DoD's $12M Facilities Support Contract Awarded to Elektro-Krueck-GmbH for European Operations

Contract Overview

Contract Amount: $12,011,447 ($12.0M)

Contractor: Elektro-Krueck-Gmbh, Elektroinstallationen

Awarding Agency: Department of Defense

Start Date: 2024-12-04

End Date: 2025-09-24

Contract Duration: 294 days

Daily Burn Rate: $40.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IJOS FOR EURO 3001-$150,000 FOR GAD

Plain-Language Summary

Department of Defense obligated $12.0 million to ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN for work described as: IJOS FOR EURO 3001-$150,000 FOR GAD Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's fixed-price nature shifts performance risk to the contractor. 4. Services are critical for maintaining operational readiness in a European theater. 5. This award falls within the broad category of facilities support services for the Army. 6. The contractor's experience in similar international support roles is a key performance indicator.

Value Assessment

Rating: good

The contract's total value of $12,011,446.50 over approximately 294 days (roughly 9.5 months) suggests a monthly expenditure of around $1.26 million. Benchmarking this against similar large-scale facilities support contracts, especially those in overseas locations requiring logistical and security considerations, indicates a potentially fair price. The firm fixed-price structure further supports value assessment by capping the government's financial exposure.

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. While the specific number of bidders is not provided, this method generally fosters a competitive environment, allowing for price discovery and potentially driving down costs for the government. The agency's decision to use this procurement approach suggests confidence in the market's ability to provide qualified vendors.

Taxpayer Impact: A competitive bidding process like full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most advantageous price, preventing potential overpayment and maximizing the efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Army personnel and operations in the European theater, ensuring their facilities are maintained and functional. Services delivered include essential facilities support, likely encompassing maintenance, repair, and operational upkeep of infrastructure. The geographic impact is focused on U.S. Army installations within Europe. Workforce implications may include the utilization of local labor and specialized technical personnel managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise, though mitigated by fixed-price.
Dependence on contractor's ability to manage complex international logistics and supply chains.
Risk of performance degradation if contractor's key personnel turnover is high.

Positive Signals

Firm fixed-price contract shifts financial risk to the contractor.
Full and open competition suggests a robust selection process.
Contract duration provides stability for service delivery and planning.
Award to a specific company indicates they met technical and performance requirements.

Sector Analysis

Facilities Support Services (NAICS 561210) represent a significant segment of the government contracting market, encompassing a wide range of maintenance, operation, and management services for buildings and infrastructure. This contract fits within the broader defense sector's need for robust operational support in overseas locations. Comparable spending benchmarks for similar services in European theaters are difficult to pinpoint without more specific service details but typically involve substantial investment due to logistical complexities and security requirements.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. As a large contract awarded under full and open competition, the primary contractor, Elektro-Krueck-GmbH, will likely manage the majority of the work. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting command responsible for European operations. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Defense Infrastructure Maintenance
Overseas Construction and Facilities Management

Risk Flags

Potential for performance issues in a complex overseas environment.
Contract value is substantial, requiring diligent oversight.
Dependence on contractor's supply chain and personnel in Europe.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN. IJOS FOR EURO 3001-$150,000 FOR GAD

Who is the contractor on this award?

The obligated recipient is ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN.

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: 2024-12-04. End: 2025-09-24.

What is the track record of Elektro-Krueck-GmbH in performing similar large-scale facilities support contracts for the Department of Defense, particularly in overseas environments?

Assessing Elektro-Krueck-GmbH's track record requires a deep dive into their past performance evaluations and contract history with the DoD. Specifically, we would look for prior awards of similar magnitude and scope, focusing on their performance in European or other international theaters. Key indicators would include past performance ratings, any documented instances of contract disputes or terminations, and their ability to meet delivery schedules and quality standards. Without access to proprietary past performance databases, it's challenging to provide a definitive assessment, but the award itself suggests they met the minimum requirements. Further investigation into publicly available contract award data and any associated performance reports would be necessary for a comprehensive evaluation.

How does the awarded price of approximately $1.26 million per month compare to market rates for similar facilities support services in the European theater?

Benchmarking the monthly cost of approximately $1.26 million requires detailed comparison with similar contracts for facilities support services in the specific European region where the contract is active. Factors influencing market rates include the type and scale of facilities, the specific services required (e.g., HVAC, electrical, plumbing, grounds maintenance, security), local labor costs, logistical challenges, and prevailing economic conditions. Contracts awarded under full and open competition generally aim to reflect market rates. However, without granular data on comparable contracts and the precise scope of services here, a definitive comparison is difficult. The firm fixed-price nature suggests the government believes this rate is competitive and acceptable for the defined scope.

What are the primary risk indicators associated with this contract, and what mitigation strategies are in place?

Primary risk indicators for this contract include potential performance failures by the contractor, unforeseen cost escalations (though mitigated by fixed-price), geopolitical instability in the operating region, and logistical challenges in procuring necessary materials and personnel. Mitigation strategies are likely embedded within the contract's terms and conditions. The firm fixed-price structure shifts significant financial risk to Elektro-Krueck-GmbH. Performance standards and service level agreements (SLAs) would define acceptable performance, with penalties for non-compliance. The DoD likely has contingency plans for geopolitical or logistical disruptions, and the contractor is expected to have its own risk management protocols. Regular oversight and communication channels are crucial for early identification and resolution of emerging risks.

What is the historical spending pattern for facilities support services by the Department of the Army in the European theater, and how does this award fit within that trend?

Historical spending on facilities support services by the Department of the Army in Europe is substantial, driven by the need to maintain a significant military presence. This spending typically fluctuates based on geopolitical conditions, infrastructure modernization initiatives, and base consolidation or expansion efforts. Awards like this $12 million contract are part of a continuous cycle of maintaining and operating essential infrastructure. To understand its fit within the trend, one would need to analyze multi-year spending data for similar services (e.g., Base Operations Support - BOS contracts) in the relevant European commands. This specific award appears to be a standard operational expenditure rather than a major capital investment, aligning with ongoing needs for facility upkeep.

What specific performance metrics or Key Performance Indicators (KPIs) will be used to evaluate the contractor's success throughout the contract period?

While the specific KPIs are not detailed in the provided data, contracts for facilities support services typically include metrics related to response times for maintenance requests, completion rates for scheduled preventive maintenance, uptime/availability of critical systems (e.g., power, HVAC), adherence to safety standards, and customer satisfaction surveys from facility users. For a contract of this nature and value, the DoD would likely establish clear performance standards and potentially utilize a Contractor Performance Assessment Reporting System (CPARS) to document Elektro-Krueck-GmbH's performance. These KPIs are crucial for ensuring the government receives the full value of the contract and for informing future procurement decisions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W564KV25R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: FERDINAND-PORSCHE-STR. 19, GRUENSTADT

Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $12,022,208

Exercised Options: $12,022,208

Current Obligation: $12,011,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W564KV25D2001

IDV Type: IDC

Timeline