DoD Awards $38.2M Firm Fixed Price Construction Contract for Keflavik Facility Upgrades
Contract Overview
Contract Amount: $38,186,062 ($38.2M)
Contractor: Framaco-Bozdemir Joint Venture LLC
Awarding Agency: Department of Defense
Start Date: 2025-07-31
End Date: 2027-01-29
Contract Duration: 547 days
Daily Burn Rate: $69.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: THIS IS A CONSTRUCTION CONTRACT WHOSE PURPOSE IS TO PROVIDE UPGRADES TO THREE EXISTING FACILITIES IN KEFLAVIK, ICELAND.
Plain-Language Summary
Department of Defense obligated $38.2 million to FRAMACO-BOZDEMIR JOINT VENTURE LLC for work described as: THIS IS A CONSTRUCTION CONTRACT WHOSE PURPOSE IS TO PROVIDE UPGRADES TO THREE EXISTING FACILITIES IN KEFLAVIK, ICELAND. Key points: 1. Contract awarded to FRAMACO-BOZDEMIR JOINT VENTURE LLC for facility upgrades in Iceland. 2. The contract is for commercial and institutional building construction, with a duration of 547 days. 3. This is a definitive contract with a firm fixed price, indicating defined scope and cost. 4. The contract is not available for competition, raising questions about price discovery.
Value Assessment
Rating: questionable
The contract's value of $38.2 million for construction in Iceland is substantial. Without comparable benchmarks for similar international facility upgrades, assessing its value for money is difficult. The lack of competition further complicates a direct pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is explicitly stated as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The sole-source nature of this contract means taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes.
Public Impact
Military readiness in Iceland is enhanced through facility upgrades. International construction projects can face unique logistical and geopolitical challenges. Taxpayer funds are allocated for infrastructure improvements at a foreign military installation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- International location challenges
- Potential for cost overruns due to sole-source award
Positive Signals
- Definitive contract structure
- Firm fixed price agreement
- Clear project duration
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Benchmarks for international military construction projects are highly variable due to location, logistics, and specific requirements, making direct comparisons challenging.
Small Business Impact
The contract was awarded to FRAMACO-BOZDEMIR JOINT VENTURE LLC. Information regarding the small business status or participation of this joint venture is not provided, nor is it indicated if small business set-asides were considered.
Oversight & Accountability
As a sole-source contract, oversight is crucial to ensure the contractor delivers the required upgrades within the fixed price and timeline. The Department of the Navy's contracting activity suggests established oversight mechanisms are in place.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competitive pricing.
- International project logistics and potential delays.
- Risk of cost overruns if scope creep occurs.
- Geopolitical factors affecting project execution.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.2 million to FRAMACO-BOZDEMIR JOINT VENTURE LLC. THIS IS A CONSTRUCTION CONTRACT WHOSE PURPOSE IS TO PROVIDE UPGRADES TO THREE EXISTING FACILITIES IN KEFLAVIK, ICELAND.
Who is the contractor on this award?
The obligated recipient is FRAMACO-BOZDEMIR JOINT VENTURE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $38.2 million.
What is the period of performance?
Start: 2025-07-31. End: 2027-01-29.
What specific factors led to this contract being sole-sourced, and were alternatives explored?
The data states the contract was 'NOT AVAILABLE FOR COMPETITION.' Without further details, the specific reasons remain unclear. Typically, sole-sourcing might be justified by urgent needs, unique capabilities, or lack of viable alternatives. Exploring these justifications is essential for understanding the necessity of bypassing competitive processes and ensuring taxpayer value.
How will the Department of the Navy ensure cost control and quality assurance given the sole-source nature of this significant construction project?
Robust oversight protocols, including detailed inspection schedules, progress reviews, and strict adherence to the firm fixed price terms, are critical. The Navy should employ experienced project managers and potentially independent quality assurance specialists to monitor the work closely, mitigate risks associated with sole-sourcing, and ensure the final product meets all specifications and standards.
What is the projected impact of this investment on the operational capabilities and readiness of U.S. forces stationed in Keflavik, Iceland?
The upgrades are intended to improve existing facilities, which should directly enhance the operational capabilities and living conditions for U.S. personnel. Modernized infrastructure can lead to increased efficiency, better safety, and improved morale, ultimately contributing to the overall readiness and effectiveness of the U.S. presence in a strategically important location.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 WESTCHESTER AVE, RYE BROOK, NY, 10573
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,106,616
Exercised Options: $38,186,062
Current Obligation: $38,186,062
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-07-31
Current End Date: 2027-01-29
Potential End Date: 2027-01-29 00:00:00
Last Modified: 2025-09-03
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