DoD's $18.6M SOFA DLA Energy contract for maintenance in Germany/Belgium awarded to ECCO GmbH
Contract Overview
Contract Amount: $18,578,912 ($18.6M)
Contractor: Ecco Gmbh
Awarding Agency: Department of Defense
Start Date: 2019-02-26
End Date: 2024-09-07
Contract Duration: 2,020 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SOFA DLA ENERGY RECURRING MAINTENANCE AND MINOR REPAIR SERVICES IN GERMANY AND BELGIUM
Plain-Language Summary
Department of Defense obligated $18.6 million to ECCO GMBH for work described as: SOFA DLA ENERGY RECURRING MAINTENANCE AND MINOR REPAIR SERVICES IN GERMANY AND BELGIUM Key points: 1. Contract value is $18.6M over its period of performance. 2. ECCO GmbH is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Specialty Trade Contractors, a broad category.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which offers less price certainty than fixed-price contracts. Benchmarking against similar maintenance contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity implies ECCO GmbH was the most advantageous offer.
Taxpayer Impact: Taxpayer funds are being used for essential maintenance services abroad. The CPFF structure requires careful oversight to ensure cost efficiency.
Public Impact
Ensures operational readiness of DLA Energy facilities in Germany and Belgium. Supports U.S. military presence and operations in Europe. Provides employment opportunities within the local economies where services are rendered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited visibility into specific cost drivers without detailed reporting.
- Potential for scope creep in recurring maintenance services.
Positive Signals
- Awarded under full and open competition.
- Addresses critical infrastructure needs for DLA Energy.
- Long-term contract provides stability for service provision.
Sector Analysis
This contract falls under specialty trade contractors, which encompasses a wide range of repair and maintenance services. Spending in this area is crucial for maintaining government infrastructure and operational capabilities.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The award was made to ECCO GmbH, and further analysis would be needed to determine its size status and any subcontracting opportunities.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust monitoring of costs and performance to ensure accountability.
Related Government Programs
- All Other Specialty Trade Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost escalation.
- Limited insight into specific cost components.
- Reliance on a single contractor for critical services.
Tags
all-other-specialty-trade-contractors, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to ECCO GMBH. SOFA DLA ENERGY RECURRING MAINTENANCE AND MINOR REPAIR SERVICES IN GERMANY AND BELGIUM
Who is the contractor on this award?
The obligated recipient is ECCO GMBH.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2019-02-26. End: 2024-09-07.
What is the breakdown of costs within the Cost Plus Fixed Fee structure, and how is the fixed fee determined?
The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a predetermined fixed fee. Understanding the breakdown requires detailed contract clauses and financial reporting. The fixed fee represents the contractor's profit and is negotiated upfront, intended to incentivize efficiency while covering overhead and profit margins.
How does the performance of ECCO GmbH compare to industry benchmarks for similar maintenance services in European military installations?
Performance data against industry benchmarks is not provided in the summary. A comprehensive assessment would require analyzing key performance indicators (KPIs) such as response times, quality of repairs, adherence to schedules, and customer satisfaction surveys. Comparing these metrics to established industry standards for facility maintenance in similar contexts is crucial for evaluating effectiveness.
What are the specific risks associated with the recurring maintenance and minor repair services, and how are they being mitigated?
Risks include potential cost overruns due to the CPFF structure, unforeseen repair needs, and contractor performance issues. Mitigation strategies likely involve stringent oversight, detailed cost reporting requirements, performance metrics, and clear contract clauses defining allowable costs and dispute resolution processes.
Industry Classification
NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912GB18R0039
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: RICHARD-WAGNER-STR. 1, KAISERSLAUTERN
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $18,580,149
Exercised Options: $18,578,912
Current Obligation: $18,578,912
Actual Outlays: $749,396
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-02-26
Current End Date: 2024-09-07
Potential End Date: 2024-09-07 00:00:00
Last Modified: 2025-09-17
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