DoD's $15.15M Afghanistan road construction contract awarded to MISCELLANEOUS FOREIGN AWARDEES shows fair value

Contract Overview

Contract Amount: $15,149,901 ($15.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-09-28

End Date: 2010-09-30

Contract Duration: 1,463 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT ROAD FROM TERIN KWOT TO DIHRAWUD TO OSHAY, URUZGAN PROVINCE, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $15.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: CONSTRUCT ROAD FROM TERIN KWOT TO DIHRAWUD TO OSHAY, URUZGAN PROVINCE, AFGHANISTAN Key points: 1. Contract awarded for critical infrastructure development in a high-risk environment. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Performance timeline indicates a multi-year effort, common for large-scale construction. 4. Sector positioning within Defense highlights the strategic importance of infrastructure. 5. Value for money appears reasonable given the project's scope and location.

Value Assessment

Rating: good

The contract's value of $15.15 million for road construction in Afghanistan appears reasonable when considering the complexities of operating in a foreign, potentially unstable region. Benchmarking against similar infrastructure projects in conflict zones is challenging due to unique logistical and security costs. However, the firm fixed-price contract type suggests that the contractor assumed significant risk, which can be a positive indicator of value if the project is completed within budget. The number of bids received (2) is on the lower side, but the final price relative to the scope of work seems acceptable.

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. While two bids were received, the open competition framework generally promotes price discovery and encourages competitive pricing. The limited number of bidders could suggest market concentration or specific qualifications required for this type of project in a challenging geographic area.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it aims to secure the best possible price through market forces.

Public Impact

Benefits the local population in Uruzgan Province by improving transportation infrastructure. Facilitates the movement of goods and personnel, potentially aiding economic development and security operations. The project directly impacts the workforce through construction employment opportunities. Geographic impact is concentrated in the specified route within Afghanistan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact project timelines and costs.
Logistical challenges in a remote and potentially hostile environment.
Limited number of bidders may indicate specific market conditions or barriers to entry.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded under full and open competition, promoting market fairness.
Long-term infrastructure development can have lasting positive impacts.

Sector Analysis

This contract falls within the construction sector, specifically focusing on infrastructure development. The global market for infrastructure construction is substantial, with significant government investment worldwide. In conflict or post-conflict zones, such projects are often critical for stabilization and reconstruction efforts, commanding higher costs due to inherent risks and logistical complexities. Comparable spending benchmarks are difficult to establish precisely due to the unique operational environment.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and location of the project, it is likely that larger, specialized construction firms with experience in international or contingency operations would be the primary bidders. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms. Given the location, oversight may have involved a combination of on-site government representatives, quality assurance personnel, and potentially Inspector General (IG) involvement to ensure compliance and prevent fraud, waste, and abuse. Transparency would be managed through contract reporting systems.

Related Government Programs

Afghanistan Reconstruction
Contingency Contracting
Infrastructure Development
Department of Defense Construction Contracts

Risk Flags

Geopolitical Risk
Logistical Complexity
Contractor Performance Uncertainty (due to generic awardee name)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to MISCELLANEOUS FOREIGN AWARDEES. CONSTRUCT ROAD FROM TERIN KWOT TO DIHRAWUD TO OSHAY, URUZGAN PROVINCE, AFGHANISTAN

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 $15.1 million.

What is the period of performance?

Start: 2006-09-28. End: 2010-09-30.

What was the contractor's track record with similar projects in Afghanistan or similar environments?

The provided data identifies the contractor as 'MISCELLANEOUS FOREIGN AWARDEES,' which is a generic designation and does not offer specific details about the entity's track record. To assess the contractor's performance, further investigation into the specific awardee would be necessary. This would involve reviewing past performance evaluations, any documented issues or successes on previous contracts, and their experience with large-scale infrastructure projects in challenging geopolitical regions. Without this specific information, it is difficult to gauge their reliability and expertise for this particular road construction project.

How does the cost per mile of this road construction compare to similar projects globally or within the US?

Calculating a precise cost per mile is not feasible with the current data, as the total length of the road is not specified. However, the total contract value is $15.15 million. Road construction costs vary dramatically based on terrain, materials, labor, security, and logistical overhead. Projects in conflict zones like Afghanistan typically incur significantly higher costs per mile than standard domestic highway construction due to the added expenses of security, transportation of materials, and specialized labor requirements. Without a defined length, a direct comparison is speculative, but the overall value suggests a substantial undertaking.

What were the primary risks identified for this contract, and how were they mitigated?

The primary risks for a project of this nature in Afghanistan would likely include security threats to personnel and equipment, logistical challenges in delivering materials and personnel to remote sites, political instability affecting project continuity, and potential for corruption or fraud. The mitigation strategies would typically involve robust security protocols, detailed logistical planning, close coordination with local authorities and military forces, and strong oversight mechanisms. The firm fixed-price contract structure also mitigates financial risk for the government by capping the total expenditure, shifting cost overruns to the contractor.

What is the expected impact of this road on local economic development and security in Uruzgan Province?

Improved transportation infrastructure, such as a newly constructed road, can significantly enhance local economic development by facilitating the movement of goods, services, and people. This can lead to increased trade, access to markets, and potentially job creation in related sectors. From a security perspective, better roads can improve the ability of security forces to patrol and respond to incidents, as well as facilitate the delivery of essential services. However, the actual impact also depends on the security situation in the region and the extent to which the road connects key economic or population centers.

What was the historical spending trend for similar road construction projects by the Department of Defense in Afghanistan?

The Department of Defense has historically allocated substantial funds towards infrastructure development and reconstruction efforts in Afghanistan over many years. Spending on road construction, in particular, has been a significant component of these efforts, aimed at improving mobility, supporting military operations, and fostering economic stability. While specific historical spending trends for 'road construction' in Afghanistan by the DoD would require detailed analysis of past contract databases, it is understood that such projects represented a consistent and considerable investment throughout the period of major US military presence.

Were there any specific performance metrics or quality standards outlined in the contract for the road construction?

While the provided data does not detail specific performance metrics or quality standards, it is standard practice for construction contracts of this magnitude, especially those awarded by the Department of Defense, to include detailed specifications. These typically cover aspects such as road surface quality, load-bearing capacity, drainage, adherence to engineering standards, and construction timelines. Performance would likely be monitored by government representatives on-site to ensure compliance with these specifications and the overall quality of the finished product.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM06R0077

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,149,901

Exercised Options: $15,149,901

Current Obligation: $15,149,901

Contract Characteristics

Cost or Pricing Data: NO

Timeline