Department of Defense awards $25.2M contract for construction services in Germany, highlighting significant foreign-based infrastructure investment

Contract Overview

Contract Amount: $25,232,829 ($25.2M)

Contractor: Mickan Generalbaugesellschaft Amberg MBH & CO. KG

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2022-09-30

Contract Duration: 1,828 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF; SOFA; APS DULMEN, GERMANY.

Plain-Language Summary

Department of Defense obligated $25.2 million to MICKAN GENERALBAUGESELLSCHAFT AMBERG MBH & CO. KG for work described as: IGF::OT::IGF; SOFA; APS DULMEN, GERMANY. Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract duration of 1828 days indicates a long-term commitment to infrastructure development. 3. Fixed-price contract type likely provides cost certainty for the government. 4. The award to a German-based company suggests a focus on local or regional expertise for overseas projects. 5. This spending represents a portion of the Department of Defense's broader global infrastructure maintenance and development efforts.

Value Assessment

Rating: good

Benchmarking the exact value of this contract is challenging without specific project details and comparable construction costs in Dülmen, Germany. However, the firm fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. The competition level also implies that pricing was likely scrutinized against multiple bids.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bidders identified, this suggests a healthy level of competition for the construction services. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award means taxpayer dollars were likely used more efficiently, as multiple companies vied to offer the best price and value, driving down costs compared to a sole-source situation.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations supported by the improved facilities in Dülmen, Germany. Services delivered include commercial and institutional building construction, essential for maintaining operational readiness and quality of life for service members. The geographic impact is localized to Dülmen, Germany, supporting U.S. military installations in that region. Workforce implications include employment opportunities for construction workers and related trades, potentially both local German and U.S. personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Dependency on the contractor's ability to source materials and labor effectively in Germany.
Risk of delays impacting military readiness if construction timelines are not met.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition suggests a competitive pricing environment.
Award to an established German company may indicate familiarity with local regulations and supply chains.

Sector Analysis

This contract falls within the broader construction sector, specifically focusing on commercial and institutional buildings. The Department of Defense is a significant investor in global infrastructure, with spending often directed towards maintaining and upgrading facilities to support military operations worldwide. Comparable spending benchmarks would typically involve other large-scale construction projects for government entities or major commercial developers in similar geographic regions.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. As a large contract awarded to a company likely capable of handling significant construction projects, the direct impact on small businesses may be limited unless they are engaged as subcontractors by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, quality assurance checks, and compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though specific project details might be limited for security reasons.

Related Government Programs

Department of Defense Construction Contracts
Army Corps of Engineers Construction Projects
Overseas Military Construction
Foreign Military Sales Infrastructure Support

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Risk of schedule delays impacting operational readiness.
Dependency on foreign supply chains and labor.
Compliance with German building codes and regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to MICKAN GENERALBAUGESELLSCHAFT AMBERG MBH & CO. KG. IGF::OT::IGF; SOFA; APS DULMEN, GERMANY.

Who is the contractor on this award?

The obligated recipient is MICKAN GENERALBAUGESELLSCHAFT AMBERG MBH & CO. KG.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2017-09-28. End: 2022-09-30.

What is the specific nature of the construction services being provided under this contract?

The contract is categorized under NAICS code 236220, which pertains to Commercial and Institutional Building Construction. This typically includes the construction or renovation of non-residential buildings such as office buildings, warehouses, factories, schools, hospitals, and other institutional facilities. Given the context of a Department of Defense contract in Germany, it likely involves facilities supporting U.S. Army operations, potentially including barracks, administrative buildings, training facilities, or support infrastructure.

How does the $25.2 million contract value compare to similar construction projects for the Department of Defense in Europe?

Comparing this $25.2 million contract requires detailed analysis of specific project scopes and locations. However, the Department of Defense frequently awards large construction contracts in Europe, often ranging from several million to tens of millions of dollars, for base modernization, new construction, and renovation projects. The value of this contract appears to be within a typical range for significant infrastructure work at a military installation, especially considering the duration and the complexities of construction in a foreign country. Without specific project details, a precise benchmark is difficult, but it represents a substantial investment in regional infrastructure.

What are the key performance indicators (KPIs) or quality assurance measures expected for this construction contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for large construction contracts include adherence to project schedules, meeting quality standards (e.g., building codes, material specifications), safety compliance, and effective budget management. Quality assurance would likely involve regular site inspections, material testing, and review of project documentation by government representatives. The firm fixed-price nature incentivizes the contractor to meet these standards efficiently to maximize profit.

What is the track record of MICKAN GENERALBAUGESELLSCHAFT AMBERG MBH & CO. KG with the Department of Defense or similar government entities?

Information on the specific track record of MICKAN GENERALBAUGESELLSCHAFT AMBERG MBH & CO. KG with the Department of Defense is not provided in the data. However, their ability to win a full and open competition contract of this magnitude suggests they possess the necessary qualifications, experience, and financial stability to undertake such projects. Further due diligence would involve reviewing past performance evaluations, if available through government contracting databases or industry reports, to assess their history of successful project completion and compliance.

What are the potential risks associated with a long-term (1828 days) construction contract in a foreign country?

Long-term construction contracts in foreign countries present several risks. These include potential delays due to unforeseen site conditions, changes in local regulations or permitting processes, currency fluctuations impacting material costs (though less likely with fixed-price contracts if materials are sourced locally or priced in USD), geopolitical instability, and logistical challenges in transporting materials and equipment. For this contract, the firm fixed-price structure shifts much of the cost-related risk to the contractor, but schedule and performance risks remain significant.

How does this contract fit into the broader strategy of U.S. military presence and infrastructure investment in Germany?

This contract is indicative of the U.S. military's ongoing commitment to maintaining and modernizing its infrastructure in Germany, a key strategic location for NATO and U.S. European Command. Investments in construction services ensure that facilities are up-to-date, functional, and capable of supporting current and future operational requirements. Such projects are crucial for troop readiness, quality of life, and the overall effectiveness of U.S. forces stationed in the region, reflecting a long-term strategic posture.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912GB17R0017

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: WERNHER-VON-BRAUN-STR. 24, AMBERG

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

Financial Breakdown

Contract Ceiling: $30,578,794

Exercised Options: $25,232,829

Current Obligation: $25,232,829

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB17D0032

IDV Type: IDC

Timeline