DoD Awards $33M Construction Contract for Brussels American School, Ending 2025
Contract Overview
Contract Amount: $32,966,526 ($33.0M)
Contractor: JV WMV Brussels American School
Awarding Agency: Department of Defense
Start Date: 2017-09-15
End Date: 2025-07-13
Contract Duration: 2,858 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF SOFA BRUSSELS AMERICAN SCHOOL, BRUSSELS, BELGIUM
Plain-Language Summary
Department of Defense obligated $33.0 million to JV WMV BRUSSELS AMERICAN SCHOOL for work described as: IGF::OT::IGF SOFA BRUSSELS AMERICAN SCHOOL, BRUSSELS, BELGIUM Key points: 1. Contract value of $32.97M for construction services. 2. Full and open competition was utilized. 3. Risk is moderate due to long contract duration and fixed-price nature. 4. Construction sector spending is significant across government agencies.
Value Assessment
Rating: fair
The contract value of $32.97M for construction services appears within a reasonable range for a project of this scope and duration, though specific benchmarks for international school construction are not readily available. The firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes market competition and can lead to cost savings.
Public Impact
Supports educational infrastructure for military families abroad. Creates construction jobs and stimulates economic activity in the Brussels region. Ensures a functional learning environment for students and staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 7 years) increases risk of cost escalation or performance issues.
- Firm fixed-price contract may not account for unforeseen material cost increases.
- No indication of small business participation.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Contract supports critical infrastructure for DoD personnel.
- Clear end date provides project certainty.
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Government spending in this sector is substantial, supporting infrastructure projects across various agencies, with significant investment in facilities supporting military personnel and their families.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed or if the contract size precluded significant small business involvement.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract administration and performance monitoring to ensure compliance with terms and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 7 years).
- Firm fixed-price contract.
- No small business participation indicated.
- Potential for cost escalation or quality compromise over extended period.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 million to JV WMV BRUSSELS AMERICAN SCHOOL. IGF::OT::IGF SOFA BRUSSELS AMERICAN SCHOOL, BRUSSELS, BELGIUM
Who is the contractor on this award?
The obligated recipient is JV WMV BRUSSELS AMERICAN SCHOOL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2017-09-15. End: 2025-07-13.
What is the benchmark cost per square foot for similar international school construction projects to assess value?
Establishing a precise benchmark for international school construction is challenging due to varying labor costs, material availability, and regulatory environments across different countries. However, comparing the total contract value against the project's scope, square footage, and expected lifespan can provide a general sense of value. Further research into similar DoD overseas construction projects or private international school builds would be necessary for a more accurate comparison.
What are the specific risks associated with a firm fixed-price contract for a project spanning nearly eight years?
A firm fixed-price contract for a long duration like this presents risks of cost overruns for the contractor if material prices or labor costs increase significantly beyond initial projections. Conversely, the government might overpay if costs decrease unexpectedly. The contractor may also be incentivized to cut corners on quality to maintain profitability, necessitating robust government oversight and quality assurance measures.
How effectively does full and open competition ensure optimal pricing for specialized overseas construction projects?
Full and open competition is generally effective in driving down prices by maximizing the pool of potential bidders. However, for specialized projects like overseas construction, the number of qualified bidders might be limited, potentially reducing the competitive pressure. The government must ensure clear specifications and fair evaluation criteria to attract capable firms and achieve the best possible price and value.
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: W912GB17R0027
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: EUROPAWEG 11, LUMMEN
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $32,997,526
Exercised Options: $32,966,526
Current Obligation: $32,966,526
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-15
Current End Date: 2025-07-13
Potential End Date: 2025-07-13 00:00:00
Last Modified: 2024-08-07
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