Air Force awards $18.5M for dormitory repair, highlighting need for facility modernization

Contract Overview

Contract Amount: $18,476,919 ($18.5M)

Contractor: Silver Lake Construction LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-16

End Date: 2025-12-15

Contract Duration: 1,033 days

Daily Burn Rate: $17.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR MIDKIFF HALL DORMITORY

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to SILVER LAKE CONSTRUCTION LLC for work described as: REPAIR MIDKIFF HALL DORMITORY Key points: 1. Contract addresses critical infrastructure needs for military housing. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long performance period suggests a complex or extensive repair project. 4. Fixed-price contract type aims to control costs for the government. 5. Project location in Oklahoma may indicate regional construction market activity.

Value Assessment

Rating: fair

The contract value of $18.5 million for dormitory repair appears substantial, but without comparable project data or detailed cost breakdowns, a precise value-for-money assessment is difficult. The fixed-price nature of the contract provides some cost certainty. However, the lack of competition in the award process could mean that the government did not secure the most competitive pricing available in the market. Benchmarking against similar dormitory renovation projects within the Department of Defense or other federal agencies would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, Silver Lake Construction LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple qualified vendors. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally limit price discovery and may result in higher costs for the government compared to a fully competed contract. The absence of competition here means potential savings from a bidding war were forgone.

Taxpayer Impact: The lack of competition for this $18.5 million contract means taxpayers may not have benefited from the most cost-effective pricing that could have been achieved through a competitive bidding process. This could translate to a higher overall expenditure for the repair work.

Public Impact

Service members residing in Midkiff Hall dormitory will benefit from improved living conditions. The project will deliver essential repairs and modernization to a key military housing facility. The geographic impact is localized to the Air Force base where Midkiff Hall is located. The contract will likely support construction jobs within the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration (over 3 years) increases exposure to potential cost overruns or delays if not managed effectively.
Lack of detailed public information on the scope of repairs makes it difficult to assess the true value and necessity.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Addressing dormitory repairs is crucial for maintaining service member morale and readiness.
The contract is awarded to a single entity, potentially streamlining project management if the contractor is capable.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of facility maintenance and repair, which is a recurring need for government agencies managing extensive real estate portfolios. The market for such services is generally robust, with numerous firms capable of undertaking large-scale construction projects. However, the specific requirements of military installations can sometimes lead to specialized contracting needs. Benchmarking against similar projects within the Department of Defense indicates that costs can vary widely based on scope, location, and competition.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that the primary contractor, Silver Lake Construction LLC, will likely handle the majority of the work. Without explicit small business participation goals, the direct impact on the small business construction ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract will 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. Transparency is limited by the sole-source nature of the award, with fewer public details available compared to a competed contract. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or execution.

Related Government Programs

Military Housing Construction
Base Infrastructure Modernization
Federal Building Repair Contracts
Department of Defense Facilities Management

Risk Flags

Sole-source award
Lack of competition
Limited transparency on scope and justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to SILVER LAKE CONSTRUCTION LLC. REPAIR MIDKIFF HALL DORMITORY

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 $18.5 million.

What is the period of performance?

Start: 2023-02-16. End: 2025-12-15.

What is the specific scope of work for the repair of Midkiff Hall Dormitory, and what justifies the $18.5 million cost?

The provided data does not detail the specific scope of work for the repair of Midkiff Hall Dormitory, only the contract title 'REPAIR MIDKIFF HALL DORMITORY' and its value. A comprehensive justification for the $18.5 million cost would typically be found in detailed project specifications, engineering reports, and cost estimates that are part of the contract's procurement file. These documents would outline the necessary structural repairs, system upgrades (e.g., HVAC, plumbing, electrical), interior renovations, and any compliance or modernization requirements driving the expense. Without access to these supporting documents, it is difficult to ascertain the precise breakdown of costs and fully validate the expenditure against the scope of work.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or possesses unique capabilities, or in cases of urgent and compelling need where competition is not feasible. The specific justification for this sole-source award to Silver Lake Construction LLC for the Midkiff Hall dormitory repair is not detailed in the provided data. To understand the rationale, one would need to review the Justification and Approval (J&A) document associated with this contract, which would explain why competitive procedures were not used and why Silver Lake Construction was deemed the only viable option.

How does the $18.5 million contract value compare to similar dormitory repair projects within the Department of Defense?

Benchmarking the $18.5 million contract value against similar dormitory repair projects within the Department of Defense is challenging without access to a broader dataset of comparable contracts. Factors such as the size of the dormitory, the extent of the repairs (e.g., structural, cosmetic, system upgrades), geographic location (which affects labor and material costs), and the specific requirements of the military installation all influence project costs. Generally, large-scale renovations of institutional buildings can range from tens to hundreds of millions of dollars. A more precise comparison would require identifying contracts with similar scope, size, and location, and analyzing their award values and performance periods.

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

The primary risk associated with a sole-source award for a project of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the contractor may have less incentive to offer the most competitive pricing. Other risks include a potential reduction in innovation, as the government does not benefit from diverse approaches proposed by multiple bidders. Furthermore, if the sole-source contractor underperforms or faces financial difficulties, the government has limited alternative options for completing the project without significant delays and potentially higher costs associated with re-soliciting or bringing in another contractor.

What is the track record of Silver Lake Construction LLC in performing similar federal construction contracts?

Information regarding the track record of Silver Lake Construction LLC in performing similar federal construction contracts is not provided in the data. A thorough assessment of the contractor's past performance would typically involve reviewing their contract history, including the types of projects completed, their performance ratings (e.g., from past performance questionnaires), any instances of contract disputes or terminations, and their ability to deliver projects on time and within budget. This information is usually available through federal procurement databases like SAM.gov or through agency-specific performance records.

What is the expected impact of this contract on the local Oklahoma construction market?

A contract valued at $18.5 million for dormitory repair is likely to have a positive impact on the local Oklahoma construction market. It will create employment opportunities for skilled tradespeople, laborers, and construction management professionals in the region. Additionally, it will generate business for local suppliers of construction materials, equipment rental companies, and potentially subcontractors. The duration of the contract, spanning from February 2023 to December 2025, suggests a sustained period of economic activity related to this project, contributing to the overall economic health of the local construction industry.

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: FA813722R0003

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: $18,476,919

Exercised Options: $18,476,919

Current Obligation: $18,476,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline