DOD Awards $40.5M for Kabul Military Training Center Barracks Construction

Contract Overview

Contract Amount: $40,539,589 ($40.5M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-08

End Date: 2010-06-29

Contract Duration: 1,329 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: CONSTRUCT KABUL MILITARY TRAINING CENTER STUDENT BARRACKS...

Plain-Language Summary

Department of Defense obligated $40.5 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: CONSTRUCT KABUL MILITARY TRAINING CENTER STUDENT BARRACKS... Key points: 1. Contract awarded to WSP USA Environment & Infrastructure Inc. for construction services. 2. The project involved building student barracks at the Kabul Military Training Center. 3. This contract falls under the Commercial and Institutional Building Construction sector. 4. The award was made by the Department of the Air Force. 5. The contract duration was 1329 days.

Value Assessment

Rating: fair

The contract was a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. The final award amount of $40.5M is substantial for a barracks construction project, and its value needs to be assessed against the specific requirements and conditions in Afghanistan during the contract period.

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 remote and complex operating environment in Afghanistan may have influenced the final pricing and the number of competitive bids received.

Taxpayer Impact: Taxpayer funds were used for this significant construction project in a challenging overseas location. The cost-plus contract type necessitates close oversight to ensure efficiency and prevent cost overruns.

Public Impact

Supports U.S. military training initiatives abroad by providing essential infrastructure. Contributes to the development of Afghan security forces through improved training facilities. Represents a significant investment in infrastructure in a high-risk, complex environment. The project's success is tied to the broader U.S. mission in Afghanistan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type can lead to cost overruns.
Construction in a conflict zone presents inherent risks.
Limited visibility into final cost efficiency due to contract type and location.
Small business participation was not indicated.

Positive Signals

Awarded under full and open competition.
Addresses critical infrastructure needs for training.
Long contract duration allowed for phased execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense purposes can fluctuate based on geopolitical needs and infrastructure development requirements in various theaters of operation.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor, WSP USA Environment & Infrastructure Inc., likely handled the majority of the work or subcontracted to larger entities.

Oversight & Accountability

Given the Cost Plus Fixed Fee structure and the challenging overseas location, robust oversight by the Department of the Air Force was crucial to manage costs, ensure quality, and verify the necessity of expenditures throughout the contract's duration.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost-plus contract type.
Construction in a conflict zone.
Potential for cost overruns.
Logistical complexities.
Security risks.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. CONSTRUCT KABUL MILITARY TRAINING CENTER STUDENT BARRACKS...

Who is the contractor on this award?

The obligated recipient is WSP USA ENVIRONMENT & INFRASTRUCTURE INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $40.5 million.

What is the period of performance?

Start: 2006-11-08. End: 2010-06-29.

What was the final cost efficiency of the Cost Plus Fixed Fee contract, considering the complexities of construction in Afghanistan?

Determining the precise cost efficiency of this Cost Plus Fixed Fee contract is challenging without detailed post-award financial reviews. While the fixed fee provides some cost control, the 'cost' portion allows for reimbursement of actual expenses. The complexities of operating in Afghanistan, including logistics, security, and potential unforeseen issues, could have significantly impacted actual costs. Effective oversight would have been critical to scrutinize these costs and ensure they were reasonable and allocable to the contract's objectives.

What specific risks related to security and logistics in Afghanistan impacted the project's execution and final cost?

Construction in Afghanistan presented significant security risks, including potential attacks on personnel and facilities, and complex logistical challenges related to transporting materials and equipment. These factors likely increased operational costs due to the need for enhanced security measures, specialized transportation, and potentially higher labor rates. Unforeseen political or security developments could have also led to delays and cost escalations, requiring adaptive management strategies.

How effectively did the Department of the Air Force ensure the barracks met the long-term training needs of the Kabul Military Training Center?

The effectiveness of the barracks in meeting long-term training needs depends on factors beyond the initial construction, such as the quality of materials, adherence to specifications, and the evolving requirements of the training center. The contract's duration and the 'full and open competition' suggest an intent to meet defined needs. However, assessing long-term effectiveness would require evaluating the facility's condition, usability, and continued relevance to the Afghan security forces' mission post-construction.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 20

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: ONE PLYMOUTH MEETING STE 8, PLYMOUTH MEETI, PA, 19462

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,539,589

Exercised Options: $40,539,589

Current Obligation: $40,539,589

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8507

IDV Type: IDC

Timeline