U.S. Embassy Kabul Construction Bulge: From $625M to $773M, Est. Completion Now Moved to 2016

— Domani Spero
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The Government Accountability Office (GAO) recently evaluated the construction of U.S. Embassy Kabul due to “broad congressional interest” in the oversight and accountability of U.S. funds used in Afghanistan. The GAO wanted to see what contracts State put in place to construct new U.S. embassy facilities in Kabul starting in 2009; the extent to which construction requirements, cost, or schedule have changed, and the reasons for the changes; and the extent to which the present expansion matches projected needs.

The GAO reports that contract costs for construction have increased by nearly 24 percent, from $625.4 million to $773.9 million as of May 2014.  The original construction completion was to be the end of  summer 2014; the contractual delivery date for all permanent facilities is now anticipated for July 2016.

With the withdrawal of U.S. troops in the horizon, SIGAR recently said that “constraint on oversight of US-funded Afghan reconstruction will only worsen as more US coalition bases close” and that the “ability to monitor, manage & oversee reconstruction programs in Afghanistan will only become more difficult.”

And yet, Embassy Kabul’s permanent facilities—both older and newly-constructed office and apartment buildings—will eventually contain 1,487 desks and 819 beds.  The projected embassy staffing for 2015 is approximately 600 U.S. direct hires and 1,100 locally employed staff.  Without the military support, State would once more end up with potentially contracting its own security and life-support contractors as it did in Iraq.

Excerpt from the GAO report:

From 2002 through 2009, State took several actions to expand the U.S. embassy compound in Kabul. Initially, OBO refurbished the existing office building, built in the 1960s. Additionally, OBO completed the construction of a new chancery office building, staff apartments, and support facilities. As staffing increases continued, the embassy acquired hundreds of shipping containers for temporary offices and housing. The embassy also compressed office space by putting more desks in the new chancery and old existing office building. Today the Kabul embassy compound consists of the original compound on the west side of Great Massoud Road, referred to as the West Compound, and an expansion compound on the east side of Great Massoud Road, referred to as the East Compound.
[…]

Since the two contracts were awarded in 2009 and 2010, construction requirements have changed, costs have increased, and schedules have been extended. OBO’s original construction requirements have changed. In December 2009, OBO added two stories to planned office annex A. In September 2011, after the U.S. and Afghan governments did not reach agreement to transfer the Afghan Ministry of Public Health site to the U.S. government, OBO removed the parking facilities from Contractor 2’s contract. The embassy also requested that OBO reconfigure the existing office building’s second floor. In March 2012 and September 2013, new security upgrades to perimeter walls and guard towers were added. Because of the building alterations, OBO is building space for more desks and beds than originally planned. The new office annexes under construction are to contain 1,237 desks, a nearly 60 percent increase over the 778 desks originally planned. OBO is also building space for 661 beds, about 50 more than originally planned. 

Contract costs for construction have increased by nearly 24 percent, from $625.4 million to $773.9 million as of May 2014. (See table 1 on page 20 of the enclosure.) This $148.5 million cost increase is the result of multiple contract modifications to change construction requirements, including the transfer of construction requirements from the 1st contract to the 2nd contract.1 

The overall project schedule has also been extended. OBO had originally planned to complete all construction on the compound by the end of summer 2014; the contractual delivery date for all permanent facilities is currently July 2016. 
[…]

Factors affecting the project include: 

    • Increases in numbers and changes in composition of embassy staffing requirements. 
    • Risks introduced by State during planning, such as awarding contracts before the Afghan Ministry of Public Health site was fully acquired and tightly sequencing the work of two contractors on one construction site. 
    • Constructing new facilities on an occupied compound in a conflict environment. 
    • Contractor performance delays and transfer of construction requirements from one contract to another. 
    • Delays and changes to shipping routes of building materials due to difficulties with shipments transiting through Pakistan. 
Via GAO

Via GAO

We’ve seen this before, haven’t we?

It is difficult to determine whether current projects and existing facilities will meet future embassy needs. Long-term construction has been occurring in an unpredictable political and security environment characterized by dramatic changes in U.S. staff levels. Additionally, as the U.S. military draws down its presence in Afghanistan, State will have to decide whether to close its facilities in the field or engage support contractors to replace life-support services currently provided by the military, such as food, water, fuel, and medical services. Such changes may affect embassy staffing and operations. Future composition of U.S. agencies, staffing levels, and embassy facility needs continue to be subject to change.

Once current contracts are completed, the Kabul embassy’s permanent facilities—both older and newly-constructed office and apartment buildings—are to contain 1,487 desks and 819 beds. These totals do not include any desks or beds within temporary offices and housing that State expects to demolish. Furthermore, the desk totals assume that compressed office areas in currently crowded office buildings will be alleviated as some staff move out of those areas and into the newly completed office annexes. 

Projected embassy staffing for 2015 is approximately 600 U.S. direct hires and 1,100 locally employed staff. State is working to identify its and other agencies’ desk positions (both U.S. direct hires and locally employed staff) that will occupy the new office space. State is also examining how to accommodate new support contractors—either on or off compound—that may be used to provide needed services after the U.S. military departs Afghanistan. 

State is conducting a master planning study, due in August 2014, to address on-compound facility needs unmet by current construction. That plan may address parking facilities that were removed from the current construction project. State is also considering the continued use of various leased off-compound facilities in the future.

 

Read the full report here (pdf).

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