DoD awards $12.6M construction contract for Minneapolis ARS Mission Support Facility to L.S. Black Constructors

Contract Overview

Contract Amount: $12,661,262 ($12.7M)

Contractor: L.S. Black Constructors, LLC

Awarding Agency: Department of Defense

Start Date: 2022-05-16

End Date: 2024-10-24

Contract Duration: 892 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE MISSION SUPPORT GROUP FACILITY AT THE MINNEAPOLIS ARS IN MINNEAPOLIS, MN. ACCEPT BASE AND ALL OPTIONS AWARD BASE AND OPTIONS 1 - 4.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55450

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to L.S. BLACK CONSTRUCTORS, LLC for work described as: CONSTRUCTION OF THE MISSION SUPPORT GROUP FACILITY AT THE MINNEAPOLIS ARS IN MINNEAPOLIS, MN. ACCEPT BASE AND ALL OPTIONS AWARD BASE AND OPTIONS 1 - 4. Key points: 1. Contract awarded to L.S. Black Constructors, a company with prior federal construction experience. 2. The contract is for the construction of a Mission Support Group Facility. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The facility is located at the Minneapolis Air Reserve Station (ARS). 6. The contract duration is 892 days, spanning from May 2022 to October 2024.

Value Assessment

Rating: good

The total contract value of $12.6 million for a mission support facility appears reasonable given the scope of construction. Benchmarking against similar institutional building projects suggests that the pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it relies on the contractor's accurate cost estimation. Further analysis would require detailed cost breakdowns and comparisons to specific project types and locations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders (indicated by 'no': 3) suggests a healthy level of competition for this project. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. The multiple bids received indicate that the government secured a competitive price for the construction services.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force units operating at the Minneapolis ARS. The contract delivers a new Mission Support Group Facility, crucial for operational readiness and personnel support. The geographic impact is concentrated in Minneapolis, Minnesota, supporting local economic activity through construction jobs. The project will likely involve a significant construction workforce, providing employment opportunities in the skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Dependence on the contractor's ability to manage the construction timeline effectively to avoid delays.
Ensuring compliance with all environmental and safety regulations during the construction phase.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting competitive pricing.
Contractor has prior experience with federal construction projects.
Project supports critical military infrastructure at the Minneapolis ARS.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports military infrastructure, government facilities, and other public works. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar government facilities or institutional buildings in the region, considering factors like specialized requirements and site conditions.

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 the prime contractor. There is no explicit information on subcontracting plans for small businesses within the provided data. The absence of a small business set-aside means that larger firms were eligible to compete, and the prime contractor's subcontracting strategy will determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the facility according to specifications and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Air Reserve Station Infrastructure
Federal Building Construction Contracts

Risk Flags

Potential for schedule delays impacting operational readiness.
Risk of cost overruns if contractor's estimates are inaccurate.
Ensuring quality control and adherence to military construction standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to L.S. BLACK CONSTRUCTORS, LLC. CONSTRUCTION OF THE MISSION SUPPORT GROUP FACILITY AT THE MINNEAPOLIS ARS IN MINNEAPOLIS, MN. ACCEPT BASE AND ALL OPTIONS AWARD BASE AND OPTIONS 1 - 4.

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 $12.7 million.

What is the period of performance?

Start: 2022-05-16. End: 2024-10-24.

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

L.S. Black Constructors, LLC has a history of performing federal construction contracts. While specific details on past performance metrics are not provided in this data snippet, their selection as the prime contractor for this significant Department of Defense project suggests they have met the necessary qualifications and demonstrated capability in previous engagements. Federal procurement databases would contain more granular information on their past awards, performance ratings, and any potential issues encountered on prior projects. Their ability to win competitive bids for government work indicates a level of established expertise and reliability within the federal contracting landscape.

How does the $12.6 million cost compare to similar federal construction projects?

Comparing the $12.6 million cost requires context regarding the facility's size, complexity, and specific features. For a mission support facility at an Air Reserve Station, this figure appears to be within a reasonable range, especially considering potential site preparation, specialized systems, and adherence to stringent military construction standards. Benchmarking against similar projects (e.g., barracks, administrative buildings, maintenance facilities) awarded by the Department of Defense or other federal agencies in comparable geographic regions would provide a more precise valuation. Factors like the cost per square foot, the number of bids received, and the duration of the contract are key indicators. Without detailed project specifications, a definitive value-for-money assessment is challenging, but the competitive award suggests a market-driven price.

What are the primary risks associated with this firm fixed-price contract?

The primary risks associated with this firm fixed-price (FFP) contract lie with the contractor, L.S. Black Constructors, LLC. If their cost estimations are inaccurate or if unforeseen construction challenges arise (e.g., material price increases, labor shortages, unexpected site conditions), they bear the financial burden of cost overruns. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if they encounter significant cost pressures, although contract oversight and inspection aim to mitigate this. Delays in project completion also represent a risk, potentially impacting the operational readiness of the Minneapolis ARS. The government's risk is generally lower in FFP contracts compared to cost-reimbursement types, provided the contractor is financially sound and competent.

How effective is full and open competition in ensuring value for this construction project?

Full and open competition is generally considered a highly effective mechanism for ensuring value in federal contracting, including construction projects. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The fact that three bids were received for this $12.6 million facility indicates that the market was sufficiently engaged. This competition allows the Department of Defense to select not only the lowest priced offer but also the one that represents the best overall value, considering technical qualifications and past performance. The transparency inherent in this process also enhances accountability and reduces the potential for favoritism.

What is the historical spending pattern for similar construction projects at Air Reserve Stations?

Historical spending patterns for similar construction projects at Air Reserve Stations (ARS) can vary significantly based on the specific needs and scale of the facility. Projects range from minor renovations to entirely new construction of mission-critical infrastructure. Spending can range from hundreds of thousands for smaller upgrades to tens of millions for major facilities like hangars, training centers, or support buildings. Factors influencing historical spending include the age of the base, the specific mission requirements of the units stationed there, and the prevailing construction costs in the local economy. Analyzing past awards for similar facilities at other ARS locations would reveal trends in contract values, durations, and the types of contractors typically engaged.

What are the implications of the contract duration (892 days) on project delivery and cost?

The contract duration of 892 days (approximately 2.5 years) for the construction of the Mission Support Group Facility suggests a project of considerable scale and complexity. A longer duration can imply that the project involves extensive site work, specialized construction techniques, or integration of complex systems. From a cost perspective, a longer timeline can increase indirect costs for both the contractor (e.g., project management, site overhead) and potentially the government (e.g., extended oversight). However, it also allows for more thorough execution and potentially reduces the risk of rushed work or compromises in quality. The firm fixed-price nature means the contractor is incentivized to manage the schedule efficiently to control their own costs, but the government must ensure adequate progress monitoring throughout the extended period.

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: W912QR21R0068

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

Financial Breakdown

Contract Ceiling: $13,454,192

Exercised Options: $12,661,262

Current Obligation: $12,661,262

Actual Outlays: $222,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline