Department of the Army awards $5.7M contract for building construction, highlighting specialty trade contractor services

Contract Overview

Contract Amount: $5,723,765 ($5.7M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2018-09-23

End Date: 2027-12-30

Contract Duration: 3,385 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY18 CONST, OMA BLDG B8009 FOR SHORAD BN

Plain-Language Summary

Department of Defense obligated $5.7 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: FY18 CONST, OMA BLDG B8009 FOR SHORAD BN Key points: 1. Contract awarded for building construction services, indicating a need for specialized trade expertise. 2. The contract duration spans over 3 years, suggesting a significant project scope. 3. Fixed-price contract type suggests cost certainty for the government. 4. Competition was full and open, implying a potentially competitive bidding process. 5. The awardee is a German entity, indicating international collaboration or presence. 6. This contract falls under the 'All Other Specialty Trade Contractors' NAICS code.

Value Assessment

Rating: fair

The contract value of $5.7 million for building construction appears moderate for a multi-year project. Benchmarking against similar construction contracts is difficult without more specific details on the scope of work (e.g., square footage, type of construction). The firm fixed-price nature provides cost predictability, but the ultimate value for money will depend on the quality of the delivered facility and adherence to schedule. Further analysis would require comparing the per-square-foot cost or specific component costs to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely solicited and considered. The presence of two bids indicates some level of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and allows the government to select from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the contract is awarded to the most capable offeror.

Public Impact

The primary beneficiary is the Department of the Army, which will receive a new or improved building facility. The contract delivers construction services for a SHORAD Battalion building (B8009). The geographic impact is localized to the facility where the construction takes place, likely a military installation. Workforce implications include employment for construction workers, tradespeople, and project management personnel, potentially including both U.S. and local labor depending on the installation's location and policies.

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 meet the complex specifications for a military facility.
Risk of schedule delays impacting the operational readiness of the SHORAD Battalion.
Quality control and assurance during construction are critical to ensure the facility meets military standards.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to a specialized trade contractor indicates expertise in the required construction domain.
Long contract duration allows for comprehensive project execution and potential for phased completion.

Sector Analysis

The construction sector, particularly specialty trade contracting, is a significant component of federal spending. This contract falls within the 'All Other Specialty Trade Contractors' category, which encompasses a wide range of specialized construction activities not classified elsewhere. Federal spending in this area often supports infrastructure development, facility maintenance, and upgrades on military bases and other government properties. The market is characterized by numerous small and medium-sized businesses, as well as larger firms, competing for government contracts. The award to a German entity suggests international procurement capabilities or specific needs at overseas installations.

Small Business Impact

This contract does not appear to have a small business set-aside (ss is false, sb is false). There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The award to a foreign entity further reduces the direct impact on the U.S. small business construction ecosystem for this specific contract. Future analysis could explore if the prime contractor utilizes small businesses in its supply chain or for specific trade work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and project management offices. The firm fixed-price nature implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality standards. Accountability measures are embedded in the contract terms, with potential penalties for non-performance or delays. Transparency is facilitated by the contract award data being publicly available, though detailed project oversight reports are typically internal.

Related Government Programs

Military Construction, Army
Operations and Maintenance, Army
Specialty Trade Construction Contracts
Federal Building Construction
Department of Defense Procurement

Risk Flags

International Contractor Award
Potential for Schedule Delays
Quality Assurance Critical for Military Facilities
Scope Definition for Fixed-Price Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. FY18 CONST, OMA BLDG B8009 FOR SHORAD BN

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 $5.7 million.

What is the period of performance?

Start: 2018-09-23. End: 2027-12-30.

What is the track record of BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG with U.S. Department of Defense contracts?

Information regarding BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG's specific track record with the U.S. Department of Defense is not directly available in the provided data snippet. As a German federal agency responsible for construction and spatial planning, its primary focus is likely on German public projects. Its involvement in a U.S. DoD contract suggests a specific international agreement, a joint project, or a requirement at a U.S. facility located in Germany or requiring specialized expertise. Further research into intergovernmental agreements or specific project histories would be needed to assess their past performance on similar U.S. federal contracts. The fact that this contract was competed suggests the DoD found them to be a viable and competitive option.

How does the $5.7 million cost compare to similar SHORAD Battalion facility constructions?

Direct comparison of the $5.7 million cost to similar SHORAD Battalion facility constructions is challenging without more granular data on the project's scope, size (e.g., square footage), and specific requirements. SHORAD (Short-Range Air Defense) facilities can vary significantly in complexity, from basic barracks additions to specialized command and control centers or maintenance depots. The provided data indicates 'OMA BLDG B8009', suggesting it might be an Operations and Maintenance building. Benchmarking would require analyzing per-square-foot construction costs for comparable military facilities, factoring in location, materials, and specific technological integrations. The firm fixed-price nature suggests the cost was determined upfront, but its reasonableness depends on the detailed specifications agreed upon.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential schedule delays due to unforeseen site conditions, weather, or supply chain disruptions, especially given the international nature of the awardee. Cost overruns are a risk, although mitigated by the firm fixed-price contract; however, change orders could still increase the total cost if the scope significantly deviates from the original plan. Performance risk involves ensuring the contractor meets the stringent quality and technical specifications required for a military facility. There's also a geopolitical risk if the project is located in a sensitive area or involves complex cross-border logistics. Finally, ensuring adequate oversight and quality assurance throughout the construction lifecycle is crucial.

How effective is the 'full and open competition' strategy for specialized construction contracts like this?

The 'full and open competition' strategy is generally considered highly effective for specialized construction contracts as it maximizes the pool of potential bidders, thereby increasing the likelihood of obtaining competitive pricing and innovative solutions. For a contract like building construction for a SHORAD Battalion, this approach allows the Department of the Army to solicit bids from a wide range of general and specialty contractors, both domestic and potentially international if regulations permit. This broad competition helps ensure that the contract is awarded to the offeror best suited in terms of technical capability, past performance, and price. While it requires more administrative effort to manage the solicitation and evaluation process, the potential benefits in terms of value for money and risk reduction often outweigh the costs.

What are the historical spending patterns for similar specialty trade construction contracts by the Department of the Army?

Historical spending patterns for similar specialty trade construction contracts by the Department of the Army are substantial, reflecting the ongoing need to maintain, upgrade, and build facilities across numerous installations. The Army consistently awards billions of dollars annually across various construction categories, including specialty trades. Contracts for building construction, like the one for SHORAD Battalion facilities, are a recurring expenditure. Spending can fluctuate based on military readiness requirements, infrastructure modernization initiatives, and budget allocations. Analyzing historical data would reveal trends in contract values, types of specialty trades most frequently procured (e.g., electrical, plumbing, HVAC, structural), and average contract durations and award prices for similar projects.

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: SEALED BID

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, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,723,765

Exercised Options: $5,723,765

Current Obligation: $5,723,765

Actual Outlays: $295,166

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline