Army awards $428.7M for Afghanistan infrastructure, highlighting construction needs and contractor performance

Contract Overview

Contract Amount: $29,933,417 ($29.9M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2005-09-12

End Date: 2008-09-17

Contract Duration: 1,101 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200512!500152!2100!W917PM!AFGHANISTAN ENGINEER DIST !W917PM05C0008 !A!N! !N! !P00002!20050912!20050912!428767131!428767131!428767131!N!RIZZANI DE ECCHER SPA !VIA BUTTRIO !POZZUOLO DEL F !IT!* !00000! !AF!* !* !AFGHANISTA!+000000078132!N!N!000000000000!Y222!HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS !C2 !CONSTRUCTION !000 !* !237310!E! !3! ! !C! ! !20200930!B! ! !A! !A!U!J!1!001!B! !Z!N!Z!B!AF!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $29.9 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: 200512!500152!2100!W917PM!AFGHANISTAN ENGINEER DIST !W917PM05C0008 !A!N! !N! !P00002!20050912!20050912!428767131!428767131!428767131!N!RIZZANI DE ECCHER SPA !VIA BUTTRIO !POZZUOLO DEL F !IT!* !00000! !AF!* !* … Key points: 1. The contract addresses critical infrastructure development in Afghanistan, focusing on highways, roads, and bridges. 2. Competition was full and open, suggesting a robust market for construction services in the region. 3. The fixed-price contract type aims to control costs, but performance risks in a conflict zone are notable. 4. This award falls within the construction sector, a significant area of government spending for infrastructure projects.

Value Assessment

Rating: good

The contract value of $428.7 million is substantial for infrastructure projects. Benchmarking against similar large-scale construction contracts in challenging environments is necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, securing services at a market-driven price.

Public Impact

Significant investment in rebuilding and improving essential infrastructure in a conflict zone. Potential for job creation and economic activity in Afghanistan through the contractor's operations. Ensures the development of vital transportation networks, impacting military operations and civilian life. Highlights the government's commitment to long-term stability and development in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact project timelines and costs.
Logistical challenges in delivering materials and personnel to remote project sites.
Security risks for personnel and equipment operating in the region.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Fixed-price contract type helps manage cost overruns.
Focus on essential infrastructure development with long-term benefits.

Sector Analysis

This contract falls under the construction sector, specifically focusing on highway, street, and bridge construction. Government spending in this sector is often driven by infrastructure needs, both domestically and in support of foreign operations.

Small Business Impact

While the primary awardee is a foreign entity, the contract may involve subcontracting opportunities for small businesses, though this is not explicitly detailed. The scale of the project suggests larger firms are likely prime contractors.

Oversight & Accountability

Oversight would be critical given the location and nature of the work. The Department of Defense and Army contracting officers are responsible for ensuring performance, adherence to specifications, and proper financial management.

Related Government Programs

Highway, Street, and Bridge Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Geopolitical instability and security risks in Afghanistan.
Logistical complexities of operating in a remote and potentially hostile environment.
Potential for cost overruns despite fixed-price contract due to unforeseen circumstances.
Contractor performance and quality control in a challenging operational theater.
Dependency on foreign awardees for critical infrastructure development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to FOREIGN AWARDEES (UNDISCLOSED). 200512!500152!2100!W917PM!AFGHANISTAN ENGINEER DIST !W917PM05C0008 !A!N! !N! !P00002!20050912!20050912!428767131!428767131!428767131!N!RIZZANI DE ECCHER SPA !VIA BUTTRIO !POZZUOLO DEL F !IT!* !00000! !AF!* !* !AFGHANISTA!+000000078132!N!N!000000000000!Y222!HIGHWAYS, ROADS, STREETS, BRIDGES AND RAILWAYS !C2 !CONSTRUCTION !000 !* !237310!E! !3! ! !C! ! !202

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 $29.9 million.

What is the period of performance?

Start: 2005-09-12. End: 2008-09-17.

What was the specific impact of the geopolitical situation in Afghanistan on the project's execution and final cost?

The geopolitical situation likely presented significant challenges, including security risks, logistical hurdles, and potential delays due to instability. These factors could have increased operational costs, requiring robust risk management and contingency planning by the contractor and oversight by the awarding agency to mitigate impacts on the project's timeline and budget.

How did the 'full and open competition' process ensure value for money in a high-risk environment like Afghanistan?

Full and open competition allowed multiple qualified contractors to bid, fostering a competitive environment that typically drives down prices. Despite the high-risk environment, the process likely included specific evaluation criteria addressing risk mitigation and performance capabilities, ensuring that the lowest price was balanced with the ability to successfully execute the project under challenging conditions.

What mechanisms were in place to ensure the quality and effectiveness of the constructed infrastructure, given the remote and potentially unstable operating area?

Quality assurance and oversight mechanisms would have been crucial. This likely included on-site inspections, adherence to strict engineering standards, regular progress reporting, and performance metrics tied to contract payments. The Army's contracting officer representatives (CORs) would play a vital role in monitoring work and ensuring compliance with project specifications and objectives.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline