DoD awards $14.7M contract for aerial port facility construction at Minneapolis-St. Paul Air Reserve Station

Contract Overview

Contract Amount: $14,738,045 ($14.7M)

Contractor: L.S. Black Constructors, LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2024-09-05

Contract Duration: 1,079 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BID/BUILD FOR THE CONSTRUCTION OF AN AERIAL PORT FACILITY LOCATED AT MINNEAPOLIS-ST PAUL AIR RESERVE STATION, MN.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55450

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to L.S. BLACK CONSTRUCTORS, LLC for work described as: DESIGN/BID/BUILD FOR THE CONSTRUCTION OF AN AERIAL PORT FACILITY LOCATED AT MINNEAPOLIS-ST PAUL AIR RESERVE STATION, MN. Key points: 1. Contract awarded to L.S. Black Constructors, LLC for a fixed-price design/bid/build project. 2. The project aims to construct a new aerial port facility, enhancing logistical capabilities. 3. Competition was full and open, suggesting a robust bidding process. 4. The contract duration is 1079 days, indicating a significant construction timeline. 5. The facility is located at a key military installation in Minnesota. 6. This project falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $14.7 million for an aerial port facility appears reasonable given the scope of a design/bid/build project. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure shifts risk to the contractor, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of pricing efficiency is challenging.

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. The data shows 2 bids were received. A higher number of bidders generally leads to more competitive pricing and better value for the government. The fact that only two bids were submitted might warrant further investigation into potential barriers to entry or market concentration for this type of specialized construction.

Taxpayer Impact: Full and open competition is the preferred method as it maximizes the potential for cost savings for taxpayers by fostering a competitive environment. While two bids are better than one, a lower number of bidders could indicate less competitive pricing than if more firms had participated.

Public Impact

The primary beneficiaries are the U.S. Air Force Reserve and Air National Guard units operating at the Minneapolis-St. Paul Air Reserve Station. The new aerial port facility will improve the efficiency and capacity for loading and unloading cargo and personnel. The project's geographic impact is localized to the Twin Cities metropolitan area in Minnesota. Construction activities will likely create temporary jobs for skilled trades and laborers in the region. Enhanced logistical capabilities can support national defense readiness and rapid deployment operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) may indicate potential for higher costs than with broader competition.
Firm Fixed Price contracts can lead to cost overruns if unforeseen issues arise during construction that are not adequately addressed in the contract scope.
Construction projects are inherently subject to delays and cost increases due to weather, material availability, and labor issues.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract shifts cost risk to the contractor.
Project addresses a critical infrastructure need for military logistics.
Located at an established military installation, potentially streamlining site access and support.

Sector Analysis

The construction sector, particularly for specialized facilities like aerial ports, is a significant area of federal spending. This contract falls within the broader category of institutional building construction. The market for large-scale military construction is often dominated by a few large firms, but smaller specialized contractors can also compete. The value of this contract is moderate within the context of major federal construction projects, but significant for the specific facility type.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). L.S. Black Constructors, LLC is identified as an LLC, but its size status (small or large business) is not explicitly provided. There is no information on subcontracting plans for small businesses. This suggests that the primary contract was competed broadly, and the impact on the small business ecosystem would depend on whether the prime contractor utilizes small business subcontractors.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. The firm fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the design specifications and delivery schedule. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction, Army
Air Force Facilities
Logistics Infrastructure
Aerial Port Operations
Defense Construction Contracts

Risk Flags

Potential for limited competition due to specialized nature of construction.
Risk of construction delays impacting operational readiness.
Possibility of cost growth if unforeseen site conditions arise.
Contractor's past performance history needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to L.S. BLACK CONSTRUCTORS, LLC. DESIGN/BID/BUILD FOR THE CONSTRUCTION OF AN AERIAL PORT FACILITY LOCATED AT MINNEAPOLIS-ST PAUL AIR RESERVE STATION, MN.

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 Army).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2021-09-22. End: 2024-09-05.

What is the track record of L.S. Black Constructors, LLC with federal contracts, particularly with the Department of Defense?

Information regarding the specific track record of L.S. Black Constructors, LLC with federal contracts, especially with the Department of Defense, is not detailed in the provided data snippet. A comprehensive analysis would require querying federal procurement databases (like FPDS) to review their past performance on similar projects, including contract values, timeliness of completion, and any reported issues or awards. Understanding their experience with military construction and aerial port facilities specifically would be crucial for assessing their capability to execute this project successfully and efficiently.

How does the awarded price of $14.7 million compare to similar aerial port construction projects or independent cost estimates?

A direct comparison of the $14.7 million award price to similar aerial port construction projects is difficult without access to a broader dataset of comparable federal contracts. Factors such as facility size, specific technological requirements, geographic location (affecting labor and material costs), and the year of award significantly influence project costs. Ideally, this contract value would be benchmarked against pre-negotiated government cost estimates or recent awards for facilities with similar square footage and functional capabilities. The firm fixed-price nature suggests the government believes this price represents fair value, but external validation through cost benchmarking is essential for a complete value-for-money assessment.

What are the primary risks associated with this specific construction contract, and how are they being mitigated?

Key risks for this construction contract include potential cost overruns due to unforeseen site conditions or material price fluctuations, schedule delays caused by weather or supply chain disruptions, and contractor performance issues. Mitigation strategies are embedded in the contract type and oversight. The firm fixed-price (FFP) structure transfers significant cost risk to L.S. Black Constructors, LLC. The 1079-day duration allows for phased construction and potential buffer for minor delays. Robust government oversight of design compliance and progress reporting, along with potential liquidated damages clauses for delays, further mitigate risks. The selection of a contractor through full and open competition also aims to reduce performance risk.

What is the expected impact of this new aerial port facility on the operational effectiveness of the Minneapolis-St. Paul Air Reserve Station?

The construction of a new aerial port facility is expected to significantly enhance the operational effectiveness of the Minneapolis-St. Paul Air Reserve Station. Aerial ports are critical nodes for military logistics, responsible for the rapid and efficient movement of personnel, equipment, and supplies. A modern facility typically offers improved cargo handling capabilities, better weather protection, enhanced security features, and potentially increased throughput capacity. This upgrade should enable the station to better support training exercises, rapid deployment missions, and humanitarian aid operations, thereby increasing overall readiness and responsiveness.

How has federal spending on similar military construction projects evolved over the past five years?

Federal spending on military construction projects has generally seen fluctuations driven by defense budgets, geopolitical priorities, and infrastructure modernization needs. While specific data for aerial port facilities isn't isolated here, overall military construction spending by the Department of Defense has been substantial, often in the tens of billions of dollars annually. Trends may include increased investment in readiness infrastructure, upgrades to aging facilities, and projects supporting new military technologies or strategic shifts. Analyzing historical spending patterns requires examining budget allocations across different military branches and construction categories to identify specific trends relevant to aviation infrastructure.

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: W912QR21R0039

Offers Received: 2

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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,904,359

Exercised Options: $14,738,045

Current Obligation: $14,738,045

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline