DoD's $17.1M Afghanistan Police HQ Construction Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $17,138,843 ($17.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-02-28

End Date: 2009-02-24

Contract Duration: 727 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: UNIFORM POLICE REGIONAL HEADQUARTERS, REGIONAL LOGISTICS CENTER AND STAND-BY POLICE BATTALION, HERAT, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $17.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: UNIFORM POLICE REGIONAL HEADQUARTERS, REGIONAL LOGISTICS CENTER AND STAND-BY POLICE BATTALION, HERAT, AFGHANISTAN Key points: 1. Contract awarded for construction of police facilities in Herat, Afghanistan. 2. Full and open competition was utilized, suggesting a broad search for qualified bidders. 3. The contract type is a definitive contract with a fixed price, indicating defined scope and cost. 4. The duration of the contract was 727 days, spanning nearly two years. 5. The awardee is listed under 'Miscellaneous Foreign Awardees', implying an international entity. 6. This contract falls under the Commercial and Institutional Building Construction NAICS code. 7. The contract was awarded by the Department of the Army, a component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and foreign location. The fixed-price structure suggests an attempt to control costs, but without detailed breakdowns of construction elements and local market conditions in Herat, Afghanistan, a precise value-for-money assessment is difficult. The contract's value of approximately $17.1 million for a regional police headquarters and logistics center, including a stand-by battalion, appears substantial, but its appropriateness hinges on the scope of work and prevailing costs in the region during 2007-2009.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 14 bids suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is a positive sign for competition, though the specific nature of construction in a foreign, potentially high-risk environment might have limited the pool of truly qualified and willing participants.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. The 14 bids received suggest that the government likely secured a competitive price for the construction services, maximizing the value of taxpayer funds.

Public Impact

The primary beneficiaries are the Afghan National Police, who will utilize the new regional headquarters and logistics center. The contract delivers essential infrastructure for law enforcement and security operations in Herat, Afghanistan. The geographic impact is concentrated in Herat province, Afghanistan, supporting regional stability. Workforce implications would include local labor for construction, contributing to the Afghan economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could pose risks to project timelines and costs.
Logistical challenges in delivering materials and personnel to Herat may have impacted execution.
The fixed-price contract could expose the contractor to risks if unforeseen costs arise.
Ensuring quality control for construction in a remote and potentially challenging environment requires robust oversight.

Positive Signals

Awarded under full and open competition, indicating a broad search for the best value.
The fixed-price contract type provides cost certainty for the government.
The contract duration of 727 days allowed for a structured and phased construction approach.
The Department of the Army's involvement suggests adherence to established procurement processes.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for such services in conflict zones is often characterized by higher risk premiums and specialized logistical requirements. Comparable spending benchmarks are difficult to establish due to the unique operational environment and the specific nature of building security infrastructure. However, the scale of the project suggests a significant investment in establishing a foundational presence for Afghan security forces.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the nature of large-scale construction in a foreign operational theater, the primary awardee was likely a larger entity capable of managing complex international logistics and construction. The impact on the small business ecosystem is likely minimal, as the contract appears to have been awarded to a non-US-based or specialized foreign contractor.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and potentially military engineers or civilian oversight personnel on the ground in Afghanistan. Accountability measures would be tied to the contract's performance clauses and the fixed-price terms. Transparency is facilitated by the public award data, but detailed project execution reports and quality assurance documentation are typically not publicly available.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
US Forces Afghanistan (USFOR-A) Infrastructure Projects
Department of Defense Construction Contracts
Foreign Military Construction Support

Risk Flags

High-risk operational environment
Logistical complexity
Potential for cost overruns due to unforeseen circumstances
Security threats impacting project execution
Quality control challenges in remote location

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to MISCELLANEOUS FOREIGN AWARDEES. UNIFORM POLICE REGIONAL HEADQUARTERS, REGIONAL LOGISTICS CENTER AND STAND-BY POLICE BATTALION, HERAT, 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 $17.1 million.

What is the period of performance?

Start: 2007-02-28. End: 2009-02-24.

What was the specific scope of work for the "UNIFORM POLICE REGIONAL HEADQUARTERS, REGIONAL LOGISTICS CENTER AND STAND-BY POLICE BATTALION"?

The contract data indicates the construction of a regional headquarters, a logistics center, and a stand-by police battalion facility for the Afghan National Police in Herat, Afghanistan. While specific architectural plans and detailed facility requirements are not publicly available in this data, such facilities typically include administrative buildings, barracks or living quarters for personnel, vehicle maintenance areas, storage facilities for equipment and supplies, training grounds, and security infrastructure like perimeter fencing and guard posts. The $17.1 million award suggests a comprehensive build-out designed to support a significant police presence and operational capacity in the region.

How does the $17.1 million cost compare to similar construction projects in Afghanistan during the 2007-2009 period?

Direct cost comparisons for similar projects in Afghanistan during 2007-2009 are difficult due to the unique and volatile operating environment, which significantly inflates costs for security, logistics, and risk mitigation. Projects in Afghanistan often incurred premiums far exceeding those in stable regions. The $17.1 million for a police headquarters, logistics center, and battalion facility represents a substantial investment. While specific benchmarks are scarce, the scale of the facilities and the location suggest that this figure, while high by global standards, might be within the expected range for major infrastructure development by the DoD in a conflict zone at that time, reflecting the added complexities and risks.

What were the primary risks associated with executing this construction contract in Herat, Afghanistan?

Executing this contract in Herat, Afghanistan, presented numerous significant risks. These included: 1) Security risks: The volatile security environment posed threats to personnel, equipment, and the construction site itself, potentially leading to delays, damage, or increased security costs. 2) Logistical challenges: Transporting materials, equipment, and personnel to Herat involved complex supply chains, often through insecure routes, increasing costs and lead times. 3) Political and economic instability: Fluctuations in the local political climate and economy could impact labor availability, material costs, and project continuity. 4) Environmental factors: Harsh weather conditions and challenging terrain could affect construction schedules and methods. 5) Contractor performance risks: Ensuring quality and adherence to standards in a remote location with potential labor shortages required robust oversight.

What is the significance of awarding this contract under 'Full and Open Competition' with 14 bidders?

Awarding this contract under 'Full and Open Competition' signifies that the Department of the Army sought bids from all responsible sources, maximizing the potential pool of contractors. The fact that 14 bids were received is a strong indicator of robust competition for this project. This level of competition generally leads to more competitive pricing, as contractors vie to offer the best value to secure the contract. It also suggests that despite the challenging location, there were multiple entities capable and willing to undertake such a significant construction project, potentially leading to better cost efficiency and a wider range of technical solutions for the government.

What is the track record of 'Miscellaneous Foreign Awardees' in executing large-scale DoD construction projects?

The designation 'Miscellaneous Foreign Awardees' is broad and does not provide specific details about the track record of the entity that won this particular contract. It suggests the awardee was not a U.S.-based small business or a commonly listed large U.S. contractor. Foreign entities undertaking large-scale DoD construction, particularly in overseas operational theaters like Afghanistan, often possess specialized expertise in navigating local regulations, supply chains, and security environments. However, without knowing the specific company, it's impossible to assess their individual track record, past performance on similar projects, or history of compliance and quality.

How did the fixed-price contract type influence the government's risk exposure compared to other contract types?

A fixed-price contract, like the 'DEFINITIVE CONTRACT' with a 'FIXED PRICE' type awarded here, shifts the majority of the cost risk to the contractor. The government agrees to pay a set amount for the defined scope of work, regardless of the contractor's actual costs. This provides budget certainty for the government and incentivizes the contractor to manage costs efficiently. However, it also means the government has less flexibility to make changes to the scope without potentially renegotiating the price. If the contractor underestimated costs or encountered unforeseen issues (e.g., security incidents, material price hikes), they would bear the loss, potentially impacting project quality or completion if the contractor faced financial distress. Conversely, if the contractor was highly efficient, they would realize a higher profit margin.

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: W917PM07R0005

Offers Received: 14

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: $17,138,843

Exercised Options: $17,138,843

Current Obligation: $17,138,843

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline