DoD spent $11.97M on architectural services for troop housing in Germany, awarded via full and open competition

Contract Overview

Contract Amount: $11,969,288 ($12.0M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2004-12-21

End Date: 2012-02-10

Contract Duration: 2,607 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200605!600094!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0014 !A!N! !N! !P00001!20051221!20061231!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM! ! !GERMANY !+000000239219!N!N!000000000000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !541310!E! !3!B!S!D! ! !99990909!B! ! !N!Z!A!N!J!2!001!A! !Z!N!Z!B!GM!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $12.0 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: 200605!600094!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0014 !A!N! !N! !P00001!20051221!20061231!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM! ! … Key points: 1. Contract awarded for architectural services related to troop housing facilities. 2. Significant investment in infrastructure for military personnel stationed abroad. 3. Full and open competition suggests a potentially competitive bidding process. 4. Contract duration spans over seven years, indicating a long-term project. 5. The contract was awarded by the Army Corps of Engineers, Europe District. 6. Services procured fall under architectural services, a key component of construction projects.

Value Assessment

Rating: fair

The total value of $11.97 million for architectural services over a period of approximately 7 years appears reasonable for a large-scale international construction project. Benchmarking against similar contracts for military infrastructure in overseas locations would provide a more precise assessment of value for money. The firm fixed-price nature of the contract helps to control costs, but the extended duration could introduce risks if not managed effectively.

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 a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and quality for the government. The open nature of the competition suggests that the agency sought the best possible solution from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing for essential services.

Public Impact

Military personnel stationed in the Federal Republic of Germany benefit from improved housing facilities. Architectural design services are delivered to support the construction or renovation of troop housing. The geographic impact is concentrated in Koblenz, Germany, where the services are directed. The contract supports the construction sector workforce, including architects, engineers, and related professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration of over 7 years could lead to cost overruns if not managed closely.
Lack of specific details on the number of bidders limits the assessment of competitive intensity.
Potential for scope creep in long-term construction-related projects if not clearly defined and monitored.

Positive Signals

Awarded through full and open competition, suggesting a fair and broad solicitation process.
Firm fixed-price contract type helps to control costs and provides budget certainty.
Contract supports critical infrastructure for military readiness and personnel welfare.

Sector Analysis

This contract falls within the Construction and Architectural Services sector, specifically supporting government infrastructure projects. The North American Industry Classification System (NAICS) code 541310 for Architectural Services indicates a focus on design and planning. Spending on military construction and related services is a significant portion of the Department of Defense budget, aimed at maintaining and upgrading facilities worldwide. Comparable spending benchmarks would typically involve analyzing other large-scale military construction projects in Europe.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that subcontracting opportunities for small businesses were specifically mandated through a set-aside. However, the prime contractor may still engage small businesses for specialized services or materials as part of their subcontracting plan, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would primarily fall under the jurisdiction of the Department of the Army, likely through the Army Corps of Engineers, Europe District. As a large contract with a significant value and long duration, it would be subject to regular performance reviews, financial audits, and contract management oversight to ensure compliance with terms and conditions. Transparency is facilitated by the contract award data, but detailed project-specific oversight mechanisms are not elaborated.

Related Government Programs

Military Construction, Army
Architectural and Engineering Services
Department of Defense Facilities Management
European Command Infrastructure Projects

Risk Flags

Extended contract duration may increase risk of cost escalation or scope creep.
Lack of specific bidder count limits assessment of competitive intensity.
International location adds complexity to contract management and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. 200605!600094!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB05C0014 !A!N! !N! !P00001!20051221!20061231!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM! ! !GERMANY !+000000239219!N!N!000000000000!Y163!TROOP HOUSING FACILITIES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !541310!E! !3!B!S!D! ! !999

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 $12.0 million.

What is the period of performance?

Start: 2004-12-21. End: 2012-02-10.

What was the specific nature of the troop housing facilities being addressed by this contract?

The contract specifies 'TROOP HOUSING FACILITIES' as the service being procured. While the exact nature (e.g., new construction, renovation, specific types of housing like barracks or family quarters) is not detailed in the provided data, the context suggests it pertains to providing adequate and modern living accommodations for military personnel stationed in Germany. The architectural services would encompass the design, planning, and potentially oversight of the construction or refurbishment of these facilities to meet military standards and operational requirements.

How does the $11.97 million cost compare to similar architectural contracts for military housing in Europe?

Direct comparison of the $11.97 million cost is challenging without specific data on similar contracts. However, considering the contract duration of over seven years (from December 2005 to February 2012) and the location in Germany, this figure represents an average annual expenditure of approximately $1.7 million for architectural services. This seems within a reasonable range for large-scale military infrastructure projects, which often involve complex planning, adherence to stringent regulations, and coordination across international borders. Factors like the scale of the housing, specific design requirements, and prevailing market rates in Germany would influence the final cost.

What are the primary risks associated with a firm fixed-price contract of this duration?

The primary risks associated with a firm fixed-price contract of this seven-year duration include potential cost increases for the contractor due to unforeseen market fluctuations in labor, materials, or other resources, which could lead to contractor performance issues or requests for equitable adjustments. For the government, the risk lies in the potential for the contractor to cut corners on quality to maintain profitability if costs escalate beyond their initial projections. Additionally, the extended timeline increases the possibility of scope creep if requirements are not meticulously managed and documented, potentially leading to disputes or the need for contract modifications.

What does the 'FULL AND OPEN COMPETITION' designation imply for the bidding process and potential savings?

The 'FULL AND OPEN COMPETITION' designation signifies that the contract was solicited in a manner that allowed all responsible prospective contractors to submit bids. This broad solicitation approach is intended to maximize competition, thereby increasing the likelihood of the government receiving the most advantageous offer in terms of price, quality, and technical capability. It implies that the agency did not impose restrictive barriers to entry, such as overly specific requirements or limitations on the number of bidders. This competitive environment is expected to drive down prices and encourage innovation, ultimately benefiting taxpayers through potential cost savings compared to less competitive procurement methods.

What is the significance of the NAICS code 541310 (Architectural Services) in understanding this contract's scope?

The NAICS code 541310, 'Architectural Services,' precisely defines the core professional services procured under this contract. It indicates that the primary focus was on the design, planning, and potentially the supervision of construction projects related to troop housing facilities. This classification helps in understanding that the contract was not for the physical construction itself, but for the intellectual and creative work involved in designing the facilities. It also allows for benchmarking against other contracts awarded for similar architectural services within the government and private sectors.

How does the geographic location (Federal Republic of Germany) influence the contract's execution and oversight?

The geographic location in Germany significantly influences the contract's execution and oversight. It necessitates compliance with both U.S. military regulations and potentially German building codes and environmental standards. The Army Corps of Engineers, Europe District, was responsible for managing the contract, indicating a localized oversight structure familiar with operating in that region. Challenges can include managing international logistics, currency exchange rates, local labor laws, and coordinating with host nation authorities. Oversight would involve ensuring adherence to all applicable regulations and standards, managing communication across different time zones, and potentially conducting site visits.

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: SEALED BID

Offers Received: 1

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