DoD's $39.8M Grafenwoehr Elementary construction contract awarded via full and open competition

Contract Overview

Contract Amount: $39,843,706 ($39.8M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2029-12-31

Contract Duration: 6,303 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT GRAFENWOEHR ELEMENTARY, GERMANY

Plain-Language Summary

Department of Defense obligated $39.8 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: CONSTRUCT GRAFENWOEHR ELEMENTARY, GERMANY Key points: 1. Contract awarded for architectural services related to elementary school construction in Germany. 2. The contract has a long duration, extending over 15 years. 3. Utilizes a Firm Fixed Price contract type, which shifts cost risk to the contractor. 4. Awarded under Miscellaneous Foreign Awardees, suggesting a non-US-based contractor. 5. The North American Industry Classification System (NAICS) code 541310 indicates architectural services. 6. The contract was awarded through full and open competition, indicating broad market access.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature (foreign construction) and long duration. The firm fixed price structure is standard for construction projects to manage cost overruns. Without comparable foreign elementary school construction projects or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the extended performance period suggests a need for sustained architectural services throughout the project lifecycle.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and quality. The presence of two bidders (no) suggests a moderate level of competition for this specific foreign construction project.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of receiving the best value.

Public Impact

Serves military families stationed in Grafenwoehr, Germany, by providing necessary educational infrastructure. The contract supports the construction and architectural design of an elementary school facility. Geographic impact is localized to the Grafenwoehr military installation in Germany. Potential workforce implications include the need for specialized architectural and construction labor, possibly sourced locally or internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 15 years) could lead to scope creep or unforeseen cost increases if not managed meticulously.
Award to 'Miscellaneous Foreign Awardees' may introduce complexities in oversight, payment, and legal jurisdiction.
Lack of specific details on the scope of architectural services makes it hard to assess if the full range of needs is covered.
Firm Fixed Price contracts can sometimes lead to contractor cutting corners on quality if not adequately monitored.

Positive Signals

Full and open competition suggests a robust bidding process, likely resulting in a competitive price.
Firm Fixed Price contract type provides cost certainty for the government.
The extended duration allows for comprehensive project oversight and phased development.
Awarding architectural services for a new school indicates investment in long-term military family support infrastructure.

Sector Analysis

This contract falls within the broader construction and architectural services sector. The market for architectural services is diverse, encompassing firms of various sizes specializing in different building types. Federal spending in this area often supports infrastructure development on military bases, in federal buildings, and for public works. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per student capacity for similar educational facilities, though international comparisons add complexity.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). The award to 'Miscellaneous Foreign Awardees' further suggests that small businesses, particularly US-based ones, are unlikely to be direct recipients of this prime contract. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the specific needs of the construction project, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and inspection mechanisms, likely managed by the Army Corps of Engineers or a similar entity responsible for overseas construction. Accountability measures are inherent in the Firm Fixed Price contract type, with penalties for non-performance. Transparency is facilitated by the contract award notice, but detailed project progress and financial oversight would be internal to the agency and contractor.

Related Government Programs

Military Construction, Army
Architectural and Engineering Services
Foreign Military Sales Support
Department of Defense Education Activity (DoDEA) Facilities

Risk Flags

Long contract duration
Foreign awardee
Potential for cost overruns due to extended timeline
Complexity of overseas oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to MISCELLANEOUS FOREIGN AWARDEES. CONSTRUCT GRAFENWOEHR ELEMENTARY, GERMANY

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 $39.8 million.

What is the period of performance?

Start: 2012-09-28. End: 2029-12-31.

What is the historical spending pattern for architectural services for overseas military construction projects by the Department of the Army?

Historical spending on architectural services for overseas military construction by the Department of the Army is substantial, reflecting the ongoing need to maintain and upgrade facilities in global installations. These contracts often involve complex requirements due to varying international building codes, environmental regulations, and logistical challenges. Spending can fluctuate based on geopolitical priorities, military readiness needs, and budget allocations. For instance, periods of increased troop presence or base expansion in regions like Europe or the Pacific typically correlate with higher contract awards for design and construction oversight. Analyzing past awards for similar projects, such as schools, housing, or operational facilities, would reveal trends in contract values, durations, and competition levels, providing a benchmark for current and future procurements.

How does the $39.8M contract value compare to typical costs for constructing elementary schools on military bases?

Comparing the $39.8 million contract value for constructing Grafenwoehr Elementary in Germany to typical costs for similar projects on military bases requires careful consideration of several factors. Construction costs can vary significantly based on location (labor rates, material availability, shipping), size (square footage, student capacity), design complexity, and specific facility requirements (e.g., specialized labs, security features). Overseas construction, particularly in Europe, often incurs higher costs due to logistical challenges, import duties, and different labor standards compared to domestic projects. While a precise benchmark is difficult without detailed project specifications, $39.8 million for a substantial elementary school facility, especially with the added complexities of an overseas military installation, appears to be within a plausible range, assuming it covers comprehensive architectural design and potentially initial construction phases. Further analysis would require comparing it to projects of similar scope and location.

What are the potential risks associated with a contract spanning over 15 years?

A contract with a duration exceeding 15 years, like the Grafenwoehr Elementary construction project, presents several potential risks. Firstly, the extended timeline increases the likelihood of unforeseen economic fluctuations, such as inflation or currency exchange rate volatility, which could impact costs if not adequately managed within the contract's pricing structure. Secondly, technological advancements in construction methods or educational facility design could render initial plans outdated, requiring costly modifications or scope changes. Thirdly, changes in military policy, force structure, or educational requirements could necessitate significant alterations to the project's scope or objectives. Finally, maintaining consistent oversight and contractor performance over such a long period can be challenging, potentially leading to a decline in quality or adherence to specifications if vigilance wanes. Robust contract management, clear change order processes, and regular performance reviews are crucial to mitigate these risks.

What does the 'Miscellaneous Foreign Awardees' designation imply for contractor accountability and oversight?

The designation 'Miscellaneous Foreign Awardees' suggests that the prime contractor is likely based outside the United States. This can introduce specific challenges and considerations for accountability and oversight. While US government contracts with foreign entities are common, particularly for overseas operations, it may require navigating different legal frameworks, payment systems, and communication protocols. Oversight might involve coordination with local US embassy or military personnel, and ensuring compliance with both US federal acquisition regulations and host-nation laws. Accountability mechanisms, such as performance bonds or liquidated damages, remain critical, but their enforcement might be more complex. The agency must ensure robust communication channels and clear contractual terms are in place to manage risks associated with a geographically distant contractor.

What is the significance of the North American Industry Classification System (NAICS) code 541310 for this contract?

The North American Industry Classification System (NAICS) code 541310 specifically identifies 'Architectural Services.' This designation is crucial as it clearly defines the primary nature of the work being procured under this contract. It signifies that the contract is intended to fund the professional services of architects, including the design, planning, and potentially oversight of construction projects. For the Department of Defense, this code ensures that the procurement process targets firms with the appropriate expertise and licensing for architectural work, distinguishing it from contracts for general construction, engineering, or project management. Understanding this NAICS code helps in benchmarking the contract against other similar architectural service procurements and assessing the specialized nature of the services required for the Grafenwoehr Elementary project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

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

Financial Breakdown

Contract Ceiling: $39,851,533

Exercised Options: $39,851,533

Current Obligation: $39,843,706

Actual Outlays: $163,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline