DoD's $22.5M Afghanistan construction services contract awarded to AMEC E&I, Inc. faced full and open competition

Contract Overview

Contract Amount: $22,536,517 ($22.5M)

Contractor: Amec E&I, Inc

Awarding Agency: Department of Defense

Start Date: 2011-03-14

End Date: 2011-10-31

Contract Duration: 231 days

Daily Burn Rate: $97.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TITLE I SERVICES FOR MULTIPLE CONSTRUCTION PROJECTS IN AFGHANISTAN.

Plain-Language Summary

Department of Defense obligated $22.5 million to AMEC E&I, INC for work described as: TITLE I SERVICES FOR MULTIPLE CONSTRUCTION PROJECTS IN AFGHANISTAN. Key points: 1. The contract aimed to provide essential construction services for multiple projects in Afghanistan, a complex operational environment. 2. Awarded under a firm-fixed-price contract type, indicating a defined scope and cost structure. 3. The duration of 231 days suggests a focused, short-term project execution. 4. The North American Industry Classification System (NAICS) code 562910 points to remediation services, a critical but specialized area. 5. The contract was awarded by the Department of the Air Force, part of the larger Department of Defense. 6. The absence of small business set-aside flags suggests the primary contractor was not specifically targeted for small business participation. 7. The contract value of approximately $22.5 million represents a significant investment in infrastructure support for military operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific geographic focus and the unique nature of construction services in a conflict zone. The firm-fixed-price structure suggests an attempt to control costs, but without detailed cost breakdowns or comparisons to similar projects in comparable environments, assessing true value-for-money is difficult. The raw dollar amount of $22.5 million for 231 days of work needs to be contextualized against the high operational costs and risks associated with projects in Afghanistan during that period.

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. With 29 bids received, this suggests a healthy level of interest and a competitive marketplace for these services. The high number of bidders generally supports 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 contract likely resulted in a more cost-effective outcome for taxpayers, as multiple firms vied to win the award by offering competitive pricing and terms.

Public Impact

The primary beneficiaries of this contract were the Department of Defense and its operational units in Afghanistan, receiving critical construction and remediation services. The services delivered included construction for multiple projects, essential for maintaining and improving military infrastructure. The geographic impact was solely within Afghanistan, supporting U.S. military presence and operations. Workforce implications would include employment opportunities for construction personnel, both directly with the contractor and potentially through subcontractors, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a high-risk, remote operational environment.
Challenges in ensuring quality control and timely delivery of services in a conflict zone.
Dependence on a single prime contractor (AMEC E&I, INC) for a significant scope of work.
Limited transparency into specific project details and outcomes without further reporting.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps to define and manage costs.
A significant number of bids (29) indicates market interest and potential for competitive pricing.
The contract addressed critical infrastructure needs in a challenging operational theater.

Sector Analysis

This contract falls within the construction and remediation services sector, specifically supporting government and defense operations. The market for construction services in support of military operations, particularly in overseas contingency operations, is specialized and often involves significant logistical and security considerations. Comparable spending benchmarks are difficult to establish due to the unique geopolitical context of Afghanistan during the contract period, but the scale of the award suggests a substantial project scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the necessary services from qualified large businesses capable of operating in a complex environment. The impact on the small business ecosystem would be indirect, potentially through opportunities if AMEC E&I, INC chose to subcontract, but no specific set-aside or participation targets were mandated.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is often limited for contracts executed in contingency operations, but contract award data is publicly available. Inspector General jurisdiction would apply to investigate fraud, waste, and abuse related to the contract.

Related Government Programs

Afghanistan Infrastructure Projects
Defense Construction Contracts
Contingency Operations Support
Remediation Services Contracts
Department of Defense Construction

Risk Flags

High-risk operational environment (Afghanistan)
Potential for security incidents
Logistical complexities
Quality assurance challenges in remote locations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to AMEC E&I, INC. TITLE I SERVICES FOR MULTIPLE CONSTRUCTION PROJECTS IN AFGHANISTAN.

Who is the contractor on this award?

The obligated recipient is AMEC E&I, 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 $22.5 million.

What is the period of performance?

Start: 2011-03-14. End: 2011-10-31.

What was the specific nature of the 'multiple construction projects' covered by this contract?

The provided data indicates the contract was for 'TITLE I SERVICES FOR MULTIPLE CONSTRUCTION PROJECTS IN AFGHANISTAN.' While the exact nature of each project is not detailed, the NAICS code 562910 suggests a focus on remediation services. This could encompass a range of activities such as environmental cleanup, hazardous material removal, site preparation, demolition, or restoration work necessary for military facilities or infrastructure in Afghanistan. The 'Title I' designation often refers to the design and engineering phase of construction projects, implying that the services might have included planning, architectural, and engineering support for these construction efforts, rather than just the physical building.

How did the firm-fixed-price contract type influence the risk allocation between the government and AMEC E&I, INC?

A firm-fixed-price (FFP) contract type generally places the majority of the cost risk on the contractor, AMEC E&I, INC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If their costs exceed the fixed price, the contractor absorbs the loss. Conversely, if their costs are lower than anticipated, they retain the profit. For the government, an FFP contract provides cost certainty, as the total price is established upfront. However, it can incentivize contractors to cut corners on quality or scope if not meticulously managed and overseen, especially in challenging environments like Afghanistan. The government's risk is primarily related to ensuring the contractor delivers the required quality and performance within the fixed price.

What does the high number of bids (29) suggest about the market for construction and remediation services in support of U.S. military operations at the time?

The submission of 29 bids for this contract indicates a robust and competitive market for construction and remediation services supporting U.S. military operations in Afghanistan during the period of 2011. This high number suggests that multiple companies possessed the capability, resources, and willingness to undertake projects in such a complex and high-risk environment. It implies that the government had a good selection of potential contractors, which typically leads to better price discovery and potentially more favorable terms for the government. The competitive landscape likely pressured bidders to offer competitive pricing and demonstrate strong performance capabilities to secure the award.

Given the contract's duration (231 days) and value ($22.5M), what was the approximate daily spending rate, and how does this compare to typical construction project costs?

The contract value was approximately $22,536,517 over a period of 231 days. This results in an average daily spending rate of roughly $97,561 ($22,536,517 / 231 days). Comparing this daily rate to typical construction project costs is complex, as it varies significantly by project type, location, labor costs, materials, and overhead. However, for large-scale infrastructure or specialized remediation projects, especially those conducted in high-cost, high-risk environments like Afghanistan, such a daily expenditure rate is not necessarily unusual. The costs would encompass labor, equipment, materials, logistics, security, and contractor overhead/profit, all of which are elevated in contingency operations.

What are the potential risks associated with awarding a significant construction contract in a conflict zone like Afghanistan?

Awarding construction contracts in conflict zones like Afghanistan entails numerous risks. These include security threats to personnel and assets, logistical challenges in delivering materials and equipment, potential for project delays due to instability or unforeseen events, difficulties in quality assurance and oversight, and increased operational costs related to security and risk mitigation. There's also the risk of corruption, political instability impacting project continuity, and challenges in workforce management due to local conditions. The firm-fixed-price nature of this contract attempts to mitigate cost risk for the government, but performance and schedule risks remain significant due to the operational environment.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: 1105 LAKEWOOD PKWY STE 300, ALPHARETTA, GA, 07

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,536,517

Exercised Options: $22,536,517

Current Obligation: $22,536,517

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890308D8775

IDV Type: IDC

Timeline