State Department's $39M Embassy Branch Office Contract Awarded to Lakeshore Engineering Services
Contract Overview
Contract Amount: $39,186,148 ($39.2M)
Contractor: Lakeshore Engineering Services, Inc.
Awarding Agency: Department of State
Start Date: 2011-06-14
End Date: 2015-05-22
Contract Duration: 1,438 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 31
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SATHER EMBASSY BRANCH OFFICE
Plain-Language Summary
Department of State obligated $39.2 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: SATHER EMBASSY BRANCH OFFICE Key points: 1. Contract value of $39.18M for embassy branch office construction. 2. Awarded via full and open competition, suggesting market availability. 3. Potential risk in fixed-price contract if unforeseen issues arise. 4. Construction sector spending, with benchmarks varying by project type.
Value Assessment
Rating: fair
The contract value of $39.18M appears substantial for a single branch office construction. Without specific project scope and location details, a direct pricing comparison is difficult, but it falls within the expected range for significant construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offer.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing for government services.
Public Impact
Ensures functional and secure facilities for diplomatic missions. Supports the construction industry and related supply chains. Potential for job creation in the construction sector. Impact on local communities where construction takes place.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed-price contract risk for scope creep or unforeseen site conditions.
- Long duration (1438 days) increases exposure to market fluctuations.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Clear agency (Department of State) and project type (construction).
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be highly variable, influenced by economic conditions, infrastructure needs, and specific agency requirements. Benchmarks depend heavily on the size, complexity, and location of the facility.
Small Business Impact
The data indicates no specific small business participation in this contract. For large construction projects, agencies often aim to include small businesses through subcontracting, but this was not explicitly captured here. Further review might be needed to understand if opportunities were missed.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for construction projects would apply, including site inspections, progress reviews, and payment verification to ensure compliance with contract terms and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration (1438 days) increases risk exposure.
- Firm fixed-price contract can lead to cost overruns if not managed carefully.
- Lack of noted small business participation.
- Potential for unforeseen site conditions in construction projects.
Tags
commercial-and-institutional-building-co, department-of-state, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $39.2 million to LAKESHORE ENGINEERING SERVICES, INC.. SATHER EMBASSY BRANCH OFFICE
Who is the contractor on this award?
The obligated recipient is LAKESHORE ENGINEERING SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $39.2 million.
What is the period of performance?
Start: 2011-06-14. End: 2015-05-22.
What was the specific scope of work for the Sather Embassy Branch Office construction, and how does the $39M value align with similar projects of comparable size and complexity?
The provided data lacks specific details on the scope of work for the Sather Embassy Branch Office. A comprehensive assessment of the $39.18M value would require comparing it against construction costs for similar embassy annexes or government facilities, considering factors like square footage, materials, security features, and geographic location. Without this granular information, it's challenging to definitively assess value for money.
Given the firm fixed-price nature of the contract and its 1438-day duration, what mechanisms were in place to mitigate risks associated with potential cost overruns due to unforeseen site conditions o
Firm fixed-price contracts place the cost risk on the contractor. However, for long-duration projects, contracts often include clauses for equitable adjustments for unforeseen site conditions or significant material price escalations beyond the contractor's control. The Department of State would have oversight to review and approve any such adjustments, ensuring they are justified and within contractual limits to protect taxpayer funds.
How effectively did the full and open competition process ensure the best possible price and quality for the construction of the embassy branch office, and were there any performance issues noted duri
Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing and quality. The award to Lakeshore Engineering Services suggests they offered the best value. However, without post-award performance data or a review of the bidding process, it's difficult to definitively assess the effectiveness. Post-award performance reviews and contract close-out documentation would provide insights into quality and adherence to schedule and budget.
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: SEALED BID
Offers Received: 31
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7310 WOODWARD AVE STE 500, DETROIT, MI, 48202
Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,186,148
Exercised Options: $39,186,148
Current Obligation: $39,186,148
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $60,474,455
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SAQMMA11D0021
IDV Type: IDC
Timeline
Start Date: 2011-06-14
Current End Date: 2015-05-22
Potential End Date: 2015-05-22 00:00:00
Last Modified: 2015-05-28
More Contracts from Lakeshore Engineering Services, Inc.
- Construct 3 Airfield Projects — $190.2M (Department of Defense)
- Demolish 104 Military Family Housing (MFH) Units, Construct 90 NEW MFH Units and Renovate 99 MFH Units Eielson, AFB, — $96.2M (Department of Defense)
- Migrated Data Value Unknown — $80.7M (Department of Defense)
- ADU Phase II Afghanistan — $70.0M (Department of Defense)
- Migrated Data Value Unknown — $59.2M (Department of Defense)
View all Lakeshore Engineering Services, Inc. federal contracts →
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)