DoD's $21.6M construction contract for QALAA COMPOUND RESIDENCE 4 awarded to miscellaneous foreign awardees

Contract Overview

Contract Amount: $21,660,563 ($21.7M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-09-21

End Date: 2009-01-19

Contract Duration: 851 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: QALAA COMPOUND RESIDENCE 4

Plain-Language Summary

Department of Defense obligated $21.7 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: QALAA COMPOUND RESIDENCE 4 Key points: 1. The contract value of $21.6 million for construction services appears substantial, warranting a review of its cost-effectiveness. 2. Awarded under full and open competition, the contract suggests a competitive bidding process was utilized. 3. The duration of 851 days indicates a significant project timeline, potentially impacting cost and delivery. 4. Fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility. 5. The project falls under the Commercial and Institutional Building Construction NAICS code, indicating a focus on infrastructure development. 6. The award to 'Miscellaneous Foreign Awardees' raises questions about contractor vetting and oversight for overseas projects.

Value Assessment

Rating: fair

Benchmarking the $21.6 million cost for the QALAA COMPOUND RESIDENCE 4 project is challenging without specific details on the scope of work, location, and quality standards. However, for a construction project of this magnitude, the price per square foot or per unit would be a key metric. Given the award to 'Miscellaneous Foreign Awardees,' there's a potential for less transparent pricing compared to domestic contracts, and the fixed-price nature suggests the government aimed to cap costs. Further analysis would require comparable project data within similar geographic and security contexts.

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 16 bids suggests a healthy level of interest and competition for this construction project. A robust competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition with 16 bidders is beneficial for taxpayers as it likely drove down prices through market forces, ensuring the government received competitive offers for the construction services.

Public Impact

The primary beneficiaries are likely the Department of Defense personnel and operations that will utilize the QALAA COMPOUND RESIDENCE 4 facility. The services delivered include the construction of a residence, implying the creation of housing or related support structures. The geographic impact is specific to the location of QALAA COMPOUND RESIDENCE 4, which is likely an overseas or remote operational area. Workforce implications would include the employment of construction workers, engineers, and project managers, potentially including local labor depending on the contract's stipulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Award to 'Miscellaneous Foreign Awardees' may indicate a lack of specific contractor identification, potentially complicating oversight and accountability.
The long contract duration (851 days) increases the risk of unforeseen issues, cost escalations (despite fixed price), and potential delays.
Lack of specific details on the project scope and location makes it difficult to assess the true value for money and potential risks.
The absence of small business participation (sb: false) means opportunities for small businesses were not explicitly pursued in this contract.

Positive Signals

Awarded under full and open competition with 16 bids suggests a competitive process that should have yielded a fair price.
The fixed-price contract type helps to mitigate cost overrun risks for the government.
The project falls under a specific NAICS code (236220), indicating a clear focus on commercial and institutional building construction.
The contract has a defined start and end date, providing a clear timeline for project completion.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The market for defense-related construction, especially in overseas or operational environments, can be specialized, often involving security clearances, logistical challenges, and specific building codes. Comparable spending benchmarks would typically involve per-square-foot costs for similar types of facilities in comparable regions, adjusted for security and logistical premiums.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). The award to 'Miscellaneous Foreign Awardees' also suggests that small businesses, particularly domestic ones, were unlikely to be direct awardees or significant subcontractors unless specified in the contract terms. This means opportunities for small business participation were not explicitly prioritized through set-asides.

Oversight & Accountability

Oversight mechanisms for this contract would primarily be managed by the Department of the Army contracting officers and project managers. Given the overseas nature implied by 'Miscellaneous Foreign Awardees,' oversight might involve additional layers of security and logistical coordination. Transparency is dependent on the public availability of contract details and performance reports. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Overseas Construction Contracts
Department of Defense Facilities Management
Foreign Military Sales Support

Risk Flags

Overseas Contract Award
Vague Contractor Identification
Long Project Duration
Potential for Increased Oversight Needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to MISCELLANEOUS FOREIGN AWARDEES. QALAA COMPOUND RESIDENCE 4

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 $21.7 million.

What is the period of performance?

Start: 2006-09-21. End: 2009-01-19.

What is the specific nature and location of the QALAA COMPOUND RESIDENCE 4 project?

The provided data indicates the project is related to 'QALAA COMPOUND RESIDENCE 4' and falls under the 'Commercial and Institutional Building Construction' NAICS code. The award to 'Miscellaneous Foreign Awardees' strongly suggests the project is located overseas, likely in a region where the Department of Defense has operational interests. Without further details, the exact nature of the 'residence' (e.g., barracks, officer housing, administrative building) and its specific function within the compound remain unclear. This lack of specificity makes it difficult to fully assess the project's scope, risks, and value.

How does the contract's fixed-price structure mitigate risk for the government?

A fixed-price contract, like the one awarded for QALAA COMPOUND RESIDENCE 4, shifts the majority of the financial risk to the contractor. The contractor agrees to perform the work for a predetermined price, regardless of their actual costs. This means that if the contractor incurs higher expenses than anticipated due to material cost increases, labor shortages, or unforeseen site conditions, their profit margin will decrease, but the government's cost remains fixed. This structure provides budget certainty for the government, preventing unexpected cost overruns, provided the scope of work is well-defined and changes are managed through formal modification processes.

What are the potential implications of awarding to 'Miscellaneous Foreign Awardees'?

Awarding a significant construction contract to 'Miscellaneous Foreign Awardees' can present several implications. Firstly, it may suggest a lack of readily available, vetted domestic contractors capable of performing the work in the specified location, or that foreign entities offered a more competitive price. However, it can also introduce complexities in terms of oversight, compliance with U.S. labor laws and safety standards, payment processing, and potential security vetting challenges. Ensuring accountability and quality control may require more intensive monitoring by the contracting agency. Furthermore, it raises questions about the extent to which local economies were supported by the contract.

How does the contract duration of 851 days compare to typical construction projects of this nature?

A contract duration of 851 days, approximately 28 months, is substantial for a construction project. While the exact nature of 'QALAA COMPOUND RESIDENCE 4' is not fully detailed, this duration suggests a large-scale or complex undertaking. Typical commercial building construction timelines can vary widely, but projects of significant size might span 18-36 months. Factors influencing this duration could include the complexity of the design, site preparation requirements, logistical challenges (especially if overseas), weather impacts, and the phased delivery of different components. A longer duration inherently increases exposure to market fluctuations and potential project management challenges.

What is the historical spending pattern for similar construction contracts by the Department of the Army?

Analyzing historical spending patterns for similar construction contracts by the Department of the Army requires access to a broader dataset than provided. However, the Army consistently invests significant funds in infrastructure, both domestically and in overseas locations, to support its global operations. Spending typically fluctuates based on geopolitical needs, modernization efforts, and base realignment initiatives. Contracts for overseas construction, particularly in potentially austere or high-risk environments, often command higher costs due to logistical complexities, security requirements, and specialized labor. Understanding the Army's historical approach to competition, contract types, and awardee profiles for similar projects would provide valuable context for this specific award.

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: W917PM06R0056

Offers Received: 16

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,660,563

Exercised Options: $21,660,563

Current Obligation: $21,660,563

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline