DoD awards $10.6M for facilities support, highlighting potential value concerns in a competitive bid

Contract Overview

Contract Amount: $10,567,292 ($10.6M)

Contractor: Elektro-Krueck-Gmbh, Elektroinstallationen

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2025-12-31

Contract Duration: 152 days

Daily Burn Rate: $69.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING TASK ORDER FOR AUGUST MINI-TMC. POP 1 AUGUST 2025 - 31 AUGUST 2025.

Plain-Language Summary

Department of Defense obligated $10.6 million to ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN for work described as: FUNDING TASK ORDER FOR AUGUST MINI-TMC. POP 1 AUGUST 2025 - 31 AUGUST 2025. Key points: 1. The contract value appears high relative to the short performance period, warranting further scrutiny of unit costs and scope. 2. Full and open competition was utilized, suggesting a robust market but requiring analysis of bid responsiveness and pricing. 3. The fixed-price contract type shifts performance risk to the contractor, but scope creep could inflate costs. 4. Facilities Support Services are critical for operational readiness, making performance quality a key indicator. 5. The contract's duration is relatively short, which may impact long-term value and contractor investment. 6. Benchmarking against similar services is essential to determine if the awarded price reflects fair market value.

Value Assessment

Rating: fair

The awarded amount of $10.6 million for a 5-month period (August 2025 - December 2025) suggests a monthly burn rate of approximately $2.1 million. This rate appears high for facilities support services, especially when considering the contract's relatively short duration. Without detailed line-item breakdowns or comparable contract data, it is difficult to definitively assess value for money. However, the high monthly expenditure warrants a closer examination of the services provided and the associated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This competitive environment is generally favorable for price discovery and achieving market-based pricing. The number of bids received and the evaluation criteria used would provide further insight into the effectiveness of the competition in securing the best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, potentially leading to lower prices and higher quality services through market forces.

Public Impact

The Department of the Army benefits from essential facilities support services, ensuring operational readiness and maintenance of its infrastructure. Services include facility operations and maintenance, contributing to the upkeep of military installations. The geographic impact is likely concentrated at the specific Army installation(s) where the services are performed. The contract supports the workforce employed by ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN, contributing to employment in the facilities management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not clearly defined or if unforeseen issues arise.
The high monthly expenditure requires careful monitoring to ensure alignment with service delivery and budget.
Reliance on a single contractor for a critical period necessitates robust performance management.
Limited duration may not incentivize long-term efficiency improvements from the contractor.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type transfers significant performance risk to the contractor.
Services are essential for maintaining operational capabilities of the Department of Defense.
Contractor has been awarded a task order, implying some level of pre-qualification or existing relationship.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing operations, maintenance, and management of physical infrastructure. This sector is crucial for government operations, supporting everything from office buildings to critical military installations. The market size for government facilities support is substantial, with numerous contracts awarded annually across various agencies. This specific award to ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN represents a portion of the Department of Defense's overall spending on maintaining its vast real estate portfolio.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, the primary focus is on the prime contractor's capabilities. There is no explicit information regarding subcontracting plans for small businesses within this award. Future analysis could explore whether the prime contractor has a history of engaging small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, responsible for monitoring performance and ensuring compliance with contract terms. The firm fixed-price nature of the contract shifts some risk to the contractor, but the government retains oversight of service delivery quality and adherence to the statement of work. Transparency is facilitated through contract databases, though detailed performance metrics are often internal.

Related Government Programs

Facilities Maintenance and Repair
Base Operations Support
Logistics and Support Services
Government Infrastructure Management

Risk Flags

High monthly expenditure relative to contract duration.
Potential for scope creep impacting fixed-price certainty.
Need for detailed performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN. FUNDING TASK ORDER FOR AUGUST MINI-TMC. POP 1 AUGUST 2025 - 31 AUGUST 2025.

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 $10.6 million.

What is the period of performance?

Start: 2025-08-01. End: 2025-12-31.

What is the specific scope of services included in this $10.6 million task order for facilities support?

The provided data indicates the contract is for 'FUNDING TASK ORDER FOR AUGUST MINI-TMC' and falls under NAICS code 561210 (Facilities Support Services). However, the specific details of the services are not itemized in the abbreviated data. Typically, facilities support services can encompass a wide range of activities including, but not limited to, general maintenance, repair of building systems (HVAC, electrical, plumbing), groundskeeping, janitorial services, pest control, and potentially minor renovations. The high value for a short period suggests it might include specialized or intensive services, or cover a significant facility footprint. A detailed review of the Performance Work Statement (PWS) or Statement of Work (SOW) associated with this task order would be necessary to ascertain the precise scope.

How does the $10.6 million cost compare to similar facilities support contracts awarded by the Department of Defense?

Benchmarking this $10.6 million task order against similar contracts requires access to a broader dataset of DoD facilities support awards, ideally with comparable scope, duration, and geographic location. The provided data shows a 5-month performance period (August 2025 - December 2025), resulting in an approximate monthly cost of $2.1 million. This monthly rate appears high for standard facilities support services. For context, larger, multi-year base operations support contracts might have lower average monthly costs due to economies of scale and longer-term commitments. Conversely, highly specialized or emergency repair contracts could command higher rates. Without specific comparable contract details (e.g., square footage managed, specific services rendered, location), a definitive comparison is challenging, but the monthly expenditure warrants scrutiny.

What is the track record of ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN with the Department of Defense?

The provided data indicates that ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN is the awardee for this specific task order. To assess their track record with the Department of Defense (DoD), one would need to query federal procurement databases (like SAM.gov or FPDS) for their contract history. This would reveal past awards, performance ratings (if available), and the types of services they have previously provided to the DoD or other federal agencies. A history of successful contract performance, positive past performance reviews, and experience with similar scope and scale of facilities support services would indicate a lower performance risk. Conversely, a history of issues, disputes, or poor performance ratings would raise concerns.

What are the potential risks associated with a firm fixed-price contract for facilities support services?

A firm fixed-price (FFP) contract shifts the primary risk of cost overruns to the contractor, ELEKTRO-KRUECK-GMBH, ELEKTROINSTALLATIONEN. This is generally favorable for the government as it provides cost certainty. However, risks can still arise. If the scope of work is poorly defined or if unforeseen conditions emerge (e.g., extensive hidden damage in facilities), the contractor may incur higher costs than anticipated. While they are obligated to perform the defined scope at the fixed price, this could lead to pressure on quality, reduced service levels, or disputes over scope interpretation. Robust contract administration and a clearly defined Performance Work Statement (PWS) are crucial to mitigate these risks and ensure the government receives the intended value and quality of services.

How does the duration of 152 days (approximately 5 months) impact the value and effectiveness of this facilities support contract?

The relatively short duration of 152 days (from August 1, 2025, to December 31, 2025) for a $10.6 million contract presents a mixed picture for value and effectiveness. On one hand, it allows the Department of the Army to procure essential services for a specific, defined period without a long-term commitment, offering flexibility. It also means the government can re-evaluate requirements and contractor performance relatively quickly. However, such short durations can sometimes lead to higher per-unit costs as contractors may factor in mobilization/demobilization expenses or may not achieve economies of scale. Furthermore, it might disincentivize the contractor from investing in long-term efficiency improvements or specialized training, as the return on investment is limited. The government also faces the recurring administrative burden and cost of re-competing or extending the contract.

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

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: $10,567,292

Exercised Options: $10,567,292

Current Obligation: $10,567,292

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