DoD's $30.9M construction contract for Mons, Belgium school awarded to SIS JV

Contract Overview

Contract Amount: $30,904,004 ($30.9M)

Contractor: Galere SA - Wayss & Freytag Ingenieurbau AG SIS JV

Awarding Agency: Department of Defense

Start Date: 2016-03-21

End Date: 2020-07-24

Contract Duration: 1,586 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF SHAPE INTERNATIONAL SCHOOL, MONS BELGIUM

Plain-Language Summary

Department of Defense obligated $30.9 million to GALERE SA - WAYSS & FREYTAG INGENIEURBAU AG SIS JV for work described as: IGF::OT::IGF SHAPE INTERNATIONAL SCHOOL, MONS BELGIUM Key points: 1. Contract awarded to a joint venture, indicating potential for specialized expertise. 2. Fixed-price contract type suggests cost certainty for the government. 3. Long duration of 1586 days implies a complex or extensive project. 4. No small business set-aside indicates a focus on larger, potentially more experienced contractors. 5. Competition level was full and open, suggesting a broad search for qualified bidders. 6. Project located in Belgium, requiring international construction and logistical considerations.

Value Assessment

Rating: fair

The contract's value of $30.9 million for building construction over approximately four years appears substantial. Benchmarking this against similar international school construction projects by the Department of Defense would be necessary for a precise value-for-money assessment. The firm fixed-price nature provides cost predictability, but the final value could be influenced by change orders over the extended period. Without specific cost breakdowns or comparisons to similar projects, it's difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers indicate that the market had sufficient interest and capability to respond to the solicitation. The specific details of the bidding process and the evaluation criteria would further inform the assessment of price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to bid, which can lead to more competitive pricing and better value. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently in securing this construction service.

Public Impact

Benefits military families and personnel stationed in Mons, Belgium, by providing a dedicated educational facility. Delivers essential construction services for a new or renovated school building. Geographic impact is localized to the Mons, Belgium area, supporting U.S. military infrastructure abroad. Workforce implications include employment opportunities for construction labor and management in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration could lead to scope creep or unforeseen cost increases if not managed tightly.
International location may introduce complexities in logistics, labor laws, and material sourcing.
Firm fixed-price contracts can sometimes disincentivize contractors from finding cost efficiencies beyond initial estimates.

Positive Signals

Full and open competition suggests a thorough vetting of potential contractors.
Firm fixed-price contract provides budget certainty for the Department of Defense.
Award to a joint venture may indicate a robust and capable team assembled for the project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The global market for such construction is vast, with significant government spending allocated to infrastructure projects, particularly for overseas military installations. The $30.9 million value is substantial for a single project, reflecting the scale and requirements of building or renovating a school facility. Comparable spending benchmarks would typically involve analyzing other DoD construction contracts for similar facilities in international locations.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no subcontracting goals were specified (sb: false, st: ''). This suggests the primary contractor, a joint venture, was expected to handle the majority of the work or had the capacity to manage subcontracting without specific set-aside requirements. The absence of small business participation metrics means the direct impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor might engage small businesses indirectly.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and project management offices. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Defense School Construction
Overseas Military Construction Projects
European Command Construction Contracts
General Building Construction Services

Risk Flags

Long contract duration increases risk of cost escalation and management complexity.
International location presents logistical and regulatory challenges.
Lack of specific small business subcontracting goals may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to GALERE SA - WAYSS & FREYTAG INGENIEURBAU AG SIS JV. IGF::OT::IGF SHAPE INTERNATIONAL SCHOOL, MONS BELGIUM

Who is the contractor on this award?

The obligated recipient is GALERE SA - WAYSS & FREYTAG INGENIEURBAU AG SIS 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 $30.9 million.

What is the period of performance?

Start: 2016-03-21. End: 2020-07-24.

What is the track record of GALERE SA - WAYSS & FREYTAG INGENIEURBAU AG SIS JV in executing similar large-scale construction projects for the Department of Defense?

Assessing the specific track record of the joint venture 'GALERE SA - WAYSS & FREYTAG INGENIEURBAU AG SIS JV' requires a deep dive into their past performance on Department of Defense contracts. This would involve reviewing contract databases for previous awards, project completion records, and any performance evaluations or dispute history. Without direct access to this granular data, it's challenging to provide a definitive assessment. However, the fact that they were awarded a $30.9 million contract for a school construction project in Belgium suggests they possess the necessary qualifications and experience deemed sufficient by the DoD contracting officers. Further investigation into the individual entities comprising the joint venture might also reveal relevant past performance.

How does the $30.9 million contract value compare to the average cost of constructing similar educational facilities for the DoD in Europe?

Comparing the $30.9 million contract value requires establishing a baseline for 'similar educational facilities' and 'average cost' within the European theater for the DoD. Factors influencing cost include square footage, specific educational requirements (labs, specialized rooms), material costs, labor rates in Belgium, and logistical challenges of overseas construction. A preliminary assessment suggests this is a significant investment, indicative of a substantial project. To benchmark effectively, one would need to analyze a portfolio of DoD school construction contracts awarded in Europe over a comparable timeframe, adjusting for inflation and project scope. Without such comparative data, it's difficult to definitively state if this represents a high, low, or average cost.

What are the primary risks associated with a firm fixed-price contract for a multi-year construction project in an international location?

The primary risks associated with a firm fixed-price (FFP) contract for a multi-year construction project in an international location are multifaceted. For the government (DoD), the main risk is that the contractor may cut corners on quality or materials to maintain profitability if costs escalate unexpectedly, or that the fixed price might be significantly higher than necessary if competition was weak. For the contractor, the risks include cost overruns due to unforeseen issues like material price volatility, labor disputes, unexpected site conditions, or changes in local regulations. In an international setting, currency fluctuations, differing labor laws, import/export complexities, and geopolitical instability can further exacerbate these risks. Effective risk mitigation relies on robust contract oversight, clear specifications, and contingency planning.

What is the expected impact of this contract on the local Belgian economy and workforce near the Mons base?

This contract is expected to have a positive impact on the local Belgian economy and workforce near the Mons base. The construction activities will likely create numerous jobs for skilled and unskilled laborers, engineers, project managers, and administrative staff. Furthermore, the procurement of local materials, equipment, and services will stimulate business for Belgian suppliers and subcontractors. The influx of spending associated with the project, including wages and local purchases, can lead to increased economic activity in the region. The duration of the contract suggests a sustained period of employment and economic contribution.

How does the duration of 1586 days (approx. 4.3 years) influence the assessment of project management and potential for cost escalation?

A contract duration of 1586 days (approximately 4.3 years) for a construction project significantly influences the assessment of project management and the potential for cost escalation. Such a long timeframe necessitates robust, long-term project management capabilities from the contractor to ensure timely completion and adherence to specifications. It also increases the inherent risk of cost escalation due to factors like inflation, material price volatility over several years, changes in labor costs, and potential regulatory shifts. For the government, managing and overseeing a project of this length requires sustained attention and resources. While a firm fixed-price contract aims to cap costs, the extended period provides more opportunities for unforeseen events to impact the contractor's financial position, potentially leading to change order requests or disputes if not managed proactively.

What are the implications of awarding this contract to a joint venture versus a single entity?

Awarding this contract to a joint venture (JV) like 'GALERE SA - WAYSS & FREYTAG INGENIEURBAU AG SIS JV' typically implies that the project's scope, complexity, or bonding requirements exceeded the capacity or specific expertise of a single entity. JVs allow companies to pool resources, share risks, and combine complementary skills, potentially leading to a more capable and competitive bid. For the government, this can mean access to a broader range of technical expertise and a stronger financial backing. However, managing a JV can sometimes introduce complexities in communication, decision-making, and accountability compared to dealing with a single prime contractor. The success of the project hinges on the JV partners' ability to collaborate effectively and fulfill their collective obligations.

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: W912GB15R0033

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RUE JOSEPH DUPONT 73, CHAUDFONTAINE

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

Financial Breakdown

Contract Ceiling: $30,904,004

Exercised Options: $30,904,004

Current Obligation: $30,904,004

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline