DoD's $56.1M Base Support Contract for CNIC Base Support Consolidation Faces Potential Cost Overruns
Contract Overview
Contract Amount: $56,101,685 ($56.1M)
Contractor: L.S. Black Constructors, LLC
Awarding Agency: Department of Defense
Start Date: 2019-06-28
End Date: 2025-12-10
Contract Duration: 2,357 days
Daily Burn Rate: $23.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DB RM17-0145, CNIC BASE SUPPORT CONSOLIDATION BLDG. H1, PNSY
Place of Performance
Location: KITTERY, YORK County, MAINE, 03904
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $56.1 million to L.S. BLACK CONSTRUCTORS, LLC for work described as: DB RM17-0145, CNIC BASE SUPPORT CONSOLIDATION BLDG. H1, PNSY Key points: 1. The contract awarded to L.S. BLACK CONSTRUCTORS, LLC for base support services is a significant investment in infrastructure. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract's duration and firm fixed-price nature aim to control costs, but the high value presents inherent risks. 4. The sector is Commercial and Institutional Building Construction, a critical area for military readiness and operations.
Value Assessment
Rating: fair
The contract's value of $56.1 million is substantial for base support services. Benchmarking against similar large-scale construction and support contracts is necessary to assess if the pricing is competitive, especially given the firm fixed-price structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final price discovery is influenced by the firm fixed-price (FFP) award type, which places risk on the contractor but can lead to higher initial bids.
Taxpayer Impact: Taxpayer funds are being utilized for essential base support, with the FFP structure intended to provide cost certainty, though potential for contractor claims or change orders exists.
Public Impact
Ensures critical base support services are maintained at PNSY, contributing to operational readiness. Supports the local economy through construction activities and employment opportunities. The long-term nature of the contract provides stability for service provision but requires ongoing monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns despite firm fixed price.
- Long contract duration increases exposure to market fluctuations.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Essential services for military operations.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is vital for maintaining military installations. Spending benchmarks in this sector vary widely based on project scope, location, and complexity, but large-scale base support contracts often represent significant portions of departmental infrastructure budgets.
Small Business Impact
The data indicates that small businesses were not involved in this contract (sb: false). This suggests that the prime contractor is likely a larger entity, and opportunities for subcontracting to small businesses may be limited or were not pursued.
Oversight & Accountability
Oversight will be crucial to monitor contract performance, ensure adherence to the firm fixed-price terms, and manage any potential change orders or claims that could impact the total cost to taxpayers. The Department of the Navy is responsible for this oversight.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value.
- Long contract duration.
- Firm Fixed Price contract type.
- No small business participation noted.
- Potential for cost overruns.
Tags
commercial-and-institutional-building-co, department-of-defense, me, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.1 million to L.S. BLACK CONSTRUCTORS, LLC. DB RM17-0145, CNIC BASE SUPPORT CONSOLIDATION BLDG. H1, PNSY
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 Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $56.1 million.
What is the period of performance?
Start: 2019-06-28. End: 2025-12-10.
What is the projected cost efficiency of this contract given its firm fixed-price nature and long duration?
The firm fixed-price (FFP) nature aims for cost efficiency by locking in the price, shifting cost overrun risk to the contractor. However, the long duration (over 6 years) introduces risks of unforeseen economic changes, material cost escalations, or scope creep through change orders. Effective oversight is key to realizing the intended cost efficiency and preventing budget overruns.
What are the primary risks associated with the $56.1 million value and the firm fixed-price contract type?
The primary risks include potential contractor default or bankruptcy given the large sum, contractor claims for equitable adjustments due to unforeseen site conditions or government-directed changes, and the possibility that the initial FFP bid was inflated to account for perceived risks. The long duration also increases the risk of contractor performance degradation over time.
How effectively does this contract support the Department of the Navy's mission objectives at PNSY?
This contract is designed to ensure the continuity and quality of essential base support services, directly contributing to the operational readiness and effectiveness of PNSY. By consolidating these services, the Navy likely aims for greater efficiency and streamlined management, which should positively impact mission support.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N4008518R8717
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1959 SLOAN PL STE 220, SAINT PAUL, MN, 55117
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,059,318
Exercised Options: $56,101,685
Current Obligation: $56,101,685
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-06-28
Current End Date: 2025-12-10
Potential End Date: 2025-12-10 00:00:00
Last Modified: 2025-01-29
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