DoD's $59.4M undefinitive contract for Afghanistan logistics support awarded without competition

Contract Overview

Contract Amount: $59,367,537 ($59.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2021-09-30

Contract Duration: 365 days

Daily Burn Rate: $162.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LETTER CONTRACT TO AWARD AN UNDEFINITIZED CONTRACTUAL ACTION FOR THE PROCUREMENT AFGHANISTAN CONTRACTOR LOGISTIC SUPPORT (CLS) SERVICES THIS LETTER CONTRACT IS ISSUED TO PROCURE THE INITIAL SIX MONTH BASE PERIOD OF AFGHANISTAN CLS SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $59.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: LETTER CONTRACT TO AWARD AN UNDEFINITIZED CONTRACTUAL ACTION FOR THE PROCUREMENT AFGHANISTAN CONTRACTOR LOGISTIC SUPPORT (CLS) SERVICES THIS LETTER CONTRACT IS ISSUED TO PROCURE THE INITIAL SIX MONTH BASE PERIOD OF AFGHANISTAN CLS SERVICES. Key points: 1. Contract awarded for initial six-month base period of Afghanistan Contractor Logistic Support (CLS) services. 2. The undefinitive contractual action was not competed, raising questions about potential cost efficiencies. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of the base period is one year, ending September 30, 2021. 5. The contract was awarded by the Department of Defense, specifically the Department of the Army. 6. The North American Industry Classification System (NAICS) code is 541330 for Engineering Services. 7. The contract value for the base period is approximately $59.4 million.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competition and the specific nature of logistics support in a complex environment like Afghanistan. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs remain reasonable and do not escalate beyond initial projections. Without comparable bids, it's difficult to ascertain if the fixed fee is appropriate or if the overall cost represents good value for money. Further analysis would require understanding the specific services rendered and the associated risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'not competed' procedure, indicating a sole-source or limited competition scenario. The specific reasons for not competing are not detailed in the provided data. A lack of competition can limit price discovery and potentially lead to higher costs for the government compared to a fully open solicitation where multiple vendors could bid.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure, which typically drives down prices. Without a competitive bidding process, there is a reduced incentive for the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the military and government personnel operating in Afghanistan, who rely on these logistics services for operational effectiveness. Services delivered include essential contractor logistic support, crucial for maintaining equipment, facilities, and personnel in a challenging operational theater. The geographic impact is focused on Afghanistan, supporting U.S. and allied operations within the country. Workforce implications include the employment of personnel, both U.S. and potentially local, to deliver these critical support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Cost Plus Fixed Fee contracts require stringent oversight to prevent cost escalation.
The undefinitive nature of the contract may obscure specific deliverables and performance metrics.
Operating in Afghanistan presents inherent security and logistical risks.
The undisclosed domestic awardee makes it difficult to assess past performance and capacity.

Positive Signals

Contract addresses critical logistical needs in a high-demand operational environment.
Awarding a contract ensures continuity of essential services.
The Department of the Army is responsible for oversight, suggesting established procedures are in place.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex logistical operations. The market for such services in conflict zones is specialized and often involves a limited number of experienced providers. Comparable spending benchmarks are difficult to establish due to the unique operational context and the 'not competed' nature of this award. The overall defense logistics market is substantial, with significant government investment in ensuring operational readiness.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a factor in this award. There is no indication of small business set-asides or subcontracting plans. This suggests that the contract was likely awarded to a large prime contractor, with potential implications for the broader small business ecosystem if they are excluded from subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee agreement, requiring detailed reporting and auditing of costs. Transparency is limited by the 'not competed' award and the undisclosed contractor, making public scrutiny more challenging. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Afghanistan Security Forces Fund (ASFF)
Logistics and Support Services Contracts
Department of Defense Contingency Operations

Risk Flags

Lack of Competition
Cost Plus Fixed Fee Structure
Undefinitive Contractual Action
Undisclosed Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.4 million to DOMESTIC AWARDEES (UNDISCLOSED). LETTER CONTRACT TO AWARD AN UNDEFINITIZED CONTRACTUAL ACTION FOR THE PROCUREMENT AFGHANISTAN CONTRACTOR LOGISTIC SUPPORT (CLS) SERVICES THIS LETTER CONTRACT IS ISSUED TO PROCURE THE INITIAL SIX MONTH BASE PERIOD OF AFGHANISTAN CLS SERVICES.

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $59.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2021-09-30.

What specific services are included under 'Afghanistan Contractor Logistic Support (CLS) Services'?

While the provided data does not detail the specific services, 'Contractor Logistic Support (CLS)' typically encompasses a broad range of activities essential for maintaining operational readiness in a deployed environment. This can include maintenance and repair of equipment (vehicles, aircraft, weapons systems), supply chain management, transportation of personnel and materiel, facility management, base operations support, and potentially security services. The 'undefinitive contractual action' nature suggests that the full scope might be defined in subsequent modifications or task orders, but the base period likely covers essential, ongoing support functions critical for U.S. and allied forces operating in Afghanistan.

Why was this contract awarded without competition?

The provided data states the contract was 'NOT COMPETED'. Specific justifications for this decision are not included. Common reasons for sole-source or limited competition awards include urgent and compelling needs where a delay would cause significant harm, the unavailability of other sources, or when a specific contractor possesses unique capabilities or intellectual property. Without further documentation, it is impossible to definitively state the rationale, but it implies that the contracting activity determined that soliciting bids from multiple sources was not feasible or advantageous at the time of award.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred plus a fixed fee representing profit. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is not directly tied to cost savings. If the contractor's costs exceed estimates, the government still pays those costs plus the agreed-upon fee. This necessitates robust government oversight, detailed cost tracking, and stringent auditing to ensure that costs are reasonable, allocable, and allowable, and that the fixed fee remains appropriate for the effort.

How does the $59.4 million value compare to similar logistics support contracts in Afghanistan?

Direct comparison of the $59.4 million value is difficult without knowing the exact scope, duration, and specific services covered by this base period, especially given the 'not competed' status. Logistics support in complex, high-risk environments like Afghanistan is inherently expensive due to security requirements, transportation challenges, and the need for specialized personnel and equipment. However, historical spending on similar large-scale support contracts in Afghanistan has often run into hundreds of millions or even billions of dollars annually. This $59.4 million for a six-month base period suggests a significant ongoing requirement, but without competitive benchmarks, assessing its value-for-money is speculative.

What is the track record of the undisclosed domestic awardee for this type of service?

The provided data lists the awardee as 'DOMESTIC AWARDEES (UNDISCLOSED)'. Consequently, it is impossible to assess the track record of the specific contractor for this type of service based solely on this information. A thorough analysis would require identifying the awardee and reviewing their past performance on similar contracts, including their ability to meet schedule, cost, and technical requirements, as well as any past performance issues or disputes.

What are the potential implications of awarding an 'undefinitive contractual action' for these services?

An 'undefinitive contractual action' (UCA), often referred to as an undefinitized contract action (UCA), is a contract action taken before the contract is definitized (i.e., before all terms, conditions, and prices are finalized). This is typically used when the government has an urgent need but lacks sufficient information or time to finalize all contract details. The primary implication is increased risk for the government, as the final price and scope may not be fully established. It necessitates a prompt definitization schedule to convert the UCA into a definitive contract, ensuring clear terms and fair pricing, and mitigating the risk of cost overruns or scope creep.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ20R0238

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,616,362

Exercised Options: $59,367,537

Current Obligation: $59,367,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline