DHS awards $6.5M contract for generator replacement at land ports of entry

Contract Overview

Contract Amount: $6,531,740 ($6.5M)

Contractor: Teya Enterprises LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-26

End Date: 2025-01-31

Contract Duration: 858 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GENERATOR REPLACEMENT AT VARIOUS LAND PORTS OF ENTRY

Place of Performance

Location: ANTLER, BOTTINEAU County, NORTH DAKOTA, 58711

State: North Dakota Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.5 million to TEYA ENTERPRISES LLC for work described as: GENERATOR REPLACEMENT AT VARIOUS LAND PORTS OF ENTRY Key points: 1. Contract awarded to TEYA ENTERPRISES LLC for generator replacement services. 2. Services to be performed at various land ports of entry, impacting border operations. 3. The contract has a fixed price structure, providing cost certainty. 4. Duration of the contract is approximately 858 days. 5. This contract falls under the Commercial and Institutional Building Construction sector. 6. The award was made by U.S. Customs and Border Protection, part of DHS.

Value Assessment

Rating: fair

The contract value of $6.5 million for generator replacement across multiple land ports of entry appears to be within a reasonable range for such infrastructure work. However, without specific details on the scope of work per location, the number and type of generators, or the complexity of the installations, a precise value-for-money assessment is challenging. Benchmarking against similar multi-site generator replacement projects would provide a clearer picture of whether this represents a competitive price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. While the specific justification for this approach is not detailed, sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. The absence of multiple bidders means that the government did not benefit from a range of proposals and pricing strategies that typically emerge from a full and open competition.

Taxpayer Impact: The lack of competition for this contract may result in taxpayers paying a premium compared to what might have been achieved through a competitive bidding process.

Public Impact

Ensures continued operational capacity at land ports of entry by maintaining essential power infrastructure. Supports the seamless processing of goods and individuals crossing U.S. borders. Benefits the Department of Homeland Security and U.S. Customs and Border Protection by providing reliable generator systems. Potential workforce implications for installation and maintenance personnel in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for scope creep or unforeseen issues in generator replacement across multiple sites.
Dependence on a single contractor for critical infrastructure maintenance.

Positive Signals

Addresses a critical need for generator replacement at border infrastructure.
Fixed-price contract provides cost predictability for the government.
Contract duration allows for phased implementation across various locations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to facility maintenance and upgrades. The market for construction services, particularly for government infrastructure, is substantial. Generator replacement is a critical component of ensuring operational continuity for facilities that require reliable power, such as border crossings. Comparable spending would involve other government contracts for building maintenance, electrical upgrades, and infrastructure resilience projects.

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 information provided. The award to TEYA ENTERPRISES LLC, without further details on its size or structure, suggests it may be a larger entity. This contract's nature does not inherently promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the definitive contract, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature of the award, with public access to detailed justifications often restricted. Inspector General oversight may be exercised if specific concerns or allegations of mismanagement arise.

Related Government Programs

Department of Homeland Security Infrastructure Modernization Programs
U.S. Customs and Border Protection Facility Maintenance Contracts
Federal Government Generator and Power Systems Procurement
Commercial and Institutional Building Construction Services

Risk Flags

Sole-source award may indicate limited competition or urgency.
Lack of detailed scope of work per location makes value assessment difficult.
Potential for cost overruns if unforeseen site-specific issues arise, despite fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.5 million to TEYA ENTERPRISES LLC. GENERATOR REPLACEMENT AT VARIOUS LAND PORTS OF ENTRY

Who is the contractor on this award?

The obligated recipient is TEYA 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 $6.5 million.

What is the period of performance?

Start: 2022-09-26. End: 2025-01-31.

What is the specific justification provided by DHS for awarding this generator replacement contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a common designation for sole-source procurements. Typically, federal agencies justify sole-source awards under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source is available or when a public exigency requires immediate action. For this contract, the U.S. Customs and Border Protection (CBP) would have needed to document why a full and open competition was not feasible or advantageous. This could be due to highly specialized requirements, unique contractor capabilities, or urgent operational needs that preclude the time required for a competitive process. Without access to the specific justification document, the precise reasons remain undisclosed, but it implies that CBP determined TEYA ENTERPRISES LLC was the only viable option under the circumstances.

How does the $6.5 million contract value compare to similar generator replacement projects at other federal land ports of entry?

A direct comparison of the $6.5 million contract value to similar projects is challenging without more granular data on the scope of work, the number and type of generators being replaced, and the specific locations involved. Land ports of entry vary significantly in size, operational complexity, and existing infrastructure. A contract for replacing generators at a small, single-port facility would naturally be less expensive than one covering multiple large ports with numerous units. To benchmark effectively, one would need to identify contracts with comparable geographic spread, the number of units, the criticality of the sites, and the specific technical requirements for the generator systems. The fixed-price nature of this contract suggests a defined scope, but the overall value is contingent on the aggregate work across all designated ports.

What are the potential risks associated with a sole-source award for critical infrastructure maintenance like generator replacement?

Sole-source awards for critical infrastructure, such as generator replacement at land ports of entry, carry several potential risks. Foremost among these is the risk of paying a higher price than would be achieved through competition, as the contractor faces no direct market pressure to offer the most competitive bid. There's also a risk of reduced innovation or service quality, as the contractor may have less incentive to go above and beyond standard requirements. Furthermore, a sole-source award can limit the government's visibility into alternative solutions or technologies that might be available from other vendors. Dependence on a single provider for essential services can also create vulnerabilities if the contractor experiences financial difficulties, operational issues, or fails to meet performance expectations, potentially leading to delays or disruptions in critical border operations.

What is the expected impact of this generator replacement project on the operational continuity of U.S. Customs and Border Protection facilities?

The primary impact of this generator replacement project is expected to be a significant enhancement of operational continuity at the affected land ports of entry. Generators are critical for maintaining power during grid outages, ensuring that essential functions like customs processing, security systems, lighting, and communication networks remain operational. Aging or failing generators pose a substantial risk of disruption, which could impede border security, trade flow, and personnel safety. By replacing these units, the U.S. Customs and Border Protection (CBP) mitigates the risk of unexpected downtime, thereby ensuring a more reliable and secure border environment. This investment supports the agency's mission by providing the necessary infrastructure resilience to handle unforeseen power interruptions.

How does the contract's fixed-price structure influence the risk allocation between the government and TEYA ENTERPRISES LLC?

The Firm Fixed Price (FFP) contract structure, as indicated by 'PT: FIRM FIXED PRICE', allocates most of the cost risk to the contractor, TEYA ENTERPRISES LLC. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. This means that if TEYA ENTERPRISES LLC experiences cost overruns due to unforeseen challenges, material price increases, or labor issues, their profit margin will decrease, or they could incur a loss. Conversely, if they manage the project efficiently and keep costs below the agreed-upon price, their profit will increase. For the government (U.S. Customs and Border Protection), this structure provides cost certainty and predictability, making budgeting easier. The primary risk for the government is ensuring the contractor fully understands and can meet the scope of work, as changes or additional requirements may necessitate contract modifications and potentially price adjustments.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B01C22R00000164

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVENUE SUITE 9B, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, 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: $6,549,439

Exercised Options: $6,531,740

Current Obligation: $6,531,740

Actual Outlays: $6,531,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline