Airmen dormitory replacement at LRAFB awarded for $28.9M, highlighting construction sector spending

Contract Overview

Contract Amount: $28,872,006 ($28.9M)

Contractor: LS Black Constructors-Loeffel Construction JV

Awarding Agency: Department of Defense

Start Date: 2021-09-01

End Date: 2024-03-17

Contract Duration: 928 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AIRMEN DORMITORY REPLACEMENT, LRAFB

Place of Performance

Location: LITTLE ROCK AFB, PULASKI County, ARKANSAS, 72099

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to LS BLACK CONSTRUCTORS-LOEFFEL CONSTRUCTION JV for work described as: AIRMEN DORMITORY REPLACEMENT, LRAFB Key points: 1. The contract value of $28.9 million represents a significant investment in military housing infrastructure. 2. Competition dynamics for this project involved a full and open process after initial source exclusion, suggesting a robust bidding environment. 3. The firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. Performance is scheduled over 928 days, indicating a substantial, multi-year construction effort. 5. The project falls under the Commercial and Institutional Building Construction category, a key segment of the construction industry. 6. The award to a joint venture indicates a consolidation of expertise for complex projects.

Value Assessment

Rating: good

The contract's value of $28.9 million for dormitory replacement at LRAFB appears reasonable given the scope of a large construction project. Benchmarking against similar military housing or institutional building projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an effort to manage costs effectively, but detailed cost breakdowns are not available for granular comparison. The number of bids received (7) indicates a degree of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies that while the competition was intended to be broad, certain sources may have been excluded initially, possibly due to specific requirements or pre-qualification. Seven bids were received, which is a healthy number and suggests that the exclusion did not unduly limit the competitive landscape. The level of competition is likely to have contributed to price discovery, though the 'after exclusion' aspect warrants further scrutiny to ensure maximum value.

Taxpayer Impact: The competition level, while broad, could potentially lead to slightly higher prices if key bidders were excluded. However, seven bids generally provide a good basis for competitive pricing, benefiting taxpayers.

Public Impact

The primary beneficiaries are the Airmen stationed at Little Rock Air Force Base (LRAFB), who will receive updated and improved dormitory facilities. The services delivered include the construction and replacement of dormitory buildings, enhancing living conditions and base infrastructure. The geographic impact is localized to Little Rock Air Force Base in Arkansas. Workforce implications include job creation within the construction sector, supporting skilled trades and related industries in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition method requires careful review to ensure no viable, competitive sources were unfairly barred.
Lack of detailed cost breakdowns makes it difficult to assess the granular value for money and identify potential cost efficiencies.
The long duration of the contract (928 days) increases the risk of potential cost overruns due to unforeseen market fluctuations or project delays.

Positive Signals

The award to a joint venture (LS BLACK CONSTRUCTORS-LOEFFEL CONSTRUCTION JV) suggests a strong capability to handle a project of this magnitude.
The firm-fixed-price contract type provides cost certainty for the government, mitigating risks associated with cost-plus contracts.
Receiving seven bids indicates significant interest from the construction market, pointing towards a competitive bidding process.

Sector Analysis

The Commercial and Institutional Building Construction sector is a vital part of the U.S. economy, encompassing a wide range of projects from offices to educational facilities and, in this case, military housing. Federal spending in this sector often supports critical infrastructure development. Comparable spending benchmarks for military barracks or dormitory construction can vary significantly based on location, size, and specific requirements, but projects in the $20-50 million range are common for significant upgrades or new builds.

Small Business Impact

This contract was not specifically set aside for small businesses, and the award went to a joint venture, which may include large business entities. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore unclear without further details on subcontracting requirements or the composition of the joint venture.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms. Accountability measures are inherent in the firm-fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases, though detailed project progress reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Housing Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Modernization
General Services Administration (GSA) Public Buildings Service

Risk Flags

Competition Method Nuance
Potential for Unforeseen Costs
Contractor Performance History Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to LS BLACK CONSTRUCTORS-LOEFFEL CONSTRUCTION JV. AIRMEN DORMITORY REPLACEMENT, LRAFB

Who is the contractor on this award?

The obligated recipient is LS BLACK CONSTRUCTORS-LOEFFEL CONSTRUCTION JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2021-09-01. End: 2024-03-17.

What is the track record of LS BLACK CONSTRUCTORS-LOEFFEL CONSTRUCTION JV in executing similar large-scale construction projects for the federal government?

Assessing the track record of the joint venture, LS BLACK CONSTRUCTORS-LOEFFEL CONSTRUCTION JV, is crucial for understanding their capability to deliver the Airmen dormitory replacement project successfully. Information on their past performance, including project completion times, adherence to budget, quality of work, and any history of disputes or contract modifications on similar federal contracts, would be vital. A review of their portfolio would reveal experience with institutional buildings, military construction, or large residential projects. Positive past performance indicates a lower risk of project delays or quality issues, while a history of challenges might signal potential concerns that require closer monitoring.

How does the awarded price of $28.9 million compare to the estimated cost or budget for this dormitory replacement project?

The awarded price of $28.9 million provides a concrete figure for the project's cost. However, to assess its value for money, this figure needs to be compared against the government's initial cost estimates or allocated budget for the Airmen dormitory replacement at LRAFB. If the awarded price is significantly below the estimate, it could indicate strong competition or a favorable market. Conversely, if it's at or above the estimate, further analysis of the estimate's reasonableness and the contractor's pricing structure would be necessary. Understanding the variance between the estimate and the award price is key to determining if taxpayers received optimal value.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' method used for this contract?

The 'Full and Open Competition After Exclusion of Sources' method presents a nuanced risk profile. While aiming for broad competition, the initial exclusion of certain sources could inadvertently limit the pool of potential bidders, potentially reducing competitive pressure and leading to less favorable pricing. The risk lies in ensuring that the exclusion criteria were justified, objective, and did not unfairly disadvantage capable contractors. If the excluded sources were significant players in the market, the government might not have achieved the best possible price or solution. Monitoring the performance and pricing of the selected contractor becomes even more important to mitigate any risks stemming from a potentially constrained competition.

How will the performance of the new dormitories be measured to ensure they meet the needs of the Airmen and the Air Force?

Performance measurement for the Airmen dormitory replacement project will likely involve a multi-faceted approach. Key performance indicators (KPIs) would be established in the contract, focusing on aspects such as construction quality, adherence to specifications, timely completion of milestones, and overall project management. Post-construction, metrics related to habitability, energy efficiency, durability, and resident satisfaction would be crucial. The Air Force will likely conduct thorough inspections and potentially solicit feedback from the Airmen occupying the new facilities to ensure the project meets operational requirements and enhances quality of life. Contractual remedies exist for non-performance or substandard quality.

What has been the historical spending trend for dormitory construction and replacement at LRAFB or similar Air Force installations?

Analyzing historical spending trends for dormitory construction and replacement at LRAFB and comparable Air Force installations provides essential context for the current $28.9 million award. Understanding past project costs, the frequency of such investments, and the types of contracts used (e.g., fixed-price vs. cost-plus) can reveal patterns in budgeting, procurement strategies, and potential cost escalations over time. This historical data helps in evaluating whether the current contract represents a typical investment, an increase due to inflation or scope, or a deviation that warrants further investigation into its justification and efficiency.

Are there any specific sustainability or environmental requirements included in this contract that could impact its cost or execution?

The provided data does not specify any sustainability or environmental requirements for this dormitory replacement project. However, modern federal construction projects increasingly incorporate such mandates, which can influence costs and execution. Requirements might include energy-efficient building designs, use of sustainable materials, waste reduction targets, or compliance with specific environmental regulations. If such requirements were included, they would need to be factored into the project's budget and timeline. Assessing the presence and scope of these requirements is important for a complete understanding of the contract's value and potential long-term operational benefits.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127S20R6008

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 261 SCHOOL AVE STE 210, EXCELSIOR, MN, 55331

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,772,657

Exercised Options: $28,872,006

Current Obligation: $28,872,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline