DoD Awards $26M for Romania Air Base Apron Construction Under Full and Open Competition

Contract Overview

Contract Amount: $25,975,053 ($26.0M)

Contractor: Sociedad Espanola DE Montajes Industriales SA

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2026-09-17

Contract Duration: 1,814 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EDI AIRCRAFT PARKING APRON AT CAMPIA TURZII AIR BASE, ROMANIA

Plain-Language Summary

Department of Defense obligated $26.0 million to SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA for work described as: EDI AIRCRAFT PARKING APRON AT CAMPIA TURZII AIR BASE, ROMANIA Key points: 1. Contract awarded to Sociedad Espanola de Montajes Industriales SA for critical infrastructure. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The project duration of 1814 days indicates a significant, long-term construction effort. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $25.98 million for an aircraft parking apron at an air base in Romania appears to be within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar international military construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for this necessary infrastructure upgrade.

Public Impact

Enhances NATO's strategic capabilities by improving infrastructure at a key air base. Supports military readiness and operational flexibility in Eastern Europe. Contributes to the local economy in Romania through construction activities and employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in long-term international construction projects.
Geopolitical risks associated with operating in Eastern Europe.
Dependency on a single contractor for a critical infrastructure project.

Positive Signals

Firm Fixed Price contract limits cost uncertainty.
Full and open competition promotes value.
Strategic importance of the project for NATO operations.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can fluctuate based on geopolitical needs and modernization efforts. The value is significant for a single project.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large foreign entity. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight will be crucial given the project's duration and international location. The Department of the Army's contracting office is responsible, and regular progress reports and site inspections will be necessary to ensure compliance and quality.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long project duration increases risk of cost escalation and scope creep.
International location presents logistical and oversight challenges.
Firm Fixed Price contract may not account for unforeseen material cost increases.
Potential for geopolitical instability impacting project continuity.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA. EDI AIRCRAFT PARKING APRON AT CAMPIA TURZII AIR BASE, ROMANIA

Who is the contractor on this award?

The obligated recipient is SOCIEDAD ESPANOLA DE MONTAJES INDUSTRIALES SA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-17.

What is the estimated cost per square foot or per aircraft parking position for this apron construction, and how does it compare to industry benchmarks?

Without specific details on the apron's size or capacity, a precise per-unit cost benchmark is difficult. However, large-scale airfield construction can range from several hundred to over a thousand dollars per square meter, depending on materials, complexity, and location. Further analysis would require detailed project specifications to compare against similar DoD or international construction projects.

What specific geopolitical or operational factors necessitated this significant investment in Romania, and what are the associated risks?

The investment likely stems from NATO's strategic posture in Eastern Europe, aimed at enhancing deterrence and operational readiness in response to regional security dynamics. Risks include potential political instability, logistical challenges in a foreign country, currency fluctuations, and the long-term commitment required for infrastructure maintenance and security.

How will the effectiveness of this apron construction be measured, particularly in terms of its contribution to operational capabilities and long-term durability?

Effectiveness will be measured by the apron's ability to support the required aircraft types and operational tempo without degradation. Key metrics include adherence to construction specifications, timely completion, minimal maintenance requirements post-construction, and its sustained contribution to mission readiness and flexibility for deployed air assets.

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: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AVENIDA MANOTERAS, 6 - SEGUNDA PLANTA, MADRID

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

Financial Breakdown

Contract Ceiling: $25,975,053

Exercised Options: $25,975,053

Current Obligation: $25,975,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB21D0021

IDV Type: IDC

Timeline