as the recipient, making it impossible to assess their specific track record. To evaluate their capability, one would need to identify the awarded entity and research their past performance on similar government contracts, particularly those involving overseas construction in challenging environments. Key indicators would include their history of on-time and on-budget project completion, quality of work, safety records, and any history of contract disputes or terminations. Without this information, the assessment of contractor reliability remains speculative.

How has federal spending on construction in Afghanistan evolved over the years, and where does this contract fit in?

Federal spending on construction in Afghanistan has historically been substantial, particularly following the U.S. military surge and reconstruction efforts. This $57.8 million contract, awarded in 2009 and ending in 2011, falls within a period of significant U.S. engagement and infrastructure investment in the country. It represents a portion of the broader spending aimed at establishing and improving military facilities and support infrastructure. Analyzing historical spending patterns would involve examining annual appropriations and contract awards for construction in Afghanistan by agencies like the Department of Defense and USAID to understand trends and the relative scale of this particular award.

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: SEALED BID

Solicitation ID: W912ER09R0016

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: $57,847,864

Exercised Options: $57,847,864

Current Obligation: $57,847,864

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline