SIGAR Audit-10-14 Contract Performance and Oversight

OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION

ANA Garrison at Farah Appeared Well Built Overall but 

Some Construction Issues Should Be Addressed

July 30, 2010
SIGAR Audit-10-14 Contract Performance and Oversight Page i 

OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION

July 30, 2010

Lieutenant General John R. Allen

Acting Commander, U.S. Central Command

General David Petraeus

Commander, U.S. Forces-Afghanistan, and 

Commander, International Security Assistance Force

Lieutenant General Robert L. Van Antwerp

U.S. Army Chief of Engineers and 

Commanding General of the U.S. Army Corps of Engineers

Lieutenant General William B. Caldwell, IV 

Commanding General, NATO Training Mission-Afghanistan/

Combined Security Transition Command-Afghanistan

This report discusses the results of a performance audit of two firm fixed-price contracts currently 

valued at $68.1 million for the construction of the Afghanistan National Army garrison in Farah Province. 

It includes three recommendations to the Commanding General of the U.S. Army Corps of Engineers 

(USACE) to address some construction issues observed at the site. 

A summary of this report is on page ii. This performance audit was conducted by the Office of the 

Special Inspector General for Afghanistan Reconstruction under the authority of Public Law No. 110-181

and the Inspector General Act of 1978, as amended. We considered comments from USACE, U.S. 

Forces-Afghanistan (USFOR-A), and Combined Security Transition Command-Afghanistan (CSTC-A). In its 

comments, USACE concurred with all three recommendations. USFOR-A and CSTC-A both concurred 

with the information provided in this report. Copies of the comments are included in appendices II, III, 

IV of this report.

John Brummet

Assistant Inspector General for Audits

Office of the Special Inspector General 

for Afghanistan Reconstruction
SIGAR Audit-10-14 Contract Performance and Oversight Page i 

 Special inspector General for Afghanistan Reconstruction

i

.

`

 

What SIGAR Reviewed

One objective of coalition efforts in Afghanistan is to build the country’s capacity to provide for its own security by training 

and equipping the Afghan National Security Forces (ANSF). Current plans call for the Afghanistan National Army (ANA) to 

grow to 171,600 by October 2011. As a result, additional facilities will be needed to train and base the ANA. Combined 

Security Transition Command-Afghanistan (CSTC-A) is funding contracts totaling $68.1 million through the Afghanistan 

Security Forces Fund to establish an ANA garrison in Farah, located in south-western Afghanistan and bordering Iran. The 

ANA began occupying the garrison in October 2009. Built to house 2,000 personnel, the garrison is almost complete and 

was built in two phases by FCEC-UI Projects JV, an Afghan-owned construction firm. The U.S. Army Corps of Engineers 

(USACE) Afghanistan Engineer District (AED)-South provides program management and oversight of construction. This 

report addresses the contracts’ outcomes, USACE oversight, and sustainment of and overall justification for the Farah 

garrison. To accomplish these objectives, SIGAR reviewed all contracts, statements of work, and modifications, and other

selected files for the garrison; and examined guidance in the Federal Acquisition Regulation (FAR) and the AED District 

Level Quality Assurance Plan for Construction. SIGAR interviewed officials from CSTC-A and the contractor and also 

performed a site inspection of the garrison in January 2010. SIGAR conducted this work in Afghanistan from November 

2009 to June 2010, in accordance with generally accepted government auditing standards. 

 

 SIGAR Special Inspector General for Afghanistan Reconstruction

What SIGAR Found 

Although the Farah garrison project is nearly complete, Phase I was completed about 16 months past its original 

completion date and Phase II is scheduled to be completed on July 31, 2010, pending acceptance by the ANA. This is 

almost 12 months past its original completion date. The cost of Phase I to CSTC-A, awarded for $29.4 million, increased by 

almost $10 million largely due to contract options exercised by AED-South and changes to the scope of work. In addition, 

issues with security of ground transportation led to an increase of $100,000 to fly in building materials. The cost of Phase II, 

awarded for $34.6 million, decreased by more than $5.7 million due to the removal of line items that duplicated Phase I.

The garrison overall appeared well constructed; however, we observed some construction issues related to site grading, 

asphalt roads, and drainage ditch maintenance that should be addressed. 

SIGAR found that overall contract management and oversight met contract requirements. Progress payments were 

documented properly, and quality assurance reports met USACE requirements. However, we noted that the Resident 

Management System reports and two modifications for Phase I contained some incorrect information.

According to CSTC-A, the government of Afghanistan does not have the financial or technical capacity to sustain all ANSF 

facilities; AED is in the process of awarding two contracts to provide operations and maintenance for ANSF facilities. The 

contracts as planned total $800 million over 5 years and will cover 663 ANSF sites.

CSTC-A did not provide SIGAR with an overall justification for the Farah garrison, such as a rationale for the location of the 

garrison. Various documents we reviewed addressed certain other ANSF facilities, but none addressed garrisons. Rather 

than make a recommendation regarding facility planning, SIGAR is conducting a separate audit of ANSF facilities planning.

 

SIGAR Audit-10-14 July 2010

ANA Garrison at Farah Appeared Well Built 

Overall but Some Construction Issues Should 

Be Addressed

What SIGAR Recommends 

To ensure that the Farah ANA garrison is completed in accordance with the contract and that sustainability issues are 

minimized, SIGAR recommends that the Commanding General, USACE, direct AED-South to:

1. Ensure that the site is properly graded around buildings to prevent the pooling of water,

2. Ensure that the asphalt roads and parking lots are properly compacted to minimize deterioration, and

3. Consider mitigating silt accumulation in the unlined drainage ditches around the garrison to minimize maintenance. 

USACE concurred with all three recommendations and outlined its plans for addressing them. USFOR-A and CSTC-A both

concurred with the information provided in this report. 

For more information contact: SIGAR Public affairs at (703) 602-8742 or PublicAffairs@sigar.mil
SIGAR Audit-10-14 Contract Performance and Oversight Page ii

TABLE OF CONTENTS

Background ................................................................................................................................................... 2

Construction of The ANA Garrison At Farah Is Not Within The Original Schedule and 

Costs Increased Largely Because AED Exercised Contract Options...................................................... 4

Overall Contract Management and Oversight Met Requirements.............................................................12

The Government Of Afghanistan Does Not Have The Capacity To Sustain ANSF Facilities, 

But New Contracts Are To Provide For Sustainment And Training.....................................................13

CSTC-A Did Not Provide An Overall Justification For The Farah Garrison ..................................................14

Conclusion...................................................................................................................................................16

Recommendations......................................................................................................................................16

Comments...................................................................................................................................................16

Appendix I: Scope And Methodology.........................................................................................................17

Appendix II: Comments From U.S. Army Corps Of Engineers....................................................................19

Appendix III: Comments From U.S. Forces-Afghanistan ............................................................................22

Appendix IV: Comments From Combined Security Transition Command-Afghanistan ............................23

TABLES

Table 1: Completion Dates and Award Amounts for the Farah ANA Garrison............................................. 5

Table 2: Modifications to Contract W917PM-08-C-0027, Phase I............................................................... 6

Table 3: Modifications to Contract W917PM-08-C-0057, Phase II.............................................................. 7

FIGURES AND PHOTOS

Figure 1: Map of Provinces in Afghanistan .................................................................................................. 3

Figure 2: Master Plan of Farah ANA Garrison.............................................................................................. 4

Photo 1: View of Farah ANA Garrison........................................................................................................... 9

Photo 2: Barracks at Farah ANA Garrison..................................................................................................... 9

Photo 3: Wastewater Treatment Plant at Farah ANA Garrison................................................................. 10

Photo 4: Incomplete Grading around Facilities at Farah ANA Garrison .....................................................11

Photo 5: Improperly Compacted Asphalt Paving at Farah ANA Garrison...................................................11

Photo 6: Unlined Ditches at Farah ANA Garrison .......................................................................................12
SIGAR Audit-10-14 Contract Performance and Oversight Page iii

ACRONYMS

AED-South Afghanistan Engineer District-South

ANA Afghanistan National Army 

ANSF Afghanistan National Security Forces

COR Contracting Officer’s Representative

FAR Federal Acquisition Regulation

MOD Ministry of Defense

CSTC-A Combined Security Transition Command-Afghanistan

SIGAR Special Inspector General for Afghanistan Reconstruction

USACE U.S. Army Corps of Engineers
SIGAR Audit-10-14 Contract Performance and Oversight Page 1 

ANA Garrison at Farah Appeared Well Built Overall but Some Construction 

Issues Should Be Addressed

One objective of coalition efforts in Afghanistan is to build the country’s capacity to provide for its own 

security by training and equipping the Afghanistan National Security Forces (ANSF). 1

The garrison at Farah, located in Farah Province, will house approximately 2,000 personnel. The ANA 

began occupying the garrison in October 2009. The Combined Security Transition Command-Afghanistan 

(CSTC-A)

 In 2001, the Bonn 

Agreement initially set troop levels for the Afghanistan National Army (ANA) at 50,000. New 

requirements call for the ANA to grow to 171,600 by October 2011. As a result of these increases, 

additional facilities are needed to train and base the Afghan forces. From fiscal years 2005 to 2010, 

about $25 billion has been appropriated for the Afghanistan Security Forces Fund, which provides the 

funding to train and equip the ANSF. 

2 is funding two contracts for a total of $68.1 million to construct the garrison in two phases. 

The U.S. Army Corps of Engineers (USACE) Afghanistan Engineer District (AED)-South 3 awarded two firm 

fixed-price contracts4 for program management and oversight of Phases I and II to FCEC UI Projects JV.5

 

This report addresses (1) whether the Farah garrison was constructed within the terms of the contract, 

including schedule and cost;

6

 

1 ANSF includes the Afghan National Army and the Afghan National Police.

(2) whether USACE oversight of the Farah garrison construction was 

conducted in accordance with the Federal Acquisition Regulation (FAR), USACE requirements, and 

oversight provisions of the contract; (3) what the plans are for sustaining ANSF facilities; and (4) what 

CSTC-A’s overall justification for the garrison was. 

 

2 The NATO Training Mission-Afghanistan and CSTC-A is a joint command under a single commander. Because 

CSTC-A distributes and manages all U.S.-provided funding to support ANSF, this report refers to CSTC-A. 

3 AED officially divided into two sections on August 3, 2009. AED-South is in charge of construction in Regional 

Commands South and West, and AED-North manages construction in Regional Commands North and East.

4 Firm fixed-price contracts provide for a price that is not subject to any adjustment on the basis of the contractor’s

cost experience in performing the contract. This contract type places upon the contractor maximum risk and full

responsibility for all costs and resulting profit or loss. Firm fixed-price contracts require the contractor to deliver

services within an agreed-upon schedule and cost to the United States. 

5 FCEC UI Projects JV is a registered Afghanistan corporation formed by the Fazlullah Construction and Engineering 

Co., an Afghan firm, and United Infrastructure Projects, an American firm. 

6 Throughout this report, we refer to “cost” as the cost to CSTC-A to provide this garrison.
SIGAR Audit-10-14 Contract Performance and Oversight Page 2 

To accomplish these objectives, we reviewed all contracts, statements of work, modifications, and 

selected contract files for the Farah garrison.7

 We examined criteria and guidance in the FAR and in the 

AED District Level Quality Assurance Plan (DLQAP) for Construction, dated December 15, 2008, and 

updated in August 2009.8

BACKGROUND

 We interviewed officials from CSTC-A, AED-South, USACE, and FCEC UI 

Projects JV, and conducted a site inspection of the Farah ANA garrison on January 11 to 14, 2010. We

conducted our work in Afghanistan, from November 2009 to June 2010, in accordance with generally 

accepted government auditing standards. Appendix I presents a more detailed discussion of our scope 

and methodology. This report is one in a series of Special Inspector General for Afghanistan 

Reconstruction (SIGAR) performance audits that examine contract cost, schedule, and outcome; 

oversight; and sustainment of ANSF facilities. 

CTSC-A, in partnership with the government of the Islamic Republic of Afghanistan and the international 

community, plans and implements reforms of the ANSF to develop a stable Afghanistan, strengthen rule 

of law, and defeat terrorism within its borders. CSTC-A is providing $68.1 million in funding for the

construction of the Farah ANA garrison in Farah province. See figure 1 for a map of the provinces in 

Afghanistan.

 

7 The FAR defines a contract modification as a minor change in the details of a provision or clause that is 

specifically authorized by the FAR and does not alter the substance of the provision or clause. 

8 We examined both documents and determined that for all intents and purposes the criteria found in the 

December 2008 document did not change significantly from the August 2009 document. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 3 

Figure 1: Map of Provinces in Afghanistan 

Source: SIGAR, April 23, 2010. 

When completed, the Farah ANA garrison will house approximately 2,000 personnel, in addition to 

embedded trainers at the garrison. The project construction was divided into two phases, which 

included: 

• Phase I – barracks, shower/latrine buildings, storage facilities, an embedded training team 

compound for U.S. soldiers; interpreter barracks; and electrical, communications, water supply, 

and sanitation systems; 

• Phase II – barracks, a multi-purpose athletic field and gymnasium, helipad, medical clinic, central 

receiving warehouse, training center, ammunition storage/arms storage, detention facility, and 

a fire station. 

Figure 2 presents the master plan of the garrison. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 4 

Figure 2: Master Plan of Farah ANA Garrison

Source: USACE, AED, July 2008. 

CONSTRUCTION OF THE ANA GARRISON AT FARAH IS NOT WITHIN THE ORIGINAL SCHEDULE 

AND COSTS INCREASED LARGELY BECAUSE AED EXERCISED CONTRACT OPTIONS 

Phase I of the Farah ANA garrison was completed about 16 months behind the original completion date. 

The cost of Phase I, awarded for more than $29.4 million, increased by almost $10 million. AED-South 

exercised contract options totaling $8.9 million,9

 

9 Options are line items identified in the original contract as additions that may be included in the contract at the 

request of the contracting authority. The options are exercised with a contract modification. In commenting on a 

draft of this report, USACE noted it uses contract options as part of its acquisition strategy and that modifications 

to a construction contract in any location are expected.

made changes to the contract’s scope totaling 

$965,000, and incurred additional security costs of about $100,000. Phase II is about 12 months behind 

schedule but is expected to be completed by July 2010. The cost of Phase II, awarded for more than 

$34.6 million, was reduced to a final award amount of $28.9 million after AED removed duplicate line 

items in the contract. Government delays in reviewing project designs, the construction of an additional 

access road, and security issues added time to both phases. Overall, the garrison appeared well built; 
SIGAR Audit-10-14 Contract Performance and Oversight Page 5 

however, we observed some construction issues that should be addressed. Table 1 shows the status of 

the schedule and cost for the garrison’s two phases. 

Table 1: Completion Dates and Award Amounts for the Farah ANA Garrison

Phase Original 

Completion Date

Current 

Completion 

Date

Original Award 

Amount

Current Award 

Amount

Percentage 

Completea

I Dec. 31, 2008 Apr. 1, 2010 $29.4 

million

$39.2 

million 100

II June 22, 2009 July 1, 2010 $34.6 

million

$28.9 

millionb 92

Source: SIGAR analysis of contract, modifications, notices to proceed, and Resident Management System reports.

Notes:

a Percentages are as of May 11, 2010. b Award amount reduced due to removal of duplicate line items for the Phase II contract. 

Phase I Is Complete and Costs Increased Largely because AED Exercised Options in the 

Contract

The completion date of Phase I was originally December 31, 2008, and was extended to January 5, 2010. 

According to the May 11 RMS, construction was complete as of April 2010, about 16 months behind 

schedule. AED-South awarded Phase I to the FCEC UI Projects JV on February 12, 2008, for $29.4 million. 

AED-South issued ten modifications to the Phase I contract, which expanded the scope of work, 

exercised 15 options listed in the original contract, and provided airlift for materials due to security 

issues limiting ground transportation. These modifications resulted in cost increases of almost 

$10 million. Table 2 summarizes the contract modifications. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 6 

Table 2: Modifications to Contract W917PM-08-C-0027, Phase I

Modification Date Purpose Cost/Schedule Change

P00001 Mar. 4, 2008 Exercised options for three contract 

line items: construction of a brigade 

headquarters building, barracks, and 

two bachelor officer quarters

Cost increased by almost $2.1 

million

P00002 Mar. 23, 2008 Increased the size of the embedded 

training team compound

Cost increased by almost 

$297,000

P00003 May 21, 2008 Exercised options for 12 contract line 

items: a garrison building; a 

communications building; barracks; 

bachelor officer quarters; morale, 

welfare, and recreation facility; 

laundry facility; anti-vehicle trench; 

paving of roads and parking area; 

and a reception building 

Cost increased by more than 

$6.8 million

P00004 May 22, 2008 Changed the bank where the 

contractor would receive electronic 

payments

No change

A00001 June 4, 2008 Changed the building installation 

requirement

No change

P00005 June 22, 2008 Changed the bank where the 

contractor would receive electronic 

payments

No change

P00006 Aug. 6, 2008 Provided for the design and 

construction of a bread-making 

facility 

Cost increased by $115,000

P00007 Sept. 9, 2008 Added three bachelor officer 

quarters and three arms storage 

buildings, provided for the design 

and construction of an additional 

access road

Cost increased by $450,000

P00008 Oct. 28, 2008 Due to poor security, materials to 

the job site were airlifted

Cost increased by $100,000

P00009 Jan. 16, 2010 Added a time extension to the

contract

Completion date extended to 

January 5, 2010

Source: SIGAR analysis of contract, modifications, notices to proceed, and Resident Management System reports.
SIGAR Audit-10-14 Contract Performance and Oversight Page 7 

In addition to modifications to the contract, AED-South issued two basic change documents for 

Phase I.10

According to AED-South documentation, as of May 11, 2010, Phase I was 100 percent complete; 

however, the contractor is still addressing some minor construction issues. Additionally, AED-South had 

made payments of more than $39.2 million toward the total cost of Phase I. 

 The first basic change document, dated August 29, 2009, stated that the contractor was to 

delete the demolition and removal of facilities from the contractor’s mobilization camp that were intially 

called for in the contract. Instead, the contractor was to provide all necessary materials, equipment, 

and labor to upgrade the electrical systems. The document showed that the estimate for this was 

$50,000. The second basic change document, dated January 4, 2010, extended the contract for 201 

calendar days with a new completion date of January 5, 2010. AED attributed 155 days to its review of 

the Phase I design plans and 46 days for road work outside of the Farah garrison. 

Phase II is Nearing Completion; Costs Decreased When Duplicate Items Were Deleted

Although Phase II’s completion date was originally June 22, 2009, and was extended to December 27, 

2009, the garrison should be completed by July 31, 2010, pending acceptance by the ANA. AED-South 

awarded Phase II to FCEC UI Projects JV on June 18, 2008, for $34.6 million. AED-South issued two 

modifications to the Phase II contract that did not result in cost increases. One modification removed 

duplicate line items that were in the contract for Phase I, which reduced the original award amount by 

more than $5.7 million to about $28.9 million. Table 3 summarizes the modifications to the contract. 

Table 3: Modifications to Contract W917PM-08-C-0057, Phase II

Modification Date Purpose Cost/Schedule Change

P00001 Aug. 26, 2008 Changed terms in administrative 

system

No change

P00002 Nov. 6, 2008 Administrative correction to delete 

11 contract line items previously 

listed as options under Phase I, 

including bachelor officer quarters, 

garrison headquarters, barracks, 

latrines, laundry, and morale, 

welfare, and recreation building 

Cost decreased by more than 

$5.7 million

Source: SIGAR analysis of contract, modifications, notices to proceed, and Resident Management System reports.

Phase II had one basic change document. This document, dated January 4, 2010, extended the contract 

for 188 days. AED attributed 98 days to delays in its design reviews for Phase II and an additional 90 

days for roadwork outside of the Farah garrison. As a result, the contract was extended to December 

27, 2009.

 

10 USACE’s Resident Management System generates what is known as a basic change document, which describes 

the scope of the change, changes to plans and specifications, the necessity and reason for the change, and the 

estimated impact on cost and schedule. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 8 

According to AED-South documentation, as of May 11, 2010, AED-South had made payments of more 

than $28.5 million toward the total cost of Phase II. 

Security Issues Affected both Phases 

According to the project manager of FCEC UI Projects, the contractor experienced serious security issues 

that affected both phases of construction. Convoys were ambushed, vehicles were destroyed, and 

construction materials were stolen. During these incidents, the contractors’ guards and personnel were 

injured, and several guards and insurgents were killed. In one incident, more than 50 trucks 

transporting material for the project were attacked and delayed for 27 days while the road between 

Kandahar and Farah was secured by the Afghanistan National Police. As a result, $100,000 in security 

costs were added to the Phase I contract to airlift materials to the site. In another incident, more than 

150 of the contractor’s workers were kidnapped, creating serious concerns for their safety until they 

were released. Although some were released in a matter of days, others were held for up to 2 months. 

According to an Afghan general we interviewed, the kidnapped workers were released after agreeing to 

discontinue their work at the garrison. 

The Garrison Appeared Well Built although Some Construction Issues Should be Addressed 

We conducted a site inspection of the Farah garrison from January 11 to 14, 2010, and found that the 

garrison appeared to be well built. See photo 1 for a view of the garrison. However, we found some 

problems with construction quality, including inadequate grading, improper compaction of asphalt in 

certain areas, and difficult-to-maintain drainage ditches. According to quality assurance reports, the 

problems with the asphalt were being addressed prior to our site inspection. 

Based on the criteria described in the contract’s statement of work and related technical specifications, 

we inspected the garrison and found it to be well constructed overall. The buildings we inspected had 

interior and exterior finishes properly applied and windows and doors installed as specified by the 

contract. Electrical conduits and fixtures were installed in most areas and appeared to conform to the 

contract requirements. 

Proper Quality Control Methods Were Used at the Garrison
SIGAR Audit-10-14 Contract Performance and Oversight Page 9 

Photo 1: View of Farah ANA Garrison

Source: SIGAR, January 11-14, 2010.

We also inspected barracks at the facility and found them to be well constructed (see photo 2). Further, 

we inspected a gymnasium, a pre-engineered steel structure that had been installed and painted, and 

found it to be complete and well built. The gymnasium’s insulation and interior finishes were in place

and installed in accordance with the contract. 

Photo 2: Barracks at Farah ANA Garrison

Source: SIGAR, January 11-14, 2010.

The wastewater treatment facility shown in photo 3 was complete and in operation during our site 

inspection. The facility was designed to accommodate 2,000 occupants. The plant consists of a 

manually cleaned bar screen, an aeration basin, settling tanks, and sludge drying beds. We observed 

chlorine and chemical feed equipment in a small control building that will clean waste. The facility 

appears to be well built and is comprised of the proper treatment components. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 10

Photo 3: Wastewater Treatment Plant at Farah ANA Garrison

Source: SIGAR, January 11-14, 2010.

We found three construction issues at the Farah ANA garrison: the grading around buildings was not 

sloped to carry water away, asphalt in certain areas was not compacted properly, and unlined drainage 

ditches will likely be difficult to maintain. 

Some Construction Issues Should Be Addressed 

The contract calls for a minimum slope of 5 percent from buildings toward ditches or other drainage 

points. At other locations, the contract calls for a minimum slope of 1 percent. We observed that, 

although the finish grading around the facilities at the garrison was not yet complete, it did not appear 

to be sloped as required to move water away from the buildings (see photo 4). In addition, we observed 

low areas near the buildings and sidewalks that should be removed to prevent the pooling or standing of 

water. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 11

Photo 4: Incomplete Grading around Facilities at Farah ANA Garrison 

Source: SIGAR, January 11-14, 2010. 

Further, we observed that the asphalt paving in certain areas on the site seemed to have been 

compacted improperly. The paving had rough or ragged edges and uneven surfaces (see photo 5). Since 

our site inspection, AED-South officials stated that additional testing was being performed on the 

asphalt to verify its thickness and compaction quality. If the asphalt is not compacted correctly, craters 

could form and the asphalt may deteriorate rapidly. In addition, in our review of quality assurance 

reports, we found reports that indicated prior problems with the compaction of asphalt roads at the 

garrison. 

Photo 5: Improperly Compacted Asphalt Paving at Farah ANA Garrison

Source: SIGAR, January 11-14, 2010. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 12

Throughout the site, we observed unlined drainage ditches along the roads, as shown in photo 6. The 

ditches appear to conform to design information in the contract documents but are susceptible to 

erosion and silt formation that will block the flow of water after a heavy rainfall. These ditches will need 

to be cleaned frequently to prevent flooding. We estimate the site has approximately 24,000 feet 

(4.5 miles) of unlined ditches. 

Photo 6: Unlined Ditches at Farah ANA Garrison

Source: SIGAR, January 11-14, 2010. 

OVERALL CONTRACT MANAGEMENT AND OVERSIGHT MET REQUIREMENTS

The progress payments were documented properly and the quality assurance and quality control 

reports met USACE requirements. However, the Resident Management System reports and two 

modifications for Phase I contained incorrect information and contract files were not in a single location. 

Progress payments made to the contractor for the two contracts were documented properly. According 

to the FAR, the Contracting Officer’s Representative (COR) is responsible for reviewing payment 

vouchers submitted by the contractor and for approving the payments. For example, AED-South 

personnel met monthly with the contractor to agree upon the percentage of completed work that 

would be acceptable by the contractor and the COR for that month. According to USACE requirements, 

the contractor then submits the request for payment to the COR for processing. The alternate 

contracting officer reviews and approves the payment request. The contracting officer authorizes the 

final payment when the garrison is complete. 

Quality assurance reports for Phases I and II generally met USACE criteria. According to USACE 

guidance, the Quality Assurance Representative is to complete daily quality assurance reports, and each 

site visit must be documented with a quality assurance report. These reports include information on the 

construction completed, tests performed, security and safety issues, progress, and problems. For 

example, a November 24, 2009, quality assurance report for Phase II noted that the contractor was 

given instructions to fix the uneven asphalt layer on the road. Our review of quality control reports for 
SIGAR Audit-10-14 Contract Performance and Oversight Page 13

Phases I and II indicated that most quality control procedures were well documented, although no 

three-phase inspections were listed for either phase of the garrison.

11

The Resident Management System report for Phase I, dated May 11, 2010, that AED-South provided to 

us had some incorrect information. The report indicated the original completion date of Phase I was 

March 17, 2009. However, according to the March 6, 2008, notice to proceed, the project was to be 

completed 300 days from the date of the letter making the original completion date December 31, 2008. 

Additionally, the report showed an award amount of more than $38.2 million, which was not the 

amount shown in the contract dated February 12, 2008.

In addition, two of the Phase I modifcations were incorrect. Although Phase I was extended to January 5, 

2010, modification P0006 reported that the contract completion date of March 19, 2009, remained the 

same. However, none of the previous modifications refers to this date. Further, modification P0009 

extended the contract from June 18, 2009, to a new completion date of January 5, 2010. None of the 

previous modifications mentions that the project was extended to June 18, 2009. 

Moreover, contract files were located in multiple locations, which hampered locating specific 

documents. We found required documents at the AED-South headquarters in Kandahar, on the 

Resident Engineer’s hard drive, and in the AED field office at the Farah garrison. Additionally, some of

the files were located in Kabul at AED-North. According to AED officials, the contract files were held in 

multiple locations due to the split of AED into AED-North and AED-South, which affected the 

management of the Farah garrison. AED-South officials also stated that connecting to the Resident 

Management System to update the system on the Farah project was problematic, and consequently 

some of the records were incomplete. Adequate documentation of contract management and 

contractor performance is essential for adequate monitoring and management of projects. 

THE GOVERNMENT OF AFGHANISTAN DOES NOT HAVE THE CAPACITY TO SUSTAIN ANSF 

FACILITIES, BUT NEW CONTRACTS ARE TO PROVIDE FOR SUSTAINMENT AND TRAINING 

CSTC-A officials stated that the government of Afghanistan does not have the financial or technical 

capacity to sustain the Farah garrison or other ANSF facilities once they are completed. Since 2002, the 

United States and the international community have provided funding for sustainment of the ANA. 

According to the CSTC-A 2008 campaign plan, future costs of sustainment may continue through 2025. 

In September 2006, AED awarded an operations and maintenance contract for $200 million to Contrack 

International Inc. to provide for the sustainment of ANSF facilities. When the current contract expired 

on October 15, 2009, AED exercised an option to extend the ANA contract with Contrack International 

Inc. until a new contract is awarded. As of March 18, 2010, cost of operations and maintenance at Farah 

was more than $1 million. 

According to the AED program manager for operations and maintenance, two new contracts for 

operations and maintenance for ANSF facilities will be awarded by July 29, 2010. These contracts will 

cover ANA and ANP facilities in northern and southern Afghanistan for $450 million and $350 million, 

respectively. According to the program manger, these contracts will be for 1 base year plus 4 optional 

 

11 The three-phase (preparatory, initial, and final) inspection process provides a means for ensuring that all 

construction activities, including those involving subcontractors, suppliers, and testing laboratories, comply with 

the latest applicable contract drawings, specifications, certified or approved submittals, and authorized changes to 

the contract.
SIGAR Audit-10-14 Contract Performance and Oversight Page 14

years. These contracts will be indefinite delivery/indefinite quantity contracts12

According to the AED program manager for operations and maintenance, the new contracts will require 

a training program for Afghan workers in all aspects of operations and maintenance. The program will 

be expanded with each additional year to include all regions in Afghanistan. The MOD will begin taking 

responsibility in selected locations beginning in 2010 with all locations phased in over time. According 

to the program manager, CSTC-A plans to transfer responsibility for all operations and maintenance for 

the ANSF facilites to the government of Afghanistan by 2013. The additional optional years for the 

contract would be included if all the ANSF facilities are not turned over by 2013. 

with task orders for 

operations and maintenance activities written against the contracts for specific locations. According to 

the program manager for operations and maintenance, a total of 663 sites will be covered over the life 

of these contracts. However, not all sites are completed and will be added with task orders as 

warranted. 

CSTC-A DID NOT PROVIDE AN OVERALL JUSTIFICATION FOR THE FARAH GARRISON

In the course of our audit, we attempted to document the U.S. plans and justification for the number 

and types of ANA facilities, including the Farah garrison. For example, the June 2008 United States Plan 

for Sustaining the Afghanistan National Security Forces provides details on how CSTC-A would work with 

MOD and Ministry of Interior to increase management and assessment procedures for the ANSF. 

Additionally, CSTC-A, in close coordination with the government of Afghanistan, developed the 

Campaign Plan for the Development of Afghan National Security Forces in September 2008. The goals of 

the plan are to build and develop ministerial institutional capability and to generate and develop the 

fielded forces. However, neither of these plans provided information on how current and future ANA 

troops will be deployed or the strategic and tactical rationale for the locations of ANA garrisons, 

including the one at Farah. 

In February 2010, we asked CSTC-A officials for any additional documents or justification for the Farah 

garrison. CSTC-A provided us with the Office of the Secretary of Defense, Fiscal Year 2008, Security 

Forces Fund Justification for Iraq Security Forces Fund (ISFF) and ASFF. This funding document addressed 

several ANSF facilities, including the Farah garrison, and cited an “ANA Master Plan for Facilities 

Development, October 2005” as justification. CSTC-A officials were not aware of this document nor 

could they locate a copy. 

Instead, CSTC-A officials provided us with three documents that they said addressed the Farah garrison 

and the overall plan for developing ANA facilities across Afghanistan. However, these documents did 

not provide an overall justification for the Farah garrison, such as a rationale for the garrison’s location.

• In April 2010, CSTC-A provided us the “Conceptual Master Plan for the ANA.” The document 

addresses the mission and facility requirements for a number of ANA command-level 

sustainment organizations—including the Kabul Military Training Center, a Ministry of Defense 

Compound, a Medical Command, an Acquisition Agency, and an Afghan National Army Training 

Command. The planning and analysis of these ANA facilities appeared detailed and 

 

12 Indefinite delivery/indefinite quantity contracts may be used to acquire supplies and/or services when the exact 

times and/or exact quantities of future deliveries are not known at the time of contract award.
SIGAR Audit-10-14 Contract Performance and Oversight Page 15

comprehensive. However, the plan provided to us did not address ANA garrisons, was not 

signed or dated, and was missing numerous pages.

• In June 2010, CSTC-A provided another document, “ANSF Comprehensive Master Plan for 

Facilities Development.”13

• Also in June 2010, CSTC-A provided us with Operations Order #01/2010 and a spreadsheet 

labeled “ANA Fielding Plan (Annex K), Version 20.”

 According to the Executive Summary, the plan “is a living document 

that will be regularly updated as the plans for specific locations are updated or as new sites and 

missions are identified.” However, the Operational Analysis section refers to ANA force goals

from April 2007, namely 70,000 troops by December 2008, as opposed to the currently planned 

ANA end-strength of 171,600 troops by October 2011. We also reviewed Book 1, which 

according to the Table of Contents addresses the ANA Corps and, specifically, 10 ANA garrisons. 

However, the garrison sections had not been completed; specifically, the Farah garrison section 

noted it would be completed at a later date. We also note that this plan was not signed or 

dated.

14

In our prior reports on the ANA garrisons located at Gamberi and Kunduz, we stated that CSTC-A was 

not aware of any planning documents or justification for these garrisons.

 The Operations Order appears to be an 

overall statement of CSTC-A’s role and its relationship with other organizations. Although the 

order refers to Annex K as an attachment, it provides no additional information about the Farah 

garrison. Annex K is a spreadsheet listing numerous ANA kandaks (battalions) and when they 

are scheduled to attend training and then deploy to a garrison or other facility. Although 

several kandaks are listed for Farah, Annex K does not provide any further information about 

the justification for the Farah garrison.

15 In its official comments to 

those reports, CSTC-A stated that we did not reflect the true state of CSTC-A’s operational planning. 

Although we understand CSTC-A’s position, namely, that the rapid operational pace and the ongoing 

changing requirements of the ANA are fluid, these same conditions reinforce the need for an overall 

planning document and justification for the garrisons and other ANA facilities. Such a document is 

important for CSTC-A and the MOD to ensure that, as requirements change, plans can be adapted as 

needed and resources can be prioritized and used effectively to achieve overall strategic goals. Without 

an ANA facilities plan that reflects current requirements, CSTC-A runs the risk of building facilities that 

do not meet MOD needs or are inadequate for the projected ANA force strength.16

 

13 This document was provided on two compact disks, both dated May 2010. One disk addressed the ANA and the 

other the ANP. 

 

14 CSTC-A also provided us with a copy of the 2008 campaign plan, which we had already reviewed.

15 See ANA Garrison at Kunduz Does Not Meet All Quality and Oversight Requirements; Serious Soil Issues Need to 

Be Addressed, SIGAR-Audit-10-09 (Washington, D.C.: April 30, 2010) and ANA Garrison at Gamberi Appears Well 

Built Overall but Some Construction Issues Need to Be Addressed, SIGAR-Audit-10-10 (Washington, D.C.: April 30, 

2010).

16 SIGAR is conducting a separate audit to more fully assess facility plans for the ANA and ANP, and determine 

whether they reflect current ANSF force goals and strategic, tactical, and operational plans. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 16

CONCLUSION

The United States has provided over $68 million to build this garrison in support of ANA operations in 

Farah Province. Although the garrison appears to be well constructed, some construction issues need to 

be addressed. Grading at the site was not sufficiently sloped, which will allow water to collect around 

buildings. The asphalt roads and parking lots were not all properly compacted and will deteriorate and 

need repair. The unlined drainage ditches at the site will need frequent maintenance. To protect the 

U.S. investment and provide a sustainable facility for ANA troops, the construction issues we observed 

should be addressed. 

In addition, CSTC-A did not provide SIGAR with an overall justification for the Farah garrison, such as the 

rationale for the garrison’s location. Various documents we reviewed addressed certain other ANSF 

facilities, but none addressed garrisons. However, rather than make a recommendation at this time, 

SIGAR is conducting a separate audit of ANSF facilities planning efforts.

RECOMMENDATIONS

To ensure that the Farah ANA garrison is completed in accordance with the contract and sustainability 

issues are minimized, SIGAR recommends that the Commanding General, USACE, direct AED-South to 

address the following construction issues:

1. Ensure that the site is properly graded around buildings to prevent the pooling of water,

2. Ensure that the asphalt roads and parking lots are properly compacted to minimize deterioration, 

and

3. Consider mitigating silt accumulation in the unlined drainage ditches around the garrison to 

minimize maintenance. 

COMMENTS

USACE, USFOR-A, and CSTC-A provided written comments on a draft of this report. These comments are 

reproduced in appendices II, III, and IV, respectively. 

USACE concurred with the three recommendations. USACE noted that it conducted a site evaluation to 

assess the construction issues we raised. As a result, USACE took steps to correct the grading and it 

determined that the asphalt areas are currently properly compacted. However, it will ensure that any 

subsequent pavement failures are addressed under the contract warranty. USACE also determined that 

the unlined drainage ditches are a low-cost solution for drainage, but plans to monitor the ditches for 

high amounts of erosion and will take corrective action, as necessary. Finally, USACE provided clarifying 

information about its use of contract options, which we incorporated into the report.

USFOR-A concurred with the information provided in the report. CSTC-A also concurred with the 

observations in the report and provided additional information about how ANSF force structure growth 

decisions are made and implemented. 
SIGAR Audit-10-14 Contract Performance and Oversight Page 17

APPENDIX I: SCOPE AND METHODOLOGY 

This report provides the results of the Office of the Special Inspector General for Afghanistan 

Reconstruction’s review of the Combined Security Transition Command-Afghanistan (CSTC-A) project to 

construct an Afghanistan National Army (ANA) garrison in Farah. This report addresses (1) whether the 

Farah garrison was constructed within the terms of the contract, including schedule and cost; 

(2) whether U.S. Corps of Engineers (USACE) oversight of the Farah garrison construction was conducted 

in accordance with the Federal Acquisition Regulation (FAR), USACE requirements, and oversight 

provisions of the contract; and (3) what the plans are for sustaining ANSF facilities; and (4) what 

CSTC-A’s overall justification for the garrison was. 

To examine contract outcomes, including schedule and cost, we met with officials from CSTC-A, 

Afghanistan Engineer District (AED) South, USACE, and the prime contractor Fazlullah Construction and 

Engineering Co. United Infrastructure Projects Joint Venture (FCEC UI Projects JV). We reviewed the 

contracts, statements of work, notices to proceed, and modifications for Phases I and II. We conducted a 

site inspection of the Farah ANA garrison from January 11 to 14, 2010, to observe the project and 

identify any quality assurance issues that AED-South would need to address. We used computerprocessed data from the USACE’s Resident Management System to determine the progress and 

payments made to date for each contract we reviewed. In addition, the Resident Management System 

provided information on issues and challenges for each contract. Although the Resident Management 

System had errors, we determined that these data were sufficient for the purposes of our review.

To examine the contracting process and oversight, we met with officials from CSTC-A, AED-South, and 

FCEC UI Projects JV. We reviewed criteria and guidance in the FAR and the AED District Level Quality 

Assurance Plan for Construction, dated December 15, 2008, and the one dated August 2009, to 

determine if oversight of the contract met requirements. We reviewed contract award documentation, 

solicitation paperwork, contracts, statement of work, notices to proceed, and modifications for the 

Farah garrison. We reviewed and analyzed quality assurance reports for Phases I and II for October 

through December 2009. We reviewed and analyzed quality control plans for each contract and quality 

control reports for selected months for Phase I (October 2008 and 2009) and Phase II (July 2009) to 

determine if the reports met USACE guidance. We reviewed progress payments obtained from 

AED-South to determine if payments on the contract were in accordance with the FAR and USACE 

guidance. In conducting the audit, we assessed the internal controls pertinent to our audit objectives 

and the administration and oversight of the project. Specifically, we identified and reviewed internal 

and management control procedures required by the FAR and the AED District Level Quality Assurance 

Plan for Construction. We relied on available documents in the contract files and analyzed these 

documents to determine if the internal controls for this project were adequate. The specific results of 

our review are contained in the findings sections of the report.

To determine U.S. government efforts to transfer the Farah garrison to the government of Afghanistan

and provide for its sustainment, we met with officials from CSTC-A and AED to identify any sustainment 

plans the government of Afghanistan has in place. We reviewed the current operations and 

maintenance contract to determine the total cost to sustain the ANSF facilities. 

To determine the strategic and tactical reasons why the Farah garrison is located where it is, as well as 

other ANA and ANP facilities, we reviewed CSTC-A’s September 2008 Campaign Plan for the 

Development of Afghan National Security Forces and the June 2008 United States Plan for Sustaining the 
SIGAR Audit-10-14 Contract Performance and Oversight Page 18

Afghanistan National Security Forces. As noted in the text, we also reviewed other documents provided 

to us by CSTC-A. 

This report is one in a series of Special Inspector General for Afghanistan Reconstruction performance

audits that examines contract cost, schedule, and outcome; oversight; and sustainment. We conducted 

work in Kabul, Afghanistan, and Washington, D.C., from November 2009 to June 2010 in accordance 

with generally accepted government auditing standards. These standards require that we plan and 

perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our 

findings and conclusions based on our audit objectives. We believe the evidence obtained provides a 

reasonable basis for our findings and conclusions based on our audit objectives. The audit was 

conducted by the Office of the Special Inspector General for Afghanistan Reconstruction under the 

authority of Public Law No. 110-181, and the Inspector General Act of 1978, as amended.
SIGAR Audit-10-14 Contract Performance and Oversight Page 19

APPENDIX II: COMMENTS FROM U.S. ARMY CORPS OF ENGINEERS
SIGAR Audit-10-14 Contract Performance and Oversight Page 20
SIGAR Audit-10-14 Contract Performance and Oversight Page 21
SIGAR Audit-10-14 Contract Performance and Oversight Page 22

APPENDIX III: COMMENTS FROM U.S. FORCES-AFGHANISTAN
SIGAR Audit-10-14 Contract Performance and Oversight Page 23

APPENDIX IV: COMMENTS FROM COMBINED SECURITY TRANSITION 

COMMAND-AFGHANISTAN
SIGAR Audit-10-14 Contract Performance and Oversight Page 24
SIGAR Audit-10-14 Contract Performance and Oversight Page 25

This report was conducted under the audit project code SIGAR-014A).
SIGAR’s Mission The mission of the Special Inspector General for 

Afghanistan Reconstruction is to enhance oversight of 

programs for the reconstruction of Afghanistan by 

conducting independent and objective audits, inspections, 

and investigations on the use of taxpayer dollars and 

related funds. SIGAR works to provide accurate and 

balanced information, evaluations, analysis, and 

recommendations to help the U.S. Congress, U.S. agencies, 

and other decision-makers to make informed oversight, 

policy, and funding decisions to: 

• improve effectiveness of the overall reconstruction 

strategy and its component programs; 

• improve management and accountability over funds 

administered by U.S. and Afghan agencies and their 

contractors;

• improve contracting and contract management 

processes;

• prevent fraud, waste, and abuse; and 

• advance U.S. interests in reconstructing 

Afghanistan. 

Obtaining Copies of SIGAR 

Reports and Testimonies

To obtain copies of SIGAR documents at no cost, go to 

SIGAR’s Web site (www.sigar.mil). SIGAR posts all 

released reports, testimonies, and correspondence on its 

Web site.

To Report Fraud, Waste, and 

Abuse in Afghanistan 

Reconstruction Programs

To help prevent fraud, waste, and abuse by reporting 

allegations of fraud, waste, abuse, mismanagement, and 

reprisal contact SIGAR’s hotline: 

• Web: www.sigar.mil/fraud

• Email: hotline@sigar.mil

• Phone Afghanistan: +93 (0) 700-10-7300 

• Phone DSN Afghanistan 318-237-2575 

• Phone International: +1-866-329-8893 

• Phone DSN International: 312-664-0378 

• U.S. fax: +1-703-604-0983 

Public Affairs Public Affairs Officer

• Phone: 703-602-8742 

• Email: PublicAffairs@sigar.mil 

• Mail: SIGAR Public Affairs

400 Army Navy Drive

Arlington, VA 22202