Labor Department Awards $28.6M for Milwaukee Job Corps Construction to DE ARTEAGA-MIRON

Contract Overview

Contract Amount: $28,610,538 ($28.6M)

Contractor: DE Arteaga-Miron Joint Venture, LLC

Awarding Agency: Department of Labor

Start Date: 2008-12-09

End Date: 2011-10-31

Contract Duration: 1,056 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF NEW CENTER - MILWAUKEE JOB CORPS

Place of Performance

Location: ADELL, SHEBOYGAN County, WISCONSIN, 53001

State: Wisconsin Government Spending

Plain-Language Summary

Department of Labor obligated $28.6 million to DE ARTEAGA-MIRON JOINT VENTURE, LLC for work described as: CONSTRUCTION OF NEW CENTER - MILWAUKEE JOB CORPS Key points: 1. The contract value of $28.6 million is significant for a single construction project. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The project carries risks associated with large-scale construction, including potential cost overruns and delays. 4. The sector is Commercial and Institutional Building Construction, a vital area for infrastructure development.

Value Assessment

Rating: fair

The award of $28.6 million appears to be within a reasonable range for a large institutional building construction project of this scale. Benchmarking against similar federal construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, certain sources were initially excluded. This could potentially limit price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for this project, with the expectation of delivering a valuable asset for the Job Corps program.

Public Impact

Job Corps centers provide essential training and education for young people, contributing to workforce development. The new center will likely improve training facilities and capacity, benefiting students and instructors. Construction projects of this magnitude create jobs and stimulate local economic activity in Milwaukee. The long-term operational efficiency and effectiveness of the new center will be a key public benefit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large construction projects.
Risk of construction delays impacting project timelines.
Ensuring the quality and durability of the new facility.

Positive Signals

Supports a critical federal program for youth development.
Investment in infrastructure that can yield long-term benefits.
Potential for job creation during the construction phase.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector that involves significant federal investment in facilities. Benchmarks for similar projects would typically consider square footage, complexity, and location.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight would typically involve the Department of Labor's Office of the Assistant Secretary for Administration and Management ensuring compliance with contract terms, budget, and quality standards throughout the construction lifecycle.

Related Government Programs

Commercial and Institutional Building Construction
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns.
Risk of schedule delays.
Complexity of managing large-scale construction.
Ensuring long-term facility durability and functionality.
Effectiveness of the procurement strategy in achieving best value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $28.6 million to DE ARTEAGA-MIRON JOINT VENTURE, LLC. CONSTRUCTION OF NEW CENTER - MILWAUKEE JOB CORPS

Who is the contractor on this award?

The obligated recipient is DE ARTEAGA-MIRON JOINT VENTURE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2008-12-09. End: 2011-10-31.

What was the rationale for excluding certain sources in the 'full and open competition after exclusion of sources' procurement method, and how did this impact the final price?

The exclusion of sources suggests a specific justification, possibly related to specialized capabilities or prior performance requirements. Understanding this rationale is crucial to assessing whether the competition was truly optimized for best value. If the excluded sources represented significant potential bidders, their absence might have limited the competitive pressure, potentially leading to a higher final price than if all qualified firms had been allowed to compete.

What are the key performance indicators (KPIs) for this construction project, and how will their achievement be measured to ensure effectiveness and value for taxpayer money?

Key performance indicators for this construction project would likely include adherence to schedule, budget compliance, quality of materials and workmanship, and safety record. Effectiveness will be measured by the successful completion of the facility according to specifications and its readiness for operational use by the Job Corps program. Value for taxpayer money will be assessed through a comparison of the final cost against the project's scope, quality, and long-term utility.

What are the potential long-term operational costs and maintenance requirements for the new Job Corps center, and have these been factored into the overall value assessment?

The long-term operational costs and maintenance requirements are critical considerations for the overall value of this investment. While the initial construction contract focuses on building the facility, the agency awarding the contract should have plans or estimates for ongoing utility, staffing, and upkeep. These future costs impact the total lifecycle cost of the asset and should be considered when evaluating the long-term return on the initial construction expenditure.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: DOL089RB20587

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1471 MCMAHON DR, NEENAH, WI, 06

Business Categories: Category Business, Emerging Small Business, Limited Liability Corporation, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,610,538

Exercised Options: $28,610,538

Current Obligation: $28,610,538

Contract Characteristics

Cost or Pricing Data: NO

Timeline