DoD's $53M contract for specialty trade services in Europe awarded via full and open competition

Contract Overview

Contract Amount: $52,989,943 ($53.0M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2012-09-18

End Date: 2023-12-30

Contract Duration: 4,120 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY12 7.1.2-7.1.6 EU00072 REPLACE WIESBAD

Plain-Language Summary

Department of Defense obligated $53.0 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: FY12 7.1.2-7.1.6 EU00072 REPLACE WIESBAD Key points: 1. Contract awarded for miscellaneous foreign awardees, suggesting a broad reach for specialty trade services. 2. The contract spans over a decade, indicating long-term needs for these services. 3. A firm-fixed-price structure aims to control costs for the Department of Defense. 4. The contract's duration and value suggest significant operational support requirements. 5. Specialty trade contractors are essential for maintaining infrastructure and facilities.

Value Assessment

Rating: fair

The contract value of approximately $53 million over 11 years averages to about $4.8 million annually. Benchmarking this against similar large-scale, multi-year foreign military construction or maintenance contracts is challenging due to the 'Miscellaneous Foreign Awardees' designation, which lacks specific contractor performance data. The firm-fixed-price nature provides cost certainty, but without detailed breakdowns of services rendered or comparison to specific market rates for specialty trades in European locations, a precise value-for-money assessment is difficult. The long duration implies a consistent need, but the lack of granular detail prevents a definitive 'excellent' rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but the designation implies a competitive process was utilized. Full and open competition generally leads to a wider range of potential solutions and can drive down prices through market forces.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from the widest possible pool of qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense units and personnel stationed in Europe requiring facility maintenance and specialized trade services. Services delivered likely include a range of specialty trades such as electrical, plumbing, HVAC, carpentry, and other construction-related support. The geographic impact is focused on European operational theaters where U.S. military forces are deployed. This contract supports a workforce of skilled tradespeople, potentially including both U.S. and local European labor, depending on the awardees' sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific contractor performance data due to 'Miscellaneous Foreign Awardees' designation hinders detailed assessment.
The extended duration (over 11 years) could lead to scope creep or evolving needs not fully captured in initial pricing.
Geographic dispersion in Europe may lead to logistical challenges and varied cost structures for service delivery.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost predictability for the government.
The contract addresses essential infrastructure support for military operations abroad.

Sector Analysis

This contract falls within the broader construction and specialty trade services sector, which is a significant component of federal procurement, particularly for agencies with global footprints like the Department of Defense. The market for specialty trade contractors is diverse, encompassing numerous sub-disciplines. Federal spending in this area often supports infrastructure maintenance, upgrades, and new construction at domestic and international installations. Benchmarking requires comparison to similar multi-year service contracts for facility support in overseas locations, which can be complex due to varying labor costs, regulations, and logistical factors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not specify any subcontracting goals (st: ''). This suggests that the primary awardees are likely larger, potentially foreign-based companies capable of handling the scale and scope of services required across multiple European locations. The lack of small business set-aside implies limited direct opportunities for U.S. small businesses through this specific contract vehicle, though prime contractors might engage them.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and relevant Department of the Army and Department of Defense oversight bodies. Given the foreign awardees and extended duration, robust contract management, performance monitoring, and potentially audits would be crucial. Transparency is facilitated by the contract's public award data, but detailed performance reports and Inspector General involvement would depend on specific triggers or established protocols for monitoring overseas contracts.

Related Government Programs

Base Operations Support (BOS)
Foreign Military Construction Contracts
Architectural and Engineering Services
Logistics and Readiness Support
Global Infrastructure Support Contracts

Risk Flags

Extended contract duration increases risk exposure.
Lack of specific contractor identification hinders performance assessment.
Potential for varying labor costs and regulations in European locations.
Foreign awardees may present oversight and compliance challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to MISCELLANEOUS FOREIGN AWARDEES. FY12 7.1.2-7.1.6 EU00072 REPLACE WIESBAD

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 $53.0 million.

What is the period of performance?

Start: 2012-09-18. End: 2023-12-30.

What specific types of specialty trade services are covered under this contract, and how are they prioritized?

The contract description 'All Other Specialty Trade Contractors' (NAICS 238990) is broad and encompasses a wide array of skilled trades. While specific prioritization is not detailed in the provided data, typical services would include electrical work, plumbing, HVAC systems maintenance and repair, carpentry, masonry, roofing, painting, and potentially specialized technical installations or repairs. The Department of Defense likely prioritizes services based on operational readiness, safety, and critical infrastructure needs at European installations. The long duration suggests a comprehensive scope covering routine maintenance, emergency repairs, and potentially minor upgrades across various facilities.

How does the $53 million contract value compare to similar long-term specialty trade service contracts awarded by the DoD in Europe?

Direct comparison is challenging due to the 'Miscellaneous Foreign Awardees' designation, which obscures specific contractor performance and location details. However, $53 million spread over 11+ years equates to roughly $4.8 million annually. This figure is moderate for large-scale, multi-year foreign support contracts. Contracts for base operations support or major construction projects in Europe can range from tens to hundreds of millions of dollars. This contract appears to focus specifically on specialized trades rather than encompassing the full spectrum of base support, suggesting it fills a niche requirement. Without knowing the exact geographic spread and density of facilities supported, a precise benchmark is difficult.

What are the potential risks associated with awarding a contract of this duration to 'Miscellaneous Foreign Awardees'?

Key risks include challenges in performance oversight and quality assurance due to geographic distance and potentially different regulatory environments. Ensuring compliance with U.S. standards, labor laws, and ethical practices can be more complex. 'Miscellaneous Foreign Awardees' also implies a lack of established relationship or performance history with the specific entities, increasing the risk of contractor default, subpar performance, or disputes. Furthermore, currency fluctuations and varying tax implications could impact the effective cost to the government. The long duration amplifies these risks, as issues may take longer to identify and rectify.

Given the firm-fixed-price structure, how is the government protected against potential cost overruns if market rates for specialty trades increase significantly over the contract's 11-year period?

The firm-fixed-price (FFP) contract structure shifts the risk of cost overruns to the contractor. The contractor is obligated to perform the work for the agreed-upon price, regardless of their actual costs. The government is protected because the total price is fixed. However, the initial pricing must be competitive and account for anticipated market fluctuations. If market rates rise substantially, the contractor may face reduced profit margins or, in extreme cases, seek contract modifications or claim unforeseen economic adjustments if contract terms allow. The government's protection lies in the contractor's incentive to manage their costs efficiently and the fixed nature of the payment obligation.

What is the historical spending pattern for specialty trade contractors by the Department of the Army in European theaters?

Historical spending data for specialty trade contractors by the Department of the Army in European theaters is extensive but fragmented across numerous contracts. Agencies like the Army Corps of Engineers (USACE) Europe District manage significant portfolios of construction and facility maintenance contracts. Spending fluctuates based on geopolitical needs, infrastructure investment cycles, and troop presence. Contracts for specialty trades are often bundled within larger base operations support contracts or awarded as standalone requirements for specific projects. Analyzing historical patterns would involve aggregating data from various contracting offices and contract types (e.g., construction, maintenance, repair) over multiple fiscal years to identify trends in spending levels and types of services procured.

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

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,989,943

Exercised Options: $52,989,943

Current Obligation: $52,989,943

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline