DoD Awards $175M Construction Contract for Iraq Base, Full Competition Used
Contract Overview
Contract Amount: $17,497,199 ($17.5M)
Contractor: Lakeshore Engineering Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-24
End Date: 2010-03-30
Contract Duration: 644 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 30
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCTION ONE LIGHT INFANTRY BN, 8TH DIV, JABALA, IRAQ
Plain-Language Summary
Department of Defense obligated $17.5 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: CONSTRUCTION ONE LIGHT INFANTRY BN, 8TH DIV, JABALA, IRAQ Key points: 1. Contract awarded to Lakeshore Engineering Services, Inc. for construction services. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. The contract duration is 644 days, suggesting a significant project scope. 4. The award value of $174,971,990 is substantial for a single construction project.
Value Assessment
Rating: good
The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar large-scale construction projects in contingency environments is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a robust process to solicit bids. This method generally promotes competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a more efficient use of funds for essential infrastructure.
Public Impact
Supports military operations by providing necessary infrastructure in a deployed environment. Creates jobs and economic activity related to construction services. Highlights the significant investment in logistical support for overseas operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
- Geopolitical risks associated with construction in Iraq.
- Potential for scope creep in long-duration projects.
Positive Signals
- Full and open competition generally leads to better pricing.
- Clear contract duration and award value.
- Awarded by a major agency (DoD).
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for DoD can fluctuate based on global security needs and infrastructure requirements in deployed locations.
Small Business Impact
The contract was awarded to Lakeshore Engineering Services, Inc., which is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The use of a cost-plus-fixed-fee contract necessitates strong oversight from the Department of the Air Force to ensure cost control and prevent contractor inefficiencies.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight.
- Construction in a contingency environment presents inherent security and logistical risks.
- Long contract duration (644 days) increases potential for scope creep and cost escalation.
- Limited information on specific risk mitigation strategies employed.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to LAKESHORE ENGINEERING SERVICES, INC.. CONSTRUCTION ONE LIGHT INFANTRY BN, 8TH DIV, JABALA, 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 $17.5 million.
What is the period of performance?
Start: 2008-06-24. End: 2010-03-30.
What was the final cost compared to the initial estimate, and how did the fixed fee component influence the contractor's performance?
The provided data does not include the final cost or initial estimate, making a direct comparison impossible. The fixed fee component incentivizes the contractor to complete the work within the agreed-upon scope and budget, but its effectiveness depends on the clarity of the contract terms and the rigor of government oversight.
What specific risks were identified and mitigated during the construction in Jabala, Iraq, given the operational environment?
The data does not detail specific risks or mitigation strategies. However, construction in a deployed environment like Iraq typically involves risks such as security threats, logistical challenges, material availability, and local labor issues. Effective mitigation would likely involve robust security protocols, detailed logistical planning, and strong relationships with local authorities and suppliers.
How effectively did the full and open competition process ensure value for money for this significant infrastructure project?
The full and open competition process is designed to maximize value for money by encouraging multiple bids and driving down prices. While the data indicates this process was used, the ultimate effectiveness in ensuring value would be assessed by comparing the final awarded price against independent cost estimates and the quality of the delivered infrastructure.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 30
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7310 WOODWARD AVENUE, FIFT, DETROIT, MI, 90
Business Categories: 8(a) Program Participant, Category 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: $17,497,199
Exercised Options: $17,497,199
Current Obligation: $17,497,199
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA890306D8505
IDV Type: IDC
Timeline
Start Date: 2008-06-24
Current End Date: 2010-03-30
Potential End Date: 2010-03-30 00:00:00
Last Modified: 2010-06-03
More Contracts from Lakeshore Engineering Services, Inc.
- Construct 3 Airfield Projects — $190.2M (Department of Defense)
- Demolish 104 Military Family Housing (MFH) Units, Construct 90 NEW MFH Units and Renovate 99 MFH Units Eielson, AFB, — $96.2M (Department of Defense)
- Migrated Data Value Unknown — $80.7M (Department of Defense)
- ADU Phase II Afghanistan — $70.0M (Department of Defense)
- Migrated Data Value Unknown — $59.2M (Department of Defense)
View all Lakeshore Engineering Services, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)