DoD Awards $644M for Afghan Hospital Construction, Raising Oversight Concerns

Contract Overview

Contract Amount: $14,326,608 ($14.3M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2004-09-30

End Date: 2012-05-19

Contract Duration: 2,788 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200412!001174!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB04C0053 !A!N! !N! ! !20040930!20050831!644018624!644018624!644018624!N!ZAFER TAAHHUT INSAAT VE TICARE!RESITGALIP CAD HATIR SOK !ANKARA !TU!* !00000! !AF!* !* !AFGHANISTA!+000014404000!N!N!000014404000!Y149!OTHER HOSPITAL BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!003!B! !Z!N!Z!B!AF!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $14.3 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: 200412!001174!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB04C0053 !A!N! !N! ! !20040930!20050831!644018624!644018624!644018624!N!ZAFER TAAHHUT INSAAT VE TICARE!RESITGALIP CAD HATIR SOK !ANKARA !TU!* !00000! !AF!* !* … Key points: 1. Significant contract value ($644M) for hospital construction in Afghanistan. 2. Competition method was 'Full and Open', but awardee details are undisclosed. 3. Potential risks include project execution in a challenging environment and lack of transparency. 4. Spending falls within the Construction sector, with potential for high taxpayer impact.

Value Assessment

Rating: questionable

The contract value of $644M is substantial. Without specific cost breakdowns or benchmarks for similar projects in Afghanistan, assessing its value for money is difficult. The lack of disclosed awardee details further complicates a thorough valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the undisclosed nature of the awardee and the specific details of the winning bid limit transparency and make it challenging to assess if the best possible price was achieved.

Taxpayer Impact: The large contract value for construction in a high-risk environment suggests a significant potential impact on taxpayers. The effectiveness and efficiency of the spending will be crucial to realizing value.

Public Impact

Taxpayer funds are being used for critical infrastructure in a conflict zone. The project's success directly impacts the well-being of the Afghan population. Lack of transparency regarding the awardee raises questions about accountability and potential misuse of funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed Awardee
High Value Contract in High-Risk Environment
Limited Transparency on Pricing

Positive Signals

Full and Open Competition Method

Sector Analysis

This contract falls under the Construction sector, specifically for institutional buildings. Spending benchmarks for similar projects in Afghanistan are difficult to establish due to unique logistical and security challenges, making value assessment complex.

Small Business Impact

The data does not indicate any specific provisions or participation by small businesses in this contract. The focus appears to be on larger-scale construction, potentially excluding smaller entities.

Oversight & Accountability

The undisclosed awardee and the nature of the project in Afghanistan necessitate robust oversight to ensure funds are used effectively and ethically. Current transparency levels appear insufficient.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Awardee Transparency
High Contract Value in High-Risk Area
Potential for Cost Overruns
Limited Oversight Visibility
Uncertainty of Long-Term Sustainability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to FOREIGN AWARDEES (UNDISCLOSED). 200412!001174!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB04C0053 !A!N! !N! ! !20040930!20050831!644018624!644018624!644018624!N!ZAFER TAAHHUT INSAAT VE TICARE!RESITGALIP CAD HATIR SOK !ANKARA !TU!* !00000! !AF!* !* !AFGHANISTA!+000014404000!N!N!000014404000!Y149!OTHER HOSPITAL BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!A!A!3! ! ! ! ! !999

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 $14.3 million.

What is the period of performance?

Start: 2004-09-30. End: 2012-05-19.

What specific construction standards and quality controls are in place to ensure the hospital buildings are safe and functional, given the challenging environment?

Detailed information on construction standards and quality control mechanisms is not provided in the available data. Given the project's location and critical function, rigorous oversight and adherence to international building codes would be expected. Further investigation into the contract's specific clauses regarding quality assurance and inspection protocols is warranted to ensure the long-term viability and safety of the facilities.

How will the long-term maintenance and operational costs of these hospital buildings be funded and managed post-construction?

The provided data focuses solely on the construction award and does not address the long-term operational and maintenance aspects of the hospital buildings. This is a critical gap, as ongoing costs can significantly exceed initial construction expenses. Understanding the sustainability plan for these facilities is essential for a complete assessment of taxpayer impact and project effectiveness.

What measures are in place to mitigate risks associated with corruption and ensure the efficient use of funds in a complex operational environment like Afghanistan?

While the contract was awarded through full and open competition, the lack of disclosed awardee details and the inherent risks of operating in Afghanistan raise concerns. Robust anti-corruption measures, independent monitoring, and transparent reporting mechanisms are crucial. The government should provide details on specific safeguards implemented to ensure accountability and prevent fund diversion.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline