DoD contract for Romanian construction services awarded at $12.9M, with 9 bidders indicating strong competition

Contract Overview

Contract Amount: $12,892,183 ($12.9M)

Contractor: WSP E&IS Gmbh

Awarding Agency: Department of Defense

Start Date: 2008-03-24

End Date: 2012-04-27

Contract Duration: 1,495 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FOS PHASE II, CONSTANTA, ROMANIA

Plain-Language Summary

Department of Defense obligated $12.9 million to WSP E&IS GMBH for work described as: FOS PHASE II, CONSTANTA, ROMANIA Key points: 1. The contract value of $12.9 million appears reasonable given the scope of specialty trade contracting. 2. Strong competition with 9 bidders suggests a healthy market and potential for competitive pricing. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially limiting cost overruns. 4. The contract duration of nearly 1500 days indicates a significant, long-term project. 5. The award was made by the Department of the Army, suggesting a focus on infrastructure or support services. 6. The contractor, WSP E&IS GMBH, is a significant player in engineering and environmental services.

Value Assessment

Rating: good

The contract value of $12.9 million for specialty trade contracting in Romania is within a reasonable range for a project of this duration and scope. Benchmarking against similar international construction contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, but the ultimate value depends on the quality of work and adherence to specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with nine distinct bidders participating. This level of competition is a positive indicator, suggesting that the solicitation was widely disseminated and that multiple capable firms were interested in performing the work. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received a fair market rate for the services rendered.

Public Impact

The primary beneficiaries are the Department of Defense and its operational capabilities in Romania. The contract supports construction and related specialty trade services, contributing to infrastructure development. The geographic impact is focused on Constanța, Romania, potentially involving local labor and material sourcing. Workforce implications may include the employment of skilled tradespeople and project management personnel, both locally and potentially from the contractor's international workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Ensuring quality control and adherence to specifications over a long contract duration can be challenging.
Geopolitical risks or changes in local regulations in Romania could impact project execution.

Positive Signals

Firm-fixed-price contract type mitigates cost escalation risk for the government.
Strong competition suggests a well-defined scope and a capable contractor pool.
The contractor, WSP E&IS GMBH, has a global presence and experience in complex projects.

Sector Analysis

This contract falls within the broader construction and specialty trade services sector, which is a significant component of federal spending, particularly for overseas infrastructure and support. The market for such services is often global, with large engineering and construction firms competing for major government contracts. Benchmarking against similar overseas construction projects awarded by DoD or other federal agencies would provide context for the $12.9 million award.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Given the nature and potential scale of the project, it is likely that the prime contractor, WSP E&IS GMBH, may engage small businesses as subcontractors for specialized tasks or material supply, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) from the Department of the Army, responsible for monitoring performance, quality, and compliance. The firm-fixed-price nature provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Department of Defense Overseas Construction
Army Corps of Engineers Construction Contracts
Foreign Military Construction
Specialty Trade Services Contracts

Risk Flags

Long contract duration may increase risk of scope creep or performance degradation.
Overseas location introduces geopolitical and logistical risks.
Firm-fixed-price contracts can still face challenges with unforeseen site conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to WSP E&IS GMBH. FOS PHASE II, CONSTANTA, ROMANIA

Who is the contractor on this award?

The obligated recipient is WSP E&IS GMBH.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2008-03-24. End: 2012-04-27.

What is the track record of WSP E&IS GMBH with the Department of Defense?

WSP E&IS GMBH, as part of the larger WSP Global Inc., has a significant history of working with government agencies, including the Department of Defense, on various engineering, environmental, and construction-related projects. Their experience often spans large-scale infrastructure development, facility management, and environmental remediation. While specific details on past DoD contracts require deeper database searches, their established presence and the award of this significant contract suggest a proven capability to meet federal requirements. Their global footprint and expertise in complex international projects position them as a reliable contractor for overseas assignments.

How does the $12.9 million value compare to similar international construction contracts awarded by the DoD?

Comparing the $12.9 million value requires context regarding the specific scope, duration, and location of similar contracts. Contracts for overseas construction can vary widely based on factors like labor costs, material availability, security requirements, and the complexity of the project. For a nearly 4-year project involving specialty trade contracting in Romania, $12.9 million appears to be within a reasonable range. However, a precise benchmark would necessitate analyzing contracts with similar NAICS codes (e.g., 238990) awarded by the DoD in comparable geographic regions or for similar types of infrastructure support over the past decade.

What are the primary risks associated with a firm-fixed-price contract for overseas construction?

While firm-fixed-price (FFP) contracts are designed to shift cost risk to the contractor, several risks can still emerge, particularly in overseas construction. Unforeseen site conditions (e.g., unexpected soil issues, hazardous materials) can lead to significant cost increases if not adequately addressed in the contract's contingency clauses or if the contractor miscalculates risks. Fluctuations in local currency exchange rates or unexpected changes in host-nation regulations and taxes can also impact the contractor's profitability and potentially lead to claims or disputes. Furthermore, geopolitical instability or security concerns in the region could disrupt operations, increase security costs, and delay project timelines, all of which can strain the FFP structure.

How effective is the 'full and open competition' strategy in ensuring value for this type of contract?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for contracts like this, especially when multiple bidders participate. The solicitation of bids from all responsible sources allows for a wide range of potential solutions and pricing. With nine bidders, the government likely received competitive proposals, driving down the price and encouraging innovation. This broad competition increases the likelihood that the contract is awarded to the offeror providing the best overall value, considering both technical merit and cost. The transparency inherent in this process also enhances accountability.

What are the potential implications of the contract's long duration (1495 days) on performance and oversight?

A contract duration of 1495 days (approximately 4 years) presents both opportunities and challenges for performance and oversight. On the positive side, it allows for thorough planning, execution, and completion of complex tasks, potentially leading to higher quality outcomes and reduced disruption compared to shorter, phased contracts. However, it also necessitates sustained oversight to ensure consistent quality, adherence to evolving requirements, and contractor performance over an extended period. Managing contract modifications, monitoring progress against milestones, and maintaining effective communication channels become critical to prevent scope creep, performance degradation, or contractor complacency over the long term.

What does the NAICS code 'All Other Specialty Trade Contractors' (238990) typically encompass in a DoD context?

The NAICS code 238990, 'All Other Specialty Trade Contractors,' encompasses establishments primarily engaged in construction activities, not elsewhere classified. In a Department of Defense context, this could include a wide array of specialized services such as demolition, site preparation, foundation work, concrete services, masonry, waterproofing, plastering, and other construction-related activities that don't fit into more specific trade categories. For this particular contract in Romania, it likely involves a combination of these specialized trades necessary for a construction project supporting military operations or infrastructure.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912GB08R0008

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amec PLC (UEI: 229533856)

Address: ESCHBORNER LANDSTR. 42-50, FRANKFURT

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,391,865

Exercised Options: $14,996,018

Current Obligation: $12,892,183

Contract Characteristics

Cost or Pricing Data: NO

Timeline