DoD Awards $49.6M for New Townhouses, Completing Construction by October 2028
Contract Overview
Contract Amount: $49,619,288 ($49.6M)
Contractor: OBG Government Services Gmbh & CO. KG
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2028-10-26
Contract Duration: 1,122 days
Daily Burn Rate: $44.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEW CONSTRUCTION OF 42 TOWN HOUSES
Plain-Language Summary
Department of Defense obligated $49.6 million to OBG GOVERNMENT SERVICES GMBH & CO. KG for work described as: NEW CONSTRUCTION OF 42 TOWN HOUSES Key points: 1. Significant investment in military housing infrastructure. 2. Competition method suggests potential for fair pricing. 3. Long-term contract duration presents execution risks. 4. Construction sector is subject to material cost fluctuations.
Value Assessment
Rating: good
The contract value of $49.6 million for 42 townhouses appears reasonable given the scope. Benchmarking against similar military housing construction projects would provide a more precise assessment.
Cost Per Unit: $1,181,412
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically fosters competitive pricing. The definitive contract award indicates a structured procurement process.
Taxpayer Impact: Taxpayer funds are being used for essential military family housing, aiming for value through competition.
Public Impact
Enhances quality of life for military families. Supports local economies through construction jobs and materials. Addresses housing shortages on military installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to material price volatility.
- Delays in construction impacting occupancy dates.
- Contractor performance issues impacting quality.
Positive Signals
- Addresses critical need for housing.
- Utilizes competitive bidding process.
- Long-term commitment provides stability for contractor.
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing. Spending benchmarks for military construction vary widely based on location and specifications.
Small Business Impact
The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis is needed to assess small business participation.
Oversight & Accountability
The definitive contract structure implies oversight from the Department of the Army. Monitoring progress and adherence to specifications will be crucial for accountability.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Material cost escalation risk.
- Construction delay risk.
- Potential for unforeseen site conditions.
- Contractor performance and quality control.
- Long-term contract inflexibility.
Tags
new-single-family-housing-construction-e, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.6 million to OBG GOVERNMENT SERVICES GMBH & CO. KG. NEW CONSTRUCTION OF 42 TOWN HOUSES
Who is the contractor on this award?
The obligated recipient is OBG GOVERNMENT SERVICES GMBH & CO. KG.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $49.6 million.
What is the period of performance?
Start: 2025-09-30. End: 2028-10-26.
What is the estimated cost per square foot for these townhouses, and how does it compare to market rates for similar new construction?
The provided data does not include square footage, making a cost per square foot calculation impossible. To assess value, this metric is essential and should be compared against regional construction costs for comparable housing types to determine if the $1.18 million per unit is competitive.
What are the specific performance metrics and penalties included in the contract to mitigate risks associated with construction delays or quality issues?
The contract details do not specify performance metrics or penalties. Robust oversight is required to ensure timely completion and adherence to quality standards. The absence of explicit penalty clauses could increase the risk of cost overruns or schedule slippage if not actively managed.
How will the long-term nature of this contract (nearly 4 years) impact the agency's ability to adapt to potential changes in housing needs or construction technologies?
The extended duration provides project stability but may limit flexibility. The agency should have mechanisms for change orders or contract modifications to address evolving needs. Regular reviews will be necessary to ensure the project remains aligned with current requirements and incorporates relevant technological advancements.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
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: W912GB25R0013
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: RHEINSTR. 4N, MAINZ
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $49,619,288
Exercised Options: $49,619,288
Current Obligation: $49,619,288
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-30
Current End Date: 2028-10-26
Potential End Date: 2028-10-26 00:00:00
Last Modified: 2025-10-27
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