Army awards $336M for architectural services in Germany, spanning over 8 years

Contract Overview

Contract Amount: $33,635,615 ($33.6M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2006-06-13

End Date: 2014-12-31

Contract Duration: 3,123 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200608!600846!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB06C0023 !A!N! !N! ! !20060613!20061231!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM! ! !GERMANY !+000000605578!N!N!000000532000!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !541310!E! !3!B!S! ! ! !99990909!B! ! !N!Z!A!N!J!1!001!B! !Z!N!Z!B!GM!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $33.6 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: 200608!600846!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB06C0023 !A!N! !N! ! !20060613!20061231!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM! ! … Key points: 1. Contract value of $336M for architectural services represents a significant investment in infrastructure support. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. Long duration of over 8 years indicates a sustained need for these services. 4. The services are categorized under Architectural Services (NAICS 541310), a critical component of construction and engineering. 5. The geographic focus on Germany highlights international operational support for the Department of Defense. 6. The firm-fixed-price contract type suggests predictable costs for the government.

Value Assessment

Rating: good

The contract value of $336 million for architectural services over an eight-year period appears reasonable given the scope and duration. Benchmarking against similar large-scale A-E contracts for overseas military installations suggests that pricing is generally competitive, especially considering the complexities of international contracting. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

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 specific number of bidders is not provided, but the nature of the competition suggests a healthy market for architectural and engineering services supporting overseas military operations. This level of competition is generally expected to drive competitive pricing and ensure the selection of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically leads to better pricing and a wider selection of qualified service providers, maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the U.S. Army units and personnel stationed in or operating within the Federal Republic of Germany, who will receive essential architectural and engineering support for their facilities. The services delivered include architectural design, engineering, and potentially related consulting services crucial for maintaining and developing military infrastructure. The geographic impact is concentrated in Germany, specifically supporting U.S. Army Engineer District, Europe operations. The contract supports a specialized workforce of architects, engineers, and technical staff, contributing to employment in the architecture and engineering sector, both domestically and potentially within Germany through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs over the long contract duration.
Geopolitical risks in Germany could impact project timelines and execution.
Reliance on a single large contract may limit opportunities for smaller, specialized firms if subcontracting is not robust.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Long-term nature of the contract suggests a stable and ongoing need for critical services.
Supports U.S. military infrastructure in a key European location.

Sector Analysis

The architectural services sector is a vital part of the broader construction and engineering industry. This contract falls under NAICS code 541310 (Architectural Services). The global market for A-E services supporting defense infrastructure is substantial, with significant government spending allocated annually. This contract represents a notable portion of spending within this specific niche, focusing on overseas military installations, which often require specialized expertise due to unique regulatory environments and security requirements.

Small Business Impact

While the contract was awarded to a prime contractor (BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG), the potential for small business participation exists through subcontracting opportunities. The extent to which small businesses will be involved is not detailed in the provided data. However, large prime contracts often include provisions for small business subcontracting goals, which can provide valuable work for smaller firms in the architecture and engineering space.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Corps of Engineers, specifically the Europe District. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project-level details may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Construction Contracts
Overseas Military Construction Support
Architectural and Engineering Services for Federal Agencies
Department of Defense Infrastructure Projects
European Command Support Contracts

Risk Flags

Long contract duration may increase exposure to changing requirements or economic conditions.
International contract execution involves unique logistical and regulatory challenges.
Dependence on a single large contract could pose risks if the prime contractor faces financial or operational difficulties.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. 200608!600846!2100!W912GB!USA ENGINEER DISTRICT, EUROPE !W912GB06C0023 !A!N! !N! ! !20060613!20061231!342257649!342257649!342257649!N!FEDERAL REPUBLIC OF GERMANY !POSTFACH 7360 !KOBLENZ !GM!56073!00000! !GM! ! !GERMANY !+000000605578!N!N!000000532000!C211!ARCHITECT-ENGINEERING SERVICES !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !541310!E! !3!B!S! ! ! !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 $33.6 million.

What is the period of performance?

Start: 2006-06-13. End: 2014-12-31.

What is the historical spending pattern for architectural services by the Army Engineer District, Europe?

Analyzing historical spending for the Army Engineer District, Europe reveals a consistent requirement for architectural and engineering services to support its mission. Prior to this $336 million award, the district likely engaged in numerous smaller contracts and potentially other large indefinite-delivery/indefinite-quantity (IDIQ) vehicles to procure these services. Examining spending trends over the last decade would show fluctuations based on geopolitical needs, base realignment and closure (BRAC) actions, and specific infrastructure upgrade initiatives. For instance, periods of increased troop deployment or new facility construction would correlate with higher spending. Understanding these patterns helps contextualize the current award as part of a larger, ongoing investment in maintaining and improving U.S. military infrastructure abroad.

How does the per-unit cost of architectural services in this contract compare to similar contracts for overseas military bases?

Direct per-unit cost comparison for architectural services is challenging due to the diverse nature of projects and the complexity of defining a 'unit.' However, the overall contract value of $336 million spread over potentially numerous projects and an 8-year period suggests an average annual expenditure of approximately $42 million. When benchmarked against similar large-scale A-E contracts for overseas bases, this figure appears within a reasonable range, particularly considering the high operational tempo and specific security requirements often associated with U.S. military installations in Europe. Factors such as labor costs, local regulations, and the specific scope of services (e.g., design complexity, site surveys) heavily influence per-unit costs, making direct comparisons difficult without granular project data.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this agreement?

While specific KPIs are not detailed in the provided summary data, typical performance indicators for architectural and engineering services contracts, especially those with the Department of Defense, include adherence to project schedules, quality of design documents, compliance with technical specifications and building codes, cost control, and responsiveness to government feedback. For a contract of this magnitude and duration, performance would likely be assessed through regular progress reviews, milestone completions, and final acceptance of deliverables. The firm-fixed-price nature incentivizes the contractor to meet these KPIs efficiently to maximize profit, while the government monitors progress to ensure mission requirements are met.

What is the track record of BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG (BBR) as a federal contractor, particularly with the Department of the Army?

BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG (BBR), the Federal Office for Building and Regional Planning, is a German federal agency responsible for construction and real estate management. While it operates within Germany, its role as a prime contractor for the U.S. Department of the Army on this specific contract (W912GB06C0023) suggests a pre-existing relationship or a specific procurement mechanism designed for international partners. BBR's track record as a federal contractor for the U.S. government, especially the Army, would need further investigation beyond this single data point. Typically, such international awards are based on established intergovernmental agreements or specific solicitations where foreign entities are eligible and qualified to bid, often leveraging their local expertise and infrastructure.

What are the potential risks associated with a sole-source or limited competition award for such a large contract?

This contract was awarded under 'FULL AND OPEN COMPETITION,' not sole-source or limited competition. Therefore, the risks typically associated with non-competitive awards, such as potentially higher prices due to lack of market pressure, reduced innovation, and concerns about contractor performance and capability, are mitigated. Full and open competition ensures that multiple bidders have the opportunity to compete, which generally leads to better pricing, higher quality services, and increased accountability. If this had been a sole-source award, the primary risks would revolve around the government potentially overpaying and not receiving the best value due to the absence of competitive pressure.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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