DoD Awards $72.2M Construction Contract to Fluor Intercontinental for Iraq Projects
Contract Overview
Contract Amount: $72,201,830 ($72.2M)
Contractor: Fluor Intercontinental, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-02-06
End Date: 2014-09-01
Contract Duration: 3,860 days
Daily Burn Rate: $18.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: 200405!000411!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !N!0001 ! !20040206!20050204!130757870!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !6000 FAIRVIEW AT J A JON!CHARLOTTE !NC!28210!00000! !IZ!* !* !IRAQ !+000089996565!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!M! !A!D!20050111!B! ! !A! !A!U!R!2!030!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! !Y!Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $72.2 million to FLUOR INTERCONTINENTAL, INC. for work described as: 200405!000411!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !N!0001 ! !20040206!20050204!130757870!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !6000 FAIRVIEW AT J A JON!CHARLOTTE !NC!28210!00000! !IZ!* !* !IRAQ !+000089996565!N!N!000000000000!Y199!OTHER MISC… Key points: 1. Significant contract value for construction services in a high-risk environment. 2. Fluor Intercontinental, a large established firm, secured this award. 3. Potential risks associated with overseas construction and project execution. 4. Spending falls within the broad construction sector, specifically building construction.
Value Assessment
Rating: good
The contract value of $72.2 million is substantial. Benchmarking against similar large-scale overseas construction projects would be necessary for a precise value assessment, but it appears within a reasonable range for complex, high-risk endeavors.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific nature of overseas construction in a conflict zone may influence the number and competitiveness of bids.
Taxpayer Impact: Taxpayer funds are being utilized for critical infrastructure development and support in a challenging geopolitical region.
Public Impact
Supports military operations and reconstruction efforts in Iraq. Provides employment opportunities for construction workers and related industries. Contributes to the stabilization and rebuilding of infrastructure in a post-conflict zone.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Geopolitical instability in Iraq.
- Logistical challenges of overseas construction.
- Potential for cost overruns in complex projects.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor selected.
- Supports critical national security objectives.
Sector Analysis
This contract falls under the construction sector, specifically commercial and institutional building construction. Spending in this area can fluctuate significantly based on global events and government priorities, particularly in defense and reconstruction efforts.
Small Business Impact
While this contract was awarded to a large business (Fluor Intercontinental), the nature of such large-scale overseas projects often involves subcontracting opportunities for smaller businesses in specialized trades or material supply.
Oversight & Accountability
Oversight would focus on project execution, adherence to timelines and budgets, and ensuring quality of work in a demanding environment. The Department of Defense's contracting oversight mechanisms are crucial here.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geopolitical instability in the operating region.
- Logistical challenges and supply chain risks.
- Potential for cost overruns due to unforeseen circumstances.
- Security risks for personnel and assets.
- Contract type (Cost Plus Award Fee) requires careful monitoring to ensure cost control.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.2 million to FLUOR INTERCONTINENTAL, INC.. 200405!000411!2100!W912ER!TRANSATLANTIC PROGRAM CENTER !W912ER04D0004 !A!N! !N!0001 ! !20040206!20050204!130757870!059220392!006907190!N!FLUOR INTERCONTINENTAL, INC !6000 FAIRVIEW AT J A JON!CHARLOTTE !NC!28210!00000! !IZ!* !* !IRAQ !+000089996565!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !000 !* !236220!E! !5!B!M! !A!D!20050111!B! ! !A! !A!U!R!2!030!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! !Y!Y! ! !0001! !
Who is the contractor on this award?
The obligated recipient is FLUOR INTERCONTINENTAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $72.2 million.
What is the period of performance?
Start: 2004-02-06. End: 2014-09-01.
What specific types of buildings or facilities were constructed under this contract, and how did they align with immediate operational needs in Iraq?
The contract was for 'OTHER MISCELLANEOUS BUILDINGS' and falls under the NAICS code 236220 (Commercial and Institutional Building Construction). While the exact structures aren't detailed, such contracts typically support military bases, logistical hubs, or essential civilian infrastructure, directly aligning with operational and stabilization objectives in Iraq.
What risk mitigation strategies were in place to address the inherent dangers and logistical complexities of construction operations in Iraq during the contract period?
Given the location, robust risk mitigation would likely include stringent security protocols, specialized logistics planning for material and personnel transport, contingency planning for unforeseen events, and potentially higher insurance premiums factored into the contract. The 'COST PLUS AWARD FEE' structure might also incentivize efficient risk management.
How effectively did the 'full and open competition' process ensure competitive pricing for this complex overseas construction project, considering potential barriers to entry?
Full and open competition theoretically maximizes price discovery. However, the unique challenges of operating in Iraq (security, logistics, political climate) could limit the number of truly competitive bidders. The final price reflects not just construction costs but also significant risk premiums and overhead associated with such an environment.
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
Offers Received: 30
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 6000 FAIRVIEW AT J A JON, CHARLOTTE, NC, 28210
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912ER04D0004
IDV Type: IDC
Timeline
Start Date: 2004-02-06
Current End Date: 2014-09-01
Potential End Date: 2014-09-01 00:00:00
Last Modified: 2016-02-19
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