Army awards $38.6M for V Corps HQ renovation, emphasizing secure command and control facilities

Contract Overview

Contract Amount: $38,646,293 ($38.6M)

Contractor: SKE & VFS JV

Awarding Agency: Department of Defense

Start Date: 2025-04-28

End Date: 2028-03-08

Contract Duration: 1,045 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PROJECT IS FOR THE RENOVATION OF THE NORTHERN HALF OF BUILDING 28 AND A PORTION OF BUILDING 1 BASEMENT TO PROVIDE ADEQUATE AND SECURE COMMAND AND CONTROL ADMINISTRATIVE SOURCE FOR THE US ARMY V CORPS HEADQUARTERS (FORWARD).

Plain-Language Summary

Department of Defense obligated $38.6 million to SKE & VFS JV for work described as: THE PROJECT IS FOR THE RENOVATION OF THE NORTHERN HALF OF BUILDING 28 AND A PORTION OF BUILDING 1 BASEMENT TO PROVIDE ADEQUATE AND SECURE COMMAND AND CONTROL ADMINISTRATIVE SOURCE FOR THE US ARMY V CORPS HEADQUARTERS (FORWARD). Key points: 1. Contract focuses on critical infrastructure upgrades for a key Army command. 2. The project aims to enhance security and administrative capabilities for V Corps. 3. A firm-fixed-price contract structure suggests defined cost expectations. 4. The duration of over 1000 days indicates a substantial and complex renovation. 5. Competition was robust, with 7 bids received, potentially driving competitive pricing. 6. This award falls within the broad category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $38.6 million for a multi-year renovation of significant command and control facilities appears reasonable given the scope. Benchmarking against similar large-scale government building renovations suggests that costs are within expected ranges, especially considering the security and specialized requirements for a V Corps Headquarters. The firm-fixed-price nature of the award provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with seven bids received. This level of competition is a positive indicator for price discovery and suggests that the government sought a broad range of qualified contractors. The presence of multiple bidders generally leads to more competitive pricing and a wider selection of technical approaches.

Taxpayer Impact: A competitive bidding process for this renovation helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the US Army V Corps headquarters personnel who will gain enhanced and secure administrative facilities. The project will deliver upgraded command and control capabilities, crucial for operational effectiveness. Geographic impact is localized to the facility where Building 28 and Building 1 basement are located. Workforce implications include construction jobs during the renovation period and ongoing support roles for the upgraded facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of renovating occupied facilities.
Ensuring the security upgrades meet evolving threats and technological requirements.
Managing the impact of construction on ongoing V Corps operations.

Positive Signals

Awarded under full and open competition, indicating a robust market response.
Firm-fixed-price contract provides cost control and predictability.
Significant investment in critical military infrastructure demonstrates commitment to operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting landscape. Spending in this sector supports the maintenance, renovation, and construction of government facilities across various agencies. Comparable spending benchmarks for large-scale military facility upgrades often run into tens or hundreds of millions of dollars, depending on the complexity and scale of the project.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The prime contractor, SKE & VFS JV, is a joint venture, which may involve small business participation within its structure or through its own subcontracting efforts. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and project management offices. Transparency is expected through standard federal procurement reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction
Base Operations Support
Facility Renovation Contracts
Command and Control Systems Infrastructure

Risk Flags

Potential for schedule delays
Risk of scope creep in security upgrades
Impact on ongoing military operations during renovation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.6 million to SKE & VFS JV. THE PROJECT IS FOR THE RENOVATION OF THE NORTHERN HALF OF BUILDING 28 AND A PORTION OF BUILDING 1 BASEMENT TO PROVIDE ADEQUATE AND SECURE COMMAND AND CONTROL ADMINISTRATIVE SOURCE FOR THE US ARMY V CORPS HEADQUARTERS (FORWARD).

Who is the contractor on this award?

The obligated recipient is SKE & VFS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2025-04-28. End: 2028-03-08.

What is the track record of SKE & VFS JV in performing similar large-scale construction projects for the Department of Defense?

A thorough review of the contractor's past performance is crucial. This would involve examining their history with the Department of Defense and other federal agencies, specifically looking for experience in large-scale renovations, secure facility construction, and projects with similar durations and complexities. Performance evaluations from previous contracts, including any issues related to schedule, cost, or quality, would provide valuable insights. Understanding their capacity to manage complex logistics and security requirements inherent in a V Corps HQ renovation is paramount to assessing their suitability and mitigating performance risks.

How does the awarded amount of $38.6 million compare to similar V Corps HQ renovation projects or comparable military command facility upgrades?

Benchmarking this $38.6 million award against similar projects is essential for value assessment. While direct comparisons can be challenging due to unique project scopes, security requirements, and geographic locations, general trends in military construction costs can be analyzed. For instance, large-scale renovations of command centers or administrative buildings within military installations often range from tens to hundreds of millions of dollars. Factors like the extent of structural work, technological integration (e.g., secure communication systems), and specific security enhancements (e.g., blast resistance, access control) significantly influence costs. The firm-fixed-price nature suggests a defined scope, but a detailed cost breakdown analysis would be needed for a precise value-for-money determination relative to market rates.

What are the primary risk indicators associated with this contract, considering its scope, duration, and the nature of the work?

Key risk indicators for this contract include the multi-year duration (1045 days), which increases the potential for schedule slippage due to unforeseen site conditions, material availability, or changes in operational tempo. The renovation of an active command headquarters presents logistical challenges and risks of disruption to ongoing operations. Security upgrades, while critical, can be complex and subject to evolving threat assessments, potentially leading to scope creep or requirement changes. Furthermore, the firm-fixed-price structure places the financial risk of cost overruns on the contractor, which could incentivize shortcuts if not adequately monitored. The contractor's experience with similar secure facility renovations and their risk mitigation strategies will be critical factors.

What is the expected effectiveness of the renovated facilities in enhancing the command and control capabilities of the US Army V Corps?

The effectiveness of the renovated facilities hinges on how well the upgrades meet the specific command and control (C2) requirements of the V Corps. The project aims to provide 'adequate and secure' administrative sources, implying improvements in workspace, communication infrastructure, and security protocols. Enhanced C2 capabilities typically translate to better situational awareness, faster decision-making, and more resilient communication networks. The success will depend on the integration of modern technology, ergonomic workspace design, and robust physical and cybersecurity measures. Post-renovation assessments and user feedback will be crucial to determine if the intended improvements in operational effectiveness are realized.

How has federal spending on similar building construction and renovation projects for Army headquarters or command facilities trended over the past five years?

Analyzing historical spending trends for similar projects provides context for the current award. Over the past five years, federal spending on military construction and renovation has been substantial, driven by modernization efforts, infrastructure aging, and evolving operational needs. Projects focused on command and control facilities, particularly for forward-deployed or high-readiness units like V Corps, often receive priority funding. Trends may show an increasing emphasis on cybersecurity integration, resilient infrastructure, and adaptable workspaces. Examining the average cost per square foot or per project for similar renovations within the Army or DoD over this period can help contextualize the $38.6 million award and assess its alignment with historical investment patterns.

Industry Classification

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

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

Solicitation ID: W912GB25R0014

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AM SAGEWERK 10, GOLDBACH

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $38,646,293

Exercised Options: $38,646,293

Current Obligation: $38,646,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline