Dod's $17.4M ANP Khost Province PKG I Contract Awarded to Miscellaneous Foreign Awardees for Construction

Contract Overview

Contract Amount: $17,446,858 ($17.4M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2008-06-06

End Date: 2013-07-01

Contract Duration: 1,851 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ANP KHOST PROVINCE PKG I

Plain-Language Summary

Department of Defense obligated $17.4 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: ANP KHOST PROVINCE PKG I Key points: 1. The contract value of $17.4 million represents a significant investment in infrastructure development. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The duration of 1851 days indicates a long-term project with substantial resource commitment. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The project falls under Commercial and Institutional Building Construction, a key sector for development. 6. The awarding agency is the Department of Defense, highlighting its role in overseas construction.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and foreign awardee. However, the $17.4 million expenditure over nearly five years suggests a substantial project. Without comparable projects or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm fixed-price structure implies that the contractor bore the risk of cost overruns, which can be a positive indicator if the project was completed successfully within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources were initially excluded. The number of offers received (11) suggests a reasonable level of interest. This type of competition aims to ensure fair pricing and access to a broad range of potential contractors, though the exclusion of specific sources warrants further investigation into the rationale.

Taxpayer Impact: The open competition, despite exclusions, likely contributed to competitive pricing for taxpayers. The inclusion of multiple bidders helps ensure that the government is not overpaying for the construction services.

Public Impact

The primary beneficiaries are likely the military forces and personnel operating in Khost Province, Afghanistan, through improved facilities. The services delivered include commercial and institutional building construction, essential for operational support and infrastructure. The geographic impact is concentrated in Khost Province, Afghanistan, directly supporting U.S. military operations in the region. Workforce implications would include employment opportunities for local labor and potentially foreign workers involved in the construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'exclusion of sources' in the competition process.
Foreign awardee raises questions about oversight, compliance, and potential currency fluctuation risks.
The long duration of the contract could lead to scope creep or unforeseen challenges.
Limited public information on the specific types of buildings constructed and their strategic importance.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified bidders.
Firm Fixed Price contract type shifts cost risk to the contractor.
The substantial number of offers (11) suggests a competitive environment.
The contract addresses critical infrastructure needs in a challenging operational environment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital component of infrastructure development globally. The market for such services, especially in support of government and military operations, is substantial. This specific award is likely part of broader efforts to establish and maintain operational bases and facilities in regions of strategic importance. Comparable spending benchmarks would typically involve other large-scale construction projects in similar geopolitical contexts.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the nature and location of the project, it is unlikely that significant subcontracting opportunities for U.S. small businesses were a primary focus. The award to foreign entities further reduces the direct impact on the U.S. small business ecosystem for this particular contract.

Oversight & Accountability

Oversight mechanisms for this contract would primarily fall under the Department of Defense's contracting and inspection procedures. Accountability measures would be tied to the firm fixed-price contract terms and performance requirements. Transparency is limited due to the nature of the award and the operational context; detailed project status and financial oversight information may not be publicly available.

Related Government Programs

Afghanistan Infrastructure Projects
Department of Defense Construction Contracts
Foreign Military Construction Support
Base Realignment and Closure (BRAC) Program (analogous in scope)

Risk Flags

Potential security risks associated with foreign construction.
Uncertainty regarding the specific 'excluded sources' in competition.
Limited transparency on foreign awardee performance.
Logistical challenges in Khost Province.
Long project duration increases exposure to changing conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to MISCELLANEOUS FOREIGN AWARDEES. ANP KHOST PROVINCE PKG I

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 $17.4 million.

What is the period of performance?

Start: 2008-06-06. End: 2013-07-01.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process is not detailed in the provided data. Typically, such exclusions might be based on security concerns, inability to meet specific technical requirements, past performance issues, or geographic limitations that make certain contractors unsuitable for a particular project. In the context of overseas construction for the Department of Defense, security clearances, logistical capabilities, and experience in high-risk environments are often critical factors. Without further documentation, it is impossible to determine the exact reasons for exclusion in this instance, but it suggests a deliberate narrowing of the field based on predefined criteria.

How does the $17.4 million contract value compare to similar construction projects undertaken by the DoD in Afghanistan during the same period?

Comparing the $17.4 million value of the ANP KHOST PROVINCE PKG I contract to similar DoD construction projects in Afghanistan during the 2008-2013 period requires access to a broader dataset of contracts. However, large-scale construction projects in operational theaters often range from millions to tens or even hundreds of millions of dollars, depending on the scope (e.g., building entire bases versus individual facilities). This $17.4 million contract appears to be a significant, but not exceptionally large, investment for a specific package of construction work. Its value is consistent with projects focused on developing or improving specific infrastructure elements within a province, rather than overarching base construction.

What were the key performance indicators (KPIs) or deliverables for this construction contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for the ANP KHOST PROVINCE PKG I contract. However, for construction contracts of this nature, typical KPIs would include adherence to project timelines, quality of workmanship, compliance with architectural and engineering specifications, safety standards, and budget management (though the latter is largely contractor risk under a Firm Fixed Price contract). Performance measurement would likely involve regular site inspections by government representatives (e.g., contracting officers' representatives - CORs), progress reports from the contractor, milestone certifications, and final acceptance testing. Failure to meet these would typically result in contractual remedies.

What is the track record of 'MISCELLANEOUS FOREIGN AWARDEES' as a contractor for the Department of Defense?

The designation 'MISCELLANEOUS FOREIGN AWARDEES' is not a specific contractor entity but rather a categorization used in contract databases to group awards made to foreign entities that may not have a single, consistent name or may be awarded through specific mechanisms for foreign participation. Therefore, it is not possible to assess the track record of 'MISCELLANEOUS FOREIGN AWARDEES' as a singular entity. Instead, one would need to examine the specific foreign entities that received awards under this designation, their past performance on DoD contracts, and their compliance history. This categorization suggests a need for more granular data to evaluate contractor reliability.

Given the 1851-day duration, what are the potential risks associated with long-term construction projects in a foreign, potentially unstable, environment?

Long-term construction projects like ANP KHOST PROVINCE PKG I (1851 days) in foreign, potentially unstable environments carry significant risks. These include security threats to personnel and equipment, which can cause delays and increase costs. Political instability can lead to changes in regulations, access restrictions, or even project termination. Economic volatility, including currency fluctuations, can impact material costs and contractor profitability, even under a fixed-price contract if not adequately hedged. Furthermore, logistical challenges in remote or conflict-affected areas can complicate the supply chain for materials and labor. Lastly, unforeseen geological or environmental conditions can arise over extended periods, requiring design modifications and potentially leading to disputes.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM08R0046

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,446,858

Exercised Options: $17,446,858

Current Obligation: $17,446,858

Contract Characteristics

Cost or Pricing Data: NO

Timeline