DoD Awards $17.2M for Right Sizing and Reno of 12 AFH Units

Contract Overview

Contract Amount: $17,204,468 ($17.2M)

Contractor: Klebl Gmbh

Awarding Agency: Department of Defense

Start Date: 2025-09-11

End Date: 2027-07-19

Contract Duration: 676 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RIGHT SIZING AND RENO 12 AFH UNITS B8020

Plain-Language Summary

Department of Defense obligated $17.2 million to KLEBL GMBH for work described as: RIGHT SIZING AND RENO 12 AFH UNITS B8020 Key points: 1. Spending focuses on facility renovation and modernization within the Department of Defense. 2. The contract was awarded to KLEBL GMBH, indicating a specific vendor for this project. 3. Risk is moderate, tied to project execution and potential cost overruns in construction. 4. The sector is Commercial and Institutional Building Construction, a significant area of government spending.

Value Assessment

Rating: fair

The award amount of $17.2M for 12 units over 676 days suggests a per-unit cost of approximately $1.43M. This seems high for typical housing renovations, warranting further scrutiny of the scope and specific requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific award mechanism (Delivery Order) suggests it might be against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, potentially limiting the number of bidders for this specific order.

Taxpayer Impact: Taxpayer funds are being used for facility upgrades, which can improve living conditions and infrastructure longevity, but the value for money needs to be confirmed.

Public Impact

Modernization of military housing can improve quality of life for service members and their families. Investment in construction projects supports the broader building and construction industry. Ensuring efficient use of funds is crucial for taxpayer accountability in defense spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in construction projects.
  • Scope creep impacting final cost.
  • Long project duration increasing risk.

Positive Signals

  • Awarded under full and open competition.
  • Focus on infrastructure improvement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Government spending in this area is substantial, covering a wide range of infrastructure projects from office buildings to specialized facilities. Benchmarks for similar renovation projects would be essential for a precise value assessment.

Small Business Impact

The data indicates the prime contractor is KLEBL GMBH, and there is no explicit mention of small business participation in this specific award. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of the Army is responsible for this award. Standard oversight mechanisms for construction contracts, including progress monitoring and quality assurance, should be in place to ensure successful project completion and adherence to budget.

Related Government Programs

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

Risk Flags

  • High per-unit cost.
  • Long project duration (676 days).
  • Potential for scope creep in renovation projects.
  • Reliance on a single contractor for a significant award.

Tags

commercial-and-institutional-building-co, department-of-defense, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to KLEBL GMBH. RIGHT SIZING AND RENO 12 AFH UNITS B8020

Who is the contractor on this award?

The obligated recipient is KLEBL GMBH.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2025-09-11. End: 2027-07-19.

What is the specific scope of work for the 'right sizing and reno' of the 12 AFH units, and how does it justify the high per-unit cost?

The scope likely involves significant structural modifications, modernization of utilities, and potentially upgrades to living spaces to meet current standards or specific operational needs. 'Right sizing' could imply adjustments to unit layouts or capacities. The high cost may reflect complex renovations, specialized materials, or unforeseen structural issues discovered during the planning phase, necessitating a detailed breakdown of costs against specific deliverables.

What are the key performance indicators (KPIs) and risk mitigation strategies in place for this project, given its duration and potential for complexity?

Key performance indicators would likely include adherence to schedule, budget, quality standards, and safety regulations. Risk mitigation strategies might involve phased construction, regular site inspections, contingency planning for material shortages or weather delays, and robust contract management to address any scope changes promptly. The firm-fixed-price contract type aims to transfer some cost risk to the contractor.

How does the cost of this renovation project compare to similar military housing renovation projects of comparable scale and complexity?

A comprehensive comparison requires access to detailed cost data for similar projects, factoring in geographic location, age of facilities, and specific renovation scope. Without such data, it's difficult to definitively assess value. However, the reported per-unit cost warrants benchmarking against industry standards and historical DoD renovation costs to ensure it aligns with reasonable expectations for the work performed.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912GB21R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: GOSSWEINSTR. 2, NEUMARKT I.D.OPF.

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

Financial Breakdown

Contract Ceiling: $17,204,468

Exercised Options: $17,204,468

Current Obligation: $17,204,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912GB22D0005

IDV Type: IDC

Timeline

Start Date: 2025-09-11

Current End Date: 2027-07-19

Potential End Date: 2027-07-19 00:00:00

Last Modified: 2025-10-17

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