Department of the Army awards $11.1M contract for neighborhood revitalization, highlighting construction sector activity

Contract Overview

Contract Amount: $11,080,819 ($11.1M)

Contractor: Klebl Gmbh

Awarding Agency: Department of Defense

Start Date: 2006-04-21

End Date: 2008-03-31

Contract Duration: 710 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PN 58919, WHOLE NEIGHBORHOOD REVITALIZAT

Plain-Language Summary

Department of Defense obligated $11.1 million to KLEBL GMBH for work described as: PN 58919, WHOLE NEIGHBORHOOD REVITALIZAT Key points: 1. Contract value of $11.1 million indicates significant investment in infrastructure development. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Duration of 710 days points to a substantial, multi-phase project. 5. The project's focus on neighborhood revitalization suggests a community-oriented development goal. 6. Contractor KLEBL GMBH's performance will be key to successful project completion.

Value Assessment

Rating: fair

The contract value of $11.1 million for neighborhood revitalization is a substantial sum. Without specific details on the scope of 'Whole Neighborhood Revitalization,' direct comparison to similar contracts is challenging. However, for large-scale construction and development projects, this amount falls within a typical range for significant federal investments. The firm fixed-price structure suggests an effort to establish a clear cost baseline, but the ultimate value-for-money will depend on the quality of execution and adherence to the project's revitalization goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the opportunity. The presence of multiple bidders generally fosters price discovery and can lead to more favorable pricing for the government. The specific number of bids received is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition process is generally beneficial for taxpayers as it increases the likelihood of obtaining the best value through competitive pricing and a wider pool of qualified contractors.

Public Impact

Residents of the affected neighborhood are the primary beneficiaries, experiencing improved living conditions and infrastructure. The contract delivers services related to commercial and institutional building construction, contributing to the physical transformation of the area. Geographic impact is localized to the specific neighborhood targeted for revitalization. Workforce implications include job creation for construction workers, engineers, project managers, and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope creep risk due to the broad nature of 'neighborhood revitalization'.
Potential for delays if unforeseen site conditions are encountered during construction.
Dependence on contractor performance for timely and quality delivery.
Budgetary risks if fixed-price contract does not account for all potential cost escalations.

Positive Signals

Clear contract type (firm fixed price) to manage cost certainty.
Awarded through full and open competition, suggesting a vetted contractor pool.
Defined start and end dates provide a project timeline.
The project addresses a specific need for neighborhood improvement.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building and renovation of structures used for commercial, industrial, and public purposes. Federal spending in construction is often driven by infrastructure needs, facility upgrades, and community development initiatives. Benchmarks for similar revitalization projects would typically consider factors like square footage, scope of work (e.g., demolition, new construction, landscaping), and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, KLEBL GMBH, may still engage small businesses as subcontractors based on their own procurement strategies and project needs, which is not detailed in this award data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, which incentivizes the contractor to complete the work within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction
Community Development Block Grants
Public Housing Revitalization
Infrastructure Improvement Projects

Risk Flags

Potential for scope definition ambiguity in 'revitalization' projects.
Risk of unforeseen site conditions impacting schedule and cost.
Contractor performance dependency for successful project outcome.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to KLEBL GMBH. PN 58919, WHOLE NEIGHBORHOOD REVITALIZAT

Who is the contractor on this award?

The obligated recipient is KLEBL GMBH.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2006-04-21. End: 2008-03-31.

What specific services are included under 'WHOLE NEIGHBORHOOD REVITALIZATION' for PN 58919?

The provided data for PN 58919, 'WHOLE NEIGHBORHOOD REVITALIZAT,' does not detail the specific services encompassed by the term 'revitalization.' Typically, such projects can include a wide range of activities such as demolition of dilapidated structures, new construction of residential or commercial buildings, infrastructure upgrades (roads, utilities, parks), environmental remediation, and community facility improvements. The scope would be defined in the detailed contract statement of work, which is not available here. Understanding the precise deliverables is crucial for assessing the contract's value and impact.

How does the $11.1 million award compare to typical federal spending on neighborhood revitalization projects?

The $11.1 million award for neighborhood revitalization is a significant investment. Federal spending on such projects can vary widely based on the scale, geographic location, and specific objectives. Larger-scale urban renewal or comprehensive community development initiatives can easily reach tens or hundreds of millions of dollars. Smaller, more targeted projects might be in the low millions. Without knowing the exact scope and duration of this 'Whole Neighborhood Revitalization,' a precise comparison is difficult. However, $11.1 million suggests a substantial undertaking, likely involving significant physical improvements and infrastructure work over its 710-day duration.

What is the track record of KLEBL GMBH with federal contracts, particularly in construction and revitalization?

Information regarding the specific track record of KLEBL GMBH with federal contracts, especially concerning construction and revitalization projects, is not provided in the given data snippet. A comprehensive assessment would require accessing historical contract databases (like FPDS or SAM.gov) to review past performance ratings, types of projects awarded, contract values, and any reported issues or successes. This would help in evaluating their experience, reliability, and capacity to handle a project of this magnitude and nature.

What are the key performance indicators (KPIs) for this 'WHOLE NEIGHBORHOOD REVITALIZAT' contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In a neighborhood revitalization project, KPIs would typically be tied to the successful completion of construction milestones, adherence to quality standards, environmental compliance, community engagement metrics, and potentially economic development outcomes (e.g., job creation, business support). The contracting officer's representative (COR) and the contracting officer would monitor these KPIs throughout the contract's lifecycle to ensure the project meets its objectives and delivers the intended value.

What is the historical spending pattern for neighborhood revitalization projects by the Department of the Army?

The provided data focuses on a single contract award and does not offer insights into the Department of the Army's historical spending patterns for neighborhood revitalization. To analyze this, one would need to examine aggregated contract data over several fiscal years, identifying all contracts related to revitalization, community development, or similar categories awarded by the Army. This would reveal trends in spending levels, types of projects funded, and potentially the agencies or commands most frequently involved in such initiatives.

What are the potential risks associated with a firm fixed-price contract for a complex revitalization project?

While a firm fixed-price (FFP) contract aims to control costs, it can introduce risks for both the government and the contractor, especially in complex projects like neighborhood revitalization. For the government, if the scope is not perfectly defined or unforeseen issues arise, the contractor may be less inclined to absorb additional costs, potentially leading to disputes or a reduction in scope. For the contractor, underestimating costs or encountering unexpected challenges (e.g., hazardous materials, difficult site conditions) can lead to significant financial losses if they cannot renegotiate terms or manage them within the fixed price. Effective project management and clear communication are vital to mitigate these risks.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Michael Klebl Gmbh & CO. KG (UEI: 317529030)

Address: GOESSWEINSTR. 2-4, NEUMARKT

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,723,253

Exercised Options: $9,723,253

Current Obligation: $11,080,819

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB04D0033

IDV Type: IDC

Timeline