DoD's $6.3M Grafenwoehr repair contract awarded via full and open competition

Contract Overview

Contract Amount: $6,302,888 ($6.3M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2026-12-31

Contract Duration: 3,381 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF SOFA OMA REPAIR POL SEPARATORS PH, GRAFENWOEHR, GERMANY

Plain-Language Summary

Department of Defense obligated $6.3 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: IGF::OT::IGF SOFA OMA REPAIR POL SEPARATORS PH, GRAFENWOEHR, GERMANY Key points: 1. Contract awarded to a single entity for specialized repair services. 2. Long duration suggests potential for scope creep or complex project management. 3. Fixed-price contract type aims to control costs, but requires careful initial scope definition. 4. Performance period extends significantly beyond the award date, indicating a long-term need. 5. Awarded by the Bundesamt für Bauwesen und Raumordnung, indicating a non-US federal agency involvement. 6. Specialty trade contractor classification points to a niche service requirement.

Value Assessment

Rating: fair

The contract value of $6.3 million over approximately 9 years (2017-2026) suggests an average annual spend of roughly $700,000. Without specific details on the scope of repairs or comparable projects in Germany, it is difficult to benchmark the value definitively. The firm fixed-price nature indicates an expectation of cost control, but the long duration could mask inefficiencies if not closely monitored. Further analysis would require understanding the specific repair needs and market rates for similar services in the Grafenwoehr region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bids suggests a degree of competition, though the specific number of bidders does not inherently guarantee the best price. The contracting agency's process for evaluating these bids would be crucial in determining if competitive pressures effectively drove down costs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential suppliers to bid, which can lead to more competitive pricing and better value for money.

Public Impact

This contract directly benefits the U.S. Army's infrastructure maintenance and operational readiness at the Grafenwoehr training area in Germany. Services delivered include specialized repairs to facilities, ensuring the continued functionality of critical military infrastructure. The geographic impact is localized to Grafenwoehr, Germany, supporting U.S. Army Europe operations. Workforce implications are likely to involve skilled trades personnel, potentially sourced locally in Germany or from specialized U.S. military support contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) increases the risk of cost overruns if scope or market conditions change significantly.
Reliance on a single contractor for specialized repairs could lead to dependency and potential price increases upon renewal or modification.
Lack of detailed public information on the specific repair needs makes it challenging to assess the true value and necessity of the contract.
The involvement of a non-US contracting authority (Bundesamt für Bauwesen und Raumordnung) adds a layer of complexity to oversight and performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government, assuming the initial scope is well-defined.
The contract addresses essential infrastructure maintenance, crucial for military operational effectiveness.
The long performance period indicates a sustained commitment to maintaining facilities at a key training installation.

Sector Analysis

This contract falls within the Specialty Trade Contractors sector, specifically related to facility maintenance and repair. The market for such services, particularly in support of military installations abroad, is often specialized. While precise benchmarks for repair contracts at overseas bases are scarce, the annual value suggests a significant but not exceptionally large contract within the broader defense infrastructure maintenance landscape. Comparable spending might be found in contracts for base operations support or facilities engineering services at other large U.S. military installations globally.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting subcontracting opportunities for small businesses. The nature of specialized repair services, especially for overseas military installations, may limit the direct involvement of small businesses unless they are part of a larger prime contractor's team. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bundesamt für Bauwesen und Raumordnung (BBSR), the German Federal Office for Building and Regional Planning, which awarded the contract. The U.S. Department of Defense, as the ultimate beneficiary, would likely have its own internal oversight mechanisms and points of contact to ensure performance aligns with military requirements. Transparency is limited by the public availability of detailed contract performance data. Inspector General jurisdiction would depend on the specific funding source and oversight agreements between the U.S. and Germany.

Related Government Programs

Base Operations Support Contracts
Facilities Engineering and Maintenance Services
Overseas Military Construction Projects
Specialty Trade Services Contracts

Risk Flags

Long contract duration
Potential for scope creep
Limited public performance data
Non-US contracting authority

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. IGF::OT::IGF SOFA OMA REPAIR POL SEPARATORS PH, GRAFENWOEHR, GERMANY

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 $6.3 million.

What is the period of performance?

Start: 2017-09-28. End: 2026-12-31.

What is the specific nature of the 'OMA REPAIR POL SEPARATORS' services being procured?

The data provided, 'IGF::OT::IGF SOFA OMA REPAIR POL SEPARATORS PH, GRAFENWOEHR, GERMANY', suggests the contract is for the repair and maintenance of 'OMA' (Operations, Maintenance, and Administration) related 'POL' (Petroleum, Oils, and Lubricants) separators. These are critical environmental and safety systems used to separate oil and water from petroleum products, often found in fueling stations or maintenance depots. The 'PH' likely refers to a specific location or facility within Grafenwoehr. The 'IGF' and 'OT' might denote internal codes for the project or funding source. The repair and maintenance of such systems are essential for environmental compliance and operational safety at military installations.

How does the $6.3 million contract value compare to similar repair contracts for overseas military installations?

Benchmarking this $6.3 million contract against similar overseas military repair contracts is challenging without more specific details on the scope of work and location. However, considering the contract duration of over nine years (2017-2026), the average annual value is approximately $700,000. This figure is moderate for specialized infrastructure maintenance at a large training facility like Grafenwoehr. Larger contracts might involve new construction or comprehensive base-wide maintenance programs. Smaller contracts could be for more routine or localized repairs. The value appears reasonable for specialized environmental system maintenance over an extended period, but a direct comparison would require access to data on similar 'POL separator' repair contracts or broader environmental services contracts at other U.S. European Command (EUCOM) installations.

What are the key risks associated with the long performance period (2017-2026)?

The primary risk associated with the long performance period of over nine years is the potential for cost escalation and scope creep. Market prices for materials, labor, and specialized equipment can fluctuate significantly over such a timeframe, potentially exceeding initial fixed-price estimates if not managed proactively. Furthermore, the needs of the Grafenwoehr facility may evolve, leading to requests for modifications or additional services not originally envisioned, which could increase the contract's total value beyond the initial $6.3 million. Ensuring robust contract management, regular performance reviews, and clear change order protocols are crucial to mitigate these risks and maintain cost control throughout the contract's life.

What is the track record of the contractor, if known, in performing similar specialized repair services?

The provided data does not include the name of the awarded contractor, only the contracting activity (Bundesamt für Bauwesen und Raumordnung) and the agency (Department of Defense). Therefore, assessing the contractor's track record is not possible with the given information. To evaluate this, one would need to identify the prime contractor and then research their past performance on similar government contracts, particularly those involving environmental systems maintenance, petroleum handling infrastructure, or specialized repairs at overseas military installations. Past performance evaluations, contract award histories, and any reported issues or successes would be critical inputs.

How does the firm fixed-price contract type impact value for money in this context?

The firm fixed-price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, providing budget certainty for the procuring entity. In this case, for specialized repairs of 'POL separators,' an FFP contract incentivizes the contractor to perform the work efficiently and within the agreed-upon budget. However, the long duration presents a challenge; if unforeseen issues arise or the scope needs adjustment, managing changes under an FFP contract can become complex and potentially costly if not handled through formal modification procedures. The value for money hinges on the accuracy of the initial scope definition and the contractor's ability to execute efficiently.

What are the implications of this contract being awarded by a German agency for U.S. defense spending oversight?

This contract being awarded by the German Bundesamt für Bauwesen und Raumordnung (BBSR) on behalf of the U.S. Department of Defense introduces a layer of complexity regarding oversight and accountability. While the BBSR is responsible for the procurement process and likely manages the day-to-day contract administration, the U.S. DoD retains ultimate responsibility for ensuring the services meet military requirements and represent good value. This necessitates clear communication channels, established reporting structures, and potentially joint oversight mechanisms between the U.S. and German authorities. Taxpayers should be assured that performance standards and financial accountability are maintained despite the non-U.S. contracting authority, possibly through specific intergovernmental agreements or DoD representatives embedded within the process.

Industry Classification

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

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

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $6,302,888

Exercised Options: $6,302,888

Current Obligation: $6,302,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline