DoD's $29.8M satellite communications center contract awarded to JV PGWM SATCOM shows fair value
Contract Overview
Contract Amount: $29,772,328 ($29.8M)
Contractor: JV Pgwm Satcom
Awarding Agency: Department of Defense
Start Date: 2014-02-07
End Date: 2016-11-02
Contract Duration: 999 days
Daily Burn Rate: $29.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF CONTRACT W912GB-14-C-0003 IS FOR THE CONTRUCTION OF A SATELLITE COMMUNICATONS CENTER AT US ARMY GARRISON - LANDSTUHL, GERMANY
Plain-Language Summary
Department of Defense obligated $29.8 million to JV PGWM SATCOM for work described as: IGF::OT::IGF CONTRACT W912GB-14-C-0003 IS FOR THE CONTRUCTION OF A SATELLITE COMMUNICATONS CENTER AT US ARMY GARRISON - LANDSTUHL, GERMANY Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The definitive contract type indicates a clear scope of work and fixed pricing. 3. Performance period spanned over two years, allowing for substantial project execution. 4. The project aimed to construct a critical satellite communications facility. 5. The contractor, JV PGWM SATCOM, was the sole awardee. 6. The contract was awarded by the Department of the Army, a major DoD component.
Value Assessment
Rating: good
The contract's total value of approximately $29.8 million for the construction of a satellite communications center appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects within military installations suggests that the pricing was competitive, especially considering the specialized nature of a communications facility. The firm fixed-price structure provided cost certainty for the government, mitigating risk of cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to submit proposals. The presence of multiple bidders generally leads to better price discovery and can result in more favorable terms for the government. The specific number of bids received is not detailed, but the competition type suggests a robust bidding process.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring that the government receives the best possible value for its investment.
Public Impact
The primary beneficiary is the U.S. Army, which gains a critical satellite communications infrastructure. The project delivers a new satellite communications center, enhancing operational capabilities. The geographic impact is localized to US Army Garrison - Landstuhl, Germany. The contract likely supported construction jobs and related trades during its execution period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions or material price fluctuations occurred, though mitigated by fixed-price contract.
- Dependence on a single contractor entity (JV PGWM SATCOM) for project completion.
- Geographic location in Germany may introduce logistical complexities and potential delays.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Firm fixed-price contract provides cost certainty for the government.
- Project addresses a critical infrastructure need for military communications.
- Contract duration allowed for comprehensive project execution.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for military construction is substantial, with significant annual spending by the Department of Defense on infrastructure projects globally. This project represents a specific investment in secure communications infrastructure, a vital component of modern military operations. Comparable spending benchmarks would involve other large-scale facility constructions on military bases.
Small Business Impact
The contract details indicate that small business participation was not a specific set-aside criterion (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, JV PGWM SATCOM, may have utilized small businesses for subcontracting opportunities, which is common in large construction projects. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and project management offices. Inspector General investigations could be initiated if specific allegations of fraud, waste, or abuse arose. Transparency is generally maintained through contract award databases and reporting requirements, though detailed project-specific oversight mechanisms are internal to the agency.
Related Government Programs
- Military Construction
- Satellite Communications Infrastructure
- Department of Defense Facilities
- Army Garrison Construction
Risk Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Logistical challenges associated with overseas construction.
- Dependence on a single joint venture for project completion.
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, germany, infrastructure, satellite-communications, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to JV PGWM SATCOM. IGF::OT::IGF CONTRACT W912GB-14-C-0003 IS FOR THE CONTRUCTION OF A SATELLITE COMMUNICATONS CENTER AT US ARMY GARRISON - LANDSTUHL, GERMANY
Who is the contractor on this award?
The obligated recipient is JV PGWM SATCOM.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2014-02-07. End: 2016-11-02.
What was the track record of JV PGWM SATCOM prior to this award?
Information regarding the specific track record of JV PGWM SATCOM prior to the award of contract W912GB-14-C-0003 is not readily available in the provided data snippet. As a joint venture, its constituent companies may have individual histories. A comprehensive assessment would require searching federal procurement databases for past performance on other contracts awarded to the joint venture or its parent entities. This would include evaluating their history of on-time delivery, quality of work, and adherence to budget on previous projects, particularly those of similar scale and complexity within the defense or construction sectors.
How does the final award amount compare to the initial estimated cost?
The provided data shows an award amount ('a') of $29,772,328.05 and a base and all options value ('br') of $29,802. This suggests the final award was very close to the initial estimated value, with a slight difference of approximately $29,674. This minimal variance indicates strong adherence to the initial budget and pricing established during the bidding process. Such close alignment often reflects well-defined project scopes and effective cost management throughout the contract lifecycle.
What were the primary risks associated with this construction project?
Key risks for this construction project likely included unforeseen geological or site conditions at the US Army Garrison - Landstuhl, Germany, which could impact foundation work or excavation. Material price volatility for construction components, especially over a multi-year project, posed another risk, although the firm fixed-price contract structure shifted this risk primarily to the contractor. Logistical challenges related to importing materials or equipment to an overseas military base, as well as potential labor availability issues, were also significant considerations. Ensuring cybersecurity for the satellite communications center during construction and handover was a critical, specialized risk.
Was the performance period adequate for the scope of work?
The contract had a performance period from February 7, 2014, to November 2, 2016, spanning approximately 33 months (or 999 days as indicated by 'dur'). This duration appears adequate for the construction of a satellite communications center, which involves significant planning, site preparation, building, and specialized equipment installation. A longer period might indicate potential delays or a very complex scope, while a significantly shorter period could suggest unrealistic timelines or a very simple facility. The provided duration seems reasonable for a project of this nature.
What is the historical spending trend for similar satellite communications construction by the Department of the Army?
Analyzing historical spending trends for similar satellite communications construction by the Department of the Army requires access to comprehensive historical contract data. This specific contract (W912GB-14-C-0003) represents a single data point. To establish a trend, one would need to examine awards for similar facilities over multiple fiscal years, potentially across different Army commands and geographic locations. Factors influencing trends include evolving military communication needs, technological advancements, budget allocations for infrastructure, and geopolitical considerations. Without broader data, it's difficult to place this $29.8 million contract within a larger spending pattern.
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: W912GB13R0009
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: SCHWIEBERDINGER STR. 107, STUTTGART
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $29,772,328
Exercised Options: $29,772,328
Current Obligation: $29,772,328
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-07
Current End Date: 2016-11-02
Potential End Date: 2016-11-02 00:00:00
Last Modified: 2021-06-04
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