Air Force awards $12.1M for dorm repair, highlighting potential value concerns in a sole-source procurement

Contract Overview

Contract Amount: $12,145,875 ($12.1M)

Contractor: Silver Lake Construction LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-16

End Date: 2025-11-30

Contract Duration: 1,018 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR DORM WWYK190219, B5913

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to SILVER LAKE CONSTRUCTION LLC for work described as: REPAIR DORM WWYK190219, B5913 Key points: 1. The contract's value of over $12 million for dorm repair warrants scrutiny due to the lack of competitive bidding. 2. Limited competition raises questions about whether the government secured the best possible price and value. 3. The fixed-price contract type offers some cost certainty, but the absence of competition limits upside for taxpayers. 4. The project duration of over 1000 days suggests a complex or lengthy repair process. 5. The contractor, Silver Lake Construction LLC, has secured this award without a competitive process. 6. The procurement was not set aside for small businesses, indicating a focus on larger or specialized contractors.

Value Assessment

Rating: questionable

The $12.1 million award for dorm repair lacks a direct benchmark due to its sole-source nature. Without competitive bids, it is difficult to assess if this price represents fair market value. The fixed-price contract type provides some cost control, but the absence of competition means the government may not have benefited from price reductions typically seen in a robust bidding environment. Further analysis would require comparing this project's scope and cost to similar, competitively bid dorm renovation projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple bidders. The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. This approach is typically used when only one source is capable of meeting the government's needs, or in specific emergency situations. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not leverage competitive pressures to drive down costs. This can result in spending more than might be necessary if multiple companies had vied for the contract.

Public Impact

Personnel at the Department of the Air Force, likely stationed at the facility where the dorm is located, will benefit from improved living quarters. The contract delivers essential repair and construction services to maintain military infrastructure. The geographic impact is localized to the Air Force base in Oklahoma where the work is being performed. The project will likely involve construction labor, potentially creating short-term employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant dollar amount raises concerns about potential overpricing.
Sole-source awards can limit opportunities for other qualified contractors, particularly small businesses.
The extended duration of the contract (over 1000 days) could indicate potential for cost overruns or delays if not managed effectively.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, limiting the risk of cost escalation.
The contract is for essential infrastructure repair, addressing a clear need for the Air Force.
The project is located in Oklahoma, potentially benefiting the local economy through construction activities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. The federal government is a significant consumer of construction services, awarding billions annually for infrastructure, facilities, and specialized buildings. This particular award for dormitory repair is a common type of expenditure for agencies like the Department of Defense, which must maintain extensive housing and operational facilities. Benchmarking this specific award is challenging without more detail on the scope of repairs, but general construction costs for institutional buildings can vary widely based on location, complexity, and market conditions.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits the direct opportunity for small businesses to participate in this specific procurement. While the prime contractor, Silver Lake Construction LLC, may engage small businesses as subcontractors, the initial award mechanism does not prioritize or guarantee small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and project management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Inspector General for the Department of Defense may have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this award. Transparency is limited by the sole-source nature, but contract award details are typically recorded in federal procurement databases.

Related Government Programs

Military Housing Construction
Base Infrastructure Modernization
Department of Defense Facilities Maintenance
Government Building Renovation Contracts

Risk Flags

Sole-source procurement
Lack of competition
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to SILVER LAKE CONSTRUCTION LLC. REPAIR DORM WWYK190219, B5913

Who is the contractor on this award?

The obligated recipient is SILVER LAKE CONSTRUCTION LLC.

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 $12.1 million.

What is the period of performance?

Start: 2023-02-16. End: 2025-11-30.

What is the specific scope of work for the REPAIR DORM WWYK190219, B5913 project?

The provided data does not detail the specific scope of work for the REPAIR DORM WWYK190219, B5913 project beyond it being a repair of a dormitory. Typically, such projects could involve structural repairs, HVAC system upgrades, plumbing and electrical work, interior renovations (e.g., flooring, painting, fixtures), roofing, or exterior envelope improvements. Without a detailed statement of work or contract line item details, it's impossible to ascertain the exact nature and extent of the repairs being undertaken. This information is crucial for a comprehensive value assessment and for comparing it to similar projects.

How does the $12.1 million cost compare to similar competitively bid dormitory repair projects?

Direct comparison is challenging due to the sole-source nature of this award and the lack of detailed scope information. Competitively bid projects allow for price benchmarking against multiple offers. However, general construction cost indices for institutional buildings can provide a rough comparison. If this project involves extensive modernization or structural work, the cost might be within a typical range for large-scale renovations. Conversely, if it's primarily cosmetic or minor repairs, $12.1 million could represent a significantly higher cost per square foot than a competitively sourced contract would likely yield. Further investigation into the project's specifics is needed for a meaningful comparison.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award of this magnitude is the potential for the government to pay a non-competitive price, meaning the cost could be higher than if multiple bids were solicited. This lack of competition can also reduce the incentive for the contractor to be highly efficient. Other risks include potential quality issues if the sole source lacks robust quality control, and limited recourse if performance issues arise, as alternatives are scarce. Furthermore, it bypasses opportunities for innovation that might come from a competitive field of bidders.

What is Silver Lake Construction LLC's track record with federal contracts, particularly sole-source awards?

Information regarding Silver Lake Construction LLC's specific track record with federal contracts, especially concerning sole-source awards, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance, contract history, types of awards (competitive vs. sole-source), and any reported performance issues or accolades. Understanding their experience with similar-sized projects and their history with sole-source procurements would provide context for this current award.

What is the justification for awarding this contract on a sole-source basis?

The provided data simply states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a common indicator for sole-source awards. However, it does not specify the underlying justification. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. Without the official justification document (often referred to as a Justification and Approval or J&A), it is impossible to determine the precise reason the Air Force bypassed full and open competition for this $12.1 million dormitory repair project.

How does the contract duration of 1018 days (approx. 2.8 years) impact the overall value and risk?

A contract duration of 1018 days for dormitory repair is exceptionally long and significantly impacts the overall value and risk assessment. Such an extended timeline suggests either a very large-scale, complex renovation involving multiple phases, or potential inefficiencies in planning or execution. For value, it increases the exposure to potential cost fluctuations (though mitigated by fixed-price) and prolongs the period before the facility is fully operational. The risk is elevated due to the increased likelihood of unforeseen issues arising over such a long period, potential contractor performance degradation, and the government's extended reliance on a single entity, making it harder to pivot if problems emerge.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA813722R0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3215 W STATE ST, MILWAUKEE, WI, 53208

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,145,875

Exercised Options: $12,145,875

Current Obligation: $12,145,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline