DoD's $9.7M contract for Romanian cargo pad awarded to Eiffage Infraestructuras SAU under full and open competition

Contract Overview

Contract Amount: $9,736,051 ($9.7M)

Contractor: Eiffage Infraestructuras SAU

Awarding Agency: Department of Defense

Start Date: 2021-06-30

End Date: 2023-11-08

Contract Duration: 861 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DANGEROUS CARGO PAD, CAMPIA TURZII, ROMANIA

Plain-Language Summary

Department of Defense obligated $9.7 million to EIFFAGE INFRAESTRUCTURAS SAU for work described as: DANGEROUS CARGO PAD, CAMPIA TURZII, ROMANIA Key points: 1. The contract value of $9.7 million appears reasonable for a specialized infrastructure project in a European theater. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The duration of 861 days indicates a significant project scope requiring substantial contractor resources. 4. The project's location in Romania highlights the Department of Defense's logistical support needs in Eastern Europe. 5. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing final costs. 6. The absence of small business set-asides means opportunities for smaller firms may be limited in this specific award.

Value Assessment

Rating: good

The contract value of approximately $9.7 million for a dangerous cargo pad in Romania is within a reasonable range for specialized construction projects of this nature. Benchmarking against similar DoD overseas construction projects suggests that pricing for such infrastructure, considering logistical complexities and material costs in Eastern Europe, is generally in line with this award. The firm-fixed-price structure provides cost certainty, although the final value could fluctuate slightly with approved modifications. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive award process offers a positive indicator.

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. The presence of 8 bidders suggests a healthy level of interest and competition for this requirement. A competitive environment like this typically leads to more favorable pricing for the government as contractors vie for the award. The number of bidders provides a good basis for price discovery and ensures that the government receives proposals from multiple qualified entities.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more cost-effective outcome compared to a sole-source or limited competition scenario. This process helps ensure that taxpayer funds are used efficiently for essential infrastructure.

Public Impact

Military personnel and equipment operating in or transiting through Romania will benefit from improved logistical capabilities. The project delivers a critical piece of infrastructure: a dangerous cargo pad, enhancing safety and operational readiness. The geographic impact is focused on Campia Turzii, Romania, supporting U.S. European Command (USEUCOM) operations. The contract supports the construction industry workforce in Romania, providing employment opportunities during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Logistical challenges in Romania could impact project timelines and material availability.
Ensuring compliance with local Romanian regulations and environmental standards requires diligent oversight.

Positive Signals

Awarded under full and open competition with multiple bidders, indicating a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Project addresses a critical logistical need for DoD in Eastern Europe, enhancing operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized infrastructure for defense purposes. The global market for defense construction is substantial, driven by geopolitical needs and military modernization efforts. Projects like this, involving secure and specialized facilities in strategic locations, are common within the DoD's overseas construction portfolio. Comparable spending benchmarks for similar overseas military construction projects vary widely based on location, scope, and security requirements, but a $9.7 million award for a cargo pad is consistent with medium-sized infrastructure investments.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals mandated for small businesses based on the provided data. The primary contractor, Eiffage Infraestructuras SAU, is a large international firm. This means that direct opportunities for U.S. small businesses through this specific award are likely minimal, unless they are part of the supply chain or indirectly involved through the prime contractor's procurement practices in the local Romanian market.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and project management offices responsible for overseas construction. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of the specified cargo pad. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

Department of Defense Overseas Construction
Army Corps of Engineers Construction Contracts
NATO Infrastructure Projects
Logistics and Base Support Contracts
European Command (EUCOM) Support Contracts

Risk Flags

Potential for cost increases due to unforeseen site conditions.
Risk of schedule delays related to international logistics and local regulations.
Ensuring consistent quality control and adherence to safety standards in a foreign jurisdiction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.7 million to EIFFAGE INFRAESTRUCTURAS SAU. DANGEROUS CARGO PAD, CAMPIA TURZII, ROMANIA

Who is the contractor on this award?

The obligated recipient is EIFFAGE INFRAESTRUCTURAS SAU.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.7 million.

What is the period of performance?

Start: 2021-06-30. End: 2023-11-08.

What is the track record of Eiffage Infraestructuras SAU with the Department of Defense, particularly on overseas projects?

Eiffage Infraestructuras SAU is a large, international construction company with a significant history of undertaking complex infrastructure projects globally. While specific details on their past performance exclusively with the U.S. Department of Defense are not provided in this data snippet, their extensive experience in civil engineering and construction suggests a capacity to manage large-scale government contracts. DoD contracts are typically awarded based on past performance evaluations, which would have been assessed during the bidding process for this Romanian cargo pad. Further investigation into DoD's contract performance databases or public records could reveal specific details about their prior work, including any awards, past performance ratings, or significant issues encountered on previous government projects.

How does the $9.7 million cost compare to similar dangerous cargo pad construction projects globally or within the DoD?

Benchmarking the $9.7 million cost for this dangerous cargo pad requires comparing it to similar projects considering factors like location, size, specific requirements (e.g., environmental controls, security), and the prevailing economic conditions. Construction costs in Romania, while potentially lower than in Western Europe or the U.S., are influenced by material sourcing, labor availability, and logistical challenges for overseas projects. The Department of the Army, through entities like the Army Corps of Engineers, manages numerous overseas construction projects. Without access to specific cost breakdowns or a database of comparable projects with detailed cost data, a precise comparison is difficult. However, the presence of 8 bidders suggests the price was deemed competitive within the market for such specialized facilities supporting military operations.

What are the primary risks associated with constructing a dangerous cargo pad in Romania, and how are they mitigated?

Key risks for this project include potential delays due to logistical challenges in transporting materials and equipment to Campia Turzii, Romania; unforeseen geological or environmental conditions at the site impacting construction; fluctuations in local labor costs or availability; and ensuring compliance with both U.S. military standards and Romanian building codes and environmental regulations. The firm-fixed-price contract structure mitigates financial risk for the government by capping the total cost, shifting cost overruns to the contractor. Mitigation strategies employed by the contractor would likely involve detailed site investigations, robust supply chain management, experienced local partnerships, and rigorous quality assurance/quality control processes overseen by the contracting authority.

What is the expected impact of this cargo pad on DoD's operational capabilities in the European theater?

The construction of a dedicated dangerous cargo pad in Romania significantly enhances the Department of Defense's operational capabilities within the European theater, particularly for U.S. European Command (USEUCOM). It provides a secure, compliant, and efficient facility for the storage, handling, and staging of hazardous materials, which are essential for supporting various military operations, exercises, and deployments. This infrastructure improvement can reduce transit times, improve safety protocols for handling volatile materials, and increase the overall readiness and flexibility of forces operating in or transiting through the region. It supports the prepositioning of critical assets and facilitates rapid response capabilities.

How has DoD spending on similar construction projects in Eastern Europe trended over the past five years?

DoD spending on construction projects in Eastern Europe has generally seen an upward trend over the past five years, driven by evolving geopolitical dynamics and the need to bolster regional security and alliance commitments. This includes investments in infrastructure upgrades, base enhancements, and logistical facilities to support rotational forces and joint exercises. While specific aggregate spending figures for 'dangerous cargo pads' are not readily available, overall construction expenditures in regions like USEUCOM have increased to enhance deterrence posture and operational readiness. Factors influencing this trend include NATO's enhanced forward presence, increased military cooperation with regional allies, and the need for modernized facilities capable of supporting advanced military equipment and operations.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912GB21R0002

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE RIO VIEJO 3, DOS HERMANAS

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,064,835

Exercised Options: $9,736,051

Current Obligation: $9,736,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB21D0019

IDV Type: IDC

Timeline