DoD's $39M Afghanistan construction contract awarded to WSP USA for Camp Tombstone facilities

Contract Overview

Contract Amount: $39,166,444 ($39.2M)

Contractor: WSP USA Environment & Infrastructure Inc.

Awarding Agency: Department of Defense

Start Date: 2011-02-03

End Date: 2013-12-30

Contract Duration: 1,061 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF COMMAND&CONTROL FACILITY/UTILITIES/ ROADS, CAMP TOMBSTONE/BASTION, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $39.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC. for work described as: CONSTRUCTION OF COMMAND&CONTROL FACILITY/UTILITIES/ ROADS, CAMP TOMBSTONE/BASTION, AFGHANISTAN Key points: 1. The contract's value of $39.17 million for construction services in Afghanistan indicates a significant investment in infrastructure. 2. Awarded under full and open competition, the contract suggests a competitive bidding process was utilized. 3. The firm-fixed-price contract type aims to control costs by shifting risk to the contractor. 4. The duration of 1061 days points to a substantial and complex construction project. 5. The project's location in Afghanistan highlights geopolitical factors influencing defense spending. 6. The absence of small business set-asides suggests the primary contractor is likely a larger entity.

Value Assessment

Rating: fair

Benchmarking construction costs in active conflict zones is inherently difficult due to unique logistical, security, and operational challenges. The $39.17 million award for a command and control facility, utilities, and roads at Camp Tombstone/Bastion represents a significant expenditure. Without specific details on the scope of work, materials, and labor involved, a direct comparison to similar domestic projects is not feasible. However, the firm-fixed-price nature of the contract suggests an attempt to manage cost overruns, though the complexity of the environment could still lead to unforeseen expenses.

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 bids. The presence of 4 bidders suggests a reasonable level of competition for this project. While the exact bid amounts are not provided, a competitive process generally helps in price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process for this construction project likely resulted in a more cost-effective outcome for taxpayers by encouraging multiple firms to offer their best pricing and terms.

Public Impact

The primary beneficiaries are the U.S. Department of Defense and its personnel stationed at Camp Tombstone/Bastion, Afghanistan, through the provision of improved infrastructure. The contract delivered essential services including the construction of a command and control facility, utilities, and roads, enhancing operational capabilities. The geographic impact is localized to Camp Tombstone/Bastion, Afghanistan, directly supporting military operations in that region. Workforce implications would include employment opportunities for construction labor, both locally in Afghanistan and potentially for specialized personnel brought in by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Afghanistan could impact project timelines and costs.
Logistical challenges in delivering materials and personnel to a remote base.
Security risks associated with operating in a conflict zone.

Positive Signals

Firm-fixed-price contract type helps mitigate cost escalation risks.
Awarded under full and open competition, suggesting a robust bidding process.
Project aims to improve critical base infrastructure, enhancing operational effectiveness.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The global market for defense construction is substantial, driven by the need for secure and functional facilities in various operational theaters. Projects like this are crucial for maintaining and enhancing military bases, supporting troop presence, and enabling mission effectiveness. Comparable spending benchmarks are difficult to establish due to the unique operating environment in Afghanistan, which introduces significant risk premiums and logistical costs not present in domestic construction.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business subcontracting was explicitly mandated or reported. This suggests that the primary contract was awarded to a larger firm capable of undertaking such a significant infrastructure project. The absence of small business participation in the prime contract may limit opportunities for smaller construction companies to engage in this specific project, though they might be involved in lower-tier subcontracting if opportunities arise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and inspection mechanisms. Given the location, oversight would likely involve on-site government representatives, quality assurance personnel, and potentially Inspector General (IG) involvement to ensure compliance with contract terms, quality standards, and ethical conduct. Transparency is facilitated through contract award databases, but detailed project progress and financial oversight reports may be less publicly accessible due to security and operational sensitivities.

Related Government Programs

Afghanistan Base Infrastructure Projects
DoD Overseas Construction Contracts
Command and Control Facility Construction
Military Utilities and Road Construction

Risk Flags

Operational Environment Risk
Logistical Complexity
Security Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to WSP USA ENVIRONMENT & INFRASTRUCTURE INC.. CONSTRUCTION OF COMMAND&CONTROL FACILITY/UTILITIES/ ROADS, CAMP TOMBSTONE/BASTION, AFGHANISTAN

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 $39.2 million.

What is the period of performance?

Start: 2011-02-03. End: 2013-12-30.

What was the specific scope of work for the command and control facility, utilities, and roads at Camp Tombstone/Bastion?

The provided data does not detail the specific scope of work. However, 'CONSTRUCTION OF COMMAND&CONTROL FACILITY/UTILITIES/ ROADS' implies the building of a central operational hub, the installation or upgrade of essential services like power and water, and the creation or improvement of access routes within the base. The complexity and scale would depend on the existing infrastructure and the operational requirements of the U.S. Air Force at Camp Tombstone/Bastion during the contract period (2011-2013). Detailed architectural plans, material specifications, and performance requirements would typically be outlined in the contract's Statement of Work (SOW).

How did the final cost compare to the initial award amount, and were there any significant change orders?

The provided data indicates an award amount of $39,166,444. There is no information available in this dataset regarding the final cost or the issuance of any change orders. To determine if the final cost deviated from the award amount, one would need access to contract modification records and final payment data. Change orders are common in large construction projects, especially in complex environments like Afghanistan, and can significantly alter the total contract value. Without these records, it's impossible to assess cost performance or the impact of modifications.

What were the key performance indicators (KPIs) for this construction contract, and how was contractor performance measured?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, typical KPIs for construction contracts include adherence to schedule, quality of workmanship, safety compliance, and meeting technical specifications. Contractor performance is generally measured through regular site inspections, progress reports, quality assurance checks, and feedback from government representatives overseeing the project. The firm-fixed-price nature of the contract implies that meeting the defined scope within the agreed price is a primary performance metric. Formal performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reports, would likely exist but are not included here.

What is the historical spending trend for similar construction projects by the Department of the Air Force in Afghanistan?

Historical spending on similar construction projects by the Department of the Air Force (and the broader Department of Defense) in Afghanistan has been substantial over many years, particularly during the peak of military operations. This specific contract, awarded in 2011 and ending in 2013, falls within a period of significant infrastructure development and sustainment efforts. While this dataset doesn't provide historical trends, publicly available reports from agencies like the Special Inspector General for Afghanistan Reconstruction (SIGAR) detail billions of dollars spent on construction, logistics, and security infrastructure. Spending patterns would have varied based on strategic objectives, troop levels, and the security situation on the ground.

What risks were identified by the government prior to awarding this contract, and what mitigation strategies were in place?

While specific pre-award risk assessments are not provided, common risks associated with construction in Afghanistan include security threats, logistical challenges, political instability, potential for corruption, and environmental factors. Mitigation strategies typically involve robust security protocols for personnel and equipment, detailed logistical planning, strong contract oversight, adherence to strict quality control measures, and potentially incorporating risk-sharing clauses or contingency funds within the contract. The firm-fixed-price structure itself is a risk mitigation tool, aiming to cap the government's financial exposure. The 'full and open competition' also suggests a vetting process for bidders' capabilities to manage such risks.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,166,444

Exercised Options: $39,166,444

Current Obligation: $39,166,444

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890306D8507

IDV Type: IDC

Timeline