DoD's $24M Afghanistan Construction Contract Awarded to Jacobs Engineering Group Inc

Contract Overview

Contract Amount: $24,090,244 ($24.1M)

Contractor: Jacobs Engineering Group Inc

Awarding Agency: Department of Defense

Start Date: 2011-04-21

End Date: 2012-01-21

Contract Duration: 275 days

Daily Burn Rate: $87.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 29

Pricing Type: TIME AND MATERIALS

Sector: Construction

Official Description: TITLE II AFCEE CONSTRUCTION PROJECTS IN AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $24.1 million to JACOBS ENGINEERING GROUP INC for work described as: TITLE II AFCEE CONSTRUCTION PROJECTS IN AFGHANISTAN Key points: 1. The contract, valued at $24,090,244, was awarded by the Department of the Air Force. 2. Jacobs Engineering Group Inc. secured this contract through full and open competition. 3. The contract duration is 275 days, indicating a focused project scope. 4. This award falls under Remediation Services, a critical area for infrastructure projects.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. The awarded amount of $24M for a 275-day project requires careful monitoring of labor hours and material costs to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven a fair price. The use of a delivery order under a larger contract structure implies pre-negotiated terms.

Taxpayer Impact: Taxpayer funds are being utilized for construction projects in Afghanistan, with the value of this specific contract being $24,090,244.

Public Impact

Impacts reconstruction efforts and infrastructure development in Afghanistan. Supports military operations by providing necessary construction and remediation services. Creates employment opportunities, both directly and indirectly, through the contractor and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns.
Project location in Afghanistan presents logistical and security challenges.
Limited contract duration may indicate a need for follow-on work or potential scope creep.

Positive Signals

Awarded via full and open competition, promoting fairness.
Clear remediation services focus suggests a defined need.
Experienced contractor, Jacobs Engineering Group Inc., is involved.

Sector Analysis

This contract falls within the construction and engineering services sector, specifically focusing on remediation. Spending in this sector is often driven by government infrastructure needs, both domestically and internationally, with significant variability based on geopolitical factors and project scale.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. As a large contract awarded to Jacobs Engineering Group Inc., it is unlikely that small businesses will be the primary recipients, though they may participate as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Department of the Air Force contracting office, ensuring adherence to contract terms, quality standards, and budget. The use of a delivery order suggests it's part of a larger contracting vehicle requiring oversight.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Time and Materials contract type.
Project located in Afghanistan.
Potential for cost overruns.
Security and logistical challenges.
Limited contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to JACOBS ENGINEERING GROUP INC. TITLE II AFCEE CONSTRUCTION PROJECTS IN AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is JACOBS ENGINEERING GROUP 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 $24.1 million.

What is the period of performance?

Start: 2011-04-21. End: 2012-01-21.

What specific remediation services are included in this contract, and how do they align with broader reconstruction goals in Afghanistan?

The contract specifies 'Remediation Services' under NAICS code 562910. While the exact nature of these services isn't detailed, they likely involve environmental cleanup, hazardous material removal, or site restoration. These services are crucial for making areas safe and usable for further development or military operations, directly supporting reconstruction efforts by addressing pre-existing environmental issues.

What are the primary risks associated with a Time and Materials contract for construction in a challenging environment like Afghanistan?

Time and Materials (T&M) contracts carry inherent risks of cost escalation, especially in high-risk environments like Afghanistan. Factors such as security costs, logistical delays, potential for rework due to unforeseen conditions, and extended labor hours can significantly inflate the final price beyond initial estimates. Effective oversight and strict management of billable hours and materials are critical to mitigate these risks.

How does the $24M contract value compare to typical remediation projects of similar scope and duration, and what does this suggest about its effectiveness?

Without specific details on the remediation scope, a direct comparison is difficult. However, $24M for 275 days of work suggests a project of significant complexity or scale, potentially involving hazardous materials or extensive site preparation. The effectiveness will depend on Jacobs Engineering's ability to deliver the required remediation within budget and schedule, meeting all environmental and safety standards.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1111 S ARROYO PKWY, PASADENA, CA, 91105

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,090,244

Exercised Options: $24,090,244

Current Obligation: $24,090,244

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890308D8773

IDV Type: IDC

Timeline