DoD's $14.6M Afghanistan construction contract awarded to Weston Solutions Inc. for new mission facilities
Contract Overview
Contract Amount: $14,632,334 ($14.6M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2008-07-25
End Date: 2011-03-05
Contract Duration: 953 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: NEW MISSION FACILITIES AT ANA GARRISON, KANDAHAR, AFGHANISTAN
Place of Performance
Location: WEST CHESTER, CHESTER County, PENNSYLVANIA, 19380
Plain-Language Summary
Department of Defense obligated $14.6 million to WESTON SOLUTIONS INC for work described as: NEW MISSION FACILITIES AT ANA GARRISON, KANDAHAR, AFGHANISTAN Key points: 1. The contract's fixed-fee structure, while common, requires careful monitoring to ensure cost control. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (953 days) indicates a significant project scope. 4. The project's location in Afghanistan presents inherent logistical and security risks. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded in 2008, with performance concluding in 2011, providing historical data for analysis.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specific location and the nature of wartime construction. The Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed diligently. Without comparable projects in similar high-risk environments, assessing the precise value-for-money is difficult. However, the fixed fee component provides some predictability for the contractor's profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 3 bids suggests a reasonable level of competition for this type of specialized construction in a challenging environment. This competitive process is generally expected to drive more favorable pricing for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to a more competitive pricing environment, potentially reducing overall project costs compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are the U.S. military personnel stationed at Kandahar Airfield, Afghanistan, who will utilize the new mission facilities. The services delivered include the construction of essential mission facilities, supporting operational readiness. The geographic impact is concentrated in Kandahar, Afghanistan, a key operational hub. The contract likely supported local labor and material sourcing where feasible, contributing to the local economy, though specific details are not provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts, especially in complex overseas environments.
- Logistical challenges and security risks associated with construction in a conflict zone.
- Ensuring quality of construction meets long-term operational needs in a demanding climate.
Positive Signals
- Awarded through full and open competition, indicating a structured procurement process.
- The fixed fee component provides a degree of cost certainty for the government regarding contractor profit.
- The project aimed to provide critical infrastructure, directly supporting military operations.
Sector Analysis
This contract falls within the broader construction sector, specifically commercial and institutional building construction. The market for such services in overseas contingency operations is specialized, often involving firms with experience in high-risk environments and complex logistics. Benchmarking against domestic construction projects is not directly applicable due to the unique operational context and associated risks and costs.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether Weston Solutions Inc. utilized small business subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms, potentially involving the Defense Contract Management Agency (DCMA) and relevant Inspector General offices. Transparency is generally expected through contract award databases, but detailed performance and cost oversight reports are often internal or classified.
Related Government Programs
- Afghanistan Security Forces Fund (ASFF)
- U.S. Army Corps of Engineers Construction Contracts
- Base Realignment and Closure (BRAC) Construction Projects
Risk Flags
- High-risk operational environment
- Cost-plus contract type requires diligent oversight
- Logistical complexities of overseas construction
Tags
defense, department-of-defense, weston-solutions-inc, afghanistan, kandahar, construction, commercial-and-institutional-building-construction, full-and-open-competition, cost-plus-fixed-fee, contingency-operations, mission-facilities
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to WESTON SOLUTIONS INC. NEW MISSION FACILITIES AT ANA GARRISON, KANDAHAR, AFGHANISTAN
Who is the contractor on this award?
The obligated recipient is WESTON SOLUTIONS 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 $14.6 million.
What is the period of performance?
Start: 2008-07-25. End: 2011-03-05.
What was the track record of Weston Solutions Inc. with Department of Defense contracts prior to this award?
Weston Solutions Inc. has a history of contracting with the Department of Defense, often involved in environmental remediation, construction, and engineering services. Prior to this specific award in 2008, the company had secured various contracts for military installations, including projects related to infrastructure development and facility support. Analyzing their past performance on similar overseas construction projects would provide further insight into their capabilities and reliability in challenging environments. Their broader portfolio indicates experience with government contracts, but the specifics of their performance on high-risk, overseas construction prior to this award would require a deeper dive into historical contract data and performance reviews.
How does the cost-plus-fixed-fee structure compare to other contract types for similar overseas construction projects?
The Cost-Plus-Fixed-Fee (CPFF) structure is frequently used for complex projects where the scope may evolve or is not fully defined at the outset, such as construction in overseas contingency operations. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While this provides flexibility, it carries a risk of cost growth if not managed tightly, as the government bears the cost risk. Other contract types like Firm-Fixed-Price (FFP) offer more cost certainty for the government but are less suitable when scope uncertainty is high. For similar overseas construction, CPFF is often chosen to balance the need for flexibility with the desire for a defined profit margin, though it necessitates robust government oversight to control expenditures.
What were the primary risks associated with performing construction in Kandahar, Afghanistan, during the contract period?
Construction in Kandahar, Afghanistan, during the 2008-2011 period presented significant risks. These included security threats from insurgent activity, requiring extensive force protection measures for personnel and equipment. Logistical challenges were substantial, involving the transportation of materials and personnel through potentially dangerous routes and reliance on complex supply chains. Political and economic instability in the region added further uncertainty. Additionally, environmental factors such as extreme weather conditions and the need for specialized construction techniques in a non-permissive environment posed technical risks. The presence of unexploded ordnance and the need for careful site assessment also contributed to the risk profile.
Were there any significant cost overruns or performance issues reported for this contract?
Based on the available data, there are no explicit reports of significant cost overruns or major performance issues directly tied to this specific contract award. The contract was completed within its performance period. However, the nature of Cost-Plus-Fixed-Fee contracts in overseas contingency environments inherently carries a risk of cost escalation if not meticulously managed. Without access to detailed performance reviews or audit reports, it is difficult to definitively state whether all aspects of the contract were executed with optimal efficiency and cost control. Further investigation into contract close-out documentation or Inspector General reports might reveal more granular details.
How does the total contract value of $14.6 million compare to other DoD construction projects of similar scope?
Comparing the $14.6 million value requires context regarding the scope and location. Construction projects in overseas contingency operations, especially those involving new mission facilities in active theaters like Afghanistan, are typically more expensive than comparable projects within the United States due to heightened security, logistical complexities, and higher labor/material costs. While $14.6 million might seem substantial, for building new, secure mission facilities in a high-risk zone, it could represent a reasonable investment. Benchmarking would ideally involve similar projects undertaken by the DoD in Afghanistan or other similar operational theaters during the same period, considering factors like facility size, type, and security requirements.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings, Inc. (UEI: 118341234)
Address: 1400 WESTON WAY, WEST CHESTER, PA, 06
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,632,334
Exercised Options: $14,632,334
Current Obligation: $14,632,334
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8521
IDV Type: IDC
Timeline
Start Date: 2008-07-25
Current End Date: 2011-03-05
Potential End Date: 2011-03-05 00:00:00
Last Modified: 2014-04-08
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