Department of the Army awards $23.5M for White Sands Missile Range infrastructure, highlighting highway and bridge construction needs

Contract Overview

Contract Amount: $23,521,590 ($23.5M)

Contractor: Lakeshore Engineering Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-26

End Date: 2010-05-15

Contract Duration: 688 days

Daily Burn Rate: $34.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INFRASTRUCTURE FOR FY08 ENGINEERS BATTALION GTF, UNIT OPERATIONS FACILITIES AT WHITE SANDS MISSILE RANGE, NM

Place of Performance

Location: WHITE SANDS MISSILE RANGE, DONA ANA County, NEW MEXICO, 88002

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: INFRASTRUCTURE FOR FY08 ENGINEERS BATTALION GTF, UNIT OPERATIONS FACILITIES AT WHITE SANDS MISSILE RANGE, NM Key points: 1. The contract addresses critical infrastructure requirements for unit operations facilities. 2. The firm-fixed-price structure aims to control costs for the government. 3. The duration of the contract suggests a significant scope of work. 4. The award was made under full and open competition, indicating a competitive market. 5. The project is located in New Mexico, potentially impacting the local construction sector. 6. The specific NAICS code points to a focus on heavy civil construction.

Value Assessment

Rating: good

The contract value of $23.5 million for infrastructure development at White Sands Missile Range appears reasonable given the scope of highway, street, and bridge construction. Benchmarking against similar projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor assumes most of the cost risk, which can be beneficial for the government if managed effectively. The duration of nearly two years also indicates a substantial project size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were considered. The fact that it was competed openly suggests a healthy market for these types of construction services. The presence of at least two bidders (indicated by 'no': 2) is a positive sign for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors vie for the best price and performance.

Public Impact

The primary beneficiaries are the Army engineers stationed at White Sands Missile Range, who will gain improved operational facilities. The services delivered include the construction and upgrading of essential infrastructure like highways, streets, and bridges. The geographic impact is concentrated at White Sands Missile Range in New Mexico. The project will likely involve local construction labor and potentially support local material suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays due to weather or material availability.
Ensuring compliance with environmental regulations during construction activities.

Positive Signals

Firm-fixed-price contract helps mitigate cost uncertainty for the government.
Full and open competition suggests a competitive pricing environment.
The project addresses critical infrastructure needs, enhancing operational readiness.

Sector Analysis

This contract falls within the construction sector, specifically heavy civil engineering and infrastructure development. The market for such services is often characterized by a mix of large prime contractors and specialized subcontractors. Federal spending in this area is driven by the need to maintain and upgrade aging military installations and critical infrastructure across the nation. Comparable spending benchmarks would typically involve analyzing other Department of Defense construction projects of similar scale and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct indication of subcontracting plans, large infrastructure projects often involve opportunities for small businesses to participate as subcontractors. The absence of a small business set-aside means the primary award went to a larger entity, but the potential for downstream subcontracting remains.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) and the relevant Army contracting command. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Maintenance
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for cost growth if unforeseen site conditions are encountered.
Risk of schedule delays due to environmental factors or logistical challenges.
Ensuring adequate oversight to maintain quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to LAKESHORE ENGINEERING SERVICES, INC.. INFRASTRUCTURE FOR FY08 ENGINEERS BATTALION GTF, UNIT OPERATIONS FACILITIES AT WHITE SANDS MISSILE RANGE, NM

Who is the contractor on this award?

The obligated recipient is LAKESHORE ENGINEERING SERVICES, 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 $23.5 million.

What is the period of performance?

Start: 2008-06-26. End: 2010-05-15.

What is the track record of Lakeshore Engineering Services, Inc. with Department of Defense contracts?

Lakeshore Engineering Services, Inc. has a history of performing contracts for the Department of Defense. Analyzing their past performance on similar infrastructure projects, including their on-time and on-budget delivery rates, would provide insight into their reliability. Reviewing contract close-out data and any past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would offer a more comprehensive understanding of their capabilities and adherence to contract requirements. Their experience with firm-fixed-price contracts and projects of this magnitude is a key factor in assessing their suitability.

How does the $23.5 million award compare to similar highway and bridge construction contracts awarded by the Department of the Army?

The $23.5 million award for highway, street, and bridge construction at White Sands Missile Range is a significant but not extraordinary sum for military infrastructure projects. To benchmark effectively, one would compare this value against other recent awards for similar scope and complexity within the Department of the Army or other branches of the DoD. Factors such as geographic location, specific site conditions, and the exact nature of the construction (e.g., new builds vs. renovations) heavily influence pricing. A detailed analysis would involve examining the price per square foot or linear foot for comparable projects, adjusted for regional cost differences and inflation.

What are the primary risks associated with this specific contract, beyond general construction risks?

Beyond standard construction risks like weather delays or material shortages, specific risks for this contract at White Sands Missile Range could include environmental considerations unique to a testing and training facility, potential security requirements, and the logistical challenges of operating in a remote desert environment. The nature of the work, involving potentially sensitive military operations areas, might also introduce complexities in scheduling and access. Furthermore, the firm-fixed-price nature means the contractor bears the risk of unforeseen site conditions, which could lead to claims or performance issues if not adequately managed.

How effective is the firm-fixed-price contract type in ensuring value for money for this type of infrastructure project?

The firm-fixed-price (FFP) contract type is generally considered effective for infrastructure projects where the scope of work is well-defined and risks can be reasonably anticipated. For this project, FFP places the cost risk on Lakeshore Engineering Services, Inc., incentivizing them to manage costs efficiently and complete the work within budget. This can lead to better value for the government by preventing cost overruns. However, if unforeseen issues arise that were not reasonably foreseeable, the contractor might seek equitable adjustments, potentially negating some of the FFP benefits. The government's role in clearly defining the SOW and monitoring performance is crucial for maximizing value under FFP.

What are the historical spending patterns for highway, street, and bridge construction at White Sands Missile Range?

Analyzing historical spending patterns for highway, street, and bridge construction at White Sands Missile Range would require accessing historical contract data. This would involve querying databases like FPDS for awards under the relevant NAICS codes (e.g., 237310) specifically for this installation over several fiscal years. Understanding past spending levels can reveal trends, identify periods of significant investment, and highlight any fluctuations in demand for such construction services. It can also help in assessing whether the current $23.5 million award represents a typical investment or an outlier.

What is the significance of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this contract?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was broadly advertised, allowing all responsible sources to submit offers. The 'exclusion of sources' part suggests that perhaps certain types of contractors or specific pre-qualification criteria might have been applied initially, but ultimately, the competition was open to all qualified bidders. This is generally the preferred method for federal procurements as it maximizes competition, promotes fair market access, and is expected to yield the best value for the government. It contrasts with sole-source or limited competition scenarios.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9126G06R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 385 MIDLAND ST, HIGHLAND PARK, MI, 48203

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $23,957,222

Exercised Options: $23,521,590

Current Obligation: $23,521,590

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G06D0055

IDV Type: IDC

Timeline