Department of Energy awards $45.6M construction contract to Silver Lake Construction LLC for West Virginia facility
Contract Overview
Contract Amount: $45,624,446 ($45.6M)
Contractor: Silver Lake Construction LLC
Awarding Agency: Department of Energy
Start Date: 2024-04-19
End Date: 2027-04-30
Contract Duration: 1,106 days
Daily Burn Rate: $41.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: COMPUTATIONAL SCIENCE AND ENGINEERING FACILITY SBA REQUIREMENT #QR1701437364V
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Energy obligated $45.6 million to SILVER LAKE CONSTRUCTION LLC for work described as: COMPUTATIONAL SCIENCE AND ENGINEERING FACILITY SBA REQUIREMENT #QR1701437364V Key points: 1. Contract awarded as a definitive contract with a firm fixed price, indicating clear cost expectations. 2. The contract duration is over 3 years, suggesting a significant project scope. 3. The award is for commercial and institutional building construction, a common sector for federal spending. 4. The contract is not available for competition, raising questions about potential cost efficiencies. 5. The project is located in West Virginia, potentially bringing economic benefits to the region. 6. The base value of the contract is $41.25M, with potential for growth.
Value Assessment
Rating: fair
The contract's base value of $41.25M for a construction project of this duration and scope appears within a reasonable range for federal projects. However, without specific details on the facility's size, complexity, and the exact scope of work, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale institutional construction projects by the Department of Energy or other agencies would provide a clearer picture of whether the pricing is competitive or if there are opportunities for cost savings.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, meaning it was likely awarded directly to Silver Lake Construction LLC without a bidding process. This could be due to various reasons, such as a specific requirement for the contractor's unique expertise, a national emergency, or a previous relationship. The lack of competition limits the government's ability to explore alternative pricing and potentially achieve better value through a competitive bidding environment.
Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. This could lead to a higher overall cost for the project compared to what might have been achieved through open competition.
Public Impact
The primary beneficiaries are the Department of Energy and potentially the scientific or research community that will utilize the new facility. The contract will result in the construction of a new computational science and engineering facility. The geographic impact is concentrated in West Virginia, potentially creating local jobs and stimulating the regional economy. The project will likely involve a significant construction workforce, including skilled trades and laborers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- The firm fixed price contract could still see cost overruns if the scope of work is not precisely defined or if unforeseen issues arise during construction.
- The specific nature of the 'computational science and engineering facility' is not detailed, making it difficult to assess the full scope and potential risks.
Positive Signals
- The firm fixed price contract provides cost certainty for the government.
- The project aims to enhance computational science and engineering capabilities, which could have long-term benefits.
- The contract is awarded to a specific LLC, suggesting a focused entity undertaking the work.
Sector Analysis
The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to specialized facilities. This contract falls under commercial and institutional building construction, a sub-sector that includes the development of research centers, laboratories, and administrative buildings. Federal spending in this area is often driven by the need for new or upgraded facilities to support agency missions. The market for such projects is competitive, but specific requirements or locations can sometimes lead to less competitive awards.
Small Business Impact
The provided data indicates that small business participation is not a stated requirement for this contract (ss: false, sb: false). Therefore, there is no explicit small business set-aside. The implications for small businesses would primarily be through potential subcontracting opportunities if Silver Lake Construction LLC chooses to engage them. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear, but it does not appear to be a primary focus of this specific award.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver the specified facility within the agreed-upon cost. Transparency regarding the project's progress and any potential issues would depend on the Department of Energy's reporting practices and public disclosure policies. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Energy Facility Construction
- Federal Building and Infrastructure Projects
- Research and Development Facilities
- Commercial Construction Contracts
- Large-Scale Construction Projects
Risk Flags
- Sole-source award limits competition and potential cost savings.
- Lack of detailed scope may increase risk of cost overruns.
- Contractor's specific experience with similar facilities not detailed.
Tags
construction, department-of-energy, west-virginia, definitive-contract, firm-fixed-price, sole-source, commercial-building, institutional-building, large-contract, scientific-facility
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $45.6 million to SILVER LAKE CONSTRUCTION LLC. COMPUTATIONAL SCIENCE AND ENGINEERING FACILITY SBA REQUIREMENT #QR1701437364V
Who is the contractor on this award?
The obligated recipient is SILVER LAKE CONSTRUCTION LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $45.6 million.
What is the period of performance?
Start: 2024-04-19. End: 2027-04-30.
What is the specific purpose and scope of the 'Computational Science and Engineering Facility' being constructed?
The provided data does not detail the specific purpose or scope of the 'Computational Science and Engineering Facility.' It is identified under the North American Industry Classification System (NAICS) code 236220, which pertains to Commercial and Institutional Building Construction. This suggests a facility intended for non-residential use, likely housing research, development, or computational operations. To understand the full scope, one would need to review the contract's Statement of Work (SOW), which would outline the architectural requirements, functional specifications, size, and intended use of the facility. This information is crucial for assessing the project's complexity, potential risks, and the appropriateness of the awarded price.
How does the awarded amount of $45.6 million compare to similar federal construction projects for scientific facilities?
Comparing the $45.6 million award to similar federal construction projects for scientific facilities requires access to a broader dataset of comparable contracts. Factors such as the facility's size (square footage), complexity (e.g., specialized labs, clean rooms, high-performance computing infrastructure), location, and the specific construction challenges in that region all influence cost. Generally, large-scale scientific facilities can range from tens of millions to hundreds of millions of dollars. Without knowing the specific requirements of this Department of Energy facility, a direct comparison is difficult. However, the award is substantial, indicating a significant construction undertaking. Benchmarking against projects with similar NAICS codes and agency involvement would be necessary for a more precise comparison of value.
What are the potential risks associated with a sole-source award for a construction project of this magnitude?
A sole-source award for a construction project of this magnitude carries several potential risks. Primarily, the lack of competition means the government may not achieve the most cost-effective price, as there was no opportunity for multiple contractors to bid and potentially offer lower rates or more efficient solutions. This can lead to higher costs for taxpayers. Additionally, without a competitive process, there's a reduced incentive for the awarded contractor to innovate or aggressively manage costs, as they face less pressure from potential rivals. There's also a risk that the contractor may not possess the absolute best or most specialized expertise for the project, which could lead to delays or quality issues if not managed proactively by the contracting agency. Transparency and robust oversight become even more critical in sole-source situations.
What is Silver Lake Construction LLC's track record with federal construction contracts, particularly with the Department of Energy?
Information regarding Silver Lake Construction LLC's specific track record with federal construction contracts, especially with the Department of Energy, is not provided in the data snippet. To assess their capabilities and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for details on previous awards, contract values, performance reviews, and any history of disputes or issues. A contractor's experience with similar types of facilities (e.g., scientific, institutional) and their history of completing projects on time and within budget are key indicators of their reliability and suitability for a project of this scale and importance.
What are the historical spending patterns of the Department of Energy on construction projects in West Virginia?
The provided data does not include historical spending patterns of the Department of Energy on construction projects in West Virginia. Analyzing such patterns would require accessing historical federal procurement data, filtering for the Department of Energy as the awarding agency and West Virginia as the performance location, and then categorizing the spending by contract type and industry (e.g., construction). This analysis could reveal trends in the types of construction projects undertaken, the average contract values, the typical competition levels, and the contractors frequently awarded work in the state. Such historical context is valuable for understanding the current award within a broader agency and regional spending landscape.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3215 W STATE ST, MILWAUKEE, WI, 53208
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,624,446
Exercised Options: $45,624,446
Current Obligation: $45,624,446
Actual Outlays: $17,328,753
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-04-19
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2024-08-29
More Contracts from Silver Lake Construction LLC
- B101 Satoc - Cafeteria Task Order — $19.5M (Department of Commerce)
- Repair Midkiff Hall Dormitory — $18.5M (Department of Defense)
- Repair Dorm Wwyk190219, B5913 — $12.1M (Department of Defense)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)