Department of the Army awards $12M contract for building repair at Hohenfels, Germany

Contract Overview

Contract Amount: $12,010,562 ($12.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2023-09-07

End Date: 2028-09-30

Contract Duration: 1,850 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RW: UPH-06856-1P, REPAIR BLDG. #854, HOHENFELS

Plain-Language Summary

Department of Defense obligated $12.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: RW: UPH-06856-1P, REPAIR BLDG. #854, HOHENFELS Key points: 1. Contract value appears reasonable given the scope of building repairs and duration. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Contract duration of nearly five years indicates a long-term need. 5. The awardee is a miscellaneous foreign entity, requiring careful vetting. 6. Specialty trade contractors are essential for maintaining military infrastructure.

Value Assessment

Rating: good

The contract value of $12 million for building repairs over approximately five years seems within a reasonable range for infrastructure maintenance at a military installation. Without specific benchmarks for building repair costs in Germany or for similar military facilities, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure incentivizes the contractor to manage costs effectively. The duration suggests a significant scope of work, potentially encompassing multiple repair projects or a large-scale renovation.

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 bids. The presence of three bidders suggests a moderate level of competition for this requirement. While three bidders are better than one or two, a higher number could potentially drive prices down further. The agency's decision to use full and open competition is generally positive for ensuring a fair market price.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing that full and open competition aims to achieve, ensuring that the government receives fair value for the services rendered.

Public Impact

Military personnel and their families stationed at Hohenfels, Germany, will benefit from improved living and working conditions. The contract will ensure the structural integrity and functionality of Building #854. Geographic impact is localized to the Hohenfels military training area in Germany. The contract will likely support local employment in the construction and specialty trades sector in the region surrounding the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly five years could lead to cost overruns if not managed tightly.
Reliance on a 'miscellaneous foreign awardee' may introduce complexities in oversight and payment processing.
The specific nature of 'repair' is broad and could lead to scope creep if not clearly defined.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a robust process for selecting the most capable and cost-effective contractor.
The contract addresses essential infrastructure maintenance, ensuring operational readiness.

Sector Analysis

This contract falls within the specialty trade contractors sector, which includes businesses that provide specialized construction services. The market for these services is often localized but can be significant for large organizations like the Department of Defense with global infrastructure needs. The size of this contract, approximately $12 million, is moderate for a multi-year infrastructure project. Comparable spending benchmarks would typically be found in construction industry cost indices and government databases for similar facility maintenance contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The awardee is listed as 'MISCELLANEOUS FOREIGN AWARDEES,' which does not suggest a small business. This means that opportunities for small businesses to directly participate in this specific contract are likely limited unless they are part of the supply chain for the prime contractor.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army, likely through contracting officers and project managers responsible for the Hohenfels facility. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified repairs within the agreed-upon cost. Transparency is generally facilitated through federal contract databases, though specific project details and performance metrics may not always be publicly disclosed.

Related Government Programs

Military Base Infrastructure Maintenance
Foreign Military Construction Contracts
Specialty Trade Services
Department of Defense Facilities Management

Risk Flags

Contract duration
Foreign awardee status
Scope definition for repairs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to MISCELLANEOUS FOREIGN AWARDEES. RW: UPH-06856-1P, REPAIR BLDG. #854, HOHENFELS

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2023-09-07. End: 2028-09-30.

What is the track record of 'MISCELLANEOUS FOREIGN AWARDEES' with the Department of Defense?

The designation 'MISCELLANEOUS FOREIGN AWARDEES' is a broad category and does not refer to a specific company. It indicates that the awardee is a foreign entity not otherwise classified. To assess track record, one would need to identify the specific entity that received this award and then research their past performance on government contracts, particularly with the Department of Defense or other federal agencies. This would involve searching contract databases for past awards, performance reviews, and any documented issues or successes. Without the specific entity's name, a track record analysis is impossible.

How does the $12 million cost compare to similar building repair contracts for military installations in Europe?

Benchmarking this $12 million contract against similar building repair projects at European military installations requires access to detailed cost data for comparable projects. Factors such as the size and type of building, the extent of repairs needed (e.g., structural, cosmetic, systems upgrades), local labor and material costs in Germany, and the specific requirements of the contract (e.g., security, environmental standards) all influence pricing. Generally, large-scale infrastructure repairs at active military bases can be costly due to stringent requirements and logistical complexities. A preliminary assessment suggests the cost is substantial but potentially justified by the scope and duration, pending a detailed comparison with specific project data.

What are the primary risks associated with a nearly five-year contract for building repairs?

A primary risk with a long-duration contract like this (nearly five years) is potential cost escalation beyond initial estimates, especially if the scope of work is not precisely defined or if unforeseen conditions arise during the repair process. Contractor performance degradation over time is another risk, as is the potential for the contractor to become less responsive or innovative as the contract matures. Furthermore, changes in military requirements or base operations could necessitate contract modifications, leading to complexities and potential cost adjustments. Effective contract management, clear performance metrics, and regular progress reviews are crucial to mitigate these risks.

How effective is a firm-fixed-price contract in ensuring value for money in building repair projects?

A firm-fixed-price (FFP) contract is generally considered effective in ensuring value for money for building repair projects, especially when the scope of work is well-defined. Under an FFP contract, the contractor assumes the risk of cost overruns, incentivizing them to manage resources efficiently and control expenses to maximize profit. This structure provides cost certainty for the government. However, for projects with significant uncertainties or potential for scope changes, an FFP contract might lead contractors to include higher contingency amounts in their bids to cover potential risks, potentially increasing the initial price. Careful scope definition is key to maximizing the benefits of an FFP structure.

What is the historical spending pattern for specialty trade contractors by the Department of the Army?

The Department of the Army historically spends significant amounts on specialty trade contractors to maintain its vast network of facilities worldwide. This spending encompasses a wide range of services, including electrical, plumbing, HVAC, roofing, masonry, and other specialized construction and repair activities. Annual spending can fluctuate based on infrastructure needs, modernization efforts, and budget allocations. While specific aggregate figures for specialty trade contractors are not readily available without deep data analysis, it is a consistent and substantial category of expenditure for the Army, reflecting the ongoing need to preserve and upgrade its physical assets.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,010,562

Exercised Options: $12,010,562

Current Obligation: $12,010,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline