DoD spent over $41M on runway maintenance in Afghanistan, awarded via full and open competition

Contract Overview

Contract Amount: $41,178,160 ($41.2M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2004-09-28

End Date: 2011-06-28

Contract Duration: 2,464 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200412!001212!2100!W917PM!AFGHANISTAN ENGINEER DIST !W917PM04C0007 !A!N! !N! ! !20040928!20040929!154591549!154591549!154591549!N!CONTRACK INTERNATIONAL INC !1001 19TH ST N STE 1220 !ARLINGTON !VA!22209!00000! !AF!* !* !AFGHANISTA!+000032756122!N!N!000032756122!Z124!MAINT/AIRPORT RUNWAYS !C2 !CONSTRUCTION !000 !* !237990!A!A!3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!006!B! !Z!N!Z!B!AF!N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $41.2 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: 200412!001212!2100!W917PM!AFGHANISTAN ENGINEER DIST !W917PM04C0007 !A!N! !N! ! !20040928!20040929!154591549!154591549!154591549!N!CONTRACK INTERNATIONAL INC !1001 19TH ST N STE 1220 !ARLINGTON !VA!22209!00000! !AF!* !* … Key points: 1. Contract awarded for runway maintenance in a high-risk environment, suggesting significant operational needs. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. Long contract duration (over 6 years) implies a sustained requirement for infrastructure support. 4. The awardee is a domestic company, but the work was performed in Afghanistan, raising logistical and security considerations. 5. The contract type (Firm Fixed Price) shifts cost risk to the contractor, which can be beneficial for the government if managed well. 6. The specific NAICS code points to a specialized construction sector.

Value Assessment

Rating: fair

The total contract value of $41.2 million for runway maintenance over approximately 6.5 years appears substantial. Benchmarking this against similar contracts for infrastructure repair in austere environments is challenging due to unique risk factors. However, the firm-fixed-price structure suggests the government aimed for cost certainty. Without more granular data on the scope of work and specific deliverables, a precise value-for-money assessment is difficult, but the scale suggests a significant investment in critical infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a reasonably competitive environment for this type of specialized service. This level of competition is generally positive for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: Full and open competition is taxpayer-favorable as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are likely U.S. military operations and personnel in Afghanistan, requiring functional airport runways for logistical support and force projection. Services delivered include essential maintenance and repair of airport runways, crucial for air traffic and operational readiness. The geographic impact is concentrated in Afghanistan, specifically at airfields requiring runway upkeep. Workforce implications include employment for personnel involved in construction and maintenance, potentially both U.S. and local Afghan labor, though specific details are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Performance in a conflict zone (Afghanistan) presents inherent risks related to security, logistics, and political instability.
Long contract duration increases exposure to changing environmental conditions and potential cost escalations if not managed tightly.
The specific nature of runway maintenance in a deployed environment can be complex and require specialized equipment and expertise.

Positive Signals

Awarded under full and open competition, suggesting a robust vetting process for bidders.
Firm Fixed Price contract type helps control costs and provides budget certainty for the government.
The contract addresses a critical infrastructure need for military operations in a challenging theater.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on airfield infrastructure. The market for such services, particularly in support of military operations in complex environments, is specialized. Comparable spending benchmarks are difficult to establish due to the unique geopolitical context of Afghanistan. However, large-scale infrastructure projects in support of defense often represent significant portions of the defense budget.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). There is no information provided regarding subcontracting plans or actual performance with small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor engaged small businesses as subcontractors without it being explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and contingency contracting oversight mechanisms. Given the location, oversight would likely involve both stateside contracting officers and potentially deployed contracting personnel or oversight bodies responsible for operations in Afghanistan. Transparency is often limited in contingency contracting, but Inspector General reports and audits may provide some level of accountability.

Related Government Programs

Afghanistan Infrastructure Projects
Contingency Contracting
Airfield Operations Support
Department of Defense Construction Contracts

Risk Flags

Performance in a conflict zone
Long-term infrastructure requirement
Potential logistical complexities
Limited public detail on subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to DOMESTIC AWARDEES (UNDISCLOSED). 200412!001212!2100!W917PM!AFGHANISTAN ENGINEER DIST !W917PM04C0007 !A!N! !N! ! !20040928!20040929!154591549!154591549!154591549!N!CONTRACK INTERNATIONAL INC !1001 19TH ST N STE 1220 !ARLINGTON !VA!22209!00000! !AF!* !* !AFGHANISTA!+000032756122!N!N!000032756122!Z124!MAINT/AIRPORT RUNWAYS !C2 !CONSTRUCTION !000 !* !237990!A!A!3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is DOMESTIC 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 $41.2 million.

What is the period of performance?

Start: 2004-09-28. End: 2011-06-28.

What was the specific nature of the runway maintenance performed under this contract?

The contract data specifies the North American Industry Classification System (NAICS) code 237990, which covers 'Other Heavy and Civil Engineering Construction.' This broadly includes the construction and maintenance of infrastructure such as airports, highways, streets, bridges, tunnels, and water/sewer systems. For this specific contract, the description 'MAINT/AIRPORT RUNWAYS' indicates the work involved upkeep, repair, and potentially minor upgrades to airport runways. This could encompass tasks like resurfacing, crack sealing, lighting system maintenance, drainage improvements, and ensuring the structural integrity and operational safety of the runways used by military aircraft in Afghanistan.

How does the $41.2 million contract value compare to typical runway maintenance costs?

Directly comparing the $41.2 million contract value to typical runway maintenance costs is complex due to the unique operational environment in Afghanistan. Standard domestic runway maintenance contracts might range from hundreds of thousands to several million dollars, depending on the scope and scale of the airfield. However, contracts performed in conflict zones incur significant additional costs related to security, logistics, transportation of materials and personnel, risk premiums, and potentially higher labor rates. Therefore, while $41.2 million is a substantial sum, it is likely reflective of the heightened risks and complexities associated with performing such work in a deployed military theater over a period of more than six years, rather than a direct comparison to routine domestic maintenance.

What were the primary risks associated with this contract, and how were they managed?

The primary risks associated with this contract were multifaceted, stemming largely from its performance location in Afghanistan. These included: 1) Security risks to personnel and equipment due to the ongoing conflict; 2) Logistical challenges in transporting materials, equipment, and personnel to and within Afghanistan; 3) Political and environmental instability affecting project continuity; 4) Potential for cost overruns if not managed under the Firm Fixed Price (FFP) structure; and 5) Performance risks related to the quality and timeliness of the runway maintenance. Management strategies likely involved robust security protocols, detailed logistical planning, close coordination with military command structures, stringent contract surveillance by the contracting officer's representative (COR), and potentially incorporating risk mitigation clauses within the contract itself. The FFP structure also placed the primary cost-control burden on the contractor.

What is the significance of the contract being a 'Definitive Contract' awarded in 2004?

The contract being a 'Definitive Contract' signifies it is a standard, long-term agreement that outlines the terms and conditions for the provision of goods or services. Awarded in 2004, this timeframe places the contract within the early stages of the U.S. military involvement in Afghanistan. Definitive contracts are typically used for requirements that are well-defined and expected to last for an extended period. In this context, it suggests a recognized, long-term need for sustained runway maintenance to support ongoing military operations and logistical hubs established in the region during that era. The duration (2004-2011) further emphasizes the sustained nature of this requirement.

How did the 'Domestic Awardees (Undisclosed)' aspect affect transparency and oversight?

The 'Domestic Awardees (Undisclosed)' designation, particularly in the context of a contract performed in Afghanistan, presents a challenge for transparency. While the prime contractor is a U.S. entity (CONTRACK INTERNATIONAL INC), the specific breakdown of domestic versus foreign components or subcontractors might be obscured. This lack of granular disclosure can make it harder for the public and oversight bodies to fully assess the economic impact, identify potential conflicts of interest, or track the flow of funds. Oversight efforts would need to rely heavily on the contracting agency's internal reporting and audit mechanisms to ensure compliance and proper execution, rather than relying on readily available public data regarding the full supply chain.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline