Naval Station Rota EOD Boat Shop Construction Awarded for $27.5M Under Full and Open Competition

Contract Overview

Contract Amount: $27,535,429 ($27.5M)

Contractor: Sociedad Espanola DE Montajes Industriales SA

Awarding Agency: Department of Defense

Start Date: 2023-01-03

End Date: 2026-01-29

Contract Duration: 1,122 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT P-810 EXPLOSIVE ORDINANCE DISPOSAL BOAT SHOP, NAVAL STATION ROTA, SPAIN CONSTRUCTION TASK ORDER

Plain-Language Summary

Department of Defense obligated $27.5 million to SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA for work described as: PROJECT P-810 EXPLOSIVE ORDINANCE DISPOSAL BOAT SHOP, NAVAL STATION ROTA, SPAIN CONSTRUCTION TASK ORDER Key points: 1. Contract awarded to a Spanish industrial company for construction services. 2. Project involves building an Explosive Ordnance Disposal (EOD) boat shop. 3. Task order issued under a larger contract vehicle. 4. Firm Fixed Price contract type suggests defined scope and cost certainty. 5. Duration of 1122 days indicates a significant construction timeline. 6. No small business set-aside noted, suggesting a focus on large prime contractors.

Value Assessment

Rating: fair

The contract value of $27.5 million for the construction of an EOD boat shop at Naval Station Rota, Spain, appears to be within a reasonable range for a project of this nature and scale. Benchmarking against similar large-scale construction projects for military facilities, especially those involving specialized requirements like an EOD facility, would be necessary for a definitive value assessment. The firm fixed-price nature of the contract provides cost predictability for the government, but the final value will depend on the contractor's execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a competitive environment, which generally leads to better pricing and value for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the U.S. Navy's Explosive Ordnance Disposal (EOD) units operating out of Naval Station Rota, Spain. The project will deliver a dedicated facility for the maintenance, repair, and readiness of EOD boats and equipment. Geographic impact is localized to Naval Station Rota, Spain, enhancing operational capabilities at this key overseas base. Workforce implications include construction jobs during the build phase and long-term employment for personnel operating and maintaining the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite firm fixed price.
Dependence on a single Spanish contractor for critical infrastructure development.
Logistical challenges associated with construction in an overseas location.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty.
Project addresses a specific operational need for EOD units.

Sector Analysis

The construction sector is a significant area of federal spending, particularly for infrastructure development at military installations worldwide. This contract falls within the Commercial and Institutional Building Construction category. The market for such specialized military construction is often characterized by a mix of large, established general contractors and specialized subcontractors. The value of this contract, approximately $27.5 million, is substantial and reflects the complexity and scale of building a dedicated EOD facility, which requires specific design considerations for safety and operational efficiency.

Small Business Impact

The contract data indicates that this was not a small business set-aside. The prime contractor, SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA, is likely a large business. While there is no direct indication of subcontracting plans for small businesses within the provided data, large federal construction contracts often include provisions for small business participation, either through direct subcontracting or as part of a larger supply chain. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and engineering commands, responsible for ensuring construction meets specifications and timelines. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for non-performance or delays. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports or Inspector General involvement would depend on any identified issues or audits.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Construction Contracts
Department of Defense Overseas Construction Projects
Explosive Ordnance Disposal (EOD) Support Facilities
Military Base Infrastructure Modernization

Risk Flags

Potential for schedule delays due to overseas construction complexities.
Risk of cost escalation if unforeseen site conditions arise.
Dependence on foreign labor and material supply chains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA. PROJECT P-810 EXPLOSIVE ORDINANCE DISPOSAL BOAT SHOP, NAVAL STATION ROTA, SPAIN CONSTRUCTION TASK ORDER

Who is the contractor on this award?

The obligated recipient is SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2023-01-03. End: 2026-01-29.

What is the track record of SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA with the Department of Defense or similar government entities?

A thorough review of SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA's contract history with the Department of Defense and other federal agencies is crucial. This would involve examining past performance on similar construction projects, including their size, complexity, and adherence to schedule and budget. Assessing their record for quality, safety compliance, and any history of disputes or contract terminations would provide valuable insight into their reliability as a contractor for this significant EOD boat shop project. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reports (CPARS) would be essential for this analysis.

How does the awarded price of $27.5 million compare to similar EOD facility construction projects or specialized military construction in overseas locations?

Benchmarking this $27.5 million contract against comparable projects is key to assessing value for money. This would involve identifying other recent construction contracts for EOD facilities, maintenance shops, or similar specialized military infrastructure, particularly those awarded to international contractors or in overseas locations like Europe. Factors such as square footage, specific equipment requirements, labor costs in the region, and the overall scope of work need to be considered. A significant deviation from established cost benchmarks, after accounting for these variables, could indicate either an exceptionally good deal for the government or potential pricing issues.

What are the primary risks associated with constructing a specialized facility like an EOD boat shop in Spain for the U.S. Navy?

Key risks for this project include logistical challenges inherent in overseas construction, such as material sourcing, transportation, and labor availability. Regulatory compliance with Spanish building codes and environmental regulations, in addition to U.S. military standards, presents another layer of complexity. Potential for schedule delays due to unforeseen site conditions, weather, or coordination issues between U.S. and local authorities are also significant risks. Furthermore, the specialized nature of an EOD facility may require unique safety protocols and construction techniques, increasing the risk of errors or accidents if not managed meticulously.

What is the expected impact of this new EOD boat shop on the operational effectiveness of naval forces at Rota?

The construction of a dedicated EOD boat shop is expected to significantly enhance the operational effectiveness of naval forces at Naval Station Rota. It will provide a centralized, purpose-built facility for the maintenance, repair, and readiness of EOD vessels and equipment, reducing downtime and improving response times. This improved infrastructure supports the critical mission of detecting, identifying, and neutralizing explosive hazards, thereby enhancing force protection and maritime security in the region. The facility will likely improve workflow efficiency and safety for EOD technicians.

What has been the historical spending trend for similar construction projects at Naval Station Rota or other U.S. Navy installations in Europe?

Analyzing historical spending for construction projects at Naval Station Rota and comparable U.S. Navy installations in Europe would provide context for the $27.5 million award. This involves examining the frequency and value of contracts for infrastructure development, maintenance facilities, and specialized operational buildings over the past several years. Understanding the average cost per square foot for similar projects, the typical duration, and the prevailing competition levels in the region can help determine if this contract represents a typical investment or an outlier. Trends in defense spending on overseas bases and infrastructure upgrades would also be relevant.

Are there any specific performance concerns or positive indicators from previous contracts awarded to SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA by the Navy?

Assessing past performance is critical. A review of Contractor Performance Assessment Reporting System (CPARS) data for SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA on previous Navy contracts would reveal any documented issues related to quality, schedule adherence, cost control, or management. Conversely, positive feedback regarding their technical expertise, project management capabilities, and successful delivery of complex projects would serve as strong positive indicators. Without access to CPARS or similar performance evaluations, it is difficult to definitively assess their track record for this specific project.

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

Solicitation ID: N6247020R4011

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AVENIDA MANOTERAS, 6 - SEGUNDA PLANTA, MADRID

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $29,010,649

Exercised Options: $27,535,429

Current Obligation: $27,535,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247021D0017

IDV Type: IDC

Timeline