DHS Awards $23.3M Design/Build Contract for Niagara BPS to Borealis Enterprises LLC
Contract Overview
Contract Amount: $23,311,375 ($23.3M)
Contractor: Borealis Enterprises LLC
Awarding Agency: Department of Homeland Security
Start Date: 2023-05-05
End Date: 2026-09-08
Contract Duration: 1,222 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN/BUILD CONSTRUCTION NEW NIAGARA BPS, NIAGARA, NY
Place of Performance
Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14304
State: New York Government Spending
Plain-Language Summary
Department of Homeland Security obligated $23.3 million to BOREALIS ENTERPRISES LLC for work described as: DESIGN/BUILD CONSTRUCTION NEW NIAGARA BPS, NIAGARA, NY Key points: 1. Contract awarded for a significant design/build project in Niagara, NY. 2. Borealis Enterprises LLC is the sole awardee, raising questions about competition. 3. The contract value is substantial at $23.3 million. 4. Project duration is over three years, indicating a long-term commitment.
Value Assessment
Rating: fair
The contract is a firm fixed price, which provides cost certainty. However, without a competitive bidding process, it's difficult to assess if the price is optimal compared to market rates for similar design/build construction projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $23.3 million contract may result in taxpayers paying more than necessary.
Public Impact
Border security infrastructure in Niagara, NY, will be upgraded. Local economic impact through construction jobs and related services. Potential for long-term operational efficiencies from the new facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm fixed price contract
- Addresses critical infrastructure needs
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Benchmarks for similar large-scale design/build projects can vary significantly based on location, complexity, and specific requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any potential small business participation.
Oversight & Accountability
The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for this contract. Oversight will be crucial to ensure the project meets specifications and stays within budget, especially given the sole-source nature.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- Long project duration increases risk of cost overruns or scope changes.
- No clear indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $23.3 million to BOREALIS ENTERPRISES LLC. DESIGN/BUILD CONSTRUCTION NEW NIAGARA BPS, NIAGARA, NY
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 $23.3 million.
What is the period of performance?
Start: 2023-05-05. End: 2026-09-08.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without further information, it's unclear why this significant design/build project was not opened to a competitive bidding process, which could have potentially yielded better pricing and a wider range of solutions.
What are the specific risks associated with a sole-source construction contract of this magnitude?
The primary risk is inflated pricing due to the absence of competitive pressure. Other risks include potential scope creep, quality control issues if oversight is lax, and a lack of innovation that might have emerged from a competitive environment. Ensuring robust contract management and independent cost validation is critical.
How will the effectiveness of the new facility be measured post-construction?
Effectiveness will likely be measured against the original project objectives, such as improved operational efficiency for U.S. Customs and Border Protection, enhanced security capabilities, and compliance with design specifications. Key performance indicators related to facility functionality, durability, and maintenance costs should be established and tracked.
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: 70B01C22R00000132
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14100 PARKE LONG CT, CHANTILLY, VA, 20151
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: $23,311,375
Exercised Options: $23,311,375
Current Obligation: $23,311,375
Actual Outlays: $13,960,725
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $19,111,489
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-05-05
Current End Date: 2026-09-08
Potential End Date: 2026-09-08 09:52:25
Last Modified: 2026-04-08
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