DoD Awards $10.9M Floating Causeway Contract to Lake Shore Systems, Inc
Contract Overview
Contract Amount: $10,895,149 ($10.9M)
Contractor: Lake Shore Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-12-21
End Date: 2008-11-28
Contract Duration: 708 days
Daily Burn Rate: $15.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FLOATING CAUSEWAY PROCUREMENT
Place of Performance
Location: KINGSFORD, DICKINSON County, MICHIGAN, 49802
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to LAKE SHORE SYSTEMS, INC. for work described as: FLOATING CAUSEWAY PROCUREMENT Key points: 1. The contract value is $10.9 million. 2. The procurement was not competed, raising questions about price discovery. 3. The award was made to Lake Shore Systems, Inc. 4. The contract falls under Ship Building and Repairing NAICS code 336611.
Value Assessment
Rating: questionable
The contract value of $10.9 million for a floating causeway is difficult to benchmark without specific technical details and comparison to similar, competed contracts. The lack of competition makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This limits the government's ability to ensure the best possible price through market forces and competitive bidding.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the floating causeway.
Public Impact
Military readiness may be impacted by the availability and functionality of this floating causeway. The procurement process raises concerns about government efficiency and cost-effectiveness. The sole-source nature of the award could set a precedent for future similar procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Contract awarded to a specific company
- Fixed price contract type
Sector Analysis
The Ship Building and Repairing sector (NAICS 336611) involves complex manufacturing and maintenance. Procurement in this sector can be substantial, and competitive bidding is crucial for cost control.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The lack of competition suggests potential weaknesses in oversight regarding the justification for a sole-source award and the subsequent price negotiation.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for non-competitive pricing
- Limited transparency in award justification
- No indication of small business participation
Tags
ship-building-and-repairing, department-of-defense, mi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to LAKE SHORE SYSTEMS, INC.. FLOATING CAUSEWAY PROCUREMENT
Who is the contractor on this award?
The obligated recipient is LAKE SHORE SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2006-12-21. End: 2008-11-28.
What was the justification for not competing this $10.9 million floating causeway procurement?
The provided data does not specify the justification for not competing the contract. Typically, sole-source awards require a documented justification, such as a unique capability, urgent need, or lack of available sources. Further investigation into the contract file would be necessary to determine the specific reasons.
What is the risk associated with a sole-source award for specialized equipment like a floating causeway?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. It can also limit innovation and reduce the government's leverage in negotiations. Without competition, it's harder to verify if the price paid reflects fair market value for the goods or services received.
How effective is a firm fixed-price contract in managing costs for a non-competed award of this nature?
A firm fixed-price contract aims to transfer cost risk to the contractor, providing cost certainty for the government. However, for a non-competed award, the effectiveness in ensuring value is diminished. While the price is fixed, the initial price might be higher than it would be in a competitive environment, thus impacting overall cost-effectiveness.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Oldenburg Group Incorporated (UEI: 006101968)
Address: 900 W BREITUNG AVENUE, KINGSFORD, MI, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, HUBZone Firm, Labor Surplus Area Firm, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $16,095,277
Exercised Options: $10,895,149
Current Obligation: $10,895,149
Timeline
Start Date: 2006-12-21
Current End Date: 2008-11-28
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2010-04-24
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