DoD awarded $25.2M for Jordan C4ISR bunker construction, with 12 bids received
Contract Overview
Contract Amount: $25,227,501 ($25.2M)
Contractor: Amjad DAR Essalam Contracting CO
Awarding Agency: Department of Defense
Start Date: 2011-02-23
End Date: 2015-08-31
Contract Duration: 1,650 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN&CONSTRUCT C4ISR UNDERGROUND BUNKERS IN JORDAN
Plain-Language Summary
Department of Defense obligated $25.2 million to AMJAD DAR ESSALAM CONTRACTING CO for work described as: DESIGN&CONSTRUCT C4ISR UNDERGROUND BUNKERS IN JORDAN Key points: 1. Contract value appears reasonable given the scope of underground construction and security infrastructure. 2. Full and open competition suggests a healthy market for this specialized construction. 3. Contract duration of 1650 days indicates a complex, long-term project. 4. Fixed-price contract shifts risk to the contractor, potentially impacting final cost if unforeseen issues arise. 5. Project location in Jordan presents geopolitical and logistical considerations. 6. The award to a single contractor implies successful navigation of a competitive bidding process.
Value Assessment
Rating: good
The contract value of approximately $25.2 million for designing and constructing underground C4ISR bunkers in Jordan seems within a reasonable range for such specialized and high-security infrastructure projects. Benchmarking against similar international construction projects for military facilities, especially those involving underground elements and advanced communication systems, would provide a more precise value assessment. However, the fixed-price nature of the contract suggests that the initial bid was considered competitive and represented a defined cost for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that 12 bids were received suggests a robust level of interest and a competitive market for this type of specialized construction service. A higher number of bidders generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The high number of bids received under full and open competition is beneficial for taxpayers, as it likely drove down the final contract price through competitive pressure and allowed the Department of Defense to select the best value offer.
Public Impact
The primary beneficiaries are the U.S. military forces operating in Jordan, who will gain enhanced command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capabilities. The project delivers critical hardened infrastructure designed to protect sensitive electronic equipment and personnel. The geographic impact is concentrated in Jordan, supporting U.S. strategic interests and operations in the Middle East. Workforce implications include employment opportunities for construction labor, engineers, and specialized technical personnel, both locally and potentially internationally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen geological or logistical challenges arise during the extended construction period.
- Geopolitical instability in the region could impact project timelines and security.
- Ensuring compliance with local Jordanian regulations and labor laws adds complexity.
Positive Signals
- Fixed-price contract structure provides cost certainty for the government.
- Full and open competition with 12 bidders suggests a strong market response and potential for competitive pricing.
- The project addresses a critical need for enhanced C4ISR capabilities, improving operational effectiveness.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized infrastructure for defense applications. The market for constructing secure, underground facilities with integrated C4ISR systems is niche, requiring contractors with specific expertise in engineering, security, and international project management. Comparable spending benchmarks would likely be found in other large-scale military construction projects in challenging geopolitical environments, where security and technological integration are paramount.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides or subcontracting goals. Given the specialized nature and likely large scale of constructing underground C4ISR bunkers, it is probable that the prime contractor is a large business. There is no explicit information to suggest direct subcontracting opportunities for small businesses, though they might be involved in supplying materials or specific components.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices, potentially with support from the Defense Contract Management Agency (DCMA) for quality assurance and compliance. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified infrastructure within the agreed-upon cost and schedule. Transparency is facilitated through contract award databases, though detailed project progress reports may be considered sensitive.
Related Government Programs
- Military Construction (MILCON)
- C4ISR Systems Procurement
- Foreign Military Construction
- Department of Defense Infrastructure Projects
Risk Flags
- Geopolitical Risk
- Logistical Complexity
- Technical Integration Risk
- Long Project Duration Risk
Tags
defense, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, construction, commercial-and-institutional-building-construction, jordan, c4isr, underground-bunkers, large-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to AMJAD DAR ESSALAM CONTRACTING CO. DESIGN&CONSTRUCT C4ISR UNDERGROUND BUNKERS IN JORDAN
Who is the contractor on this award?
The obligated recipient is AMJAD DAR ESSALAM CONTRACTING CO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $25.2 million.
What is the period of performance?
Start: 2011-02-23. End: 2015-08-31.
What is the contractor's track record with similar underground construction projects, particularly in international or high-security environments?
Detailed information on AMJAD DAR ESSALAM CONTRACTING CO's specific track record with underground C4ISR bunker construction, especially in international or high-security environments, is not provided in the summary data. A thorough assessment would require reviewing past performance evaluations, project portfolios, and any available public records of their previous work. Understanding their experience with similar geological conditions, security requirements, and logistical challenges in regions like the Middle East would be crucial for evaluating their capability to successfully execute this contract.
How does the awarded price compare to industry benchmarks for similar underground construction projects of this scale?
Without specific industry benchmark data for underground C4ISR bunker construction in Jordan, a direct price comparison is difficult. However, the contract value of approximately $25.2 million for a project spanning 1650 days (over 4.5 years) suggests a significant investment. Factors influencing this price would include the complexity of the C4ISR integration, the depth and scale of the underground structures, security features, and the logistical challenges of operating in Jordan. Further analysis would involve researching costs of comparable military construction projects globally, adjusting for regional economic factors and specific technical requirements.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include geopolitical instability in the Middle East impacting security and timelines, unforeseen geological conditions during excavation, potential logistical hurdles in Jordan, and the inherent complexities of integrating advanced C4ISR systems. Mitigation strategies likely involve robust security protocols, detailed site surveys, contingency planning for supply chains, and close collaboration between the contractor and the Department of the Army. The firm-fixed-price contract also shifts some financial risk to the contractor, incentivizing efficient project management.
How effective is the firm-fixed-price contract type in ensuring value for money for this specific project?
The firm-fixed-price (FFP) contract type is generally effective in providing cost certainty for the government, as the contractor assumes most of the risk for cost overruns. For a project with defined specifications like bunker construction, FFP can drive efficiency and value by incentivizing the contractor to manage costs tightly. However, if unforeseen issues arise that significantly deviate from the initial scope or conditions, the FFP structure might lead to disputes or claims if not managed carefully through contract modifications. The success hinges on the thoroughness of the initial design and scope definition.
What is the historical spending pattern for C4ISR infrastructure construction in the Middle East by the Department of Defense?
Historical spending data for C4ISR infrastructure construction in the Middle East by the Department of Defense would reveal trends in investment in secure facilities and communication networks in the region. Analyzing past contracts would show the frequency of such projects, average contract values, typical durations, and the types of contractors engaged. This context helps in understanding whether the $25.2 million award is consistent with previous spending levels or represents a significant increase or decrease in investment for this specific capability in this geographic area.
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: W912ER11R0012
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: SUMERLAND, BAGHDAD
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $25,227,501
Exercised Options: $25,227,501
Current Obligation: $25,227,501
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-02-23
Current End Date: 2015-08-31
Potential End Date: 2015-08-31 00:00:00
Last Modified: 2021-04-28
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