DoD's $35.4M German construction contract awarded to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG shows long-term commitment

Contract Overview

Contract Amount: $35,449,145 ($35.4M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2017-12-15

End Date: 2030-12-31

Contract Duration: 4,764 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF SOFA FH CONSTRUCTION , VILSECK, GERMANY

Plain-Language Summary

Department of Defense obligated $35.4 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: IGF::OT::IGF SOFA FH CONSTRUCTION , VILSECK, GERMANY Key points: 1. Contract value of $35.4M over 13 years suggests a significant, long-term infrastructure investment. 2. Awarded under full and open competition, indicating a broad search for qualified bidders. 3. The definitive contract type with a firm fixed price offers cost certainty for the government. 4. Performance period extending to December 2030 highlights the enduring nature of the requirement. 5. Specialty trade contractor classification points to specific construction needs in Germany. 6. The contract's duration and value may indicate a substantial project with significant resource allocation.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of work and location within Vilseck, Germany. The $35.4 million total value over nearly 13 years averages approximately $2.7 million annually. This figure needs to be compared against similar construction and renovation projects for military installations in European theaters, considering factors like labor costs, material availability, and regulatory environments. The firm fixed-price structure provides cost predictability, but the overall value-for-money assessment depends heavily on the quality of work delivered and adherence to project timelines.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. With two bidders identified, the competition level appears moderate. This approach is generally favorable for price discovery and ensuring the government receives competitive pricing. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide a clearer picture of the competitive intensity and its impact on the final award price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a wider pool of potential bidders, leading to more cost-effective use of public funds.

Public Impact

The primary beneficiaries are the U.S. Army personnel and their families stationed at the Vilseck, Germany facility, who will utilize the improved or newly constructed infrastructure. The contract delivers essential construction and specialty trade services, likely encompassing building, renovation, or maintenance of facilities critical to military operations. The geographic impact is localized to Vilseck, Germany, supporting the U.S. military's presence and operational capabilities in Europe. The contract implies a need for skilled labor in construction and specialty trades, potentially benefiting local German workforces or requiring specialized U.S. personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) increases the risk of cost overruns due to inflation or unforeseen project changes.
Performance in a foreign country (Germany) can introduce complexities related to logistics, local regulations, and currency fluctuations.
The specific nature of 'All Other Specialty Trade Contractors' is broad and may hide risks associated with specialized, less common construction needs.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Awarded under full and open competition, suggesting a competitive process that likely secured a reasonable price.
The contract is with a government agency (BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG), which may imply a level of established capability and reliability for public works.

Sector Analysis

This contract falls within the Construction and Engineering Services sector, specifically focusing on specialty trade contracting. The market for military construction and base support services in overseas locations is substantial, driven by the U.S. Department of Defense's global footprint. Comparable spending benchmarks would involve analyzing other DoD contracts for similar infrastructure projects in Europe, considering the scale, complexity, and duration. The $35.4 million value over 13 years positions this as a significant, long-term investment in maintaining and improving military facilities abroad.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value definitive contract awarded to a government agency, it is unlikely to involve significant subcontracting opportunities for small businesses unless specified within the contract's performance requirements. The absence of small business participation suggests that the primary focus was on securing specialized construction services from entities capable of handling large-scale, long-term projects, potentially overlooking opportunities to foster small business growth within this specific contract's scope.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of Defense and the BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. As a definitive contract with a long performance period, regular performance reviews and milestone tracking are expected. Transparency would be facilitated through contract award databases and potentially through reporting requirements mandated by the contract. Given the nature of the work and the foreign location, specific oversight mechanisms would need to address logistical, regulatory, and quality control aspects to ensure accountability and value for taxpayer money.

Related Government Programs

Department of Defense Overseas Construction
Military Base Infrastructure Projects
European Military Construction Contracts
Specialty Trade Services Contracts
Long-Term Government Construction Contracts

Risk Flags

Long-term contract duration may increase exposure to economic fluctuations and scope creep.
Performance in a foreign jurisdiction introduces regulatory and logistical complexities.
Broad specialty trade classification requires careful monitoring of specific work performed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. IGF::OT::IGF SOFA FH CONSTRUCTION , VILSECK, 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 $35.4 million.

What is the period of performance?

Start: 2017-12-15. End: 2030-12-31.

What is the specific scope of work covered by this $35.4 million construction contract in Vilseck, Germany?

The provided data classifies the contractor under 'All Other Specialty Trade Contractors' (NA: 238990), indicating a broad range of potential construction activities beyond typical building trades. Without further details, the scope could encompass anything from specialized repairs, utility installations, site preparation, or construction of unique military-specific facilities. The long duration (ending 2030) suggests a substantial, ongoing requirement rather than a single project. To understand the full scope, one would need to examine the contract's Statement of Work (SOW), which details the specific tasks, deliverables, and performance standards expected from the BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG.

How does the annual cost of this contract compare to similar military construction projects in Germany or Europe?

The contract's total value is $35.4 million over approximately 12.8 years (from Dec 2017 to Dec 2030), averaging roughly $2.77 million per year. Benchmarking this requires comparing it to similar Department of Defense construction contracts for base support, renovation, or new facility construction in Germany or other European countries. Factors influencing cost include the specific type of construction (e.g., barracks, training facilities, administrative buildings), labor rates in the region, material costs, and security requirements. A direct comparison would necessitate identifying contracts with similar scopes, durations, and geographic locations, adjusting for inflation and specific project complexities to determine if the $2.77 million annual average represents good value.

What are the potential risks associated with a firm fixed-price contract of this magnitude and duration?

A firm fixed-price (FFP) contract aims to provide cost certainty, but risks remain, especially for a long-duration contract like this ($35.4M, ending 2030). The primary risk for the government is that the contractor may have underestimated costs, leading to potential quality compromises to maintain profitability, or conversely, the contractor may have overestimated, leading to a less competitive price. For the contractor, risks include unforeseen cost increases due to inflation, material shortages, or changes in local regulations, which they must absorb under an FFP agreement. Given the performance location in Germany, currency fluctuations and differing labor laws also present potential risks that could impact project execution and final cost, even within a fixed-price structure.

What is the track record of BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG in executing large-scale military construction contracts for the U.S. Department of Defense?

The provided data identifies BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG (BFBR) as the contracting entity, which is a German federal agency responsible for construction and spatial planning. While the data indicates this is a definitive contract awarded to them by the Department of the Army, it doesn't detail BFBR's specific track record with the DoD. BFBR's mandate suggests experience with public works projects within Germany. However, their history with U.S. military construction, particularly regarding adherence to DoD standards, reporting requirements, and performance metrics, would need further investigation through past performance reviews or contract databases to fully assess their reliability for this specific $35.4 million contract.

How does the 'All Other Specialty Trade Contractors' classification impact the assessment of this contract's value and risk?

The classification 'All Other Specialty Trade Contractors' (NAICS 238990) is very broad and encompasses a wide array of non-classifiable specialty construction services. This lack of specificity increases the risk profile, as it's difficult to benchmark costs or assess the contractor's specific expertise without knowing the precise nature of the work. It could range from highly specialized technical installations to more general site work. For value assessment, it makes comparison difficult; for risk, it suggests a need for rigorous oversight to ensure the contractor possesses the necessary skills and that the work meets required standards, especially given the long duration and significant value of the contract.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF 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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,449,145

Exercised Options: $35,449,145

Current Obligation: $35,449,145

Actual Outlays: $20,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline