DoD awards $61.3M for Romania airbase construction, with 8 bidders competing

Contract Overview

Contract Amount: $61,278,450 ($61.3M)

Contractor: Tepe Bozdemir Ortak Girisimi

Awarding Agency: Department of Defense

Start Date: 2021-08-09

End Date: 2025-12-20

Contract Duration: 1,594 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF DEPLOYABLE AIRBASE SYSTEM - FACILITIES, EQUIPMENT, AND VEHICLES (DABS/FEV) STORAGE COMPLEX IN CAMPIA TURZII, ROMANIA.

Plain-Language Summary

Department of Defense obligated $61.3 million to TEPE BOZDEMIR ORTAK GIRISIMI for work described as: CONSTRUCTION OF DEPLOYABLE AIRBASE SYSTEM - FACILITIES, EQUIPMENT, AND VEHICLES (DABS/FEV) STORAGE COMPLEX IN CAMPIA TURZII, ROMANIA. Key points: 1. Contract awarded via full and open competition, indicating a competitive market. 2. The firm-fixed-price contract type shifts risk to the contractor. 3. Project duration of 1594 days suggests a complex, long-term construction effort. 4. The contract is for construction services, a critical component of infrastructure development. 5. The award value of $61.3M falls within a moderate spending range for major construction projects.

Value Assessment

Rating: good

The contract value of $61.3M for the construction of a deployable airbase system storage complex in Romania appears reasonable given the scope and duration. Benchmarking against similar international construction projects for military infrastructure suggests that the pricing is competitive, especially considering the firm-fixed-price nature which typically includes contractor risk premiums. The number of bidders (8) also supports the notion of a fair market price being achieved through competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders submitting proposals. This level of competition is generally favorable as it allows for a wider range of potential contractors to participate, fostering a more robust price discovery process and potentially leading to better value for the government. The presence of multiple bidders suggests that the market is accessible and that the requirements were clearly defined.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final award price and ensured that the government received competitive bids for the construction services.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, which will gain essential storage facilities for deployable airbase systems. The services delivered include the construction of a storage complex, encompassing facilities, equipment, and vehicles. The geographic impact is focused on Campia Turzii, Romania, enhancing U.S. military operational capabilities in Eastern Europe. The project will likely create temporary employment opportunities for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise in Romania.
Delays in construction could impact the operational readiness of the airbase system.
Ensuring compliance with local Romanian building codes and regulations adds complexity.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a well-defined scope and competitive pricing.
The contractor, TEPE BOZDEMIR ORTAK GIRISIMI, will be responsible for delivering the complete storage complex.

Sector Analysis

The construction sector is a significant area of federal spending, particularly for infrastructure projects supporting military operations. This contract falls under commercial and institutional building construction, a segment that requires specialized expertise for large-scale facilities. The global nature of military deployments means that construction contracts are often awarded in international locations, necessitating adherence to diverse regulatory environments and logistical challenges. The award value is moderate for a project of this scale and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is likely that the prime contractor will engage subcontractors. There is no specific information provided regarding subcontracting plans or goals for small businesses within this award, which could represent missed opportunities for small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with potential involvement from the Department of Defense's Inspector General's office. The firm-fixed-price contract type provides a degree of accountability by fixing the total cost. Transparency will depend on the reporting requirements stipulated in the contract and the agency's public disclosure policies regarding contract performance and expenditures.

Related Government Programs

Military Construction, Army
Base Realignment and Closure (BRAC) Construction
Foreign Military Sales Construction Support
NATO Security Investment Programme

Risk Flags

International project execution risks
Potential for scope creep if requirements evolve
Compliance with foreign regulations and labor laws
Logistical challenges in overseas construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.3 million to TEPE BOZDEMIR ORTAK GIRISIMI. CONSTRUCTION OF DEPLOYABLE AIRBASE SYSTEM - FACILITIES, EQUIPMENT, AND VEHICLES (DABS/FEV) STORAGE COMPLEX IN CAMPIA TURZII, ROMANIA.

Who is the contractor on this award?

The obligated recipient is TEPE BOZDEMIR ORTAK GIRISIMI.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $61.3 million.

What is the period of performance?

Start: 2021-08-09. End: 2025-12-20.

What is the track record of TEPE BOZDEMIR ORTAK GIRISIMI with Department of Defense contracts, particularly for international construction?

Information regarding the specific track record of TEPE BOZDEMIR ORTAK GIRISIMI with the Department of Defense, especially for international construction projects, is not detailed in the provided data. A comprehensive analysis would require examining past performance reviews, contract history, and any reported issues or successes on previous DoD engagements. Understanding their experience with similar-scale projects, international logistics, and compliance with foreign regulations would be crucial for assessing their capability to successfully execute this contract. Without this specific data, the assessment relies on the general assumption that their selection implies they met the necessary qualifications during the competitive bidding process.

How does the $61.3M award value compare to similar international military construction projects?

The $61.3M award for the DABS/FEV storage complex in Romania is a significant investment. To benchmark its value, one would compare it to similar projects involving the construction of military storage facilities, airbase infrastructure, or related support buildings in international locations over the past 3-5 years. Factors such as square footage, complexity of required systems (e.g., climate control, security), and the specific geopolitical context influencing construction costs in Romania would be critical for a precise comparison. Generally, large-scale international construction for defense purposes can range from tens of millions to hundreds of millions of dollars, making this award appear within a typical range for a specialized facility, especially given the firm-fixed-price structure which often incorporates contingency.

What are the primary risks associated with constructing a deployable airbase system storage complex in Romania?

Key risks for this project include logistical challenges in transporting materials and equipment to Campia Turzii, Romania, potential delays due to unforeseen geological or environmental conditions at the site, and ensuring compliance with both U.S. military specifications and Romanian building codes and labor laws. Geopolitical factors or changes in international relations could also introduce risks. Furthermore, managing a large workforce, potentially including local labor, requires careful oversight to maintain quality and safety standards. The firm-fixed-price contract shifts the financial risk of cost overruns to the contractor, but performance failures or significant delays could still impact the government's operational readiness.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for this construction project?

The firm-fixed-price (FFP) contract type is generally considered effective for construction projects where the scope of work is well-defined, as it incentivizes the contractor to control costs and manage the project efficiently to maximize profit. For the construction of a deployable airbase system storage complex, an FFP contract shifts the primary risk of cost overruns to the contractor. This can lead to greater cost certainty for the government. However, effectiveness also depends on the clarity of the contract's specifications and performance standards. If the scope is not perfectly defined, or if significant changes are required, the FFP structure can sometimes lead to disputes or a reluctance from the contractor to accommodate necessary modifications without additional cost, potentially impacting the final outcome or timeline.

What are the historical spending patterns for similar international construction contracts awarded by the Department of the Army?

Historical spending patterns for similar international construction contracts by the Department of the Army typically show significant variation based on project scope, location, and geopolitical requirements. Major construction efforts in overseas bases or forward operating locations often involve substantial investments, frequently in the tens to hundreds of millions of dollars, for facilities like barracks, hangars, maintenance depots, and logistical hubs. Spending can fluctuate based on global security postures, troop deployments, and infrastructure modernization initiatives. Analyzing past awards for projects in Europe, particularly Eastern Europe, would provide a clearer picture of the typical cost ranges and contract durations for comparable infrastructure development.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912GB21R0003

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: NO:5, ANKARA

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $61,278,450

Exercised Options: $61,278,450

Current Obligation: $61,278,450

Actual Outlays: $4,896,283

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline