DoD's $32.8M Camp Bastion Aviation Expansion Contract Awarded to Lakeshore Engineering Services

Contract Overview

Contract Amount: $32,763,157 ($32.8M)

Contractor: Lakeshore Engineering Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-04

End Date: 2012-09-18

Contract Duration: 776 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF CLOSE AIR SUPPORT APRON EXPANSION, ISR APRON, FIGHTER SHELTERS AVIATION OPER AT CAMP BASTION, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $32.8 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: CONSTRUCTION OF CLOSE AIR SUPPORT APRON EXPANSION, ISR APRON, FIGHTER SHELTERS AVIATION OPER AT CAMP BASTION, AFGHANISTAN Key points: 1. Contract focused on critical aviation infrastructure expansion at Camp Bastion, Afghanistan. 2. Awarded under full and open competition, indicating a broad search for qualified bidders. 3. The contract duration of 776 days suggests a significant construction project timeline. 4. Fixed-price contract type aims to control costs and provide predictability. 5. The project's location in a high-risk operational environment presents inherent logistical and security challenges. 6. The award value of over $32 million underscores the scale of the infrastructure investment.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its unique operational context in Afghanistan and the specialized nature of aviation infrastructure. The firm-fixed-price structure suggests an attempt to manage costs, but without detailed cost breakdowns or comparisons to similar projects in comparable environments, a precise value-for-money assessment is difficult. The award amount of $32.8 million for the construction of aprons and shelters indicates a substantial investment, likely reflecting the complexities of operating in a conflict zone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method implies that while the competition was initially intended to be open, certain sources were excluded, potentially due to specific requirements or pre-existing conditions. The presence of 19 bids suggests a reasonably competitive process despite the exclusion, which likely helped in price discovery. However, the exclusion of sources might have limited the pool of potential bidders.

Taxpayer Impact: While the exclusion of sources might have slightly narrowed the competitive field, the 19 bids received indicate that taxpayers likely benefited from a competitive pricing environment. The firm-fixed-price contract type further protects taxpayer funds by capping the contractor's potential earnings.

Public Impact

The primary beneficiaries are the U.S. Air Force and allied forces operating at Camp Bastion, gaining enhanced aviation operational capabilities. Services delivered include the construction of close air support aprons, ISR aprons, and fighter shelters. The geographic impact is concentrated at Camp Bastion, Afghanistan, a key military installation. Workforce implications include the employment of construction labor, potentially both local and international, during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Operating in a conflict zone introduces significant risks related to security, logistics, and material sourcing.
The exclusion of sources in the procurement process warrants scrutiny to ensure fairness and optimal competition.
The long duration of the contract (776 days) increases exposure to potential cost overruns due to inflation or unforeseen project delays.
Dependence on a single contractor for a large-scale, critical infrastructure project can create single points of failure.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Awarding under a competitive process, even with exclusions, suggests an effort to secure a reasonable price.
The construction of essential aviation infrastructure directly supports military operational effectiveness.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for military construction in operational theaters is highly specialized, often involving significant logistical challenges and security considerations. Comparable spending benchmarks are difficult to establish due to the unique geopolitical context and the specific requirements of military aviation facilities. However, large-scale infrastructure projects in austere environments typically command premium pricing due to these inherent complexities.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. Consequently, the primary contractor, Lakeshore Engineering Services, Inc., would be responsible for managing the project. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy, but there's no explicit requirement or analysis provided here regarding their inclusion or impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and inspection mechanisms. Given the operational environment, oversight would likely involve on-site quality assurance representatives and potentially Inspector General (IG) involvement to ensure compliance with contract terms, quality standards, and security protocols. Transparency would be facilitated through contract award databases, but detailed project progress and cost oversight details are often limited for security reasons in active operational zones.

Related Government Programs

Afghanistan Base Realignment and Closure (BRAC)
Theater Construction and Engineering Support
Military Airfield Paving and Construction
Expeditionary Base Development

Risk Flags

Operational Environment Risk
Procurement Exclusion Criteria
Logistical Complexity
Security Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to LAKESHORE ENGINEERING SERVICES, INC.. CONSTRUCTION OF CLOSE AIR SUPPORT APRON EXPANSION, ISR APRON, FIGHTER SHELTERS AVIATION OPER AT CAMP BASTION, AFGHANISTAN

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 $32.8 million.

What is the period of performance?

Start: 2010-08-04. End: 2012-09-18.

What is the track record of Lakeshore Engineering Services, Inc. with Department of Defense contracts, particularly in overseas or high-risk environments?

Lakeshore Engineering Services, Inc. has a history of securing contracts with the Department of Defense, including significant work in overseas locations. Their experience often involves construction and engineering projects in challenging environments, similar to the Camp Bastion project. Analyzing their past performance on similar contracts, including any past performance evaluations or awards/debarments, would provide insight into their capability to execute complex projects under demanding conditions. Specific details on their track record in Afghanistan or similar operational theaters would be crucial for a comprehensive risk assessment.

How does the awarded price of $32.8 million compare to similar aviation infrastructure construction projects in comparable operational environments?

Direct comparison of this $32.8 million contract to similar projects is difficult due to the unique operational context of Camp Bastion, Afghanistan. Projects in conflict zones inherently incur higher costs related to security, logistics, specialized materials, and risk premiums. To benchmark effectively, one would need to identify contracts for similar scope (aprons, shelters) in other high-risk or austere environments, adjusting for factors like inflation, labor rates, and specific security requirements. Without such comparable data, assessing whether this price represents excellent, fair, or questionable value is challenging, though the firm-fixed-price nature suggests an effort to control costs.

What specific risks were identified during the procurement process, and what mitigation strategies were put in place for this contract?

Given the location and nature of the project, significant risks likely included security threats, logistical challenges in delivering materials and personnel, potential for political instability impacting operations, and the availability of skilled labor. The 'Full and Open Competition After Exclusion of Sources' suggests that certain risk factors may have influenced the exclusion criteria. Mitigation strategies would typically involve robust security plans, detailed logistical support chains, contingency planning for delays, and potentially incorporating risk-sharing clauses within the firm-fixed-price contract, although the latter is less common with FFP.

What is the expected impact of this apron expansion on the operational effectiveness of air support and ISR missions at Camp Bastion?

The construction of close air support (CAS) aprons, ISR aprons, and fighter shelters is designed to directly enhance the operational effectiveness of air missions. Expanded apron space allows for more aircraft to be parked, serviced, and launched simultaneously, reducing turnaround times and increasing sortie generation rates. Dedicated ISR aprons ensure specialized intelligence, surveillance, and reconnaissance aircraft can operate efficiently, while fighter shelters provide protection against environmental factors and potential threats, improving aircraft readiness and survivability. This infrastructure upgrade is critical for supporting sustained air operations in the region.

How has spending on aviation infrastructure construction at Camp Bastion evolved over time, and does this contract represent a significant shift?

Analyzing historical spending patterns for aviation infrastructure at Camp Bastion would require access to detailed historical contract data for the base. This $32.8 million contract represents a substantial investment, suggesting a significant need for expanded or upgraded facilities at a particular point in time (contract awarded in 2010). Whether it represents a 'shift' depends on prior investment levels. If previous spending was minimal or focused on different types of infrastructure, this contract could indicate a strategic prioritization of aviation capabilities. Conversely, if Camp Bastion has seen numerous large-scale construction projects, it might be part of a broader, ongoing base development plan.

What were the primary criteria for excluding certain sources during the 'Full and Open Competition After Exclusion of Sources' procurement?

The specific criteria for excluding sources in a 'Full and Open Competition After Exclusion of Sources' procurement are typically detailed in the solicitation documents. Common reasons for exclusion can include failure to meet specific technical qualifications, inability to demonstrate required security clearances, lack of experience in similar operational environments, or failure to meet pre-qualification requirements set forth early in the process. For a project like this in Afghanistan, exclusions might relate to demonstrated experience in hazardous duty zones, specific certifications for construction in deployed environments, or established security protocols for personnel and equipment.

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: 19

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: $32,763,157

Exercised Options: $32,763,157

Current Obligation: $32,763,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA890306D8505

IDV Type: IDC

Timeline