Department of Defense awarded $13.6M for construction services to foreign entities over 5 years

Contract Overview

Contract Amount: $13,592,546 ($13.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-09-20

End Date: 2013-02-01

Contract Duration: 1,961 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MAYSAN SURGICAL HOSPITAL

Plain-Language Summary

Department of Defense obligated $13.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: MAYSAN SURGICAL HOSPITAL Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract duration of 1961 days indicates a long-term need for the services. 3. The firm-fixed-price contract type suggests predictable costs for the government. 4. The award to 'MISCELLANEOUS FOREIGN AWARDEES' raises questions about the specific capabilities and oversight. 5. The absence of small business set-aside indicates a focus on larger, potentially specialized contractors. 6. The contract falls under Commercial and Institutional Building Construction, a broad category.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the broad nature of the awardee category ('MISCELLANEOUS FOREIGN AWARDEES') and the lack of specific service details. The total value of $13.6 million over nearly six years suggests a moderate annual spend. Without comparable contracts for similar construction services in the specific geographic region or for the particular type of facility, a precise value-for-money assessment is difficult. The firm-fixed-price structure provides cost certainty, which is a positive indicator, but the overall value proposition is obscured by the limited transparency regarding the contractor's specific qualifications and pricing structure.

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 presence of 9 bidders suggests a competitive environment for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that the award was made after a competitive process implies that the selected contractor offered the best value among the submissions, although the specific evaluation criteria are not detailed here.

Taxpayer Impact: The full and open competition likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely the Department of Defense, which receives the construction services. The services delivered are related to commercial and institutional building construction, supporting military infrastructure. The geographic impact is not specified but is likely tied to a specific military installation or region where the construction is taking place. Workforce implications would include construction jobs, potentially benefiting local or international labor markets depending on the location of the work.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific contractor identification for 'MISCELLANEOUS FOREIGN AWARDEES' hinders performance tracking and accountability.
The broad nature of 'Commercial and Institutional Building Construction' makes it difficult to assess the specific technical expertise required and provided.
The long contract duration (1961 days) could lead to cost overruns if market conditions or project requirements change significantly.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a clear need for construction services within the Department of Defense.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects, from office buildings to healthcare facilities and educational institutions. Federal spending in this sector is substantial, supporting military bases, government offices, and other public infrastructure. This contract, valued at $13.6 million, represents a moderate investment within this broad category. Comparable spending benchmarks would vary significantly based on the type of construction, location, and specific requirements, but this award falls within a typical range for significant construction projects.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb': false. This suggests that the requirement was not specifically targeted towards small businesses, likely due to the scale or specialized nature of the construction services needed. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear, but it is unlikely to have a significant positive impact unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is limited by the broad identification of the awardee. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Lack of specific contractor identification
Ambiguity in service scope
Potential oversight challenges with foreign awardees

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to MISCELLANEOUS FOREIGN AWARDEES. MAYSAN SURGICAL HOSPITAL

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2007-09-20. End: 2013-02-01.

What specific types of construction services were procured under this contract?

The contract falls under the North American Industry Classification System (NAICS) code 236220, which is for Commercial and Institutional Building Construction. This broad category includes new construction, additions, alterations, and repairs of commercial and institutional buildings. Examples could range from office buildings, warehouses, and retail spaces to schools, hospitals, and government facilities. However, without further details or specific line items within the contract, the precise nature of the construction services (e.g., new build, renovation, specific type of facility) remains unspecified. The award to 'MISCELLANEOUS FOREIGN AWARDEES' further obscures the specific technical capabilities involved.

How does the $13.6 million contract value compare to similar construction projects awarded by the Department of Defense?

The $13.6 million contract value over approximately 5.8 years (from 2007 to 2013) represents an average annual expenditure of roughly $2.3 million. This is a moderate-sized contract within the Department of Defense's vast construction portfolio. The DoD awards contracts ranging from small repair jobs to multi-billion dollar military base construction projects. For specific types of institutional or commercial building construction, $13.6 million is a significant sum, likely indicative of a substantial project such as a new building, a major renovation, or a series of related construction tasks at a particular facility. Benchmarking requires knowing the specific type of construction and location, but it's not a small contract.

What are the potential risks associated with awarding contracts to 'MISCELLANEOUS FOREIGN AWARDEES'?

Awarding contracts to 'MISCELLANEOUS FOREIGN AWARDEES' presents several potential risks. Firstly, there can be challenges in ensuring compliance with U.S. labor laws, safety standards, and environmental regulations. Secondly, oversight and quality control can be more difficult due to geographical distance and potential language barriers. Thirdly, there may be increased security risks associated with foreign entities, depending on their origin and the nature of the project. Finally, payment mechanisms and currency exchange rate fluctuations can introduce financial complexities. The lack of specific identification for these awardees exacerbates these risks by hindering due diligence and performance monitoring.

What does the firm-fixed-price (FFP) contract type imply for cost control and risk allocation?

A Firm-Fixed-Price (FFP) contract type implies that the contractor agrees to a total price that is not subject to any adjustment based on the contractor's cost experience in performing the contract. This structure is beneficial for the government as it provides maximum cost certainty and predictability. The contractor assumes most of the risk for cost overruns. If the contractor's costs are higher than anticipated, their profit will be reduced. Conversely, if costs are lower, their profit will increase. This type of contract is generally preferred when the scope of work is well-defined and there is a low risk of unforeseen technical difficulties or significant changes in material costs.

How has federal spending in Commercial and Institutional Building Construction (NAICS 236220) trended over the period this contract was active (2007-2013)?

The period between 2007 and 2013 encompassed the global financial crisis and its aftermath. Federal spending in construction, including Commercial and Institutional Building Construction (NAICS 236220), likely experienced fluctuations. In the earlier part of this period (pre-2009), spending might have been robust, potentially driven by ongoing military operations and infrastructure needs. However, as the recession took hold, federal budgets faced constraints, which could have led to a slowdown or reprioritization of construction projects. Stimulus packages enacted during this time might have also influenced spending patterns in specific sectors. Without specific data for NAICS 236220 across these years, it's difficult to provide a precise trend, but it's reasonable to assume variability influenced by economic conditions and government fiscal policy.

What is the significance of having 9 bidders for this contract?

Having 9 bidders for this contract is a positive indicator of a competitive marketplace for the specific construction services required. A larger number of bidders generally suggests that the requirement was well-defined and accessible to a reasonable number of firms capable of performing the work. This level of competition increases the likelihood that the government received competitive pricing and that the contract was awarded to the offeror providing the best overall value. It also reduces the risk of contractor collusion and provides the government with more options and leverage during the negotiation process.

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: W917BK07R0096

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $13,592,546

Exercised Options: $13,592,546

Current Obligation: $13,592,546

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline