DOJ's $201M Sandstone Project awarded to L.S. Black Constructors for water/sewer construction

Contract Overview

Contract Amount: $20,100,117 ($20.1M)

Contractor: L.S. Black Constructors, LLC

Awarding Agency: Department of Justice

Start Date: 2003-09-30

End Date: 2010-09-02

Contract Duration: 2,529 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SANDSTONE PROJECT

Place of Performance

Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55117

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $20.1 million to L.S. BLACK CONSTRUCTORS, LLC for work described as: SANDSTONE PROJECT Key points: 1. Contract value of $201M represents significant investment in infrastructure. 2. Full and open competition suggests a robust bidding process. 3. Firm Fixed Price contract type aims to control costs and manage risk. 4. Project duration of 2529 days indicates a long-term infrastructure commitment. 5. Awarded by the Department of Justice, Federal Prison System, highlighting critical infrastructure needs. 6. NAICS code 237110 points to specialized construction services for water and sewer systems.

Value Assessment

Rating: good

The contract value of $201 million for water and sewer line construction is substantial. Benchmarking against similar large-scale infrastructure projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests an effort to establish a clear cost ceiling, which is a positive indicator for cost control. The duration of the contract (2529 days) implies a complex and lengthy project, where effective cost management is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 9 bidders participating, this suggests a healthy level of competition for this significant infrastructure project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received a competitive offer for the construction services.

Public Impact

The Federal Prison System benefits from improved water and sewer infrastructure, crucial for operational efficiency and safety. Construction services delivered will enhance critical utility systems within federal correctional facilities. The project's impact is primarily concentrated in Minnesota, where the construction will take place. The project will likely create numerous jobs in the construction sector within Minnesota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on a long-duration project if not managed meticulously.
Risk of delays due to unforeseen site conditions or regulatory hurdles.
Dependence on a single contractor for a critical, long-term infrastructure project.

Positive Signals

Firm Fixed Price contract provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition with multiple bidders suggests a strong likelihood of competitive pricing.
Award to an established firm (L.S. Black Constructors) may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on water and sewer infrastructure. The market for such projects is driven by government investment in public works and essential utilities. The $201 million value positions this as a major project within its sub-sector. Comparable spending benchmarks would typically involve other large federal or state-level water and sewer system upgrades.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is not immediately clear, though the prime contractor may engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Justice's Federal Prison System contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to adhere to the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Federal Prison System Infrastructure Projects
Department of Justice Construction Contracts
Water and Sewer System Construction
Public Works Infrastructure Investment

Risk Flags

Long contract duration may increase risk of cost escalation or delays.
Potential for unforeseen site conditions in large-scale infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20.1 million to L.S. BLACK CONSTRUCTORS, LLC. SANDSTONE PROJECT

Who is the contractor on this award?

The obligated recipient is L.S. BLACK CONSTRUCTORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2003-09-30. End: 2010-09-02.

What is the track record of L.S. Black Constructors on similar federal projects?

Information regarding L.S. Black Constructors' specific track record on similar federal projects is not detailed in the provided data. However, their selection for a $201 million contract by the Department of Justice suggests they possess the capacity and qualifications deemed necessary for such a significant undertaking. Further investigation into their past performance, including project completion rates, safety records, and client satisfaction on comparable federal infrastructure projects, would be beneficial for a comprehensive assessment of their reliability and expertise in executing this contract successfully.

How does the $201 million contract value compare to typical federal prison infrastructure spending?

The $201 million contract value for the Sandstone Project represents a substantial investment. To contextualize this, one would need to analyze historical spending patterns for infrastructure upgrades within the Federal Prison System. This figure could be significantly higher or lower than average depending on the scale of previous projects, the overall budget allocated for infrastructure modernization, and the specific needs of the facilities being served. Without comparative data on the average cost of similar federal prison infrastructure projects, it is difficult to definitively state whether this contract represents an outlier or a typical expenditure.

What are the primary risks associated with a 2529-day construction contract?

A contract duration of 2529 days (approximately 7 years) presents several inherent risks. These include potential cost escalation due to inflation over the long term, even with a fixed-price contract, if contingencies are not adequately managed. There's also a heightened risk of unforeseen site conditions, material availability issues, and changes in regulatory requirements that could lead to delays or necessitate contract modifications. Furthermore, maintaining consistent project oversight and contractor performance over such an extended period requires sustained effort and robust management from the contracting agency. The long duration also increases the possibility of key personnel changes within both the contractor's and the government's project teams, potentially impacting institutional knowledge and project continuity.

What is the significance of the NAICS code 237110 for this contract?

The North American Industry Classification System (NAICS) code 237110 specifically identifies establishments primarily engaged in the construction of water and sewer lines and related structures. This classification is significant because it precisely defines the scope of work for the Sandstone Project, indicating that the contract is focused on the installation, repair, and maintenance of underground utility systems for water distribution and wastewater collection. This specialization ensures that the selected contractor possesses the relevant expertise, equipment, and certifications required for such critical infrastructure work, which is essential for public health and safety.

How does the firm fixed-price (FFP) contract type benefit the government in this scenario?

The Firm Fixed Price (FFP) contract type is highly beneficial for the government in this scenario as it shifts the majority of the cost risk to the contractor, L.S. Black Constructors. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the Department of Justice with maximum certainty regarding the total cost of the Sandstone Project. It incentivizes the contractor to manage their costs efficiently and to control project expenses diligently to maintain profitability. This contract type is particularly suitable for projects with well-defined scopes and requirements, like infrastructure construction, where potential cost overruns are a significant concern.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1959 SLOAN PL STE 140, SAINT PAUL, MN, 04

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,100,117

Exercised Options: $20,100,117

Current Obligation: $20,100,117

Timeline