DSL Builders LLC awarded $8.8M contract for Umpqua NF Office Building construction by Forest Service

Contract Overview

Contract Amount: $8,814,878 ($8.8M)

Contractor: DSL Builders LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-04-26

End Date: 2026-03-02

Contract Duration: 1,771 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UMPQUA NF OFFICE BUILDING

Place of Performance

Location: ROSEBURG, DOUGLAS County, OREGON, 97470

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $8.8 million to DSL BUILDERS LLC for work described as: UMPQUA NF OFFICE BUILDING Key points: 1. Contract value appears reasonable for a federal office building construction project of this scope. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Contract duration of 1771 days indicates a long-term, complex construction project. 4. Project located in Oregon, potentially impacting local construction workforce and material suppliers. 5. Fixed-price contract type shifts risk to the contractor, potentially leading to cost overruns if not managed well. 6. No small business set-aside or subcontracting noted, suggesting limited direct impact on small businesses.

Value Assessment

Rating: good

The contract value of $8.8 million for the Umpqua National Forest Office Building construction appears within a reasonable range for a federal project of this nature. Benchmarking against similar-sized federal building construction contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if the contractor has accurately estimated costs.

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 broad, certain sources were excluded for specific reasons, possibly related to specialized capabilities or prior performance. With 5 bidders, the competition level suggests a moderate degree of market interest, which should have contributed to price discovery, though potentially less effectively than a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of certain sources may have limited the potential for the lowest possible price, but the presence of multiple bidders still provided a competitive environment for taxpayer funds.

Public Impact

The primary beneficiaries are the U.S. Forest Service personnel who will utilize the new office building. The contract delivers essential construction services for a new federal facility. The project's geographic impact is concentrated in Oregon, supporting local employment and economic activity within the construction sector. The construction activities will likely involve a skilled labor force, including tradespeople and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen site conditions arise, despite fixed-price contract.
Risk of schedule delays due to the complexity of federal construction projects and potential permitting issues.
Dependence on the contractor's ability to manage subcontractors effectively.
Limited transparency on the specific reasons for excluding certain sources from competition.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Multiple bidders (5) indicate a competitive process that likely yielded a reasonable price.
Long contract duration allows for thorough project execution and quality control.
Project supports federal agency operational needs through infrastructure development.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal construction projects often represent a substantial portion of government spending, requiring specialized contractors capable of meeting stringent federal standards and regulations. The market for federal building construction is competitive, with numerous firms vying for these contracts. The $8.8 million value positions this as a mid-sized federal construction project.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of mandatory small business subcontracting goals. This suggests that the primary contractor, DSL Builders LLC, is likely a larger entity, and the direct economic benefit to the small business ecosystem through this specific contract may be limited unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Forest Service's project managers. The firm fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality standards. Transparency is generally maintained through contract award databases and reporting, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Federal Building Construction
Forest Service Infrastructure Projects
Public Works Construction Contracts
Commercial Building Construction

Risk Flags

Potential for cost escalation if unforeseen site conditions arise.
Risk of schedule delays due to project complexity or external factors.
Contractor performance risk associated with quality of work and materials.
Limited transparency on source exclusion criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $8.8 million to DSL BUILDERS LLC. UMPQUA NF OFFICE BUILDING

Who is the contractor on this award?

The obligated recipient is DSL BUILDERS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2021-04-26. End: 2026-03-02.

What is the track record of DSL Builders LLC in completing federal construction projects of similar size and scope?

Information regarding DSL Builders LLC's specific track record on federal projects of similar size and scope is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or claims, and the successful completion rates of previous government contracts. Without this data, it's difficult to definitively assess their reliability and capability for this $8.8 million Umpqua NF Office Building project. Federal agencies typically conduct pre-award reviews of a contractor's past performance as part of the source selection process.

How does the awarded price of $8.8 million compare to the average cost of similar federal office building constructions?

The awarded price of $8.8 million for the Umpqua National Forest Office Building construction needs to be benchmarked against comparable federal projects to assess value for money. Factors such as square footage, complexity of design, site conditions, and geographic location significantly influence construction costs. A preliminary assessment suggests the price is within a reasonable range for a mid-sized federal facility. However, a detailed comparison with projects of similar size (e.g., 10,000-30,000 sq ft), complexity, and in similar regions would be necessary for a definitive value-for-money conclusion. The firm fixed-price nature also implies the contractor has factored in risks.

What are the primary risks associated with this firm fixed-price contract for the Forest Service?

The primary risk for the Forest Service with a firm fixed-price contract is that the contractor, DSL Builders LLC, may cut corners on quality or materials to maintain profitability if their initial cost estimates were too low or if unforeseen issues arise during construction. While the contractor bears the financial risk of cost overruns, the government risks receiving a facility that does not meet the highest quality standards or is delivered late if the contractor struggles. Effective oversight and clear performance standards are crucial to mitigate these risks and ensure the government receives the intended value and a durable facility.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply for the overall cost-effectiveness?

The 'Full and Open Competition After Exclusion of Sources' method implies a deliberate decision by the Forest Service to allow broad competition but with specific limitations. This could be due to requirements for specialized technology, unique security needs, or prior successful relationships with certain types of contractors. While it aims for competition, excluding sources might limit the pool of potential bidders, potentially leading to a higher price than if all qualified sources were allowed to compete. The presence of 5 bidders suggests a reasonable level of competition was achieved despite the exclusions, likely resulting in a competitive price, though perhaps not the absolute lowest possible.

What is the historical spending pattern for similar office building construction projects by the Forest Service or Department of Agriculture?

Analyzing historical spending patterns for similar office building construction projects by the Forest Service or the broader Department of Agriculture is crucial for context. Without specific historical data for this contract, it's challenging to provide precise figures. However, federal building construction is a recurring expenditure category. Agencies like the Forest Service often undertake such projects to replace aging facilities, expand capacity, or consolidate operations. Spending can fluctuate based on budget appropriations, infrastructure needs assessments, and national priorities. The $8.8 million for this project should be viewed within the context of the agency's overall capital investment strategy and annual budget allocations for facilities.

What are the potential implications of the 1771-day contract duration on project management and cost?

A contract duration of 1771 days (approximately 4.85 years) for the Umpqua NF Office Building construction indicates a large-scale, complex project. This extended timeline allows for detailed planning, phased construction, and potentially more thorough quality assurance. However, it also increases exposure to risks such as inflation affecting material costs (though mitigated by fixed-price), potential changes in agency requirements over time, and the need for sustained project oversight. Effective project management will be critical to keep the project on track and within the contracted budget, ensuring milestones are met and the final facility meets all specifications upon completion.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1240BH21R0002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 195 PINE ST NE, SALEM, OR, 97301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,814,878

Exercised Options: $8,814,878

Current Obligation: $8,814,878

Actual Outlays: $8,777,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline