Army's $342M contract for troop housing facilities in Germany awarded via full and open competition

Contract Overview

Contract Amount: $12,835,065 ($12.8M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2005-01-10

End Date: 2012-12-31

Contract Duration: 2,912 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200507!500042!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0009 !A!N! !N! ! !20050110!20050526!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 $12.8 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: 200507!500042!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0009 !A!N! !N! ! !20050110!20050526!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM!* !* … Key points: 1. Contract awarded for troop housing facilities, indicating a need for infrastructure development in support of military operations. 2. The contract was competed openly, suggesting a competitive environment that could lead to better pricing. 3. A long performance period of approximately 8 years suggests a significant and ongoing requirement. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The primary service area is construction, a critical component of military base support. 6. The awardee is a German entity, highlighting international cooperation in defense infrastructure.

Value Assessment

Rating: fair

The total award amount of $342,257,649 over nearly 8 years averages to approximately $42.7 million per year. Benchmarking this against similar large-scale construction projects for military housing is challenging without more specific cost breakdowns. However, the scale suggests a significant investment. The firm fixed-price nature of the contract aims to control costs, but the long duration could introduce unforeseen cost escalations if not managed meticulously. Without detailed cost breakdowns or comparisons to similar projects in the region, a definitive value-for-money assessment is difficult.

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 data shows 2 bids were received. While the number of bidders is low for a contract of this magnitude, the 'full and open' designation suggests a deliberate effort to solicit broad participation. The limited number of bids could potentially impact price discovery, but it is also possible that the specialized nature of the requirement or geographic location limited the pool of qualified bidders.

Taxpayer Impact: A full and open competition, even with a limited number of bids, generally provides a better opportunity for competitive pricing than a sole-source or limited competition, potentially saving taxpayer dollars.

Public Impact

Service members stationed in the Federal Republic of Germany benefit from improved troop housing facilities. The contract supports the construction and potentially maintenance of essential military infrastructure. The geographic impact is concentrated in Koblenz, Germany, where the facilities are located. The contract likely supports local employment in Germany through construction-related jobs. This spending contributes to the operational readiness and quality of life for deployed U.S. forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids received (2) for a large-value contract could indicate potential barriers to entry or limited market interest, impacting competitive pricing.
Long contract duration (nearly 8 years) increases the risk of cost overruns or scope creep if not managed effectively.
Lack of detailed cost breakdown makes it difficult to assess the true value for money and benchmark against similar projects.
Geographic concentration in Germany might limit the pool of potential bidders, impacting competition.
The specific nature of 'troop housing facilities' may require specialized expertise, potentially narrowing the competitive field.

Positive Signals

Awarded through 'Full and Open Competition,' maximizing the potential for a competitive bidding process.
Firm Fixed Price contract type shifts cost risk to the contractor, providing budget certainty.
The contract addresses a clear need for military infrastructure, supporting troop readiness.
Award to a non-US entity suggests successful international collaboration in defense procurement.
The contract duration aligns with long-term infrastructure planning needs.

Sector Analysis

This contract falls within the Construction sector, specifically related to building and infrastructure development. The North American Industry Classification System (NAICS) code 541310 points to Architectural Services, which often precedes or is integrated with construction projects of this scale. Large-scale military construction projects are a significant part of federal spending, often involving complex logistical and security requirements. Comparable spending benchmarks would typically be found within Department of Defense infrastructure budgets for overseas bases, which can run into hundreds of millions or billions of dollars for major facility developments.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large dollar value and the nature of the work (major construction in a foreign country), it is unlikely that small businesses would be the primary awardees, though they could potentially participate as subcontractors. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through the U.S. Army Corps of Engineers, which manages overseas construction projects. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases like FPDS, but detailed project oversight and inspection reports are typically internal or classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Overseas Contingency Operations (OCO) spending
Department of Defense Facilities Management
Army Corps of Engineers Construction Contracts
NATO Infrastructure Projects

Risk Flags

Low Bidder Count
Long Contract Duration
Potential for Cost Overruns
Limited Public Cost Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. 200507!500042!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0009 !A!N! !N! ! !20050110!20050526!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 $12.8 million.

What is the period of performance?

Start: 2005-01-10. End: 2012-12-31.

What is the track record of the awardee, BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG, with the U.S. Department of Defense?

The provided data indicates this is the sole contract listed for BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG (BBR) with the U.S. Department of Defense within the FPDS database. Without access to additional government contracting databases or historical performance information, it is difficult to assess their broader track record. As a German federal agency responsible for construction and spatial planning, BBR likely has extensive experience with large-scale public projects within Germany. However, its specific experience and performance on U.S. military contracts appear limited based on this single data point. Further investigation into past performance evaluations or other contract vehicles would be necessary for a comprehensive understanding.

How does the per-square-foot cost of this troop housing compare to similar construction projects in Germany or other overseas military installations?

Determining the per-square-foot cost requires detailed information on the total square footage constructed, which is not provided in the data. The contract value is $342,257,649 for troop housing facilities. To make a meaningful comparison, we would need the total area built. Additionally, construction costs vary significantly based on location, materials, labor rates, and specific facility requirements (e.g., security features, amenities). Comparing this project to similar overseas military housing projects would require accessing cost data for those projects and adjusting for regional economic factors. Without the square footage, a per-square-foot analysis is impossible, and even with it, direct comparisons are complex due to numerous variables.

What are the specific risks associated with a nearly 8-year construction contract for troop housing in Germany?

A construction contract spanning nearly eight years carries several inherent risks. Firstly, there's the risk of significant cost escalation due to inflation, fluctuating material prices, and labor cost increases over such a long period, even with a fixed-price contract, if contingencies are not adequately managed. Secondly, geopolitical or environmental changes in Germany could impact project feasibility or security requirements. Thirdly, contractor performance risk is amplified; the longer the duration, the higher the chance of contractor default, quality issues, or management problems. Lastly, changes in military requirements or troop deployment levels could necessitate modifications to the housing facilities, leading to scope creep and potential disputes. Robust oversight and change management processes are crucial to mitigate these risks.

What is the historical spending trend for troop housing facilities in Germany by the Department of the Army?

The provided data represents a single contract award from 2005 for troop housing facilities in Germany. To analyze historical spending trends, a broader dataset encompassing multiple years and potentially multiple contracts for similar facilities would be required. This single data point does not provide sufficient information to establish a trend. A comprehensive analysis would involve querying databases for all troop housing construction or renovation contracts awarded by the Department of the Army in Germany over a significant period (e.g., 5-10 years) and examining the total obligated amounts, contract types, and award mechanisms to identify patterns and fluctuations in spending.

How does the number of bids (2) for this contract compare to the average number of bids for similar-sized construction contracts awarded by the Department of the Army?

The data indicates that this $342 million contract for troop housing facilities received 2 bids. To assess whether this is typical, we would need to compare it to the average number of bids received for similar-sized (e.g., over $100 million) construction contracts awarded by the Department of the Army. Generally, for large, complex projects, especially those with specialized requirements or in specific geographic locations, the number of qualified bidders can be limited. While more bids are often preferred for robust price competition, receiving only two bids for a contract of this scale might not be unusual if the market for such specialized overseas construction is inherently constrained. A broader analysis of similar contracts is needed for a definitive comparison.

What are the implications of awarding a large construction contract to a foreign government agency (BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG)?

Awarding a large construction contract to a foreign government agency like BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG (BBR) can have several implications. On the positive side, it can foster international cooperation and leverage the expertise and established infrastructure of the host nation's government entities, potentially streamlining processes related to permits, local regulations, and labor. It may also indicate a strategic partnership or a specific requirement that the host nation's agency is best positioned to fulfill. However, potential challenges include navigating different procurement regulations, ensuring compliance with U.S. standards and oversight, managing currency exchange risks, and potential political sensitivities. Clear contractual terms and robust communication channels are essential for successful execution.

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