DoD's $13.7M Grafenwoehr Building Renovation Contract Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $13,664,470 ($13.7M)

Contractor: Bundesamt F¿R Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2019-09-05

End Date: 2029-12-30

Contract Duration: 3,769 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOFA ABG-X RENOVATE BLDG 632 GRAFENWWOEHR

Plain-Language Summary

Department of Defense obligated $13.7 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG for work described as: SOFA ABG-X RENOVATE BLDG 632 GRAFENWWOEHR Key points: 1. The contract is for renovating Building 632 in Grafenwoehr, Germany. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract has a long duration of 3769 days (over 10 years). 4. The sector is primarily construction, specifically new multifamily housing. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of $13.7M for a 10+ year renovation project needs further context. Without specific benchmarks for similar large-scale building renovations in Germany, it's difficult to definitively assess pricing. The Firm Fixed Price structure provides cost certainty but could be higher if the scope was underestimated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayers as it aims to secure the best value through market forces.

Public Impact

Military personnel and their families in Grafenwoehr will benefit from improved housing facilities. The long-term nature of the contract suggests a significant, multi-phase renovation effort. The project contributes to the modernization of U.S. Army infrastructure in Germany. Taxpayers are exposed to a fixed price, mitigating cost overruns if the scope is well-defined.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) may present risks related to changing requirements or economic conditions.
Firm Fixed Price contract for a long-term renovation could lead to contractor profit if scope is underestimated or costs decrease.
Lack of specific details on the renovation scope makes it hard to assess value for money.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract shifts cost risk to the contractor.
Project addresses critical infrastructure needs for military families.

Sector Analysis

This contract falls within the construction sector, specifically related to military housing infrastructure. Spending benchmarks for large-scale, multi-year renovation projects of this nature can vary significantly based on location, scope, and material costs.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract's long duration and fixed-price nature warrant oversight to ensure the contractor meets performance standards and that the final cost remains justified. Regular reviews of progress and adherence to the original scope are crucial.

Related Government Programs

New Multifamily Housing Construction (except For-Sale Builders)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration (over 10 years)
Firm Fixed Price contract for a lengthy renovation
Lack of detailed scope of work in provided data
Potential for cost escalation if scope is underestimated
Limited visibility into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to BUNDESAMT F¿R BAUWESEN UND RAUMORDNUNG. SOFA ABG-X RENOVATE BLDG 632 GRAFENWWOEHR

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 $13.7 million.

What is the period of performance?

Start: 2019-09-05. End: 2029-12-30.

What is the specific scope of work for renovating Building 632, and how does it align with the $13.7M price tag over 10 years?

The provided data lacks specific details on the renovation scope. Understanding the exact work, such as structural repairs, system upgrades (HVAC, electrical, plumbing), interior finishes, and any modernization efforts, is crucial. Comparing the cost per square foot or per unit against similar renovation projects in Germany, adjusted for inflation over the contract's lifespan, would help determine if the $13.7M is a reasonable investment for the intended improvements.

Given the 10+ year duration and Firm Fixed Price, what are the potential risks of cost escalation or scope creep for the government?

A long-term Firm Fixed Price contract for a renovation carries inherent risks. While the contractor assumes cost overruns, if the initial scope was poorly defined or underestimated, the government might end up paying a premium for work that becomes more expensive than anticipated due to inflation or unforeseen complexities. Conversely, if the contractor significantly overestimates costs, taxpayers may overpay. Effective change order management and rigorous oversight are vital to mitigate these risks.

How will the success and effectiveness of this renovation be measured, particularly given its long timeline?

Measuring the effectiveness of this renovation will require clear performance metrics established at the outset. These could include post-renovation occupancy rates, resident satisfaction surveys, reduction in maintenance calls, energy efficiency improvements, and compliance with building codes and safety standards. Regular inspections and milestone reviews throughout the 10+ year period will be essential to track progress and ensure the final outcome meets the intended quality and functionality for military housing.

Industry Classification

NAICS: Construction › Residential Building Construction › New Multifamily Housing Construction (except For-Sale Builders)

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

Financial Breakdown

Contract Ceiling: $13,664,470

Exercised Options: $13,664,470

Current Obligation: $13,664,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline