DoD's $30.5M contract for Iraqi police training facilities awarded to Lakeshore Engineering Services

Contract Overview

Contract Amount: $30,500,351 ($30.5M)

Contractor: Lakeshore Engineering Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-02-22

End Date: 2009-11-30

Contract Duration: 647 days

Daily Burn Rate: $47.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: RECRUIT TRAINING CENTER, BAGHDAD POLICE COLLEGE, IRAQ

Plain-Language Summary

Department of Defense obligated $30.5 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: RECRUIT TRAINING CENTER, BAGHDAD POLICE COLLEGE, IRAQ Key points: 1. Contract awarded for construction services to support Iraqi police training. 2. The contract was competed after exclusion of sources, suggesting potential limitations in the bidding process. 3. The duration of the contract was 647 days, indicating a medium-term project. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The award was made by the Department of the Air Force, acting on behalf of the Department of Defense. 6. The project aimed to establish and improve training facilities for the Baghdad Police College.

Value Assessment

Rating: fair

The contract value of $30.5 million for construction services in Iraq appears to be within a reasonable range for such projects, considering the logistical challenges and security risks inherent in operating in a conflict zone. However, without specific benchmarks for similar reconstruction efforts in Iraq during that period, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, also carries a risk of increased costs if the fixed fee becomes disproportionately large compared to the actual effort expended. Further analysis would require comparing the final cost to the initial estimate and the scope of work delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the number of eligible bidders. The specific reasons for this exclusion are not detailed, but it suggests a non-standard procurement process. The number of bidders is not explicitly stated, but the limited nature of the competition could impact price discovery and potentially lead to higher costs for the government compared to a truly full and open competition.

Taxpayer Impact: The exclusion of sources may have limited the number of competitive bids, potentially resulting in a higher price for taxpayers than if all qualified vendors had been allowed to compete.

Public Impact

The primary beneficiaries of this contract are the Iraqi police forces, who receive improved training facilities. The services delivered include the construction and renovation of buildings and infrastructure at the Baghdad Police College. The geographic impact is concentrated in Baghdad, Iraq, supporting the development of local law enforcement. The project has implications for the Iraqi workforce through potential employment opportunities during the construction phase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
Limited competition after exclusion of sources may have led to a higher price for taxpayers.
Operating in a conflict zone presents inherent security and logistical risks that could impact project timelines and costs.

Positive Signals

Contract aimed to improve critical infrastructure for law enforcement training in Iraq.
Awarded by the Department of Defense, indicating a strategic national interest in the project.
The project duration of over a year suggests a significant commitment to the development of training facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focused on infrastructure development for public services. The global market for construction services, particularly in post-conflict or developing regions, is substantial but highly variable. Benchmarking this specific contract's value is challenging without comparable data on similar reconstruction projects in Iraq during the late 2000s, which were often influenced by unique geopolitical and security factors. The contract's purpose aligns with broader U.S. foreign policy objectives of stabilization and capacity building.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a stated requirement or outcome for this contract. There is no information regarding small business set-asides or subcontracting plans. This suggests that the primary contractor, Lakeshore Engineering Services, Inc., likely handled the majority of the work, with limited direct benefit or opportunity for small businesses within the U.S. or Iraqi ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the contracting agency within the Department of Defense, likely the Department of the Air Force, given their role as the awarding agency. Accountability measures would typically involve performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency might be limited due to the operational context in Iraq and the nature of defense contracts. Inspector General jurisdiction would apply to investigate fraud, waste, and abuse.

Related Government Programs

Iraqi Security Forces Fund
Coalition efforts in Iraq
Department of Defense construction contracts
Foreign military assistance programs

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Overseas Operations Risk
Lack of Detailed Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to LAKESHORE ENGINEERING SERVICES, INC.. RECRUIT TRAINING CENTER, BAGHDAD POLICE COLLEGE, IRAQ

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 Air Force).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2008-02-22. End: 2009-11-30.

What was the specific justification for excluding certain sources from the competition?

The provided data indicates the contract was awarded under 'Full and Open Competition After Exclusion of Sources.' However, the specific justification for excluding certain sources is not detailed in the available information. Typically, such exclusions might be based on national security concerns, proprietary technology requirements, or specific capabilities deemed essential for the mission that only a limited number of contractors possess. Without further documentation from the contracting agency (Department of the Air Force for the Department of Defense), the precise rationale remains unclear. This lack of transparency in the exclusion process raises questions about the extent of competition achieved and its potential impact on the final contract price.

How did the final cost compare to the initial estimated cost for this contract?

The provided data does not include the initial estimated cost for this contract, only the awarded amount of $30,500,351.40. To assess the value for money and determine if the final cost was in line with expectations, a comparison with the original estimate is crucial. For Cost Plus Fixed Fee (CPFF) contracts, the government agrees to pay the actual costs incurred by the contractor plus a negotiated fixed fee representing profit. If the final cost significantly exceeded the initial estimate, it could indicate scope creep, unforeseen challenges, or inefficient cost management by the contractor. Without the baseline estimate, it is impossible to definitively state whether this contract represented good or poor value from a cost perspective.

What were the key performance indicators (KPIs) used to measure the success of Lakeshore Engineering Services, Inc. on this contract?

The available data does not specify the key performance indicators (KPIs) used to measure the success of Lakeshore Engineering Services, Inc. for this contract. In construction projects of this nature, typical KPIs would likely include adherence to project timelines, quality of construction (meeting specifications and standards), safety record on site, and effective budget management. For a CPFF contract, monitoring the contractor's ability to control costs while delivering the required scope within the fixed fee is also critical. Post-award performance reports or contract close-out documentation would usually contain this information, but it is not present in the provided summary data.

What is the typical profit margin (fixed fee) for similar construction contracts in overseas contingency operations?

The fixed fee for this Cost Plus Fixed Fee (CPFF) contract is not explicitly stated in the provided data, making it difficult to determine the profit margin. Generally, fixed fees in CPFF contracts are negotiated based on the perceived risk, complexity, and duration of the project. For construction contracts, especially those conducted in overseas contingency operations like Iraq during the late 2000s, profit margins could be higher than typical domestic projects due to increased risks (security, logistical, political). However, without knowing the specific negotiated fee or having access to benchmark data for similar contracts from that era and region, it's impossible to ascertain if Lakeshore Engineering Services' fee was typical or excessive.

Were there any significant cost overruns or delays associated with this contract, and if so, what were the causes?

The provided data does not contain information regarding cost overruns or delays for this contract. The contract duration was set at 647 days (approximately 21 months), and the awarded amount was $30.5 million. To determine if there were overruns or delays, one would need to compare the final project completion date and final cost against the initially planned schedule and budget. Factors contributing to overruns or delays in such environments often include security incidents, supply chain disruptions, changes in scope requested by the client (e.g., the Iraqi government or U.S. forces), unforeseen site conditions, or contractor performance issues. Without post-award performance data, this question cannot be answered.

How does this contract's value compare to other DoD construction projects in Iraq during the same period?

Comparing this $30.5 million contract to other Department of Defense construction projects in Iraq during the 2008-2009 period requires access to a broader dataset of federal contracts. While $30.5 million is a significant sum, the scale of reconstruction and infrastructure development in Iraq at the time was vast, involving numerous projects ranging from small facility upgrades to major base construction. Factors influencing contract values included the specific scope of work, location, security requirements, and urgency. Without comparative data on similar projects (e.g., building police stations, training facilities, or base infrastructure), it is difficult to definitively benchmark this contract's value. However, given the context of the Iraq War, construction costs in that theater were generally elevated due to the inherent risks and logistical complexities.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7310 WOODWARD AVENUE, FIFT, DETROIT, MI, 90

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $30,500,351

Exercised Options: $30,500,351

Current Obligation: $30,500,351

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8505

IDV Type: IDC

Timeline