DOD's $115M Peace Vector VII contract awarded to AICI-ARCHIRODON JV LLC for construction in Egypt
Contract Overview
Contract Amount: $115,091,558 ($115.1M)
Contractor: Aici-Archirodon JV LLC
Awarding Agency: Department of Defense
Start Date: 2012-08-08
End Date: 2019-08-22
Contract Duration: 2,570 days
Daily Burn Rate: $44.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF PEACE VECTOR VII, PACKAGE B, CAIRO WEST AIR BASE, EGYPT
Plain-Language Summary
Department of Defense obligated $115.1 million to AICI-ARCHIRODON JV LLC for work described as: IGF::OT::IGF PEACE VECTOR VII, PACKAGE B, CAIRO WEST AIR BASE, EGYPT Key points: 1. The contract value is substantial at $115.1 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is long (2570 days), potentially increasing risk. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $115.1 million is significant. Benchmarking against similar large-scale construction projects in overseas military installations would be necessary to fully assess its value. The firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were allowed to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for a large construction project supporting military operations abroad. The competitive award aims to ensure efficient use of these funds.
Public Impact
Supports U.S. military infrastructure in a strategic overseas location. Provides construction services, potentially impacting local employment and economy in Egypt. Long-term contract may indicate ongoing needs or phased development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2570 days) increases exposure to changing economic conditions and potential cost overruns.
- Overseas construction projects can face unique logistical and geopolitical risks.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Firm fixed-price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically for military infrastructure. Spending in this sector can vary significantly based on geopolitical needs and defense budgets.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor is likely a large entity, and subcontracting opportunities for small businesses are not explicitly detailed.
Oversight & Accountability
Oversight would typically involve monitoring project progress, quality control, and adherence to contract terms by the Department of the Army. The long duration necessitates sustained oversight to ensure value and timely completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Overseas location presents unique risks.
- No noted small business participation.
- Potential for cost escalation over the contract period.
- Complexity of large-scale international construction projects.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $115.1 million to AICI-ARCHIRODON JV LLC. IGF::OT::IGF PEACE VECTOR VII, PACKAGE B, CAIRO WEST AIR BASE, EGYPT
Who is the contractor on this award?
The obligated recipient is AICI-ARCHIRODON JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $115.1 million.
What is the period of performance?
Start: 2012-08-08. End: 2019-08-22.
What is the cost per day for this construction contract, and how does it compare to industry benchmarks for similar overseas military projects?
The total contract value is $115,091,558.19 over 2570 days, resulting in a daily cost of approximately $44,783. This figure needs to be benchmarked against similar overseas military construction projects to determine if it represents good value. Factors like location, scope of work, and material costs significantly influence daily rates.
What are the specific risks associated with performing construction services at Cairo West Air Base, Egypt, and how were they mitigated during the bidding process?
Risks could include geopolitical instability, security concerns, logistical challenges in a foreign country, and potential labor issues. Mitigation strategies might involve detailed site assessments, security protocols, robust supply chain management, and clear contractual clauses addressing unforeseen events. The contracting agency's risk assessment and the contractor's proposed solutions are key.
How effectively did the full and open competition process ensure the best possible price and quality for this significant overseas construction project?
Full and open competition generally promotes price discovery by allowing multiple qualified bidders to compete, driving down costs. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to assess technical capabilities alongside price. For complex overseas projects, ensuring all critical factors are evaluated is paramount.
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: W912ER12R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4600 FAIRFAX DR STE 804, ARLINGTON, VA, 22203
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,952,491
Exercised Options: $115,091,558
Current Obligation: $115,091,558
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-08
Current End Date: 2019-08-22
Potential End Date: 2019-08-22 00:00:00
Last Modified: 2021-02-25
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