DoD spent over $34.4M on Afghan Army Air Corps expansion at Shindand Air Base, Afghanistan

Contract Overview

Contract Amount: $34,405,979 ($34.4M)

Contractor: Lakeshore Engineering Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-02-10

End Date: 2014-05-30

Contract Duration: 1,205 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AFGHAN NATIONAL ARMY AIR CORPS EXPANSION AT SHINDAND AIR BASE, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $34.4 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: CONSTRUCTION OF AFGHAN NATIONAL ARMY AIR CORPS EXPANSION AT SHINDAND AIR BASE, AFGHANISTAN Key points: 1. Contract awarded for construction services, indicating significant investment in infrastructure development. 2. The contract duration of 1205 days suggests a complex and lengthy project. 3. Awarded to Lakeshore Engineering Services, Inc., highlighting a specific contractor's role. 4. The project's location in Afghanistan points to a focus on international security and capacity building. 5. The firm-fixed-price contract type suggests a defined scope and cost structure.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and location in a conflict zone. The total award of over $34.4 million for construction services at Shindand Air Base indicates a substantial investment. Without comparable projects in similar environments or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the scale of the project suggests significant infrastructure development was deemed necessary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded, potentially limiting the bidder pool. The award to a single contractor, Lakeshore Engineering Services, Inc., suggests that either only one bid met the stringent requirements or the exclusion criteria significantly narrowed the field. This type of competition can sometimes lead to less aggressive pricing compared to truly open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of contractors had been able to bid.

Public Impact

The primary beneficiaries are the Afghan National Army Air Corps, receiving expanded facilities. Services delivered include the construction of essential infrastructure for an air base. The geographic impact is concentrated at Shindand Air Base in Afghanistan. Workforce implications include potential job creation for local and international labor during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The project's location in a conflict zone presents inherent risks to project execution and personnel.
The exclusion of certain sources raises questions about the breadth of the competitive process.

Positive Signals

The contract addresses a critical need for infrastructure development for an allied air force.
The firm-fixed-price contract provides cost certainty for the government.
The project aims to enhance the operational capabilities of the Afghan National Army Air Corps.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The global market for construction services, particularly in support of defense and infrastructure projects in challenging environments, is substantial. This project represents a significant investment in building capacity for a partner nation's military, aligning with broader geopolitical objectives. Comparable spending benchmarks would typically involve large-scale infrastructure projects in developing or post-conflict regions, often funded by international aid or defense budgets.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contractor, Lakeshore Engineering Services, Inc., likely handled the majority of the work directly or through larger, non-small business subcontractors, potentially limiting opportunities for the small business ecosystem on this specific project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's Inspector General and relevant contracting command structures. Accountability measures would be enforced through contract clauses, performance reviews, and payment schedules tied to milestones. Transparency is often limited in overseas contingency operations, but contract awards and basic details are usually made public through federal procurement databases. The specific oversight mechanisms for construction in Afghanistan would have been robust given the operational environment.

Related Government Programs

Afghan National Security Forces (ANSF) Support Programs
Base Realignment and Closure (BRAC) Construction
Overseas Contingency Operations (OCO) Funding
Foreign Military Sales (FMS) Infrastructure Development

Risk Flags

Limited competition may impact price.
Geopolitical instability in Afghanistan poses security and logistical risks.
Contract duration suggests complexity and potential for delays.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to LAKESHORE ENGINEERING SERVICES, INC.. CONSTRUCTION OF AFGHAN NATIONAL ARMY AIR CORPS EXPANSION AT SHINDAND AIR BASE, AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is LAKESHORE ENGINEERING SERVICES, 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 $34.4 million.

What is the period of performance?

Start: 2011-02-10. End: 2014-05-30.

What was the specific nature of the 'exclusion of sources' in this full and open competition?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that the solicitation was initially intended for broad competition, but certain potential sources were deliberately excluded. The reasons for exclusion are not detailed in the provided data but could stem from various factors such as security clearances, specific technical capabilities required, past performance issues, or geopolitical considerations related to operating in Afghanistan. This approach aims to ensure that only qualified and appropriate contractors participate, but it inherently limits the competitive landscape compared to a truly unrestricted solicitation. The specific criteria for exclusion would have been outlined in the solicitation documents.

How does the cost of this project compare to similar infrastructure development in Afghanistan or other conflict zones?

Direct cost comparisons for large-scale construction projects in active conflict zones like Afghanistan are inherently difficult due to numerous variables. Factors such as heightened security costs, logistical challenges, specialized labor requirements, and the inherent risks associated with operating in such environments typically drive up prices significantly compared to domestic projects. While $34.4 million is a substantial sum, it may represent a reasonable cost given the unique circumstances of building military infrastructure in a challenging operational theater. Without detailed breakdowns of costs (e.g., materials, labor, security, logistics) and specific comparable projects, a precise benchmark is elusive. However, it's understood that projects in these regions often incur a 'risk premium'.

What were the key performance indicators (KPIs) for Lakeshore Engineering Services, Inc. on this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, typical KPIs for a large construction contract like this would focus on adherence to the project schedule, quality of construction meeting specified standards (e.g., building codes, military specifications), safety performance on-site, and effective cost management within the firm-fixed-price structure. Performance would likely be monitored through regular site inspections, progress reports, and milestone reviews. Failure to meet these KPIs could result in penalties, withholding of payments, or contract termination, depending on the severity of the performance issues.

What is the historical spending pattern for construction at Shindand Air Base or similar Afghan facilities?

Historical spending data for construction at Shindand Air Base or similar facilities in Afghanistan would likely show a pattern of significant investment, particularly during the period of increased U.S. and coalition involvement in the country (roughly 2001-2014). This spending was often driven by the need to establish and expand military bases, training facilities, and logistical hubs to support Afghan National Security Forces and coalition operations. Contracts would have varied in scope, from smaller repair and maintenance jobs to large-scale construction projects like the one awarded to Lakeshore Engineering Services. Analyzing past contracts would reveal trends in contractor selection, pricing, and the types of infrastructure prioritized over time.

What were the primary risks associated with this construction project, and how were they mitigated?

The primary risks associated with this construction project in Afghanistan would have been multifaceted. Security risks were paramount, including threats from insurgents, terrorism, and general instability, requiring robust security protocols for personnel and equipment. Logistical risks involved the complex and often hazardous transportation of materials and personnel into the region. Furthermore, political and economic instability within Afghanistan could impact project timelines and resource availability. Mitigation strategies likely included close coordination with military security forces, employing specialized security contractors, developing redundant supply chains, incorporating flexibility into the project schedule, and maintaining strong relationships with local authorities and community leaders.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7310 WOODWARD AVENUE, FIFT, DETROIT, MI, 48202

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $34,405,979

Exercised Options: $34,405,979

Current Obligation: $34,405,979

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $35,033,514

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA890306D8505

IDV Type: IDC

Timeline