Army awards $159M construction contract for Afghan facilities, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $15,929,364 ($15.9M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2006-03-11

End Date: 2011-11-02

Contract Duration: 2,062 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200608!600742!96CE!W917PM!AFGHANISTAN ENGINEER DIST !W917PM06C0002 !A!N! !N! ! !20060311!20061224!106346419!106346419!106346419!N!TECHNOLOGISTS, INC !1700 N MOORE STREET !ROSSLYN !VA!22209!00000! !AF! ! !AFGHANISTA!+000012235001!N!N!000012235001!Z166!MAINT/PENAL FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!013!B! !Z!N!Z!B!AF!N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y!Y! ! !0001! !

Plain-Language Summary

Department of Defense obligated $15.9 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: 200608!600742!96CE!W917PM!AFGHANISTAN ENGINEER DIST !W917PM06C0002 !A!N! !N! ! !20060311!20061224!106346419!106346419!106346419!N!TECHNOLOGISTS, INC !1700 N MOORE STREET !ROSSLYN !VA!22209!00000! !AF! ! … Key points: 1. Contract awarded for maintenance and penal facilities construction in Afghanistan. 2. Significant investment in infrastructure development in a challenging operational environment. 3. Long contract duration suggests a need for sustained presence and support. 4. Firm Fixed Price contract type aims to control costs for the government. 5. Awardee is Technologists, Inc., a domestic company. 6. The contract falls under the broad category of Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $159,293,640 for construction services in Afghanistan is substantial. Benchmarking this against similar projects in conflict zones is difficult due to unique risk factors and operational costs. However, the duration of the contract (over 2 years) and the firm-fixed-price nature suggest an attempt to establish clear cost expectations. Without specific details on the scope of work and comparable project data from similar environments, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The number of bidders is not explicitly stated in the provided data, but the 'full and open' designation suggests a competitive process. This approach is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality by allowing all responsible sources to participate.

Public Impact

The primary beneficiaries are likely the U.S. military and associated personnel operating in Afghanistan, who will utilize the constructed facilities. Services delivered include the construction and maintenance of penal facilities, crucial for security and operational support. The geographic impact is concentrated within Afghanistan, supporting U.S. military operations. Workforce implications include potential job creation for construction workers, both locally in Afghanistan and potentially for the contracting company's domestic employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan poses significant risks to project execution and personnel safety.
Logistical challenges in delivering materials and personnel to remote or secure sites.
Potential for cost overruns if unforeseen security or operational issues arise, despite the FFP structure.
Dependency on local resources and labor could introduce quality control and management complexities.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Award to a domestic company, Technologists, Inc., suggests established capabilities.
Full and open competition indicates a robust bidding process, potentially leading to better value.
The contract addresses critical infrastructure needs, supporting essential military operations.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for construction services in support of government operations, particularly in overseas or contingency environments, is significant. This contract represents a substantial investment in infrastructure development, a common requirement for long-term military engagements. Comparable spending benchmarks are difficult to establish precisely due to the unique operational context of Afghanistan.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor may engage small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and potentially the Department of Defense's Inspector General. Accountability measures would be embedded in the contract's performance clauses and reporting requirements. Transparency is facilitated by the contract award being publicly available, though specific performance details and oversight reports may be less accessible.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
U.S. Army Corps of Engineers Construction Contracts
Contingency Construction Contracts
Foreign Military Construction Contracts

Risk Flags

High-risk operational environment (Afghanistan)
Potential security threats to personnel and assets
Logistical complexities in a remote theater
Dependency on local resources and labor
Potential for scope creep or unforeseen site conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to DOMESTIC AWARDEES (UNDISCLOSED). 200608!600742!96CE!W917PM!AFGHANISTAN ENGINEER DIST !W917PM06C0002 !A!N! !N! ! !20060311!20061224!106346419!106346419!106346419!N!TECHNOLOGISTS, INC !1700 N MOORE STREET !ROSSLYN !VA!22209!00000! !AF! ! !AFGHANISTA!+000012235001!N!N!000012235001!Z166!MAINT/PENAL FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !236220!E! !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 $15.9 million.

What is the period of performance?

Start: 2006-03-11. End: 2011-11-02.

What is the track record of Technologists, Inc. in performing similar large-scale construction contracts, particularly in overseas or contingency environments?

Assessing the track record of Technologists, Inc. requires a deeper dive into their contract history beyond this single award. Information on past performance, including successful completion of similar projects, adherence to budget and schedule, and quality of work, is crucial. For contracts in challenging environments like Afghanistan, experience with logistical complexities, security protocols, and local labor management is particularly important. A review of past performance evaluations, if available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide valuable insights into their capabilities and reliability for executing this significant infrastructure project.

How does the $159 million contract value compare to the average cost of similar facility construction projects undertaken by the Department of Defense in comparable operational theaters?

Directly comparing the $159 million contract value to average costs for similar projects in comparable operational theaters is challenging without specific data points on project scope, scale, and location. Construction costs in contingency environments are typically higher than in domestic settings due to increased logistical, security, and operational risks. The firm-fixed-price nature of this contract suggests an effort to cap costs. However, to benchmark effectively, one would need data on the square footage, type of facilities (e.g., administrative, living quarters, security infrastructure), and the specific security and logistical environment of other DoD projects in regions with similar risk profiles. Without such granular comparative data, it's difficult to definitively state if this contract represents a particularly high or low cost.

What are the primary risk indicators associated with this contract, considering its location in Afghanistan and the nature of construction work?

The primary risk indicators for this contract are multifaceted. Geopolitical instability and the security situation in Afghanistan present significant risks to personnel, equipment, and project continuity. Logistical challenges related to transporting materials and personnel to potentially remote or unsecured sites are substantial. Furthermore, the potential for unforeseen ground conditions, labor disputes, or supply chain disruptions in a complex operational environment adds to the risk profile. The firm-fixed-price contract type, while beneficial for cost control, can also increase risk for the contractor if unforeseen issues lead to cost overruns, potentially impacting performance or leading to claims. Quality control and adherence to specifications in a challenging environment also represent a risk.

What is the expected effectiveness of the completed penal facilities in supporting U.S. military and security objectives in Afghanistan?

The effectiveness of the completed penal facilities hinges on several factors beyond the construction itself. Their design must align with the specific security requirements and operational needs for detention and rehabilitation within the Afghan context. Successful operation will depend on the proper training and deployment of personnel to manage these facilities, as well as clear legal frameworks governing their use. The facilities' ability to contribute to U.S. objectives will be measured by their role in maintaining security, facilitating justice processes, and potentially supporting broader stability efforts. The long-term effectiveness will also be influenced by the sustainability of the infrastructure and the ongoing security situation in the region.

How has historical spending on construction and facility maintenance in Afghanistan by the Department of Defense trended over the past decade, and how does this contract fit into that pattern?

Historical spending on construction and facility maintenance in Afghanistan by the DoD has been substantial, driven by the long-term military presence and nation-building efforts. This spending often peaked during periods of heightened operational activity and troop presence, focusing on bases, infrastructure, and security installations. This $159 million contract for penal facilities fits into a pattern of ongoing investment in essential infrastructure required to support military operations and security mandates. While specific year-over-year trends fluctuate based on strategic priorities and troop levels, such contracts represent a consistent need for physical assets in the operational theater. Understanding the broader historical context reveals a sustained requirement for construction services, albeit with potential shifts in focus over time.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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