DoD Army Awards $32.7M for Afghan Industrial Building Construction Under Full and Open Competition

Contract Overview

Contract Amount: $32,701,147 ($32.7M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2009-06-14

End Date: 2012-03-08

Contract Duration: 998 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: KABUL COMPOUND, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $32.7 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: KABUL COMPOUND, AFGHANISTAN Key points: 1. Spending focused on construction in Afghanistan. 2. Contract awarded to foreign, undisclosed awardees. 3. Risk associated with construction in a conflict zone. 4. Sector is primarily construction services.

Value Assessment

Rating: fair

The contract value of $32.7 million for industrial building construction over nearly three years appears within a reasonable range for large-scale projects in complex environments. However, without specific benchmarks for Afghan construction or comparable international projects, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the use of foreign awardees and the undisclosed nature of the specific companies limit transparency and the ability to fully assess competitive pressures.

Taxpayer Impact: Taxpayer funds were utilized for construction in a foreign, high-risk environment. While competition was present, the ultimate benefit and cost-effectiveness are subject to the successful completion of the project and its long-term utility.

Public Impact

Construction projects in conflict zones carry inherent risks to personnel and materials. The use of foreign contractors may raise questions about local economic impact and oversight. The long duration and significant value indicate a substantial commitment of resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Foreign awardees (undisclosed)
Construction in a conflict zone
Long contract duration

Positive Signals

Full and open competition
Firm fixed price contract

Sector Analysis

This contract falls within the construction sector, specifically for industrial building development. Spending benchmarks for this type of project can vary widely based on location, security requirements, and material costs, making direct comparisons challenging without more context.

Small Business Impact

The data indicates no specific involvement or set-aside for small businesses in this contract. The focus appears to be on larger, potentially international firms capable of undertaking significant construction projects in challenging environments.

Oversight & Accountability

Oversight of construction projects in Afghanistan by the Department of the Army would be critical to ensure quality, adherence to schedule, and proper use of funds, especially given the complex geopolitical and security landscape.

Related Government Programs

Industrial Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Geopolitical instability in Afghanistan
Security risks for personnel and assets
Potential for supply chain disruptions
Lack of transparency regarding foreign awardees
Difficulty in verifying construction quality and long-term utility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to FOREIGN AWARDEES (UNDISCLOSED). KABUL COMPOUND, 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 $32.7 million.

What is the period of performance?

Start: 2009-06-14. End: 2012-03-08.

What was the specific purpose and intended use of the industrial buildings constructed under this contract?

The specific purpose and intended use of the industrial buildings are not detailed in the provided data. Typically, such facilities in a deployed environment could serve purposes like logistics hubs, maintenance depots, training facilities, or manufacturing centers to support military operations or reconstruction efforts.

What measures were in place to mitigate risks associated with construction in a conflict zone like Afghanistan?

Mitigation measures for construction in conflict zones often include robust security protocols, specialized insurance, detailed risk assessments, contingency planning for supply chain disruptions, and potentially the use of local security forces. The contract's firm fixed price nature suggests some risk was transferred to the contractor.

How was the value of $32.7 million determined to be fair and reasonable given the location and potential for cost overruns?

The determination of fair and reasonable pricing would typically involve detailed cost analysis, comparison with similar projects (if available), market research on labor and material costs in the region, and consideration of the contractor's proposed profit margins. The firm fixed price contract implies the government agreed to this price upfront.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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: W912ER08R0081

Offers Received: 10

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

Financial Breakdown

Contract Ceiling: $32,701,147

Exercised Options: $32,701,147

Current Obligation: $32,701,147

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline