Army Reserve Center construction contract awarded to L.S. Black Constructors for $24.4M, with 7 bidders

Contract Overview

Contract Amount: $24,421,411 ($24.4M)

Contractor: L.S. Black Constructors, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2027-01-13

Contract Duration: 838 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION FOR THE MAINTENANCE & REPAIR, ARMY RESERVES (MRAR) OF AN ARMY RESERVE CENTER (ARC), SEAGOVILLE BUILDING 1001, LOCATED IN SEAGOVILLE, TEXAS

Place of Performance

Location: SEAGOVILLE, DALLAS County, TEXAS, 75159

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to L.S. BLACK CONSTRUCTORS, LLC for work described as: DESIGN AND CONSTRUCTION FOR THE MAINTENANCE & REPAIR, ARMY RESERVES (MRAR) OF AN ARMY RESERVE CENTER (ARC), SEAGOVILLE BUILDING 1001, LOCATED IN SEAGOVILLE, TEXAS Key points: 1. The contract's firm-fixed-price structure aims to control costs for the Army Reserve Center maintenance and repair project. 2. With 7 bidders, the full and open competition suggests a healthy market response for this type of construction. 3. The project duration of 838 days indicates a significant construction timeline, requiring careful project management. 4. The contract is for the design and construction of an Army Reserve Center in Seagoville, Texas. 5. The award value of approximately $24.4 million positions this as a substantial investment in military infrastructure. 6. The use of a definitive contract type suggests a well-defined scope of work for the chosen contractor.

Value Assessment

Rating: good

The contract value of $24.4 million for the design and construction of an Army Reserve Center appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects for federal facilities suggests that pricing is likely competitive, especially considering the firm-fixed-price nature of the award which transfers risk to the contractor. The presence of multiple bidders further supports the assessment that the pricing is likely aligned with market rates for commercial and institutional building construction.

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 solicitation attracted 7 bidders, suggesting a robust level of interest and a competitive marketplace for this type of construction service. The significant number of bidders likely contributed to price discovery and ensured that the government received competitive proposals, potentially leading to a more favorable price for the taxpayer.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it fosters a competitive environment, driving down costs and ensuring the government secures services at a fair market price.

Public Impact

The primary beneficiaries are the U.S. Army Reserve, who will gain a newly constructed or significantly repaired facility. The project will deliver essential design and construction services for an Army Reserve Center. The geographic impact is localized to Seagoville, Texas, providing a critical infrastructure asset for the region's reserve forces. The construction activities will likely create temporary employment opportunities for skilled trades and labor in the local Texas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the operational readiness of the Army Reserve Center.
Risk of cost overruns if unforeseen issues arise during the design and construction phases, despite the fixed-price contract.
Ensuring the quality of construction meets stringent military standards throughout the project lifecycle.

Positive Signals

Firm-fixed-price contract structure helps to mitigate budget uncertainty for the government.
Full and open competition with 7 bidders suggests a competitive award process.
The project is for a critical military infrastructure need, ensuring long-term operational capability.

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 sector often involves large-scale projects requiring specialized expertise. The market size for federal construction is substantial, with agencies like the Department of the Army consistently investing in infrastructure. This project aligns with typical government spending patterns for facility maintenance, repair, and new construction to support military readiness.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-aside. While L.S. Black Constructors, LLC is the prime contractor, there is no explicit information regarding subcontracting plans for small businesses within this award. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem in the region.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific project managers assigned to monitor progress, quality, and adherence to the contract terms. The firm-fixed-price nature of the award provides a degree of accountability for the contractor regarding cost. Transparency will be maintained through contract reporting mechanisms, and potential issues could be addressed by the contracting officer or through dispute resolution processes.

Related Government Programs

Army Reserve Center Construction
Military Facility Maintenance and Repair
Department of Defense Construction Contracts
Federal Building and Infrastructure Projects

Risk Flags

Potential for scope creep if design requirements are not fully finalized.
Risk of contractor performance issues impacting project timeline or quality.
Dependency on local labor and material availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to L.S. BLACK CONSTRUCTORS, LLC. DESIGN AND CONSTRUCTION FOR THE MAINTENANCE & REPAIR, ARMY RESERVES (MRAR) OF AN ARMY RESERVE CENTER (ARC), SEAGOVILLE BUILDING 1001, LOCATED IN SEAGOVILLE, TEXAS

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 $24.4 million.

What is the period of performance?

Start: 2024-09-27. End: 2027-01-13.

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

L.S. Black Constructors, LLC has a history of performing federal construction contracts. While specific details on their entire federal contract portfolio require deeper database analysis, their selection for this significant Army Reserve Center project suggests they possess the necessary qualifications and experience. A review of their past performance ratings on similar projects, especially those involving military or government facilities, would provide further insight into their reliability and capability. Examining their award history within the Department of Defense and other federal agencies can reveal patterns in project types, sizes, and successful completion rates, offering a clearer picture of their track record.

How does the awarded amount of $24.4 million compare to similar Army Reserve Center construction or renovation projects?

The awarded amount of $24.4 million for the design and construction of an Army Reserve Center in Seagoville, Texas, needs to be benchmarked against comparable projects to assess its value. Factors such as the size of the facility, the scope of work (design and construction vs. renovation), the specific geographic location (which influences labor and material costs), and the year of award are crucial for a fair comparison. Projects of similar scale and complexity, particularly those awarded by the Department of the Army or other branches of the military in recent years, would serve as the best comparators. A preliminary assessment suggests that this value is within a reasonable range for a project of this nature, especially given the firm-fixed-price contract type which often reflects a thorough cost estimation process.

What are the primary risks associated with a firm-fixed-price contract for a multi-year construction project like this?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, they carry inherent risks, especially for long-duration construction projects. The primary risk for the contractor is underestimating costs, leading to reduced profit margins or even losses if unforeseen issues arise. For the government, the risk lies in the contractor potentially cutting corners on quality to maintain profitability if cost pressures mount, or in the possibility of disputes if the scope of work is not perfectly defined. For this specific project, risks could include unexpected site conditions, material price escalations beyond what was anticipated, or labor shortages, all of which could strain the contractor's ability to deliver within the fixed price without compromising quality or schedule.

What is the expected impact of this contract on the local economy in Seagoville, Texas?

This contract is expected to have a positive impact on the local economy in Seagoville, Texas, primarily through job creation and increased business activity. The design and construction phases will require a workforce, potentially creating numerous temporary jobs for skilled tradespeople, laborers, and construction management professionals. Local suppliers may also benefit from providing materials, equipment, and services to the prime contractor and any subcontractors. Furthermore, the presence of a modern and well-maintained Army Reserve Center can contribute to the long-term stability and operational readiness of military personnel in the area, indirectly supporting the community.

How does the competition level (7 bidders) influence the potential value for money achieved in this contract?

A competition level of 7 bidders for this Army Reserve Center construction contract is generally considered robust and is highly indicative of good potential value for money. A larger number of bidders typically signifies a healthy and competitive market for the services required. This increased competition forces each bidding company to offer their most competitive pricing and terms to win the contract. Consequently, the government is more likely to secure services at a price that reflects fair market value, minimizing the risk of overpayment. The extensive bidding process also provides a broader range of technical approaches and solutions, allowing the agency to select not only the most cost-effective bid but also the one that best meets the project's specific requirements.

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: W912QR24R0049

Offers Received: 7

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: $25,693,601

Exercised Options: $24,648,613

Current Obligation: $24,421,411

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline