DoD's $36M Amarra 400 KV Station Project Awarded to Miscellaneous Foreign Awardees

Contract Overview

Contract Amount: $36,097,937 ($36.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-02-21

End Date: 2008-01-24

Contract Duration: 702 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: {PIIN: W91GXY06C0048} CARRY OUT THE ENGINEERING, PROCUREMENT, SUPPLY, CONSTRUCTION 400 KV STATION AMARRA

Plain-Language Summary

Department of Defense obligated $36.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXY06C0048} CARRY OUT THE ENGINEERING, PROCUREMENT, SUPPLY, CONSTRUCTION 400 KV STATION AMARRA Key points: 1. The contract was awarded under a firm-fixed-price structure, indicating a defined scope and cost. 2. Competition was full and open, suggesting a broad search for qualified bidders. 3. The contract duration of 702 days points to a significant, multi-year undertaking. 4. The awardee category 'Miscellaneous Foreign Awardees' warrants further investigation into specific entity. 5. The project involves engineering, procurement, supply, and construction, indicating a comprehensive scope. 6. 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 without specific details on the scope of 'engineering, procurement, supply, and construction' for a 400 KV station in Amarra. The firm-fixed-price nature suggests cost certainty for the government, but the total award amount of $36 million over approximately two years needs to be compared against similar infrastructure projects in the region and of similar technical complexity. Without comparable data on per-unit costs for substation components or construction labor rates in Amarra, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which implies that all responsible sources were permitted to submit a bid. This approach is generally favored for maximizing competition and potentially achieving better pricing. However, the specific number of bidders and the evaluation process are not detailed in the provided data. A high level of competition typically leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving the best possible price and quality by allowing a wide range of potential contractors to bid on the work.

Public Impact

The project directly benefits the energy infrastructure of the Amarra region by establishing a 400 KV station. Services delivered include engineering design, procurement of materials, supply chain management, and construction. The geographic impact is localized to Amarra, likely improving power distribution and reliability in that area. Workforce implications could include the creation of construction and engineering jobs, potentially both local and international.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific contractor identification within 'Miscellaneous Foreign Awardees' hinders due diligence.
The scope of 'engineering, procurement, supply, construction' is broad and may lead to cost overruns if not tightly managed.
Geopolitical risks associated with operating in Amarra could impact project timelines and costs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
The project addresses critical infrastructure needs, potentially enhancing regional stability and economic activity.

Sector Analysis

This contract falls within the broader energy and construction sectors, specifically focusing on electrical infrastructure. The development of a 400 KV station is a significant undertaking, requiring specialized engineering and construction expertise. Comparable spending benchmarks would involve looking at other large-scale power substation projects globally or within similar geopolitical contexts. The market for such projects is often dominated by a few large international engineering and construction firms, making the 'Miscellaneous Foreign Awardees' designation particularly noteworthy.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is likely minimal unless they were involved as subcontractors to the primary awardee. The nature of large-scale infrastructure projects often favors larger, established firms with the capacity to handle complex international operations and significant bonding requirements.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and potentially project management teams. Accountability measures would be tied to the firm-fixed-price contract terms, requiring the contractor to deliver the specified engineering, procurement, supply, and construction services. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be internal. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Infrastructure Projects
Foreign Military Construction Contracts
Electrical Grid Modernization Programs
Energy Infrastructure Development

Risk Flags

Contract awarded to 'Miscellaneous Foreign Awardees' requires further due diligence.
Potential geopolitical and security risks in Amarra.
Complexity of large-scale infrastructure projects can lead to unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXY06C0048} CARRY OUT THE ENGINEERING, PROCUREMENT, SUPPLY, CONSTRUCTION 400 KV STATION AMARRA

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 $36.1 million.

What is the period of performance?

Start: 2006-02-21. End: 2008-01-24.

Who were the specific entities awarded under 'Miscellaneous Foreign Awardees' for this contract, and what is their track record in similar projects?

The provided data aggregates the awardee under the broad category of 'Miscellaneous Foreign Awardees' (CO: MISCELLANEOUS FOREIGN AWARDEES), preventing the identification of specific companies. To assess their track record, a deeper dive into contract-level details or agency procurement records would be necessary. Without this, it's impossible to evaluate their experience with 400 KV stations, engineering, procurement, supply, and construction, especially in potentially challenging environments like Amarra. Their past performance on similar projects, including safety records, adherence to timelines, and budget management, would be crucial for understanding the risk associated with this award.

How does the $36 million award amount compare to the market cost of similar 400 KV station projects in comparable regions?

Benchmarking the $36 million award requires detailed cost breakdowns of similar projects, which are not available in the provided summary. Factors influencing cost include the specific technical requirements of the station, the complexity of the site, local labor and material costs in Amarra, and the geopolitical risk premium. Generally, large-scale substation projects can range from tens to hundreds of millions of dollars depending on these variables. Without access to comparable project data, such as cost per megawatt of capacity or cost per kilometer of transmission line integration, it is difficult to definitively state whether this award represents good or poor value for money.

What are the primary risks associated with executing a large infrastructure project like this in Amarra, and what mitigation strategies were likely employed?

Executing a 400 KV station project in Amarra likely involves significant risks, including political instability, security concerns, logistical challenges in remote areas, potential for corruption, and currency fluctuations. Mitigation strategies would typically involve robust security protocols for personnel and equipment, strong local partnerships, comprehensive risk insurance, contingency planning for supply chain disruptions, and strict adherence to anti-corruption policies. The firm-fixed-price contract structure itself can be a risk mitigation tool for the government by capping costs, but it shifts cost overrun risk to the contractor.

What is the expected impact of this 400 KV station on the local power grid reliability and economic development in Amarra?

A 400 KV station is a critical component of a high-voltage electrical transmission system, designed to carry large amounts of power over long distances. Its construction in Amarra is expected to significantly enhance the reliability and capacity of the local power grid. This could lead to more stable electricity supply, reduced power outages, and the potential to support increased industrial and commercial activity. Improved power infrastructure is often a catalyst for economic development, attracting investment and improving the quality of life for residents by ensuring consistent access to electricity.

Given the contract duration of 702 days (approx. 2 years), what are the potential implications of delays or cost overruns for the Department of the Army?

A contract duration of approximately two years for a project of this magnitude suggests a complex and potentially lengthy execution phase. Delays could stem from various factors, including unforeseen site conditions, supply chain issues, or security incidents. Cost overruns, while theoretically limited by the firm-fixed-price structure, could still occur if scope changes are introduced or if the contractor faces extreme, uninsurable risks. For the Department of the Army, delays could impact operational readiness or strategic objectives reliant on this infrastructure, while cost overruns would necessitate additional funding, potentially straining budgets and requiring justification.

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: 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: $36,097,937

Exercised Options: $36,097,937

Current Obligation: $36,097,937

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline