DOD's $42.5M Aviation Base Construction Contract in Saudi Arabia Lacks Competition
Contract Overview
Contract Amount: $42,496,010 ($42.5M)
Contractor: ABV Rock Group Company Limited
Awarding Agency: Department of Defense
Start Date: 2016-05-02
End Date: 2022-03-29
Contract Duration: 2,157 days
Daily Burn Rate: $19.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FMS - RSLFAC 3-AVIATION BASE CONSTRUCTION, SAUDI ARABIA
Plain-Language Summary
Department of Defense obligated $42.5 million to ABV ROCK GROUP COMPANY LIMITED for work described as: IGF::OT::IGF FMS - RSLFAC 3-AVIATION BASE CONSTRUCTION, SAUDI ARABIA Key points: 1. Significant contract value of $42.5 million for aviation base construction. 2. Sole-source award to ABV ROCK GROUP COMPANY LIMITED raises competition concerns. 3. Long contract duration (2157 days) may indicate complex project scope. 4. Construction sector spending is substantial, but this specific award lacks transparency.
Value Assessment
Rating: questionable
The contract value of $42.5 million for construction is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition on this $42.5 million contract means taxpayers may have overpaid due to the absence of market forces driving down costs.
Public Impact
Taxpayers may have funded a project without exploring cost-saving competitive options. Lack of transparency in the sole-source award process hinders public trust. International construction projects of this scale require robust oversight to ensure value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Definitive contract type
- Firm fixed price contract
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Defense spending in construction, especially for international bases, can be significant but often involves complex logistical and geopolitical factors.
Small Business Impact
The data indicates no small business participation in this contract, which is a missed opportunity to support smaller enterprises and potentially foster competition.
Oversight & Accountability
The sole-source nature of this award warrants further scrutiny to ensure the Department of Defense received fair value and that all appropriate justifications for non-competition were met.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- No small business participation noted.
- Long contract duration may indicate potential for cost overruns or scope creep.
- International location adds complexity and potential oversight challenges.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.5 million to ABV ROCK GROUP COMPANY LIMITED. IGF::OT::IGF FMS - RSLFAC 3-AVIATION BASE CONSTRUCTION, SAUDI ARABIA
Who is the contractor on this award?
The obligated recipient is ABV ROCK GROUP COMPANY LIMITED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.5 million.
What is the period of performance?
Start: 2016-05-02. End: 2022-03-29.
What specific justifications were provided for awarding this large construction contract on a sole-source basis, and were alternatives thoroughly explored?
The provided data does not detail the specific justifications for the sole-source award. Typically, sole-source contracts are justified by factors such as urgent and compelling needs, unique capabilities of a single source, or national security requirements. A thorough review would examine the documentation supporting these claims and assess whether any competitive approaches, even limited ones, could have been feasible.
How does the $42.5 million cost compare to similar aviation base construction projects, particularly those awarded competitively?
Without access to a benchmark database of similar international aviation base construction projects, a direct cost comparison is challenging. However, the absence of competition inherently raises concerns about whether this price reflects optimal value. A comparative analysis would ideally involve looking at projects of similar scope, location, and complexity, with a focus on those procured through competitive bidding processes.
What measures were in place to ensure effective project management and quality control for this long-duration, sole-source international construction contract?
The data does not specify the oversight mechanisms employed. For long-duration, sole-source international contracts, robust project management and quality control are critical. This typically involves dedicated government representatives on-site, regular progress reviews, adherence to strict quality assurance plans, and clear communication channels to address issues promptly and ensure the project meets its objectives and specifications.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912ER15R0010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: AL HAMIDIYAH BUILDING SALAH A, RIYADH
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $42,496,010
Exercised Options: $42,496,010
Current Obligation: $42,496,010
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-05-02
Current End Date: 2022-03-29
Potential End Date: 2022-03-29 00:00:00
Last Modified: 2025-04-22
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