DoD's $46M contract for Ramstein AB schools awarded to foreign entities, raising questions on value and competition

Contract Overview

Contract Amount: $45,974,474 ($46.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2012-02-15

End Date: 2022-12-31

Contract Duration: 3,972 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE VOGELWEH ELEMENTARY SCHOOL, RAMSTEIN AB

Plain-Language Summary

Department of Defense obligated $46.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: REPLACE VOGELWEH ELEMENTARY SCHOOL, RAMSTEIN AB Key points: 1. The contract's value of $45.97 million over nearly 11 years suggests a significant investment in educational services. 2. Awarding to 'Miscellaneous Foreign Awardees' indicates a unique procurement approach, potentially impacting price competitiveness. 3. The long duration of the contract (3972 days) warrants scrutiny regarding flexibility and adaptation to evolving educational needs. 4. The absence of specific small business set-asides or subcontracting plans needs further investigation for broader economic impact. 5. The firm-fixed-price structure aims to control costs, but the foreign awardee pool requires careful performance monitoring. 6. Benchmarking against similar overseas educational contracts is crucial to assess value for money.

Value Assessment

Rating: fair

The contract's total value of $45.97 million over almost 11 years averages approximately $4.2 million annually. Without specific details on the services provided or the number of students served, a direct comparison to similar contracts is challenging. However, the award to 'Miscellaneous Foreign Awardees' suggests a non-traditional procurement path that may not have leveraged the full spectrum of potential domestic or international educational service providers. This could imply either a lack of suitable bidders or a strategic decision to engage specific foreign entities. The firm-fixed-price nature of the contract provides cost certainty, but the overall value proposition requires deeper analysis of the quality and scope of educational services delivered.

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 offers. However, the award to 'Miscellaneous Foreign Awardees' is unusual and suggests that the pool of competitive bidders may have been limited in practice, or that these foreign entities were the only ones meeting the specific requirements. With 5 offers received, the competition level appears moderate, but the nature of the awardees warrants further examination to understand why the competition resulted in this specific outcome. The price discovery mechanism might have been influenced by the specialized nature of providing educational services in a foreign military installation.

Taxpayer Impact: While full and open competition was advertised, the award to foreign entities means taxpayer funds are supporting services potentially outside the typical domestic contracting landscape. This could lead to different cost structures and oversight challenges compared to contracts awarded to U.S.-based firms.

Public Impact

Children of U.S. military personnel and civilian employees stationed at Ramstein Air Base benefit from these educational services. The contract supports the provision of elementary and secondary education, crucial for maintaining military family readiness and morale. The geographic impact is concentrated at Ramstein Air Base in Germany, a key U.S. military installation in Europe. The contract likely supports a workforce of educators and administrative staff, potentially including both U.S. expatriates and local hires. Ensuring continuity of education for military families is a key public service facilitated by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific foreign entities awarded the contract.
Potential for higher costs due to less direct oversight and competition compared to domestic contracts.
Uncertainty about the quality assurance and performance monitoring mechanisms for foreign awardees.
The long contract duration may not reflect current educational best practices or evolving needs.

Positive Signals

The firm-fixed-price contract provides budget certainty for the Department of Defense.
Awarding to foreign entities may indicate a tailored approach to meet unique overseas requirements.
The contract was competed, suggesting an effort to solicit offers and achieve a degree of price competition.

Sector Analysis

This contract falls within the 'Educational Services' sector, specifically catering to elementary and secondary education. The market for providing educational services to U.S. military installations overseas is specialized, often involving navigating foreign regulations and logistical challenges. Comparable spending benchmarks would typically involve other Department of Defense Education Activity (DoDEA) schools or similar contracts supporting U.S. government personnel abroad. The size of this contract, at nearly $46 million, positions it as a significant investment within this niche sector.

Small Business Impact

The data indicates that this contract did not involve small business set-asides (ss: false, sb: false). This suggests that the procurement was not specifically designed to benefit small businesses. Given the nature of providing educational services at a large overseas military base, it's possible that the requirements were beyond the typical scope or capacity of small businesses, or that the competition focused on specialized foreign providers. There is no information provided on subcontracting plans, which leaves the potential impact on the small business ecosystem unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense, likely through contracting officers' representatives (CORs) and program managers. The firm-fixed-price structure provides a degree of accountability by linking payment to deliverables. Transparency regarding the specific foreign awardees and the detailed scope of work would enhance accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Education Activity (DoDEA) Schools
Overseas Military Base Support Contracts
Foreign Military Sales Support Services
K-12 Education Contracts

Risk Flags

Unusual awardee category ('Miscellaneous Foreign Awardees')
Long contract duration (nearly 11 years)
Lack of specific small business participation details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to MISCELLANEOUS FOREIGN AWARDEES. REPLACE VOGELWEH ELEMENTARY SCHOOL, RAMSTEIN AB

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2012-02-15. End: 2022-12-31.

What specific educational services were provided under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code is 611110, which corresponds to 'Elementary and Secondary Schools.' Therefore, the services provided likely encompassed the full spectrum of educational offerings for primary and secondary school-aged children of U.S. military personnel and civilian employees stationed at Ramstein Air Base. This would typically include curriculum delivery, instruction, student support services, and potentially extracurricular activities. The firm-fixed-price nature suggests a defined scope of services was agreed upon, with payments tied to the successful provision of these educational programs over the contract's duration.

How does the cost per student compare to similar DoDEA schools or other overseas educational contracts?

Directly comparing the cost per student is challenging without knowing the exact number of students served by this $45.97 million contract over its nearly 11-year period. However, annualizing the cost ($45.97M / ~10.9 years = ~$4.2M/year) provides a rough estimate. DoDEA schools often have higher per-pupil costs than stateside public schools due to factors like overseas staffing, transportation, and specialized support. If this contract served several hundred to over a thousand students, the per-pupil cost could range from a few thousand to tens of thousands of dollars annually. Benchmarking against other contracts for overseas educational services, particularly those managed by the Department of the Army or other branches, would be necessary for a precise value assessment.

What are the risks associated with awarding a large education contract to 'Miscellaneous Foreign Awardees'?

Awarding a significant contract to 'Miscellaneous Foreign Awardees' presents several potential risks. Firstly, there may be reduced transparency regarding the specific entities involved, their financial stability, and their operational track records. Secondly, oversight and quality assurance can be more complex due to distance, differing legal frameworks, and potential language barriers. Thirdly, the competitive landscape might be less robust than if U.S. or established international educational providers were actively engaged, potentially impacting price competitiveness and innovation. Finally, ensuring compliance with U.S. federal regulations, labor laws, and educational standards could be more challenging, requiring diligent monitoring by the contracting agency.

What is the historical spending pattern for educational services at Ramstein Air Base?

The provided data covers a single, long-duration contract from February 15, 2012, to December 31, 2022, totaling $45.97 million. This suggests a consistent need for educational services at Ramstein Air Base over this period. Without access to historical contract databases or specific budget allocations for the base's education programs prior to 2012 or subsequent to 2022, it's difficult to establish a comprehensive spending pattern. However, the existence of such a substantial contract implies that educational support for military families is a long-standing and significant expenditure at this major installation.

How does the 'Full and Open Competition' designation reconcile with the award to 'Miscellaneous Foreign Awardees'?

The designation 'Full and Open Competition' means the solicitation was open to all responsible sources, and the government intended to award a contract based on the offers received without restriction. The fact that the award went to 'Miscellaneous Foreign Awardees' suggests that, within the scope of this competition, these foreign entities were the most suitable or responsive bidders. This could occur if the specific requirements (e.g., location, specialized curriculum, existing infrastructure) were uniquely met by these foreign providers, or if domestic/other international competitors did not submit offers or were deemed non-responsive. The presence of 5 offers indicates some level of competition, but the nature of the awardees warrants further inquiry into the specific evaluation criteria and market dynamics.

Industry Classification

NAICS: Educational Services › Elementary and Secondary Schools › Elementary and Secondary Schools

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1275 FIRST ST NE, WASHINGTON, DC, 20417

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $45,974,474

Exercised Options: $45,974,474

Current Obligation: $45,974,474

Actual Outlays: $36,314

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline