DOD Awards $13.5M for Multifamily Housing Construction to SKE GMBH Under Full and Open Competition

Contract Overview

Contract Amount: $13,496,016 ($13.5M)

Contractor: SKE Gmbh

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-01-25

Contract Duration: 847 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION BLDGS 3211 & 3208

Plain-Language Summary

Department of Defense obligated $13.5 million to SKE GMBH for work described as: CONSTRUCTION BLDGS 3211 & 3208 Key points: 1. Spending of $13.5M on construction projects. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract awarded to SKE GMBH, a single entity. 4. Project duration of 847 days indicates a significant undertaking.

Value Assessment

Rating: fair

The contract value of $13.5M for multifamily housing construction appears within a reasonable range for a project of this scale and duration. Benchmarking against similar construction projects would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to more competitive pricing. The award to a single entity, SKE GMBH, suggests they were the most competitive bidder.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services or goods procured.

Public Impact

Impacts military families and personnel by providing housing. Supports the local economy through construction jobs and material procurement. Contributes to the Department of the Army's infrastructure development goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

• Lack of specific performance metrics in provided data.
• Potential for cost overruns in long-term construction projects.
• Reliance on a single contractor for a large project.

Positive Signals

• Awarded under full and open competition.
• Clear contract type (Firm Fixed Price) can limit cost uncertainty.
• Project addresses a critical need for military housing.

Sector Analysis

Construction spending in the multifamily housing sector is influenced by factors like interest rates, labor availability, and material costs. This project falls within the broader construction and real estate development sector, which is a significant area of government expenditure.

Small Business Impact

The provided data does not indicate any specific provisions or participation by small businesses in this contract. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

Oversight would typically involve regular site inspections, progress reports, and financial reviews by the Department of the Army to ensure the contractor adheres to contract terms, quality standards, and timelines.

Related Government Programs

• New Multifamily Housing Construction (except For-Sale Builders)
• Department of Defense Contracting
• Department of the Army Programs

Risk Flags

• Long project duration (847 days) increases exposure to market fluctuations.
• Potential for unforeseen site conditions in construction.
• Single awardee may limit future competitive opportunities if performance issues arise.
• Lack of detailed performance metrics in the provided data.

Tags

new-multifamily-housing-construction-exc, department-of-defense, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to SKE GMBH. CONSTRUCTION BLDGS 3211 & 3208

Who is the contractor on this award?

The obligated recipient is SKE 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 $13.5 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-01-25.

What was the competitive landscape like during the bidding process for this contract?

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. While the specific number of bids received isn't detailed, this method generally fosters a competitive environment. The award to SKE GMBH suggests they presented the most advantageous offer based on the evaluation criteria.

Are there any identified risks associated with the firm fixed price contract type for this project?

Firm Fixed Price (FFP) contracts are generally preferred for their cost control benefits, as the price is set regardless of the contractor's actual costs. However, for complex construction projects with long durations, risks can include potential scope creep if not managed tightly, or the contractor may have built in higher contingencies, potentially impacting overall value if unforeseen issues are minimal.

How does this contract contribute to the Department of the Army's overall housing strategy and effectiveness?

This contract directly addresses the need for new multifamily housing, which is crucial for military readiness and personnel retention. By providing modern, adequate housing, it supports the well-being of service members and their families, contributing to mission effectiveness. The long-term nature of the project suggests a strategic investment in infrastructure.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Gecom (UEI: 763133741)

Address: WURZBURGER STR. 9-11, KARLSTADT

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,012,222

Exercised Options: $13,496,016

Current Obligation: $13,496,016

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB04D0028

IDV Type: IDC

Timeline

Start Date: 2008-09-30

Current End Date: 2011-01-25

Potential End Date: 2011-01-25 00:00:00

Last Modified: 2012-06-28

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