DoD Awards $27.9M for Chamchamal Prison Renovation, Raising Concerns Over Foreign Awardees and Management Consulting

Contract Overview

Contract Amount: $27,891,150 ($27.9M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-10-31

End Date: 2009-03-01

Contract Duration: 487 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GDW08C2001} CHAMCHAMAL PRISON - 3000 BED RENOVATION

Plain-Language Summary

Department of Defense obligated $27.9 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GDW08C2001} CHAMCHAMAL PRISON - 3000 BED RENOVATION Key points: 1. Significant investment in foreign prison infrastructure raises questions about oversight and value. 2. Reliance on 'Miscellaneous Foreign Awardees' suggests limited domestic competition and potential risk. 3. The use of Administrative Management and General Management Consulting Services for a construction project is unusual. 4. Fixed-price contract structure aims to control costs, but the nature of the awardee is a key risk.

Value Assessment

Rating: questionable

The contract's value of $27.9 million for a 3000-bed prison renovation is substantial. Benchmarking is difficult due to the 'Miscellaneous Foreign Awardees' designation and the nature of the services procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as full and open competition, the award to 'Miscellaneous Foreign Awardees' suggests a lack of domestic bidders or a specific targeting of foreign entities. This limits price discovery from the broader U.S. market.

Taxpayer Impact: Taxpayer funds are being spent on a large-scale renovation project in a foreign country, with the ultimate benefit and cost-effectiveness needing close scrutiny due to the awardee's nature.

Public Impact

Potential for funds to support foreign entities over U.S. businesses. Questions regarding the quality control and oversight of construction in a foreign jurisdiction. Transparency concerns surrounding the selection of 'Miscellaneous Foreign Awardees' for a significant project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Awardee is 'Miscellaneous Foreign Awardees', lacking specific identification.
Procurement is for prison renovation using management consulting codes.
Project location is a foreign country, increasing oversight complexity.
Small business participation is explicitly zero.

Positive Signals

Contract is fixed-price, providing cost certainty.
Competition was advertised as full and open.

Sector Analysis

The procurement falls under administrative and general management consulting services (NAICS 541611), which is atypical for a large-scale physical renovation of a prison. Benchmarking for such a project is difficult without clearer service definitions and awardee specifics.

Small Business Impact

This contract explicitly states no small business participation (ss: false, sb: false). The awardee is also not a small business, and the nature of 'Miscellaneous Foreign Awardees' further excludes domestic small businesses.

Oversight & Accountability

Oversight of a renovation project managed by 'Miscellaneous Foreign Awardees' in a foreign country presents significant challenges. The Department of Defense and Army will need robust mechanisms to ensure quality, adherence to specifications, and proper use of funds.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Awardee is 'Miscellaneous Foreign Awardees', lacking specific identification.
Unusual NAICS code (541611) for a prison renovation project.
Project is located in a foreign country, increasing oversight complexity.
No small business participation.
Potential for funds to be diverted or misused due to foreign awardee status.
Lack of clear benchmarks for project value and cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GDW08C2001} CHAMCHAMAL PRISON - 3000 BED RENOVATION

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 $27.9 million.

What is the period of performance?

Start: 2007-10-31. End: 2009-03-01.

What is the specific justification for awarding a prison renovation contract to 'Miscellaneous Foreign Awardees' under management consulting codes, and how does this ensure project value?

The justification for awarding to 'Miscellaneous Foreign Awardees' under NAICS 541611 for a prison renovation is unclear from the provided data. Typically, construction projects utilize different NAICS codes and award to specialized firms. This unusual pairing raises questions about whether the 'consulting' aspect is primary, or if it's a misclassification, potentially impacting project oversight, cost control, and the ability to verify the quality and suitability of the work performed.

What are the primary risks associated with awarding a $27.9 million contract to unidentified foreign entities for infrastructure development in a potentially unstable region?

Key risks include lack of transparency in awardee vetting, potential for corruption or mismanagement of funds, difficulties in enforcing contract terms and quality standards, geopolitical instability impacting project continuity, and challenges in dispute resolution. The absence of specific awardee information hinders due diligence and increases the likelihood of encountering unforeseen problems, potentially leading to cost overruns or substandard infrastructure.

How will the Department of the Army ensure effective oversight and accountability for the Chamchamal Prison renovation, given the foreign location and the nature of the awardees?

Effective oversight will likely require a dedicated on-site presence with personnel experienced in construction management and contract compliance in foreign environments. The Army may need to rely on third-party inspectors and auditors, establish clear communication channels and reporting requirements, and implement rigorous quality assurance protocols. Regular progress reviews and site visits, coupled with strong contract administration, will be crucial to mitigate risks and ensure the project meets its objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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: $27,891,150

Exercised Options: $27,891,150

Current Obligation: $27,891,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline