DoD's $24.7M plumbing repair contract awarded to Lifecycle Construction Services, LLC for a decade-long project

Contract Overview

Contract Amount: $24,723,085 ($24.7M)

Contractor: Lifecycle Construction Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-11

End Date: 2026-04-19

Contract Duration: 1,013 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR PLUMBING INFRASTRUCTURE - BUILDING 1350

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to LIFECYCLE CONSTRUCTION SERVICES, LLC for work described as: REPAIR PLUMBING INFRASTRUCTURE - BUILDING 1350 Key points: 1. The contract's duration of over 1000 days suggests a need for sustained infrastructure maintenance. 2. The firm-fixed-price structure aims to control costs, but potential for change orders exists. 3. Awarded to a single entity, the long-term nature warrants scrutiny of performance and cost over time. 4. The contract falls under commercial and institutional building construction, a broad category. 5. Geographic focus on Texas may indicate regional infrastructure needs within the Air Force. 6. The absence of small business set-aside flags potential for larger firms to dominate.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of 'plumbing infrastructure repair' for Building 1350. The total award amount of $24.7 million over approximately 3 years (from July 2023 to April 2026) averages around $8.2 million annually. This figure needs to be compared against the size and complexity of Building 1350 and the typical costs for similar large-scale infrastructure repairs in the region. Without comparable contract data for similar facilities or specific repair tasks, assessing the pricing and value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is an unusual designation. Typically, 'full and open' implies broad competition. The 'after exclusion of sources' suggests that while competition was sought, certain entities may have been excluded based on specific criteria. The number of bidders (3) indicates a limited competitive landscape for this specific requirement. This level of competition might not yield the most aggressive pricing.

Taxpayer Impact: A limited number of bidders suggests that taxpayers may not have benefited from the most competitive pricing achievable through broader market engagement. The government may have paid a premium due to the restricted pool of potential offerors.

Public Impact

The primary beneficiaries are the Department of the Air Force and military personnel stationed at the facility, ensuring operational readiness through functional plumbing systems. The services delivered include essential repairs and maintenance of plumbing infrastructure within Building 1350. The geographic impact is localized to the specific Air Force installation in Texas where Building 1350 is located. Workforce implications may include employment opportunities for skilled tradespeople involved in construction and repair services, potentially through the prime contractor and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The long duration of the contract increases the risk of cost overruns if not managed effectively.
The 'after exclusion of sources' clause warrants further investigation into the rationale for excluding potential bidders.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the repairs.

Positive Signals

The contract is firm-fixed-price, which helps in budget predictability.
Awarding to a single contractor for a long duration can foster specialized knowledge and efficiency in maintaining the specific infrastructure.
The contract is for essential infrastructure repair, directly supporting facility operations and readiness.

Sector Analysis

The contract falls within the broader construction sector, specifically focusing on commercial and institutional building construction. This segment of the industry involves the repair, maintenance, and renovation of non-residential buildings. The market size for such services is substantial, driven by the continuous need for upkeep of government facilities, commercial properties, and institutional structures. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar repair projects or the average contract value for large-scale building maintenance within the federal government or the private sector.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). The award to Lifecycle Construction Services, LLC, a single entity, suggests that small businesses are unlikely to be prime contractors on this specific award. However, there is potential for small businesses to participate as subcontractors to Lifecycle Construction Services, LLC, depending on the company's subcontracting plan and the nature of the work required. The absence of a set-aside means the competition was open to all eligible firms, potentially favoring larger, established companies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and facility management divisions. Accountability measures are typically embedded in the contract terms, including performance standards, delivery schedules, and payment clauses. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Federal Building Maintenance Contracts
Military Infrastructure Repair
Department of Defense Construction Projects
Commercial Building Renovation
Plumbing Services Contracts

Risk Flags

Limited Competition
Long Contract Duration
Unusual Award Type ('Exclusion of Sources')
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to LIFECYCLE CONSTRUCTION SERVICES, LLC. REPAIR PLUMBING INFRASTRUCTURE - BUILDING 1350

Who is the contractor on this award?

The obligated recipient is LIFECYCLE CONSTRUCTION SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2023-07-11. End: 2026-04-19.

What is the specific scope of 'plumbing infrastructure repair' for Building 1350, and what are the key performance indicators (KPIs) for this contract?

The provided data does not detail the specific scope of 'plumbing infrastructure repair' for Building 1350, nor does it list explicit Key Performance Indicators (KPIs). Typically, such contracts would outline specific tasks like pipe replacement, fixture repair, system upgrades, leak detection, and water quality management. KPIs would likely focus on timeliness of repairs, quality of workmanship, adherence to building codes and safety standards, and minimizing disruption to facility operations. Without these details, a thorough assessment of performance and value is limited. The contract's duration suggests a comprehensive, long-term approach to maintaining the building's plumbing systems, potentially encompassing both routine maintenance and significant overhauls.

How does the $24.7 million award compare to similar plumbing infrastructure repair contracts for large federal buildings?

Comparing the $24.7 million award for plumbing infrastructure repair to similar federal contracts requires access to a broader dataset of comparable projects. Factors such as the size and age of the building, the complexity of the existing plumbing systems, the specific types of repairs needed (e.g., lead pipe replacement vs. routine maintenance), and the geographic location significantly influence costs. A contract of this magnitude suggests substantial work, potentially involving the entire building's system over a multi-year period. To benchmark effectively, one would need to analyze contracts for similar-sized facilities (e.g., large barracks, administrative buildings, or technical facilities) within the Department of Defense or other federal agencies, looking at total contract value, duration, and scope of work.

What is the rationale behind the 'Full and Open Competition After Exclusion of Sources' award type, and what does it imply for cost-effectiveness?

The 'Full and Open Competition After Exclusion of Sources' award type is unusual and suggests a specific procurement strategy. 'Full and Open Competition' generally means all responsible sources are permitted to compete. However, the 'after exclusion of sources' clause indicates that certain potential bidders were deliberately excluded prior to the solicitation, based on predefined criteria. This exclusion could be due to specific technical requirements, security clearances, past performance issues with certain contractors, or other justifications outlined in the Federal Acquisition Regulation (FAR). While competition was sought among the remaining eligible sources (resulting in 3 bidders), the exclusion of others may have limited the competitive pool, potentially leading to less aggressive pricing than if the competition had been entirely unrestricted. The cost-effectiveness is therefore potentially compromised compared to a truly open competition.

What is the track record of Lifecycle Construction Services, LLC in performing similar large-scale federal construction and repair contracts?

Information on the specific track record of Lifecycle Construction Services, LLC for large-scale federal construction and repair contracts is not detailed in the provided data. A comprehensive analysis would require reviewing their past performance on similar government contracts, including their history with the Department of Defense or other federal agencies. Key aspects to examine would include their on-time delivery rates, adherence to budget, quality of work, safety records, and any history of contract disputes or performance issues. Understanding their experience with complex infrastructure projects, particularly plumbing systems in large institutional buildings, is crucial for assessing their capability to successfully execute this $24.7 million contract over its 1013-day duration.

How does the duration of this contract (1013 days) impact the risk profile and potential for cost escalation?

A contract duration of 1013 days (approximately 3 years) for plumbing infrastructure repair introduces several risk factors and potential for cost escalation. Longer durations increase the exposure to market fluctuations in material costs, labor rates, and economic conditions. Unforeseen site conditions or complexities discovered during the project can also lead to change orders, which often increase costs. Effective project management, robust contract oversight, and clear contingency planning are essential to mitigate these risks. The firm-fixed-price nature of this contract aims to cap the contractor's profit, but the government bears the risk of increased costs due to factors beyond the contractor's control, such as significant regulatory changes or unexpected structural issues within the building that impact the plumbing system.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA301623U0094

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1016 CHARLES ST, FREDERICKSBURG, VA, 22401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,723,085

Exercised Options: $24,723,085

Current Obligation: $24,723,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA301622D0020

IDV Type: IDC

Timeline