Defense awards $615M construction contract to Fluor Intercontinental for Iraq facilities
Contract Overview
Contract Amount: $334,376,627 ($334.4M)
Contractor: Fluor Intercontinental, Inc
Awarding Agency: Department of Defense
Start Date: 2003-09-19
End Date: 2009-12-31
Contract Duration: 2,295 days
Daily Burn Rate: $145.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: 200312!001241!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7803D0005 !A!N! !N!0006 !20030919!20040331!615422995!615422995!006907190!N!FLUOR INTERCONTINENTAL, INC !ONE ENTERPRISE DRIVE !ALISO VIEJO !CA!92656!* !* !IZ!* !* !IRAQ !+000000460000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !236220!E! !5!B!M! !A!D!20040331!B! ! !N!A!D!N!U!1!001!N!2A!Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y!Y! ! !0001! !
Plain-Language Summary
Department of Defense obligated $334.4 million to FLUOR INTERCONTINENTAL, INC for work described as: 200312!001241!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7803D0005 !A!N! !N!0006 !20030919!20040331!615422995!615422995!006907190!N!FLUOR INTERCONTINENTAL, INC !ONE ENTERPRISE DRIVE !ALISO VIEJO !CA!92656!* !* !IZ!* !* … Key points: 1. The contract value is substantial at $615.4 million, indicating a significant project scope. 2. Fluor Intercontinental, Inc. is a major player in the construction sector, suggesting established capabilities. 3. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' raising questions about the extent of competition. 4. The sector is Construction, specifically 'Other Miscellaneous Buildings,' which is critical for supporting deployed forces.
Value Assessment
Rating: fair
The contract value of $615.4 million is a significant investment. Benchmarking against similar large-scale construction projects in contingency environments is necessary to assess its reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'Full and Open Competition After Exclusion of Sources' method suggests that while competition was sought, certain sources were excluded, potentially limiting price discovery and the number of bidders.
Taxpayer Impact: The substantial contract value means taxpayer funds are significantly allocated to this project, with potential for cost savings if competition were broader.
Public Impact
Supports military operations and personnel in Iraq through facility construction. Potential for job creation and economic activity related to the construction project. Highlights the ongoing need for infrastructure development in deployed regions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Geopolitical risks associated with operating in Iraq.
- Contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not managed tightly.
Positive Signals
- Addresses critical infrastructure needs for defense operations.
- Awarded to a known entity with experience in large projects.
Sector Analysis
This contract falls within the Construction sector, specifically for 'Other Miscellaneous Buildings.' Spending in this area is often driven by operational needs and geopolitical situations, with benchmarks varying widely based on location and project complexity.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large contracts like this often involve prime contractors who may then subcontract portions, but direct small business participation is not evident from this record.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts, especially in complex environments like Iraq. The Department of Defense and the Army are responsible for ensuring efficient execution and preventing waste.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may have led to higher costs.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Operating environment in Iraq presents significant logistical and security challenges.
- Lack of clear small business participation.
- Potential for scope creep in construction projects.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $334.4 million to FLUOR INTERCONTINENTAL, INC. 200312!001241!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7803D0005 !A!N! !N!0006 !20030919!20040331!615422995!615422995!006907190!N!FLUOR INTERCONTINENTAL, INC !ONE ENTERPRISE DRIVE !ALISO VIEJO !CA!92656!* !* !IZ!* !* !IRAQ !+000000460000!N!N!000000000000!Y199!OTHER MISCELLANEOUS BUILDINGS !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !236220!E! !5!B!M! !A!D!20040331!B
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 $334.4 million.
What is the period of performance?
Start: 2003-09-19. End: 2009-12-31.
What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process?
The exclusion of sources typically occurs when specific technical capabilities, security clearances, or past performance are required, and only a limited number of contractors meet these stringent criteria. Understanding these criteria is vital to determine if the exclusion was justified or if it unduly restricted competition, potentially impacting the final price paid by taxpayers.
How effectively were cost controls implemented given the Cost Plus Fixed Fee contract type in a high-risk environment?
Cost Plus Fixed Fee contracts, while allowing flexibility, require robust oversight to prevent cost escalation. In an environment like Iraq, factors such as supply chain disruptions, security costs, and unforeseen site conditions can drive up expenses. Effective cost controls would involve rigorous monitoring of expenditures, clear performance metrics, and proactive risk management to ensure the fixed fee remains appropriate for the work performed.
What is the long-term strategic value of these constructed facilities beyond immediate operational support?
The long-term value depends on the nature of the facilities and future military or diplomatic presence. If they are designed for enduring infrastructure, they could support sustained operations or facilitate transitions. However, if they are temporary or become obsolete, their strategic value diminishes, representing a potential sunk cost. Assessing their adaptability and future utility is key.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: ONE ENTERPRISE DRIVE, ALISO VIEJO, CA, 92656
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA7803D0005
IDV Type: IDC
Timeline
Start Date: 2003-09-19
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2015-03-12
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