DoD's $33M contract for children's hospital services in Iraq shows mixed value and limited competition

Contract Overview

Contract Amount: $33,056,830 ($33.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2006-09-30

End Date: 2008-07-17

Contract Duration: 656 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GXZ06C0023} BASRA CHILDRENS HOSPITAL

Plain-Language Summary

Department of Defense obligated $33.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GXZ06C0023} BASRA CHILDRENS HOSPITAL Key points: 1. Contract value of $33M for administrative and management consulting services. 2. Awarded under full and open competition, but only one bid was received. 3. Performance period spanned nearly two years, indicating a medium-term engagement. 4. The contract was for services related to a children's hospital, suggesting a critical humanitarian or support function. 5. The primary contractor is listed as 'Miscellaneous Foreign Awardees', raising questions about oversight and local capacity. 6. Fixed-price contract type suggests cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and foreign awardee. The fixed-price structure provides some cost certainty. However, with only one bid received under full and open competition, it's difficult to definitively assess if the pricing reflects optimal value for money. The absence of competitive pressure could have led to a higher price than might have been achieved with multiple offers. Further analysis would require understanding the specific services rendered and the prevailing market rates for similar specialized support in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. However, the fact that only one bid was received is a significant concern. This lack of robust competition limits the government's ability to compare offers and potentially negotiate a better price. It suggests that either the market for these specific services in the award location is very limited, or there were barriers to entry that discouraged other potential bidders.

Taxpayer Impact: A single bid under full and open competition means taxpayers may not have benefited from the most competitive pricing. The government missed an opportunity to leverage multiple offers to drive down costs and ensure the best possible value.

Public Impact

Beneficiaries include children receiving care at the Basra Children's Hospital in Iraq. Services delivered likely involved administrative and management support to ensure the hospital's operational efficiency. Geographic impact is concentrated in Basra, Iraq, a region with significant post-conflict recovery needs. Workforce implications could involve the training or support of local healthcare administrators and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) raises concerns about price reasonableness.
Foreign awardee status may complicate oversight and accountability.
Lack of detailed service description makes it hard to assess performance effectiveness.
Contract duration and value suggest a significant, potentially critical, support role.

Positive Signals

Awarded under full and open competition, theoretically allowing broad participation.
Fixed-price contract type offers cost predictability.
Services provided to a children's hospital address a critical humanitarian need.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of services aimed at improving organizational efficiency and management. The market size for such services globally is substantial, but contracts in post-conflict zones or for specialized humanitarian support are niche. Comparable spending benchmarks are difficult to establish without more specific details on the services provided and the geographic context.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The awardee is listed as 'Miscellaneous Foreign Awardees,' suggesting the primary contractor is not a U.S. small business. This contract likely had minimal direct impact on the U.S. small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. Given the foreign awardee and the nature of the services, robust oversight would be critical to ensure proper performance and prevent misuse of funds. Accountability would likely fall under the Department of the Army's contracting command responsible for operations in that region. Transparency is limited by the lack of detailed performance reports or public justifications for the single bid.

Related Government Programs

Department of Defense Contracts in Iraq
Healthcare Support Services
Administrative and Management Consulting Services
Foreign Military Sales Support

Risk Flags

Limited competition
Foreign awardee
Lack of detailed service description
Potential for cost overruns if scope is poorly defined

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GXZ06C0023} BASRA CHILDRENS HOSPITAL

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 $33.1 million.

What is the period of performance?

Start: 2006-09-30. End: 2008-07-17.

What specific administrative and management consulting services were provided under this contract to the Basra Children's Hospital?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611). However, the specific nature of these services for the Basra Children's Hospital is not detailed. It could range from financial management, human resources, operational planning, supply chain management, to IT system implementation or general organizational efficiency improvements. Without further documentation, the exact scope of work remains unclear, making it difficult to assess the effectiveness or necessity of the services rendered.

How does the $33 million contract value compare to similar contracts for hospital support services in post-conflict regions?

Direct comparison of this $33 million contract to similar contracts is challenging due to the unique context (Basra Children's Hospital, Iraq) and the broad category of 'Administrative Management and General Management Consulting Services.' Contracts for direct medical services or infrastructure development in such regions can vary widely in cost. However, for a nearly two-year engagement providing essential management support to a critical facility like a children's hospital, $33 million might be considered a significant investment. The lack of competitive bids, however, prevents a definitive assessment of whether this represents optimal value for money compared to what could have been achieved in a more competitive environment.

What are the potential risks associated with awarding a contract to 'Miscellaneous Foreign Awardees' for critical support services?

Awarding contracts to 'Miscellaneous Foreign Awardees' can introduce several risks. These include challenges in vetting the contractor's legitimacy and capacity, difficulties in enforcing contract terms and quality standards, potential for corruption or fraud, and complexities in legal recourse if disputes arise. Furthermore, ensuring compliance with U.S. government regulations and ethical standards can be more challenging. For critical services like supporting a children's hospital, these risks are amplified, potentially impacting patient care and the effective use of taxpayer funds. Robust oversight and clear contractual stipulations are essential to mitigate these risks.

Given the fixed-price contract type, what does this imply about the government's risk and the contractor's incentive?

A Firm Fixed Price (FFP) contract type generally places the majority of the cost risk on the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the government, this provides cost certainty and predictability, making budgeting easier. The contractor has a strong incentive to control costs and work efficiently to maximize their profit margin. However, if the scope of work is not clearly defined, or if unforeseen issues arise, the contractor might cut corners on quality or performance to stay within budget, which could be a risk for the government.

What does the fact that only one bid was received under 'full and open competition' suggest about the market for these services in Iraq?

Receiving only one bid under a 'full and open competition' solicitation suggests a highly constrained market for the specific services required at the Basra Children's Hospital in Iraq. This could be due to several factors: the specialized nature of the consulting services, the geographic location (potentially high-risk or difficult to access), limited availability of qualified foreign or local entities capable of performing the work, or perhaps restrictive requirements in the solicitation that inadvertently limited the pool of potential bidders. It indicates a lack of robust competition, which typically leads to higher prices and potentially less innovation.

What is the historical spending pattern for administrative and management consulting services by the Department of the Army in similar regions?

Analyzing historical spending patterns for administrative and management consulting services by the Department of the Army in similar regions requires access to comprehensive contract databases. Without specific data for this contract (PIIN W91GXZ06C0023), it's impossible to provide a precise historical context. However, the Department of Defense, including the Army, has historically spent significant amounts on consulting services, particularly in support of overseas operations, logistics, and infrastructure development in regions like Iraq and Afghanistan. The value of $33 million for a two-year engagement is substantial and would warrant comparison with other similar support contracts awarded during that period to assess its relative scale and cost-effectiveness.

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: $33,056,830

Exercised Options: $33,056,830

Current Obligation: $33,056,830

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline