Department of the Army awards $4.26M contract for specialty trade services, highlighting potential value in construction and facilities maintenance

Contract Overview

Contract Amount: $4,260,972 ($4.3M)

Contractor: Bundesamt FÜR Bauwesen UND Raumordnung

Awarding Agency: Department of Defense

Start Date: 2021-05-10

End Date: 2026-03-06

Contract Duration: 1,761 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOFA ABG-X "DELTA" L-H-S MEASURES FOR 40001-40007, 40010, & 40017 TOWER BARRACKS DUELMEN

Plain-Language Summary

Department of Defense obligated $4.3 million to BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG for work described as: SOFA ABG-X "DELTA" L-H-S MEASURES FOR 40001-40007, 40010, & 40017 TOWER BARRACKS DUELMEN Key points: 1. The contract's firm fixed-price structure suggests predictable costs for the government. 2. With 5 bidders, the competition level indicates a healthy market for these specialized services. 3. The contract duration of over 4 years allows for sustained performance and potential economies of scale. 4. This award falls within the 'All Other Specialty Trade Contractors' NAICS code, a broad category encompassing diverse construction activities. 5. The absence of small business set-aside flags suggests the primary focus was on securing the best value through open competition.

Value Assessment

Rating: good

The contract value of $4.26 million over approximately 4.8 years suggests a moderate annual spend. Benchmarking against similar specialty trade contracts would require more granular data on the specific services rendered. However, the firm fixed-price nature provides cost certainty. The number of bidders (5) suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With five bidders participating, the competition level appears adequate, suggesting that the agency received a range of proposals and pricing. This level of competition generally supports price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: The full and open competition process, with multiple bidders, is beneficial for taxpayers as it fosters a competitive environment that can drive down costs and ensure the government receives the best value for its investment.

Public Impact

The primary beneficiaries are likely military personnel and operations at the Duemen barracks, Germany, through improved facilities. Services delivered include specialized trade work essential for maintaining and potentially upgrading tower barracks. The geographic impact is localized to Duemen, Germany, supporting U.S. Army infrastructure abroad. The contract supports jobs within the specialty trade contracting sector, both directly with the prime contractor and indirectly through any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'specialty trade services' is not clearly delineated.
Reliance on a single definitive contract for a multi-year period could pose risks if contractor performance falters.
Geographic location in Germany may introduce logistical complexities and potential delays.
The broad NAICS code could mask specific risks associated with the specialized trades involved.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Long contract duration allows for sustained focus on facility needs.
Award to a contractor with experience in specialty trades is implied.

Sector Analysis

This contract falls under the Specialty Trade Contractors sector, which includes establishments primarily engaged in specialized construction activities. This sector is crucial for maintaining and upgrading infrastructure, including military facilities. The market size for such services is substantial, driven by both public and private sector demand for construction and maintenance. This specific contract addresses the needs of the Department of the Army for facility upkeep in Germany.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor may utilize small businesses for subcontracting, there is no explicit requirement or analysis provided regarding small business participation in this award. The focus appears to be on securing the best overall value through broad competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated by the contract award notice, though detailed performance metrics are not publicly available.

Related Government Programs

Military Construction
Base Operations Support
Facilities Maintenance Contracts
German-U.S. Military Infrastructure Agreements

Risk Flags

Contract duration exceeds 4 years.
Geographic location may present logistical challenges.
Broad NAICS code requires further definition of services.
Contractor performance history not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.3 million to BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG. SOFA ABG-X "DELTA" L-H-S MEASURES FOR 40001-40007, 40010, & 40017 TOWER BARRACKS DUELMEN

Who is the contractor on this award?

The obligated recipient is BUNDESAMT FÜR 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 $4.3 million.

What is the period of performance?

Start: 2021-05-10. End: 2026-03-06.

What is the historical spending pattern for similar specialty trade services by the Department of the Army in Germany?

Analyzing historical spending for similar specialty trade services by the Department of the Army in Germany requires access to detailed procurement databases. Generally, military installations require ongoing maintenance and repair, leading to consistent, albeit variable, spending in this category. Factors influencing historical spending include the age and condition of facilities, modernization initiatives, and geopolitical requirements. Without specific data on prior contracts for Duemen barracks or comparable facilities, it's difficult to establish a precise pattern. However, it's reasonable to assume that the Army allocates significant resources annually to ensure the operational readiness and habitability of its overseas installations through various trade services.

How does the awarded price compare to market rates for similar specialty trade services in the Duemen, Germany region?

Directly comparing the awarded price of $4.26 million to specific market rates for specialty trade services in Duemen, Germany, is challenging without granular data on the exact services rendered and prevailing local labor and material costs. The contract's firm fixed-price nature suggests the price was negotiated based on anticipated costs and a profit margin. The presence of five bidders in a full and open competition implies that the pricing was likely competitive within the market. However, regional economic conditions, specific trade skill availability, and the unique requirements of military infrastructure can influence pricing beyond standard commercial benchmarks. A comprehensive analysis would necessitate benchmarking against other government contracts for similar work in the region or obtaining quotes from local German construction firms.

What are the specific risks associated with the contractor's performance given the contract duration and scope?

The primary risks associated with the contractor's performance on this multi-year definitive contract include potential degradation of service quality over time, contractor financial instability, or unforeseen challenges in executing the specialized trade services. The duration of 1761 days (approximately 4.8 years) necessitates sustained performance management. Risks can be mitigated through clear performance standards, regular progress reviews, and robust oversight by the contracting officer's representative. The firm fixed-price nature means the contractor bears the risk of cost overruns, but this could incentivize cutting corners if not properly monitored. The specific nature of 'specialty trade services' also introduces risks related to the availability of skilled labor and specialized materials.

What is the track record of the contractor (BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG) in executing similar federal contracts?

The provided data identifies 'BUNDESAMT FÜR BAUWESEN UND RAUMORDNUNG' (BBR) as the contracting agency, not the contractor. The contractor's name is not explicitly stated in the provided data snippet. Therefore, an assessment of the contractor's track record cannot be performed with the given information. To evaluate the contractor's performance history, one would need to identify the specific awardee and then research their past performance on federal contracts, including on-time delivery, quality of work, and adherence to budget, often available through sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS).

How does this contract align with the Department of the Army's broader infrastructure maintenance and modernization goals?

This contract for specialty trade services at Duemen barracks directly aligns with the Department of the Army's fundamental goal of maintaining and modernizing its global infrastructure. Ensuring the structural integrity, habitability, and operational readiness of facilities like barracks is paramount for supporting military personnel and mission effectiveness. By awarding a multi-year contract for these essential services, the Army demonstrates a commitment to proactive facility management rather than reactive repairs. This approach can lead to better long-term cost control and a more stable living and working environment for service members stationed abroad, contributing to overall force readiness.

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: 5

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: $4,260,972

Exercised Options: $4,260,972

Current Obligation: $4,260,972

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline