State’s past and planned capital construction investments in Kabul from 2002 through March 2015 total $2.17 billion in project funding, which includes awarded construction contracts and other costs State incurs that are not part of those contracts. Examples of other State project costs include federal project supervision, construction security, security equipment, and project contingencies.12 Figure 3 shows these investments.

In fiscal years 2009 and 2010, State awarded two contracts originally worth $625.4 million in total to meet growing facility requirements at the U.S. embassy in Kabul. The first contract, awarded to Contractor 1 in September 2009 for $209.4 million, was for the design and construction of temporary and permanent structures to include

• temporary offices and housing,
• office annex A,
• apartment building 1,
• cafeteria and recreation center,
• perimeter security and compound access facilities,
• warehouse addition, and
• utility building.The second contract, awarded to Contractor 2 in September 2010 for $416 million, was for the design and construction of:

• office annex B,
• apartment buildings 2 and 3,
• expansion of existing apartment building 4,

• compound access and perimeter security facilities, and parking facilities—to include a vehicle maintenance facility.

  State’s plans called for sequencing construction under the two contracts and demolishing older temporary facilities to make space available for new facilities. State’s plans also entailed acquiring the Afghan Ministry of Public Health site adjacent to the compound to build parking facilities for approximately 400 embassy vehicles. In September 2011, after the U.S. and Afghan governments did not reach agreement to transfer that site, State had to remove the parking and vehicle maintenance facilities from the project.

  In September 2011, State partially terminated elements of the first contract—specifically the permanent facilities, including office annex A and apartment building 1—for the convenience of the U.S. government, in part, due to concerns about contractor performance and schedule delays. Contractor 1 completed the temporary offices and housing units, but in September 2011, State transferred contract requirements for the permanent facilities not begun by Contractor 1 to Contractor 2’s contract.

  The estimated completion of project has now been moved from summer 2014 to fall 2017.

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