Air Force contract for construction services awarded to Lakeshore Engineering Services, Inc. for over $25.8 million

Contract Overview

Contract Amount: $25,836,809 ($25.8M)

Contractor: Lakeshore Engineering Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-06-07

End Date: 2012-12-22

Contract Duration: 929 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MIGRATED DATA VALUE UNKNOWN

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: MIGRATED DATA VALUE UNKNOWN Key points: 1. The contract value of $25.8 million represents a significant investment in infrastructure. 2. Competition dynamics for this contract appear robust, suggesting potential for competitive pricing. 3. The duration of the contract (929 days) indicates a substantial project scope. 4. The firm fixed-price contract type generally offers cost certainty for the government. 5. The project is located in Michigan, potentially impacting the local construction economy. 6. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', requiring careful review of the exclusion justification.

Value Assessment

Rating: fair

Benchmarking the value of this $25.8 million contract is challenging without specific project details or comparable construction projects. However, the number of bids received (20) suggests a competitive environment that could lead to reasonable pricing. The firm fixed-price nature of the award provides cost predictability. Further analysis would require comparing the final cost against the initial estimates and the scope of work delivered.

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'. While the 'full and open' aspect implies broad solicitation, the 'exclusion of sources' requires understanding why certain potential bidders were excluded. The receipt of 20 bids indicates a healthy level of interest and competition among eligible firms.

Taxpayer Impact: The high number of bids suggests that taxpayers benefited from a competitive bidding process, which typically drives down prices and ensures the government receives the best value. The exclusion of sources, however, warrants scrutiny to ensure it did not unduly limit competition.

Public Impact

The primary beneficiaries are the Department of the Air Force, receiving construction services for its facilities. The contract supports the maintenance and improvement of Air Force infrastructure. The geographic impact is concentrated in Michigan, where the contractor is based and likely where the work was performed. The contract likely supported jobs within the construction sector, both directly with the prime contractor and indirectly through subcontractors and suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause requires detailed justification to ensure fair competition was not compromised.
Lack of specific project details makes it difficult to assess the true value for money.
The contract duration of over two years necessitates robust project management to ensure timely completion and avoid cost overruns.

Positive Signals

Awarded under full and open competition, indicating a broad initial solicitation.
Received 20 bids, demonstrating significant market interest and a competitive landscape.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Lakeshore Engineering Services, Inc., has a track record with federal contracts, suggesting experience.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a mix of large and small firms competing for government and private projects. Federal spending in construction is often cyclical, influenced by infrastructure needs and defense priorities. Benchmarks for similar construction projects would typically consider factors like square footage, complexity, and location.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Lakeshore Engineering Services, Inc. is not explicitly identified as a small business. Further investigation would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, in fulfilling this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant Air Force personnel. Accountability measures would include adherence to the contract terms, performance standards, and delivery schedules. Transparency is generally facilitated through contract award databases, though specific project details might be limited. 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
General Services Administration (GSA) Construction Contracts

Risk Flags

Potential for limited competition due to source exclusion
Risk of cost overruns if unforeseen issues arise in a fixed-price contract
Need for strong government oversight to ensure quality and adherence to scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to LAKESHORE ENGINEERING SERVICES, INC.. MIGRATED DATA VALUE UNKNOWN

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 $25.8 million.

What is the period of performance?

Start: 2010-06-07. End: 2012-12-22.

What was the specific justification for excluding sources in this 'Full and Open Competition After Exclusion of Sources' award?

The term 'Full and Open Competition After Exclusion of Sources' is unusual and suggests a specific scenario where initial broad solicitation occurred, but then certain sources were excluded from further consideration. This typically requires a strong justification, such as a sole-source justification for a follow-on effort where only one contractor could perform, or if specific technical requirements or security clearances limited the pool of eligible bidders. Without access to the contract file and its justifications, it is impossible to determine the precise reasons for exclusion. This exclusion warrants careful review to ensure it did not unfairly restrict competition and that the government obtained the best possible value.

How does the contract value of $25.8 million compare to similar construction projects awarded by the Air Force in Michigan during the same period?

Comparing the $25.8 million contract value requires access to a database of similar Air Force construction projects in Michigan awarded between 2010 and 2012. Factors such as project scope (e.g., new construction, renovation, specific facility type), size (e.g., square footage), and complexity would be crucial for a meaningful comparison. If this contract was for a large-scale facility or a complex infrastructure project, the value might be considered standard. If it was for a relatively straightforward building, it could be on the higher end. The 20 bids received suggest that the market perceived the opportunity as viable and competitive at this price point.

What were the key performance indicators (KPIs) for this contract, and did Lakeshore Engineering Services, Inc. meet them?

Key performance indicators for a construction contract of this nature typically include adherence to the project schedule, quality of workmanship, compliance with safety regulations, and staying within the firm fixed-price budget. Without the specific contract details and performance reports, it's impossible to definitively state whether Lakeshore Engineering Services, Inc. met these KPIs. However, the contract's completion within the specified period (2010-2012) and the absence of widely reported issues in public databases suggest a generally satisfactory performance. A thorough assessment would require reviewing contract close-out documentation and any performance evaluations.

What is the historical spending pattern for Lakeshore Engineering Services, Inc. with the Department of Defense?

Lakeshore Engineering Services, Inc. has a history of receiving contracts from the Department of Defense. This $25.8 million award is a significant contract, but it is one of many federal awards the company has likely received over time. Analyzing their complete federal contract history would reveal the types of services they typically provide, the agencies they contract with most frequently, and the average value of their awards. This context helps in understanding their experience and capacity for handling large-scale projects like the one in question.

What are the potential risks associated with a firm fixed-price contract of this duration and value?

Firm fixed-price contracts, while offering cost certainty, carry risks for both the government and the contractor, especially for long-duration, high-value projects. For the government, the primary risk is that the contractor may cut corners on quality or safety to maximize profit if costs escalate unexpectedly. For the contractor, the risk is that unforeseen cost increases (e.g., material price hikes, labor shortages, scope creep not properly managed) could erode profit margins or lead to losses. For this $25.8 million contract spanning over two years, robust government oversight is crucial to monitor performance, quality, and adherence to the original scope to mitigate these risks.

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: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7310 WOODWARD AVENUE, FIFT, DETROIT, MI, 48202

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $25,836,809

Exercised Options: $25,836,809

Current Obligation: $25,836,809

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8505

IDV Type: IDC

Timeline