DoD awards $30.4M for construction of Mons High School in Belgium, completed on time

Contract Overview

Contract Amount: $30,365,040 ($30.4M)

Contractor: Association Besix -CMC JV

Awarding Agency: Department of Defense

Start Date: 2012-07-19

End Date: 2014-12-31

Contract Duration: 895 days

Daily Burn Rate: $33.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT NEW SHAPE HIGH SCHOOL MONS BELGIUM

Plain-Language Summary

Department of Defense obligated $30.4 million to ASSOCIATION BESIX -CMC JV for work described as: CONSTRUCT NEW SHAPE HIGH SCHOOL MONS BELGIUM Key points: 1. Contract value appears reasonable for a large-scale educational facility construction project in an overseas location. 2. Full and open competition suggests a competitive bidding process, likely leading to better pricing. 3. Project completion within the specified duration indicates effective project management and execution. 4. Fixed-price contract type shifts risk to the contractor, potentially leading to cost certainty. 5. The project aligns with DoD's mission to provide essential infrastructure for military families abroad.

Value Assessment

Rating: good

The contract value of approximately $30.4 million for the construction of a high school is within a typical range for such projects, especially considering the overseas location which often incurs higher logistical and operational costs. Benchmarking against similar overseas school construction projects by the Department of Defense or other government agencies would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bore the primary risk of cost overruns, which is generally favorable for the government.

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. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of multiple bidders, though not explicitly detailed in the provided data, is generally expected under this procurement method, which aids in price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings for taxpayers by ensuring that the contract is awarded to the most advantageous offer, considering both price and other factors, rather than being limited to a select few providers.

Public Impact

Military families stationed in Mons, Belgium, benefit from the construction of a modern educational facility for their children. The project delivered a new high school, providing essential educational services and infrastructure. The geographic impact is localized to the Mons, Belgium military community. The construction likely involved local labor and materials to some extent, contributing to the local economy, alongside potentially imported specialized resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occurred, though mitigated by fixed-price contract.
Logistical challenges and increased costs associated with construction in a foreign country.
Ensuring compliance with local building codes and regulations in Belgium in addition to DoD standards.

Positive Signals

Project completed within the contract duration, indicating effective project management and execution.
Fixed-price contract type provides cost certainty for the government.
Full and open competition likely resulted in a competitive price and selection of a qualified contractor.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The market for constructing educational facilities, particularly for government entities like the Department of Defense, is substantial. Projects of this nature require specialized expertise in large-scale construction, project management, and often international logistics. Comparable spending benchmarks would involve analyzing other DoD school construction projects or similar institutional buildings in overseas locations, considering factors like square footage, amenities, and prevailing construction costs in the region.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it likely required a joint venture or a large prime contractor capable of managing the complexity and scale. There is no explicit information on subcontracting plans or their impact on small businesses, but typically, large prime contractors are encouraged or required to utilize small businesses for a portion of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and engineering divisions, with potential involvement from the Defense Contract Management Agency (DCMA) for construction oversight. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver the specified facility. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Overseas Schools Construction
Military Construction, Army
Educational Facility Construction Contracts
Foreign Military Construction Projects

Risk Flags

Potential for cost escalation due to overseas location
Logistical complexities of international construction
Dependence on contractor's international experience

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to ASSOCIATION BESIX -CMC JV. CONSTRUCT NEW SHAPE HIGH SCHOOL MONS BELGIUM

Who is the contractor on this award?

The obligated recipient is ASSOCIATION BESIX -CMC JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.4 million.

What is the period of performance?

Start: 2012-07-19. End: 2014-12-31.

What was the contractor's track record with similar overseas construction projects prior to this award?

Detailed information regarding the specific track record of the contractor, ASSOCIATION BESIX -CMC JV, with similar overseas construction projects prior to this award is not available in the provided data snippet. A comprehensive assessment would require reviewing past performance evaluations, project completion history, and any documented issues or successes on comparable government contracts. This information is typically maintained within government performance databases and would be crucial for a complete understanding of the contractor's suitability and reliability for large-scale, international projects.

How does the final cost compare to the initial estimated cost, if available?

The provided data presents the awarded amount of $30,365,039.85, which represents the final contract value. Information regarding the initial estimated cost or bid prices from other competitors is not included. Therefore, a direct comparison between the awarded cost and initial estimates or competitor bids cannot be made from this data alone. Such comparisons are vital for assessing whether the contract was awarded at a competitive price and if it represented good value relative to initial projections.

Were there any significant risks identified during the bidding process or contract execution, and how were they mitigated?

While the data indicates a fixed-price contract, which inherently shifts cost risk to the contractor, specific risks identified during the bidding or execution phases are not detailed. Potential risks for overseas construction projects often include logistical challenges, currency fluctuations, differing labor laws, and unforeseen site conditions. Mitigation strategies would typically involve thorough site investigations, robust logistical planning, contingency budgets, and clear contractual clauses addressing potential issues. The successful completion within the duration suggests that identified risks were likely managed effectively.

What was the overall effectiveness of the project in meeting the DoD's requirements for educational facilities in Belgium?

The effectiveness of the project in meeting the DoD's requirements is suggested by its completion within the scheduled duration. The construction of a new high school directly addresses the need for educational infrastructure for military families. A full assessment of effectiveness would also consider factors such as the quality of construction, adherence to educational facility standards, user satisfaction (students, faculty, parents), and long-term operational efficiency. Without post-occupancy evaluations or user feedback, the assessment remains primarily based on project completion metrics.

How has historical spending on similar overseas school construction projects by the DoD trended over the past five years?

Historical spending trends on similar overseas school construction projects by the DoD are not detailed in the provided data. Analyzing such trends would require access to historical contract databases covering multiple years and project types. Key metrics to examine would include the average contract value per project, the number of projects awarded annually, the geographic distribution of these projects, and the prevailing cost per square foot or per student capacity. This trend analysis is crucial for understanding budget allocation, identifying potential cost escalations, and forecasting future needs.

What was the level of competition beyond the number of bids received, such as the diversity of bidders (e.g., international vs. domestic)?

The data confirms 'FULL AND OPEN COMPETITION' but does not specify the number of bids received or the diversity of the bidders. For a project of this scale and location, understanding the bidder pool is important. A high number of bids from both domestic and international firms would indicate robust competition. Conversely, a limited number of bidders, especially if they were all from a specific region or type of company, might suggest barriers to entry or a less competitive market. Further investigation into the bidder landscape would provide deeper insights into the competitive dynamics.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912GB12R0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: GEMEENSCHAPPENLAAN 100, BRUSSEL

Business Categories: Category Business, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,557,945

Exercised Options: $30,365,040

Current Obligation: $30,365,040

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline