DoD's $16.1M contract for Wiesbaden air traffic tower repair awarded via full and open competition

Contract Overview

Contract Amount: $16,121,160 ($16.1M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2015-09-29

End Date: 2030-12-30

Contract Duration: 5,571 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGFREPAIR AIR CONTROL TRAFFIC TOWER, CLAY KASERNE, WIESBADEN, GERMANYIGF::OT::IGF

Plain-Language Summary

Department of Defense obligated $16.1 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: IGF::OT::IGFREPAIR AIR CONTROL TRAFFIC TOWER, CLAY KASERNE, WIESBADEN, GERMANYIGF::OT::IGF Key points: 1. Value for money appears reasonable given the long performance period and fixed-price structure. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration and scope present moderate performance and execution risks. 4. This contract supports critical infrastructure for U.S. Army operations in Germany. 5. Specialty trade contractors are a diverse group, with this falling into 'All Other' category. 6. The fixed-price nature shifts cost overrun risk to the contractor.

Value Assessment

Rating: good

The contract value of $16.1 million over approximately 15 years (September 2015 to December 2030) suggests an average annual spend of roughly $1.07 million. This appears reasonable for specialized infrastructure repair and maintenance at a military installation. Without specific benchmarks for air traffic tower repairs in Germany, direct comparison is difficult, but the fixed-price structure provides cost certainty for the government. The number of bids received (2) is on the lower side for full and open competition, which could warrant further investigation into pricing.

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 bids. However, only two bids were received. While full and open competition is generally preferred for maximizing price discovery, a low number of bidders can sometimes suggest market limitations, high barriers to entry, or insufficient outreach. The agency should monitor if this limited competition impacted the final price.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best possible price through a wide range of potential suppliers. However, with only two bids, taxpayers may not have realized the full benefit of a highly competitive market.

Public Impact

U.S. Army personnel and operations at Clay Kaserne, Wiesbaden, Germany, benefit from improved air traffic control infrastructure. The contract ensures the continued safe and efficient operation of air traffic control services. Geographic impact is localized to the Wiesbaden military installation in Germany. The contract supports specialized construction and maintenance jobs within the specialty trade sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bidders (2) despite full and open competition may indicate potential market concentration or barriers.
Long contract duration (over 15 years) increases the risk of scope creep or unforeseen cost increases if not managed tightly.
Potential for price increases over the long term if market conditions change significantly and are not adequately addressed in the contract.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract structure provides cost certainty for the government.
Long performance period allows for sustained infrastructure support and potentially lower administrative overhead compared to multiple short-term contracts.

Sector Analysis

This contract falls within the Specialty Trade Contractors sector, specifically 'All Other Specialty Trade Contractors' (NAICS 238990). This broad category includes establishments primarily engaged in specialized construction activities not elsewhere classified, such as structural steel erection, stone setting, ornamental iron work, and the installation of prefabricated components. The market for specialized military infrastructure repair is often niche, with a limited number of qualified contractors capable of meeting stringent security and technical requirements, especially in overseas locations. Benchmarking is difficult without more specific contract details, but large-scale infrastructure projects for government entities typically involve significant investment and specialized expertise.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Given the specialized nature and potential scale of air traffic tower repair, it is plausible that larger, more experienced firms were better positioned to bid. There is no explicit information on subcontracting plans for small businesses, which could be an area for further inquiry to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract would likely fall under the purview of the Department of the Army's contracting and engineering commands responsible for facilities and infrastructure in Germany. The contract's long duration necessitates robust oversight to ensure compliance with terms, manage performance, and control costs. Transparency is facilitated by the contract being publicly available, but detailed performance reports and specific oversight activities are not provided in this data summary. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Operations Support
Foreign Military Construction Contracts
Specialty Trade Construction Services

Risk Flags

Low Bidder Count
Long Contract Duration
Potential for Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. IGF::OT::IGFREPAIR AIR CONTROL TRAFFIC TOWER, CLAY KASERNE, WIESBADEN, GERMANYIGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2015-09-29. End: 2030-12-30.

What is the track record of the contractor (BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG) with similar federal contracts, particularly those involving international military infrastructure?

The provided data identifies the contractor as 'BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG' (BfBR), which translates to the Federal Office for Building and Regional Planning in Germany. This entity is a German federal agency responsible for construction and real estate management for the German government. Its involvement in a U.S. Department of Defense contract suggests a cooperative agreement or a specific procurement mechanism for services on U.S. installations in Germany, potentially leveraging German expertise and resources. Without access to a comprehensive federal contract database specifically detailing BfBR's past performance with the DoD, it is difficult to assess their track record on similar international military infrastructure projects. However, as a federal agency, it likely operates under established governmental procedures and quality standards. Further investigation would require cross-referencing with DoD contract award databases and performance reviews, if available.

How does the average annual value of this contract ($1.07M) compare to similar air traffic control tower maintenance and repair contracts for military bases, both domestically and internationally?

Comparing the average annual value of $1.07 million for this contract requires context regarding the scope and specific services included. Air traffic control tower maintenance can range from routine upkeep to major structural repairs and system upgrades. Contracts for similar services on U.S. military bases domestically can vary widely, with larger, more complex facilities potentially costing several million dollars annually. Internationally, costs can be influenced by factors such as local labor rates, material availability, logistical challenges, and specific security requirements. Given that this contract covers a 15-year period for a tower in Germany, the $1.07 million annual average seems plausible for specialized infrastructure maintenance. However, without detailed breakdowns of services and specific comparable contract data, a precise benchmark is challenging. The fact that it's a firm fixed-price contract suggests that the initial bid accounted for anticipated costs over the long term.

What are the primary risks associated with a firm fixed-price contract of this duration (over 15 years) for specialized construction services?

A firm fixed-price (FFP) contract of over 15 years for specialized construction services, like air traffic tower repair, presents several key risks. Primarily, there's the risk of contractor underestimation of costs, especially concerning inflation, material price volatility, and unforeseen technical challenges that may arise over such a long period. If the contractor significantly underestimated costs, they might face financial strain, potentially impacting performance or leading to requests for contract modifications. Conversely, if the initial pricing was overly conservative, the government might end up paying a premium. For the government, the risk lies in the potential for the contractor to cut corners on quality to maintain profitability if costs escalate unexpectedly, or to seek change orders that increase the overall price. Managing scope creep and ensuring adherence to the original specifications throughout the contract's life are critical oversight functions to mitigate these risks.

Given that only two bids were received under 'full and open competition,' what does this suggest about the market for specialized air traffic control tower repair services in the Wiesbaden, Germany ar

The receipt of only two bids under a 'full and open competition' solicitation for air traffic control tower repair services in Wiesbaden, Germany, suggests a potentially limited or concentrated market. This could be due to several factors. Firstly, the specialized nature of the work requires specific technical expertise, certifications, and experience, which may not be widely available. Secondly, operating on a U.S. military installation overseas often involves stringent security clearances, compliance requirements, and logistical complexities that further narrow the pool of eligible contractors. Thirdly, the geographic location itself might present challenges or limit the reach of potential bidders. It's also possible that the contract's value or specific requirements made it less attractive to a broader range of firms, or that competitors chose not to bid for strategic reasons. This limited competition warrants careful review of the pricing to ensure fair value was obtained.

What are the potential implications of the long contract duration (ending in 2030) on the technological relevance and potential need for upgrades to the air traffic control tower systems?

A contract ending in 2030, initiated in 2015, spans a significant period during which air traffic control technology is likely to evolve. The primary implication is the risk that the repair and maintenance services performed under this contract may not fully accommodate future technological advancements or regulatory changes in air traffic management. While the contract focuses on the physical structure and potentially existing systems, it may not cover the integration of next-generation communication, navigation, surveillance, or automation systems. The government might face a situation where the tower's infrastructure requires separate, potentially costly, upgrade contracts later on to maintain operational efficiency and compliance with evolving aviation standards. It is crucial that the contract's scope includes provisions for adaptability or that the agency has a clear plan for future technology refreshes independent of this repair contract.

How does the $16.1M total contract value translate to spending within the 'All Other Specialty Trade Contractors' NAICS code, and what is the typical scale of contracts within this category?

The $16.1 million total contract value falls under the NAICS code 238990, 'All Other Specialty Trade Contractors.' This is a broad category encompassing a wide range of specialized construction activities not classified elsewhere. Contracts within this NAICS code can vary dramatically in size, from small local jobs to large-scale industrial or infrastructure projects. For federal contracts, especially those involving military installations or international work, values can easily reach millions of dollars. While $16.1 million over 15 years (averaging $1.07 million annually) is a substantial amount, it is not unusual for significant infrastructure repair and maintenance projects awarded by agencies like the Department of Defense. Without specific market data for this particular sub-sector of specialty trades (air traffic tower repair), it's difficult to definitively state if this represents a 'typical' scale, but it aligns with the potential for large projects within this broad NAICS category.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR 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

Parent Company: Bundesrepublik Deutschland

Address: DEICHMANNS AUE 31-37, BONN

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,121,160

Exercised Options: $16,121,160

Current Obligation: $16,121,160

Actual Outlays: $310,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline