Architectural services contract awarded by the Department of the Army for over $34.5 million

Contract Overview

Contract Amount: $34,506,401 ($34.5M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2009-08-20

End Date: 2029-12-30

Contract Duration: 7,437 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY09 SECONDARY SERVICES NEW "L" WORK [15

Plain-Language Summary

Department of Defense obligated $34.5 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: FY09 SECONDARY SERVICES NEW "L" WORK [15 Key points: 1. Contract awarded for architectural services, indicating a need for design and planning expertise. 2. The contract duration is extensive, spanning over 14 years, suggesting long-term project requirements. 3. A firm fixed-price contract type suggests that the price is set and unlikely to change, providing cost certainty. 4. The contract was awarded under full and open competition, implying a robust bidding process. 5. The North American Industry Classification System (NAICS) code 541310 points to architectural services. 6. The awarding agency is the Department of the Army, part of the broader Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of architectural services and the prevailing market rates during the award period (2009-2029). The firm fixed-price nature provides some cost control, but the long duration could lead to cost escalations if not managed carefully. Comparing this to similar large-scale architectural projects within the Department of Defense would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, which would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a competitive bidding process, leading to potentially lower overall costs for the government.

Public Impact

The Department of the Army benefits from professional architectural services for its facilities and infrastructure projects. This contract supports the development and maintenance of military installations and related structures. The geographic impact is likely concentrated around the military installations where the architectural services are rendered. The contract supports the architecture and engineering workforce, including architects, designers, and related professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 14 years) may present risks related to evolving architectural standards, technological advancements, and potential cost overruns if not closely monitored.
Lack of specific details on the scope of work and deliverables makes it difficult to fully assess performance and value for money.
The extensive timeframe could lead to contractor fatigue or a decrease in focus over time if not actively managed.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that should have yielded fair pricing.
Firm fixed-price contract type provides cost certainty for the government, limiting the risk of unexpected price increases.
The contract is for architectural services, a critical component for infrastructure development and maintenance within the Department of Defense.

Sector Analysis

This contract falls within the architectural services sector, a subset of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise in design, planning, and project management for construction and infrastructure. Spending in this area is often tied to government infrastructure needs, military base development, and public works projects. Comparable spending benchmarks would involve analyzing other large architectural contracts awarded by federal agencies for similar types of projects.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify any subcontracting plans related to small businesses. Therefore, the direct impact on the small business ecosystem is unclear from this information alone. Further investigation into subcontracting opportunities would be needed to assess the extent to which small businesses may benefit.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Army. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Architectural and Engineering Services
Military Construction Projects
Federal Facilities Planning and Design
Architectural Services for Government Buildings

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Lack of detailed scope information hinders comprehensive risk assessment.
Potential for cost overruns if unforeseen issues arise within fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. FY09 SECONDARY SERVICES NEW "L" WORK [15

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 $34.5 million.

What is the period of performance?

Start: 2009-08-20. End: 2029-12-30.

What specific types of architectural services are covered under this contract?

The provided data indicates the contract is for 'Architectural Services' under NAICS code 541310. However, the specific types of services are not detailed. Typically, this would encompass a range of activities such as site analysis, conceptual design, schematic design, design development, construction documents, bidding assistance, and construction administration. For a contract of this magnitude and duration, it likely includes services for major infrastructure projects, new facility construction, renovation of existing buildings, or master planning for military installations. Detailed statements of work within the contract would specify the exact deliverables and service requirements.

How does the $34.5 million value compare to similar architectural contracts awarded by the Department of Defense?

Comparing the $34.5 million value requires context regarding the scope and duration. This is a substantial amount, suggesting significant architectural work. For instance, large-scale military construction projects or the design of major new facilities can easily reach tens of millions of dollars. However, without knowing the specific projects this contract supports (e.g., a single large base master plan versus design for multiple smaller projects), a direct comparison is difficult. Benchmarking against other definitive contracts for architectural services awarded by the Army or other DoD branches around FY09 for similar project types would be necessary. The long duration (ending in 2029) also means the value is spread over many years, impacting annual spending comparisons.

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

The primary risks with a firm fixed-price contract of this 14-year duration revolve around potential scope creep, unforeseen site conditions, and changes in regulatory requirements or building codes that may necessitate design modifications. While the fixed price offers cost certainty, if the contractor underestimates the complexity or if significant design changes are mandated by the government, the contractor may incur losses. Conversely, if the contractor is highly efficient and the scope remains stable, they could realize significant profit. The government bears the risk of the contractor not being able to adapt to evolving needs within the fixed-price constraint, potentially requiring contract modifications or new procurements.

What is the historical spending pattern for architectural services by the Department of the Army?

Historical spending on architectural services by the Department of the Army is substantial, reflecting its vast infrastructure and ongoing modernization needs. The Army consistently procures architectural and engineering services for new construction, renovations, and upgrades across its numerous installations worldwide. Annual spending can fluctuate based on military construction budgets, national security priorities, and the lifecycle of its real property assets. While this specific $34.5 million contract represents a significant single award, the Army's total annual expenditure on architectural services likely runs into hundreds of millions, if not billions, of dollars when aggregated across all its commands and projects.

How does the 'full and open competition' award method impact the contractor's performance incentives?

Awarding under 'full and open competition' generally incentivizes contractors to submit competitive bids based on their perceived ability to deliver quality services at a reasonable price. For the contractor, the incentive is to perform efficiently and effectively to meet the contract requirements, thereby securing payment and building a positive performance record for future opportunities. The competitive nature means that subpar performance could jeopardize future contract awards. However, the specific performance incentives are primarily driven by the contract type (Firm Fixed Price) and the detailed performance metrics outlined in the contract's statement of work, rather than solely by the award method itself.

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: Bundesrepublik Deutschland

Address: DEICHMANNS AUE 31-37, BONN

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $42,994,645

Exercised Options: $42,994,645

Current Obligation: $34,506,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline