Army awards $13.5M contract for specialty trade services, with over 6 years remaining

Contract Overview

Contract Amount: $13,496,151 ($13.5M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2009-01-20

End Date: 2025-12-31

Contract Duration: 6,189 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 7.1.2 - 7.1.4 TITLE I AND SECONDARY SERVICES

Plain-Language Summary

Department of Defense obligated $13.5 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: 7.1.2 - 7.1.4 TITLE I AND SECONDARY SERVICES Key points: 1. Contract value appears reasonable given the extended performance period. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Specialty trade services are critical for facility maintenance and upgrades. 5. Long contract duration may indicate a need for sustained support. 6. The awardee's performance history will be key to assessing value.

Value Assessment

Rating: good

The contract value of $13.5 million over approximately 6 years suggests an average annual spend of around $2.25 million. Without specific details on the scope of 'TITLE I AND SECONDARY SERVICES,' direct comparison is challenging. However, for a large federal agency like the Department of the Army, this level of spending for specialty trade contractors is within a typical range for facility support and maintenance. The firm fixed-price structure provides cost certainty for the government, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders identified, the competition level appears moderate. This suggests that while multiple companies were aware of and interested in the opportunity, the market may not be saturated with potential offerors for this specific type of service. Moderate competition generally leads to a balanced price discovery process.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it encourages competitive pricing and allows the government to select the best value offer.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential facility maintenance and upgrade services. Services likely include a range of specialty trades necessary for maintaining military installations. The geographic impact is tied to the specific Army installations where these services are required. The contract supports jobs within the specialty trade contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed-price bid underestimated actual costs.
Risk of service quality degradation if contractor prioritizes speed over thoroughness.
Dependence on a single contractor for critical facility services over a long period.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency.
Full and open competition suggests a potentially competitive award.
Long contract duration allows for stable planning and execution of services.

Sector Analysis

The specialty trade contracting sector is a vital part of the construction and facility management industry. This contract falls under the 'All Other Specialty Trade Contractors' category (NAICS 238990), which encompasses a broad range of specialized construction activities not elsewhere classified. Federal spending in this area supports the maintenance, repair, and minor construction needs of government facilities across various agencies. Benchmarks for similar contracts would depend heavily on the specific trades and geographic location, but federal spending on facility support services is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Facilities Maintenance Contracts
Department of Defense Construction Services
Specialty Trade Services Contracts
Federal Building Maintenance
General Services Administration (GSA) Contracts

Risk Flags

Long contract duration increases risk of market shifts impacting price fairness.
Moderate competition level may limit price discovery benefits.
Lack of detail on specific services makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. 7.1.2 - 7.1.4 TITLE I AND SECONDARY SERVICES

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 $13.5 million.

What is the period of performance?

Start: 2009-01-20. End: 2025-12-31.

What specific types of 'TITLE I AND SECONDARY SERVICES' are included under this contract?

The provided data does not detail the specific services covered under 'TITLE I AND SECONDARY SERVICES.' These terms often relate to construction and facility management, where 'Title I' might refer to architectural and engineering services or primary construction phases, and 'secondary services' could encompass a wide array of support functions like maintenance, repairs, specialized installations, or ancillary support. A thorough understanding requires reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this, assessing the true value and scope is difficult.

How does the $13.5 million contract value compare to similar specialty trade contracts awarded by the Department of the Army?

Comparing the $13.5 million contract value requires context on the duration and scope. As an approximate $2.25 million per year spend over 6+ years, it falls within a moderate range for large-scale facility support. However, the Department of the Army awards numerous contracts for specialty trades, varying significantly in size and complexity. Contracts for major construction projects could easily exceed this amount, while smaller, localized maintenance contracts would be substantially less. Benchmarking would necessitate analyzing contracts with similar SOWs and geographic footprints.

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

A firm fixed-price (FFP) contract shifts the risk of cost overruns to the contractor. For a long-duration contract like this (over 6 years), the primary risks include the contractor underestimating costs due to unforeseen economic changes (inflation, material price volatility) or scope creep if not managed tightly. Conversely, the government benefits from cost certainty. The contractor is incentivized to control costs and perform efficiently. However, if the initial pricing was too low, the contractor might cut corners on quality or seek change orders, necessitating strong government oversight.

How effective is 'full and open competition' likely to be in ensuring competitive pricing for these specialty trade services?

Full and open competition is the government's preferred method for maximizing competition and achieving fair and reasonable pricing. In this case, with two bidders, the level of competition was moderate. While better than a sole-source award, two bidders might not represent the full market potential. The effectiveness in ensuring competitive pricing depends on the specific market dynamics for these services and the rigor of the evaluation process. If the market has many capable providers, two bidders might indicate a less aggressive bidding environment than anticipated.

What is the historical spending pattern for similar specialty trade services by the Department of the Army?

Historical spending patterns for similar specialty trade services by the Department of the Army are extensive, given the vast number of installations requiring ongoing maintenance and repair. The Army consistently awards billions of dollars annually across various construction and specialty trade categories. This $13.5 million contract represents a portion of that overall spending. Analyzing past spending would involve looking at the frequency and value of contracts for facility maintenance, repair, and minor construction awarded under similar NAICS codes and contract types over previous fiscal years.

What performance metrics or quality assurance measures are likely in place for this contract?

Given the firm fixed-price nature and long duration, robust performance metrics and quality assurance measures are crucial. While not detailed in the provided data, typical measures would include adherence to schedules, quality of workmanship, compliance with safety regulations, and responsiveness to service calls. The Contracting Officer's Representative (COR) would likely be responsible for monitoring performance against the contract's requirements, potentially using methods like inspections, user feedback, and contractor progress reports. Failure to meet these metrics could result in contract remedies.

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

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

Financial Breakdown

Contract Ceiling: $16,180,331

Exercised Options: $16,180,331

Current Obligation: $13,496,151

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline