DoD's $63.6M Afghanistan Construction Services Contract Awarded to HDR Environmental
Contract Overview
Contract Amount: $63,640,873 ($63.6M)
Contractor: HDR Environmental, Operations and Construction, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-14
End Date: 2014-07-01
Contract Duration: 868 days
Daily Burn Rate: $73.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 29
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TITLE II SERVICES FOR AFGHANISTAN CONSTRUCTION PROJECTS
Place of Performance
Location: ENGLEWOOD, DENVER County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $63.6 million to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC. for work described as: TITLE II SERVICES FOR AFGHANISTAN CONSTRUCTION PROJECTS Key points: 1. Contract awarded for remediation services in Afghanistan. 2. Full and open competition was utilized. 3. The contract value is $63.6 million. 4. The period of performance spans over two years.
Value Assessment
Rating: fair
The contract value of $63.6 million for remediation services over 868 days suggests a moderate per-day cost. Benchmarking against similar large-scale international remediation projects is necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment.
Public Impact
Supports U.S. foreign policy objectives in Afghanistan. Provides essential infrastructure and environmental services. Creates employment opportunities, potentially including local hires.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risks associated with operating in Afghanistan.
- Potential for cost overruns due to unforeseen site conditions.
- Logistical challenges in a remote and complex environment.
Positive Signals
- Contract awarded through full and open competition.
- Firm fixed price contract type limits cost uncertainty.
- Experienced contractor selected.
Sector Analysis
This contract falls within the construction and environmental remediation sector, often characterized by significant project values and complex logistical requirements, especially in overseas environments.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
Oversight would typically involve regular progress reports, site inspections, and performance reviews by the Department of the Air Force to ensure contract compliance and quality.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Geopolitical instability in the region.
- Logistical challenges of operating in a remote area.
- Potential for unforeseen environmental conditions.
- Security risks for personnel and equipment.
Tags
remediation-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.6 million to HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, INC.. TITLE II SERVICES FOR AFGHANISTAN CONSTRUCTION PROJECTS
Who is the contractor on this award?
The obligated recipient is HDR ENVIRONMENTAL, OPERATIONS AND CONSTRUCTION, 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 $63.6 million.
What is the period of performance?
Start: 2012-02-14. End: 2014-07-01.
What specific remediation services were included, and how do they align with Afghanistan's environmental needs?
The contract specifies 'Remediation Services' without granular detail. A comprehensive review would detail the types of environmental hazards addressed, such as hazardous material removal, soil and water contamination cleanup, and waste management. The alignment with Afghanistan's needs would depend on the specific environmental challenges identified by the DoD and local authorities, focusing on mitigating risks to human health and ecosystems.
What are the primary risks associated with performing construction and remediation in Afghanistan, and how were they mitigated?
Key risks include security threats, political instability, logistical complexities, and potential for corruption. Mitigation strategies likely involved robust security protocols, close coordination with military and diplomatic missions, detailed logistical planning, and stringent oversight mechanisms. The firm fixed-price contract also shifts some cost risk to the contractor.
How does the contract's value compare to similar international remediation projects, and what is the expected return on investment for U.S. taxpayers?
Benchmarking the $63.6 million contract against similar large-scale international remediation projects is crucial for assessing value. The return on investment for taxpayers is multifaceted, encompassing improved environmental conditions, support for stability operations, and potential long-term economic benefits for Afghanistan. Quantifying this ROI requires evaluating the project's contribution to broader strategic goals.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HDR, Inc (UEI: 068668805)
Address: 9563 S KINGSTON CT STE 200, ENGLEWOOD, CO, 80112
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,640,873
Exercised Options: $63,640,873
Current Obligation: $63,640,873
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $42,092,534
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA890308D8771
IDV Type: IDC
Timeline
Start Date: 2012-02-14
Current End Date: 2014-07-01
Potential End Date: 2014-07-01 00:00:00
Last Modified: 2018-08-01
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