DOJ awards $449K contract for Terre Haute electrical upgrades, highlighting need for facility modernization

Contract Overview

Contract Amount: $449,330 ($449.3K)

Contractor: North Arrow, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-17

End Date: 2027-10-14

Contract Duration: 545 days

Daily Burn Rate: $824/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: A/E UPGRADE ELECTRICAL FCI TERRE HAUTE PROJECT # 26Z7AF9

Place of Performance

Location: TERRE HAUTE, CLAY County, INDIANA, 47802

State: Indiana Government Spending

Plain-Language Summary

Department of Justice obligated $449,330.08 to NORTH ARROW, INC. for work described as: A/E UPGRADE ELECTRICAL FCI TERRE HAUTE PROJECT # 26Z7AF9 Key points: 1. Contract addresses critical infrastructure needs within a federal correctional facility. 2. The fixed-price contract type suggests a defined scope and predictable costs. 3. Competition was conducted after exclusion of sources, warranting scrutiny of the process. 4. The contract duration of 545 days indicates a substantial project timeline. 5. Geographic focus on Indiana suggests localized impact on infrastructure and potentially workforce. 6. The award to North Arrow, Inc. represents a specific investment in architectural services for facility upgrades.

Value Assessment

Rating: fair

The contract value of $449,330 for architectural services for electrical upgrades appears moderate for a federal project of this nature. Benchmarking against similar facility modernization contracts would provide better context on value for money. The firm fixed-price structure aims to control costs, but the absence of detailed cost breakdowns or comparisons makes a definitive value assessment challenging. Further analysis would require understanding the scope of 'A/E UPGRADE ELECTRICAL FCI TERRE HAUTE PROJECT # 26Z7AF9' and comparing it to industry standards for similar architectural and engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial intent may have been broad competition, certain sources were excluded before the final award. The specific reasons for this exclusion are not detailed, which raises questions about the extent of true competition. Without knowing how many bidders were initially considered or why others were excluded, it's difficult to assess the impact on price discovery and overall market responsiveness.

Taxpayer Impact: The limited competition, stemming from the exclusion of sources, may have resulted in a higher price for taxpayers than if a broader, unrestricted competition had been pursued. It also limits the government's ability to leverage a wider range of innovative solutions and competitive pricing.

Public Impact

The primary beneficiaries are the Federal Prison System and the Bureau of Prisons, ensuring improved operational safety and efficiency at the Terre Haute facility. The services delivered include architectural and engineering design for electrical system upgrades, crucial for maintaining a secure and functional correctional environment. The geographic impact is localized to Terre Haute, Indiana, potentially involving local subcontractors or labor during the implementation phase. Workforce implications may include the need for specialized electricians and construction personnel during the upgrade execution, though the contract itself is for architectural services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure fairness and optimal pricing.
Lack of detailed scope of work and performance metrics makes it difficult to assess the contractor's performance and project success.
The contract duration of 545 days could be subject to delays, impacting the facility's operational continuity if not managed effectively.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The project addresses essential infrastructure upgrades, contributing to the long-term viability and safety of the federal facility.
The award is for architectural services, indicating a focus on proper planning and design before physical implementation.

Sector Analysis

The architectural and engineering (A/E) services sector supporting federal facilities is a significant market. This contract falls within the broader construction and facilities management domain, where government agencies are major clients. Spending in this area is often driven by the need to maintain aging infrastructure, comply with new regulations, and improve energy efficiency. Comparable spending benchmarks would typically look at the cost per square foot or per project for similar facility upgrades across different government branches.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of architectural services, it's possible that larger firms may engage smaller specialized consultants. However, without explicit set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem is unclear and likely minimal unless North Arrow, Inc. actively seeks out small business partners.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and project management offices, as well as the Federal Bureau of Prisons. Transparency is facilitated by contract award databases, but detailed project progress reports and Inspector General involvement would depend on specific triggers or ongoing audits. The firm fixed-price nature implies a focus on adherence to the defined scope and budget.

Related Government Programs

Federal Building and Fire Safety
Correctional Facility Modernization
Architectural and Engineering Services
Infrastructure Improvement Projects

Risk Flags

Limited competition justification needed
Potential for cost overruns due to extended duration
Scope definition clarity required for performance assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $449,330.08 to NORTH ARROW, INC.. A/E UPGRADE ELECTRICAL FCI TERRE HAUTE PROJECT # 26Z7AF9

Who is the contractor on this award?

The obligated recipient is NORTH ARROW, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $449,330.08.

What is the period of performance?

Start: 2026-04-17. End: 2027-10-14.

What specific electrical systems are being upgraded, and what are the key performance improvements expected?

The provided data does not specify the exact electrical systems targeted for upgrade. However, typical projects of this nature at federal correctional facilities aim to modernize aging power distribution, lighting, emergency power, and security system electrical infrastructure. Expected performance improvements often include enhanced reliability, reduced energy consumption, improved safety for staff and inmates, and better integration with modern security and communication technologies. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise scope and anticipated benefits.

How does the $449,330 contract value compare to similar electrical upgrade projects in federal correctional facilities?

Benchmarking this $449,330 contract requires comparison with similar projects, considering factors like facility size, age, scope of work, and geographic location. Without access to a database of comparable federal correctional facility electrical upgrade contracts, a precise comparison is difficult. However, for a project focused on architectural and engineering services for electrical upgrades, this value appears moderate. Larger, more complex overhauls involving significant physical infrastructure replacement could easily run into millions of dollars. This contract likely covers the design and planning phase, which is a fraction of the total project cost.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The contract data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' but does not specify the reasons for exclusion. Typically, such exclusions might occur if certain potential bidders failed to meet mandatory pre-qualification criteria, did not submit proposals by the deadline, or if specific national security or proprietary concerns necessitated limiting the pool. Without further documentation or agency explanation, the rationale remains unclear. Understanding these reasons is crucial for assessing whether the exclusion limited competition unfairly or was justified by legitimate requirements.

What is North Arrow, Inc.'s track record with the Federal Bureau of Prisons or similar government agencies?

Information regarding North Arrow, Inc.'s specific track record with the Federal Bureau of Prisons (BOP) or other government agencies is not provided in the summary data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past contracts awarded to North Arrow, Inc., examining past performance reviews, and identifying any history of successful project completion or issues. Their experience with correctional facilities or similar secure environments would be particularly relevant.

What are the potential risks associated with a 545-day duration for this electrical upgrade project?

A 545-day duration (approximately 18 months) for an electrical upgrade project presents several potential risks. These include the possibility of scope creep, where additional requirements are added during the project, leading to cost overruns or delays. There's also the risk of unforeseen site conditions (e.g., discovering hazardous materials or structural issues) that could halt or complicate work. Furthermore, extended project timelines increase vulnerability to changes in technology, regulations, or agency priorities. Maintaining security and operational continuity within the facility during such a prolonged upgrade period also poses significant logistical challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 15BBNF26Q00000031

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: North Arrow Inc.

Address: 820 1ST STREET, NE, STE LL170, WASHINGTON, DC, 20002

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $449,330

Exercised Options: $449,330

Current Obligation: $449,330

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 15B70022D00000020

IDV Type: IDC

Timeline