DHS awards $2.5M contract for life safety systems at Carrizo Springs, TX facility

Contract Overview

Contract Amount: $2,540,069 ($2.5M)

Contractor: Borealis Enterprises LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-30

End Date: 2026-05-31

Contract Duration: 1,735 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND INSTALL HEALTH AND LIFE SAFETY SYSTEMS AND MINOR IMPROVEMENTS, CBP CARRIZO SPRINGS BPS, TX

Place of Performance

Location: CARRIZO SPRINGS, DIMMIT County, TEXAS, 78834

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.5 million to BOREALIS ENTERPRISES LLC for work described as: DESIGN AND INSTALL HEALTH AND LIFE SAFETY SYSTEMS AND MINOR IMPROVEMENTS, CBP CARRIZO SPRINGS BPS, TX Key points: 1. Contract focuses on essential health and life safety systems, indicating a critical infrastructure need. 2. The award was not competitively procured, raising questions about potential price discovery. 3. The contract duration is substantial, spanning over 1700 days, suggesting a long-term project. 4. The fixed-price contract type aims to control costs, but the lack of competition may offset this. 5. The project is located in Texas, potentially impacting local construction and maintenance jobs. 6. The contractor, Borealis Enterprises LLC, is receiving this award, with no prior contract history provided for comparison.

Value Assessment

Rating: fair

The contract value of $2.5 million for designing and installing health and life safety systems is difficult to benchmark without more specific details on the scope of work and the systems involved. Given the lack of competition, it's challenging to assess if the pricing is optimal. However, for a project of this nature, the amount appears within a reasonable range for specialized construction and system integration, assuming the scope is comprehensive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means that the government did not benefit from multiple bids to drive down prices or explore a wider range of solutions. This raises concerns about whether the best possible value was obtained for taxpayer funds.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the most cost-effective pricing, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel and facilities at the Carrizo Springs Border Patrol Station, ensuring a safer working environment. The contract will deliver essential health and life safety systems, likely including fire suppression, alarm systems, and other critical safety infrastructure. The geographic impact is localized to Carrizo Springs, Texas, potentially creating temporary employment opportunities for local construction and skilled trades during the project's execution. The project supports the operational readiness and safety of a key federal law enforcement facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs.
Sole-source award limits transparency in pricing and vendor selection.
Long contract duration could introduce risks related to scope creep or unforeseen cost increases if not managed tightly.

Positive Signals

Focus on health and life safety systems addresses critical infrastructure needs.
Firm fixed-price contract type provides cost certainty for the government.
Award to Borealis Enterprises LLC supports a specific vendor, though details on their capabilities are limited.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized systems. The market for health and life safety systems is driven by regulatory compliance and the need for secure, functional facilities. Comparable spending benchmarks are difficult to establish without detailed project scope, but large federal facilities often require significant investments in these areas. This contract represents a specific, localized investment in critical infrastructure for a federal law enforcement agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available information. The sole-source nature of the award further limits the potential for small business participation unless Borealis Enterprises LLC itself is a small business and intends to subcontract. Further investigation would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Performance monitoring would be crucial to ensure the timely and effective installation of the specified systems.

Related Government Programs

Federal Building Construction Contracts
Homeland Security Infrastructure Projects
Life Safety Systems Procurement
Border Patrol Station Upgrades
Sole-Source Federal Contracts

Risk Flags

Sole-source award
Lack of competition
Limited performance history available

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.5 million to BOREALIS ENTERPRISES LLC. DESIGN AND INSTALL HEALTH AND LIFE SAFETY SYSTEMS AND MINOR IMPROVEMENTS, CBP CARRIZO SPRINGS BPS, TX

Who is the contractor on this award?

The obligated recipient is BOREALIS ENTERPRISES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2021-08-30. End: 2026-05-31.

What specific health and life safety systems are included in this contract, and what are the key performance requirements?

The provided data does not specify the exact health and life safety systems to be designed and installed. However, typical systems in such contracts include fire detection and alarm systems, fire suppression systems (sprinklers, extinguishers), emergency lighting, exit signage, and potentially building security and access control systems integrated with safety protocols. Key performance requirements would likely involve compliance with relevant building codes (e.g., NFPA, IBC), industry standards, and specific operational needs of the CBP Carrizo Springs facility. The contract's duration of over 1700 days suggests a comprehensive scope that may involve new installations, upgrades to existing systems, and integration across the facility. Detailed specifications would be found in the contract's statement of work.

Why was this contract awarded on a sole-source basis, and what justification was provided?

The justification for a sole-source award typically stems from circumstances where only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling requirements where competition is not feasible, or if the contractor is the only source capable of performing the work at the required location and timeframe. Without access to the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to determine the precise reason. However, for specialized construction and system integration in a specific federal facility, factors like existing infrastructure compatibility, specialized expertise of Borealis Enterprises LLC, or time constraints could have led to this determination.

How does the $2.5 million contract value compare to similar health and life safety system installations in federal facilities?

Benchmarking the $2.5 million contract value is challenging without detailed scope information. However, for a facility like a Border Patrol Station, which requires robust security and operational infrastructure, this amount appears reasonable for comprehensive design and installation of critical safety systems. Projects involving new construction or major retrofits of life safety systems in institutional or government buildings can range from hundreds of thousands to several million dollars, depending on the size of the facility, the complexity of the systems, and the specific regulatory requirements. The firm fixed-price nature suggests that the $2.5 million is intended to cover all costs, including design, materials, labor, and profit, for the entire project duration.

What is the track record of Borealis Enterprises LLC in performing similar federal contracts, particularly for the Department of Homeland Security?

Information regarding the specific track record of Borealis Enterprises LLC for similar federal contracts, especially with the Department of Homeland Security, is not provided in the given data. A thorough assessment would require accessing federal procurement databases (like SAM.gov or FPDS) to review past performance, contract history, past performance evaluations, and any reported issues or successes. Without this data, it's difficult to gauge their experience level, reliability, and past performance quality in executing complex construction and systems integration projects for federal agencies. This lack of readily available historical data is a limitation in assessing the risk associated with this sole-source award.

What are the potential risks associated with a sole-source contract of this duration (over 4.5 years)?

Sole-source contracts, especially those with long durations like this 1735-day (approx. 4.75 years) award, carry several potential risks. Firstly, the lack of competition means the government may not be achieving the best possible price, as there was no pressure from competing bids. Secondly, long-term sole-source agreements can lead to complacency from the contractor, potentially impacting quality or responsiveness over time. Scope creep is another significant risk; without competitive re-evaluation, changes or additions to the original scope might be approved at prices that are not market-tested. Finally, if the contractor encounters financial difficulties or performance issues, the government has limited leverage compared to a competitively bid scenario where alternative vendors could be readily engaged.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B01C21R00000021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7799 LEESBURG PIKE STE 700N, FALLS CHURCH, VA, 22043

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,540,069

Exercised Options: $2,540,069

Current Obligation: $2,540,069

Actual Outlays: $392,309

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $546,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline