DoD awards $23.7M for construction services across 4 sites in Afghanistan

Contract Overview

Contract Amount: $23,716,432 ($23.7M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2008-06-28

End Date: 2012-08-30

Contract Duration: 1,524 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ANP BP CO LAKARAY KANDAHAR FOR 4 SITES

Plain-Language Summary

Department of Defense obligated $23.7 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: ANP BP CO LAKARAY KANDAHAR FOR 4 SITES Key points: 1. Contract awarded for construction services, indicating a need for infrastructure development. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract (1524 days) suggests a significant, long-term project. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The awardee is listed under 'Miscellaneous Foreign Awardees', requiring further due diligence. 6. The contract falls under the 'Commercial and Institutional Building Construction' category.

Value Assessment

Rating: fair

The contract value of $23.7 million for construction services across four sites in Afghanistan appears to be within a reasonable range for such a project, considering the logistical complexities and security risks inherent in the operating environment. Benchmarking against similar construction contracts in conflict zones is challenging due to unique cost drivers. However, the firm fixed-price structure suggests an attempt to control costs upfront. Further analysis would require detailed breakdowns of the construction scope and comparison to similar projects executed by other agencies or contractors in comparable regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. This indicates a robust bidding process and suggests that the government sought to maximize competition to obtain the best value. The presence of multiple bidders generally leads to more competitive pricing and a wider range of technical solutions. The number of bids received (12) is a positive sign for price discovery and indicates significant interest from the market in this type of contract.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in taxpayer savings by driving down the price compared to a sole-source award. The open competition ensured that multiple companies had the opportunity to bid, fostering a market that rewards efficiency and cost-effectiveness.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will gain improved facilities at four operational sites. Services delivered include commercial and institutional building construction, essential for maintaining and enhancing infrastructure. The geographic impact is concentrated in Afghanistan, supporting military operations and potentially local economic activity through construction jobs. Workforce implications include the potential for employment of local labor and specialized construction personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact project timelines, costs, and security.
Logistical challenges in delivering materials and personnel to remote sites may arise.
The 'Miscellaneous Foreign Awardees' designation warrants scrutiny regarding contractor vetting and past performance.
Potential for cost overruns if unforeseen site conditions or security incidents occur, despite fixed-price contract.

Positive Signals

Full and open competition suggests a well-defined requirement and a competitive market response.
The firm fixed-price contract type provides cost certainty for the government.
Multiple bidders indicate market interest and potential for quality solutions.
The contract duration suggests a commitment to long-term infrastructure improvement.

Sector Analysis

This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for construction services in support of government operations, particularly in overseas contingency operations, is significant. This contract represents a portion of the Department of Defense's overall spending on infrastructure development and facility maintenance in support of its global mission. Comparable spending benchmarks would typically involve analyzing other large-scale construction projects awarded by the DoD or other federal agencies in similar challenging environments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The awardee is listed as 'Miscellaneous Foreign Awardees,' suggesting it is likely not a U.S. small business. This means the direct impact on the U.S. small business ecosystem for this specific award is likely minimal, though the prime contractor may engage subcontractors not detailed in this summary.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Army. Given the location, there may be specific oversight mechanisms related to overseas operations and security. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Afghanistan Infrastructure Projects
Department of Defense Construction Contracts
Foreign Military Construction
Contingency Operations Support Contracts

Risk Flags

Geopolitical Risk
Logistical Complexity
Contractor Vetting
Security Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to MISCELLANEOUS FOREIGN AWARDEES. ANP BP CO LAKARAY KANDAHAR FOR 4 SITES

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 $23.7 million.

What is the period of performance?

Start: 2008-06-28. End: 2012-08-30.

What is the track record of 'Miscellaneous Foreign Awardees' in executing similar construction projects for the Department of Defense?

The designation 'Miscellaneous Foreign Awardees' is broad and lacks specific identifying information about the contractor's identity or past performance. To assess the contractor's track record, one would need to identify the specific entity awarded the contract and then research their history with the Department of Defense and other government agencies. This would involve reviewing past performance evaluations, any documented disputes or contract terminations, and their experience with projects of similar scope, complexity, and geographic location. Without this specific information, it is difficult to gauge their reliability and capability to successfully execute this $23.7 million construction contract in Afghanistan.

How does the per-square-foot construction cost of this contract compare to similar projects in Afghanistan or other high-risk environments?

To compare the per-square-foot construction cost, detailed architectural plans and scope of work for the four sites are required to determine the total square footage constructed. Additionally, information on the types of facilities being built (e.g., barracks, administrative buildings, hangars) is necessary for a meaningful comparison. Given the inherent security risks, logistical complexities, and potential for higher material and labor costs in Afghanistan, construction costs are expected to be significantly higher than in the continental United States. Benchmarking would involve identifying similar DoD construction contracts awarded in Afghanistan or comparable theaters of operation during the same period (2008-2012) and analyzing their cost per square foot, adjusting for inflation and specific project characteristics.

What are the primary risks associated with executing construction projects in Afghanistan for the Department of Defense, and how were they mitigated in this contract?

Key risks in Afghanistan construction include security threats to personnel and equipment, political instability, corruption, logistical challenges in supply chains, and potential for unforeseen site conditions. Mitigation strategies in this contract likely included robust security protocols, detailed site surveys, strong contract management, and potentially risk-sharing clauses within the firm fixed-price agreement. The firm fixed-price nature itself aims to transfer some cost overrun risk to the contractor. However, the effectiveness of these mitigations would depend on the specific security environment at each of the four sites and the contractor's operational capabilities.

What was the specific nature of the 'Commercial and Institutional Building Construction' services provided under this contract?

The 'Commercial and Institutional Building Construction' designation is broad and encompasses a wide range of activities. For this contract, it likely involved the design, procurement of materials, labor, and construction of new buildings or renovation of existing structures intended for non-residential use. This could include administrative offices, barracks, dining facilities, workshops, storage facilities, or other essential infrastructure required to support military operations. The specific types of buildings and their intended functions would dictate the complexity, materials, and specialized requirements of the construction services rendered across the four sites.

How does the $23.7 million contract value compare to the total DoD spending on construction in Afghanistan during the contract period (2008-2012)?

The Department of Defense spent hundreds of billions of dollars in Afghanistan between 2008 and 2012 on a wide array of services, including construction. This $23.7 million contract represents a relatively small fraction of the overall DoD expenditure in the region during that period. To provide a precise comparison, one would need to aggregate all DoD construction contracts awarded for Afghanistan within those years and compare this specific award's value as a percentage. However, it is safe to assume that this contract was one of many contributing to the vast infrastructure development and support efforts undertaken by the U.S. military in the country.

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: W917PM08R0075

Offers Received: 12

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: $24,042,362

Exercised Options: $23,716,432

Current Obligation: $23,716,432

Contract Characteristics

Cost or Pricing Data: NO

Timeline