DoD's Army Spent $20.7M on Specialty Trade Contractors via Full and Open Competition

Contract Overview

Contract Amount: $20,266,168 ($20.3M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2010-09-14

End Date: 2019-11-13

Contract Duration: 3,347 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION

Plain-Language Summary

Department of Defense obligated $20.3 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: CONSTRUCTION Key points: 1. Significant spending of $20.7M on specialty trade contractors. 2. Procurement utilized full and open competition, suggesting broad market engagement. 3. The contract type was Firm Fixed Price, which shifts risk to the contractor. 4. The contract duration was substantial at 3347 days (over 9 years).

Value Assessment

Rating: fair

The contract value of $20.7M over 9 years averages to approximately $2.3M annually. Benchmarking this against similar large-scale construction projects is difficult without more specific scope details, but the duration suggests a potentially complex or phased undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, as it allows multiple qualified contractors to bid. This method generally leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered, although the total cost is substantial due to the project's scale and duration.

Public Impact

Taxpayers funded a significant, long-term construction contract managed by the Department of the Army. The broad competition aimed to ensure value for money in the specialty trade contracting sector. The extended contract period implies a sustained need for these specialized services over nearly a decade.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Long contract duration may indicate potential for cost overruns or scope creep.
Lack of small business participation noted (sb: false).

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type limits government cost risk.
Significant investment in infrastructure/services.

Sector Analysis

The construction sector, particularly specialty trade contracting, is vital for government infrastructure projects. Spending benchmarks vary widely based on project scope, location, and specific trades involved. This $20.7M over 9 years represents a substantial, long-term commitment within this sector.

Small Business Impact

The data indicates no specific small business participation (sb: false). While the contract was full and open, efforts to ensure small business subcontracting opportunities were either not required or not met, which could be a missed opportunity for economic development.

Oversight & Accountability

The contract was awarded by the Department of the Army, falling under the Department of Defense's oversight. The long duration necessitates ongoing monitoring to ensure performance, cost control, and adherence to contract terms.

Related Government Programs

All Other Specialty Trade Contractors
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration (over 9 years).
No noted small business participation.
Vague service category ('All Other Specialty Trade Contractors').
Potential for cost escalation over the long term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. CONSTRUCTION

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 $20.3 million.

What is the period of performance?

Start: 2010-09-14. End: 2019-11-13.

What specific specialty trade services were procured under this contract, and how did their scope align with the $20.7M budget over 9 years?

The specific specialty trade services are not detailed in the provided data, only categorized under 'All Other Specialty Trade Contractors'. The alignment of scope with the $20.7M budget over 9 years is difficult to assess without knowing the exact services rendered. The average annual spend of ~$2.3M suggests a significant, ongoing requirement, but the value proposition depends entirely on the necessity and quality of the services provided.

Given the 9-year duration, what mechanisms were in place to mitigate risks associated with inflation, material cost fluctuations, and contractor performance degradation?

The Firm Fixed Price (FFP) contract structure places the burden of managing cost fluctuations (inflation, materials) primarily on the contractor. However, for such a long duration, contract clauses addressing economic price adjustments or specific escalation factors might exist, though they are not explicitly stated here. Robust performance monitoring by the Army would be crucial to address any degradation.

How effectively did the 'full and open competition' process ensure the best value was achieved for these specialized trade services over the contract's extended period?

Full and open competition generally promotes best value by maximizing the number of bidders and fostering price competition. For a 9-year contract, the initial competition likely secured a competitive price at the outset. However, ensuring continued best value over such an extended period relies on effective contract management, performance evaluations, and potentially mechanisms for re-evaluating pricing or scope if market conditions change significantly.

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, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,335,298

Exercised Options: $20,335,298

Current Obligation: $20,266,168

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline