Army Spends $19.8M on Specialty Trade Contractors via Full and Open Competition

Contract Overview

Contract Amount: $19,880,278 ($19.9M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2011-03-16

End Date: 2021-12-30

Contract Duration: 3,942 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ABG 7.1.2-7.1.4 FEES

Plain-Language Summary

Department of Defense obligated $19.9 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: ABG 7.1.2-7.1.4 FEES Key points: 1. Significant spending on specialty trade contractors by the Department of the Army. 2. Utilized full and open competition, suggesting a robust market. 3. Contract awarded as a definitive contract with a firm fixed price. 4. Long contract duration of 3942 days. 5. No explicit mention of small business participation.

Value Assessment

Rating: fair

The total award value of $19.8M over approximately 11 years suggests a moderate annual spend. Benchmarking against similar specialty trade contracts would be necessary to assess value for money, as unit costs are not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were likely solicited, promoting price discovery and potentially competitive pricing. The definitive contract type suggests a long-term agreement for services.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, which generally aims for cost-effectiveness. The long duration may offer stability but requires ongoing monitoring for value.

Public Impact

Ensures availability of specialized construction and trade services for Army facilities. Competitive bidding process aims to secure fair market prices for taxpayers. Long-term contract provides continuity for essential maintenance and construction projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to price escalation or outdated services if not managed.
Lack of explicit small business set-aside information.
No clear indication of performance metrics or quality assurance in provided data.

Positive Signals

Full and open competition promotes market fairness and potential cost savings.
Firm fixed price contract shifts cost risk to the contractor.
Definitive contract provides a stable framework for service delivery.

Sector Analysis

The construction sector, particularly specialty trade contractors, is vital for maintaining and upgrading federal infrastructure. Spending benchmarks vary widely based on project scope and location, but $19.8M over 11 years represents a substantial, ongoing investment.

Small Business Impact

The data does not explicitly state whether small businesses were involved or targeted in this procurement. Further analysis would be needed to determine the extent of small business participation and its impact.

Oversight & Accountability

The use of a definitive contract and full and open competition suggests a structured procurement process. Oversight would focus on contract performance, adherence to terms, and ensuring continued value for money throughout the contract's lifespan.

Related Government Programs

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

Risk Flags

Long contract duration (11 years) increases risk of price escalation and service obsolescence.
Lack of specific details on small business participation.
Broad NAICS code suggests a wide range of potential services, making specific value assessment difficult.
No performance metrics or quality assurance data provided for evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. ABG 7.1.2-7.1.4 FEES

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 $19.9 million.

What is the period of performance?

Start: 2011-03-16. End: 2021-12-30.

What specific specialty trade services were procured under this contract, and how do their costs compare to industry averages for similar projects?

The provided data identifies the North American Industry Classification System (NAICS) code 238990 as 'All Other Specialty Trade Contractors.' This is a broad category encompassing various trades like masonry, tiling, flooring, painting, and more. Without a detailed breakdown of services rendered and their associated costs, a direct comparison to industry averages is impossible. Further investigation into contract line items and task orders would be required to assess cost-effectiveness.

Given the 11-year duration, what mechanisms were in place to mitigate risks associated with potential cost increases or technological obsolescence?

The firm fixed price (FFP) contract structure inherently shifts the risk of cost increases to the contractor. However, for such a long duration, mechanisms like economic price adjustment (EPA) clauses, if included, could allow for adjustments based on inflation indices. Regular contract reviews and potential modifications for technological upgrades or service scope changes would be crucial oversight functions to mitigate obsolescence risk.

How effectively did the full and open competition process ensure the best value was achieved for the Department of the Army and taxpayers?

Full and open competition generally maximizes the pool of potential bidders, fostering a competitive environment that tends to drive down prices and improve quality. The success in achieving best value depends on the clarity of the solicitation, the evaluation criteria used, and the responsiveness of the market. Without access to the bids received and the contractor's performance history, it's difficult to definitively assess the effectiveness beyond the procedural aspect of competition.

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: $26,001,096

Exercised Options: $26,001,096

Current Obligation: $19,880,278

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline