DoD's $22.4M airfield pavement repair contract awarded to Lakeshore Engineering Services, Inc. shows fair value

Contract Overview

Contract Amount: $22,427,354 ($22.4M)

Contractor: Lakeshore Engineering Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-21

End Date: 2015-09-30

Contract Duration: 1,835 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR AIRFIELD PAVEMENTS

Plain-Language Summary

Department of Defense obligated $22.4 million to LAKESHORE ENGINEERING SERVICES, INC. for work described as: REPAIR AIRFIELD PAVEMENTS Key points: 1. The contract's value appears reasonable when benchmarked against similar infrastructure projects. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over a significant duration, allowing for thorough execution. 5. This contract falls within the broader category of civil engineering and construction services.

Value Assessment

Rating: good

The contract's total value of approximately $22.4 million for airfield pavement repair appears to be within a reasonable range for the scope of work. While specific comparable contract data is not provided, large-scale infrastructure repairs of this nature typically involve substantial investment. The firm-fixed-price structure suggests that the initial pricing was determined to be fair and reasonable by the contracting officer, with the contractor assuming the risk for cost overruns. This structure generally promotes cost control and predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bids suggests a healthy level of interest and competition for this requirement. A competitive process like this typically leads to better price discovery and ensures that the government receives offers from a range of qualified contractors, potentially resulting in more favorable pricing and terms.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring that government funds are used efficiently. The multiple bids received indicate that the government likely secured a competitive price for the airfield pavement repairs.

Public Impact

Military personnel and aircraft operations benefit from improved and safer airfield infrastructure. Essential maintenance and repair services for critical defense assets were delivered. The geographic impact is localized to the specific military installation where the airfield is located. The contract likely supported jobs in the construction and engineering sectors, including skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1835 days (approx. 5 years) could indicate potential for extended performance issues if not managed closely.
Lack of specific details on the nature of the repairs makes it difficult to assess the full scope of work and potential unforeseen challenges.

Positive Signals

Firm Fixed Price contract type limits the government's exposure to cost increases.
Full and open competition with 6 bidders suggests a robust and competitive bidding environment.
The contract was awarded to a single entity, Lakeshore Engineering Services, Inc., implying a clear point of accountability.

Sector Analysis

This contract falls within the construction sector, specifically focusing on heavy civil engineering and infrastructure repair. The market for airfield maintenance and repair is significant, driven by the continuous need to maintain operational readiness for military and civilian aviation. Comparable spending benchmarks for similar pavement repair projects can vary widely based on location, scale, and specific materials used, but large-scale projects often run into the tens of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Lakeshore Engineering Services, Inc. voluntarily engaged small businesses as subcontractors. Further investigation into subcontracting reports would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) and the relevant Department of the Army contracting office. Accountability rests with Lakeshore Engineering Services, Inc. to perform the work according to the contract specifications. Transparency is generally maintained through contract award databases and reporting, though specific project-level details might be less accessible to the public.

Related Government Programs

Military Construction
Airfield Operations and Maintenance
Civil Engineering Services
Infrastructure Repair Contracts

Risk Flags

Contract Duration
Lack of Specific Repair Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to LAKESHORE ENGINEERING SERVICES, INC.. REPAIR AIRFIELD PAVEMENTS

Who is the contractor on this award?

The obligated recipient is LAKESHORE ENGINEERING SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2010-09-21. End: 2015-09-30.

What was the specific nature of the airfield pavement repairs performed under this contract?

The contract description 'REPAIR AIRFIELD PAVEMENTS' indicates the general scope of work. However, specific details regarding the type of repairs (e.g., resurfacing, crack sealing, patching, reconstruction), the extent of the damage addressed, and the materials used are not provided in the summary data. Such information would typically be found in the contract's statement of work (SOW) or performance work statement (PWS). Understanding the specifics is crucial for a detailed assessment of the value and effectiveness of the repairs, as different repair methods have varying costs and lifespans.

How does the awarded amount compare to the government's initial cost estimate for this project?

The provided data does not include the government's initial cost estimate for this contract. To assess value for money, comparing the awarded price ($22.4 million) to the estimate is essential. If the awarded price was significantly below the estimate, it could indicate strong competition or effective negotiation. Conversely, if it was close to or exceeded the estimate, further scrutiny might be warranted. Without the estimate, it's difficult to definitively gauge the efficiency of the procurement process from a pricing perspective.

What is Lakeshore Engineering Services, Inc.'s track record with similar DoD contracts?

Lakeshore Engineering Services, Inc. has experience with DoD contracts, as evidenced by this award. A comprehensive assessment of their track record would involve reviewing their past performance on similar projects, including their history of on-time delivery, quality of work, adherence to budget, and any past performance issues or disputes. Analyzing their portfolio of previous airfield repair or heavy civil construction contracts would provide insight into their capabilities and reliability in executing large-scale infrastructure projects for the government.

Were there any performance issues or contract modifications during the 1835-day performance period?

The provided data does not detail any contract modifications or performance issues that may have occurred during the 1835-day performance period (approximately 5 years). Significant modifications could indicate changes in scope, unforeseen challenges, or issues with the original contract terms. Performance issues, such as delays or quality problems, might lead to contract disputes, corrective actions, or reduced final payments. A review of contract modification history and performance reports would be necessary to identify any such events.

What is the expected lifespan of the repaired airfield pavements, and how does this impact the long-term value?

The expected lifespan of the repaired airfield pavements is a critical factor in assessing the long-term value of this $22.4 million contract. While the contract itself focuses on the repair work, the durability and longevity of the outcome are paramount. If the repairs are expected to last for decades, the annual cost of maintaining usable airfield infrastructure would be relatively low, representing good value. Conversely, if the lifespan is shorter than anticipated, the cost per year of service increases, potentially diminishing the overall value proposition. This information is typically tied to engineering specifications and material warranties.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge 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: W912ER10R0064

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7310 WOODWARD AVE FL 5, 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: $22,427,354

Exercised Options: $22,427,354

Current Obligation: $22,427,354

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $777,152

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline