Army awarded $342M for troop housing in Germany, with construction services valued at $11.6M

Contract Overview

Contract Amount: $11,631,419 ($11.6M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2005-01-10

End Date: 2012-02-10

Contract Duration: 2,587 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200511!500757!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0008 !A!N! !N! ! !20050110!20051230!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM!* !* !GERMANY !+000000058571!N!N!000000000000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !541310!E! !3! ! ! ! ! !20200930!B! ! !N!Z!A!U!J!2!002!B! !Z!N!Z!B!GM!N!L!U! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $11.6 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: 200511!500757!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0008 !A!N! !N! ! !20050110!20051230!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM!* !* … Key points: 1. Contract awarded for troop housing facilities in Germany. 2. Construction services represent a significant portion of the total award value. 3. The contract was competed fully and openly. 4. The duration of the contract spans over 7 years. 5. The primary service code indicates architectural services. 6. The contract type is a definitive contract with a firm fixed price.

Value Assessment

Rating: fair

The total award value of $342,257,649 over its life is substantial. However, the core construction services component, valued at $11,631,419.17, needs further benchmarking against similar projects in Germany during the 2005-2012 period. Without more granular data on the scope of work for the construction services, it's difficult to definitively assess value for money. The long duration suggests potential for cost escalation or scope creep if not managed tightly.

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 likely had the opportunity to submit proposals. The presence of two bids suggests a competitive process, which generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders (2) is on the lower side for full and open competition, which might warrant a closer look at the solicitation details to ensure adequate market reach.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of offers, driving down prices and improving the quality of services received.

Public Impact

U.S. Army personnel stationed in Germany benefit from improved troop housing facilities. The contract supports the construction and potentially renovation of essential military infrastructure. The geographic impact is concentrated in Koblenz, Germany. The contract likely supports local German construction firms and labor, contributing to the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to cost overruns if not managed effectively.
Limited number of bidders (2) in a full and open competition might indicate barriers to entry or a niche market.
The significant difference between the total award and the construction services value suggests a complex contract structure requiring careful oversight.

Positive Signals

Awarded under full and open competition, promoting a fair marketplace.
Firm fixed price contract type helps control costs and provides budget certainty.
Contract supports critical military infrastructure needs.

Sector Analysis

This contract falls within the construction and architectural services sector, specifically supporting military infrastructure. The market for large-scale construction and facility management for military installations is often dominated by a few large, specialized firms. Benchmarking this contract's value would require comparing it to other major military construction projects awarded by the Department of Defense in European theaters during the mid-2000s to early 2010s.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the scale and nature of troop housing construction, it is likely that larger prime contractors were involved. However, there may have been opportunities for small businesses to participate as subcontractors to the prime awardee, particularly in specialized trades or local services.

Oversight & Accountability

Oversight would typically be managed by the U.S. Army Corps of Engineers, Europe District, given the agency and location. Accountability measures would be embedded in the contract's performance clauses, milestones, and payment schedules. Transparency is generally facilitated through contract databases like FPDS, although detailed project-specific oversight reports may not always be publicly available.

Related Government Programs

Military Construction, Army
Family Housing Construction
Architectural and Engineering Services
European Command Construction Projects

Risk Flags

Potential for cost overruns due to long contract duration.
Limited competition despite full and open solicitation.
Complexity of managing a large, multi-year construction project in a foreign country.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. 200511!500757!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0008 !A!N! !N! ! !20050110!20051230!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM!* !* !GERMANY !+000000058571!N!N!000000000000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !* !541310!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2005-01-10. End: 2012-02-10.

What was the specific scope of work for the construction services component valued at $11.6M, and how does it compare to similar troop housing projects in Germany during the contract period?

The provided data indicates the primary service code is 541310 (Architectural Services) and the product service code is C2 (Construction). The total award was $342,257,649, with a specific construction services value of $11,631,419.17. Without detailed project documentation, it's challenging to ascertain the exact scope. However, this suggests the $11.6M might represent a specific phase, a particular type of construction (e.g., specialized facilities within a larger housing complex), or architectural design fees related to the overall troop housing project. Benchmarking this against similar projects would require access to detailed cost breakdowns of other troop housing contracts in Germany from 2005-2012, considering factors like square footage, materials, and specific facility requirements.

Given the contract's duration of over 7 years (from 2005 to 2012), what were the primary risks associated with cost and schedule, and how were they managed?

A contract spanning over seven years inherently carries significant risks related to cost escalation due to inflation, material price fluctuations, and potential changes in labor costs. Schedule risks include delays caused by unforeseen site conditions, weather, logistical challenges in Germany, or changes in military requirements. Management of these risks would typically involve robust contract clauses for change orders, regular progress reviews, performance metrics, and potentially economic price adjustment provisions. The firm fixed price nature, however, places much of the cost risk on the contractor, incentivizing them to manage these factors closely to maintain profitability.

How did the 'full and open competition' process for this $342M contract ensure adequate market participation and price discovery, especially considering only two bids were received?

While 'full and open competition' theoretically allows all responsible sources to submit offers, receiving only two bids suggests potential limitations in the market reach or attractiveness of the solicitation. Factors contributing to this could include highly specialized requirements, geographic limitations, high pre-qualification thresholds, or the sheer scale of the project deterring smaller or less experienced firms. To ensure adequate price discovery, the government would have evaluated the competitiveness of the two bids received against cost estimates and market research. If the bids were deemed excessively high or non-compliant, the agency might have re-solicited or negotiated. The government's evaluation criteria and the specific details of the solicitation documents are crucial for understanding the effectiveness of the competition.

What is the historical spending pattern for troop housing facilities in Germany by the Department of the Army, and how does this $342M award compare?

Historical spending data for troop housing facilities in Germany by the Department of the Army would reveal trends in investment in military infrastructure abroad. This $342M award represents a significant investment over a multi-year period. To contextualize it, one would need to analyze annual spending on similar projects in Germany or other European bases over the preceding decade. Factors like troop levels, base consolidation or expansion plans, and the age of existing facilities influence such spending. A comparison would show whether this award was an anomaly, part of a larger modernization effort, or consistent with previous investment levels.

What are the implications of the 'definitive contract' type and 'firm fixed price' payment terms for the contractor and the government in this large-scale construction project?

A definitive contract is a fixed-price contract awarded under full and open competition, often used for large projects with well-defined scopes. The 'firm fixed price' (FFP) term means the price is set and not subject to adjustment based on the contractor's cost experience. For the contractor, this presents the highest risk but also the potential for the greatest profit if they can control costs effectively. For the government, FFP offers the most certainty regarding the final price, simplifying budget management. However, it places the burden of cost overruns on the contractor, which can sometimes lead to quality compromises if not closely monitored, or conversely, to contractors bidding higher initially to account for perceived risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bundesamt FÜR Bauwesen UND Raumordnung (UEI: 332619535)

Address: DEICHMANNS AUE 31-37, BONN

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline