DoD's $25.5M Industrial Building Construction Contract Awarded to Foreign Entities

Contract Overview

Contract Amount: $25,465,651 ($25.5M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2009-08-28

End Date: 2013-03-31

Contract Duration: 1,311 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CSB MES CONSTRUCTION

Plain-Language Summary

Department of Defense obligated $25.5 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: CSB MES CONSTRUCTION Key points: 1. The contract value is $25.5 million, awarded by the Department of Defense. 2. Competition was full and open, indicating a broad search for qualified bidders. 3. The award was made to miscellaneous foreign awardees, raising potential oversight concerns. 4. The sector is Industrial Building Construction, a critical component of infrastructure development.

Value Assessment

Rating: fair

The contract value of $25.5 million for industrial building construction appears reasonable given the duration and scope. Benchmarking against similar large-scale construction projects is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust process for discovering the best value. However, the award to 'miscellaneous foreign awardees' warrants further scrutiny regarding price discovery and potential cost efficiencies.

Taxpayer Impact: Taxpayer funds were used for this contract. The impact depends on whether the competitive process ensured the best possible price and quality for the services rendered.

Public Impact

Award to foreign entities may impact local job creation and economic benefits. The duration of the contract (2009-2013) suggests a long-term infrastructure project. The specific nature of the industrial building construction is not detailed, limiting public understanding of the project's purpose.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Award to foreign entities
  • Lack of specific small business participation noted

Positive Signals

  • Full and open competition utilized
  • Firm fixed price contract type

Sector Analysis

Industrial building construction is a significant part of the defense sector's infrastructure needs. Spending in this area can fluctuate based on geopolitical needs and modernization efforts. Benchmarks are highly project-specific.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss=false, sb=false). This suggests the contract was likely too large or specialized for typical small business involvement.

Oversight & Accountability

Oversight of contracts awarded to foreign entities requires robust mechanisms to ensure compliance, quality, and proper use of funds. The Department of Defense has established procedures, but the effectiveness of oversight in this specific case is not detailed.

Related Government Programs

  • Industrial Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Award to foreign entities
  • Lack of specific details on construction scope
  • Potential for geopolitical risks with foreign awardees
  • Limited insight into price discovery effectiveness

Tags

industrial-building-construction, department-of-defense, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to MISCELLANEOUS FOREIGN AWARDEES. CSB MES CONSTRUCTION

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 $25.5 million.

What is the period of performance?

Start: 2009-08-28. End: 2013-03-31.

What specific industrial facilities were constructed or improved under this contract, and how did their completion align with DoD's strategic infrastructure goals?

The provided data lacks specifics on the exact nature of the industrial facilities. Understanding the project's scope, such as whether it involved manufacturing plants, storage depots, or research facilities, is crucial. Alignment with strategic goals would depend on the type of facility and its contribution to operational readiness or technological advancement.

What were the key factors that led to the award being made to 'miscellaneous foreign awardees' instead of domestic firms, and were there any cost savings realized?

The decision to award to foreign entities under full and open competition could stem from specialized expertise, unique capabilities, or potentially more competitive pricing offered by these firms. Without detailed bid analysis, it's impossible to confirm cost savings. However, reliance on foreign contractors can introduce geopolitical risks and logistical complexities.

How was the 'firm fixed price' contract structure managed to ensure value for money, especially given the long duration and potential for unforeseen challenges in construction projects?

A firm fixed price contract aims to transfer risk to the contractor, providing cost certainty. For a long-duration project, effective management would involve rigorous contract oversight, clear performance metrics, and proactive risk mitigation strategies to address potential cost overruns or delays not covered by the fixed price.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionIndustrial Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM09R0070

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, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,465,651

Exercised Options: $25,465,651

Current Obligation: $25,465,651

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2009-08-28

Current End Date: 2013-03-31

Potential End Date: 2013-03-31 00:00:00

Last Modified: 2014-04-10

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