Homeland Security awards $2.77M contract for Niagara BPS build oversight to Unami HWH Joint Ventures

Contract Overview

Contract Amount: $2,772,616 ($2.8M)

Contractor: Unami HWH Joint Ventures, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-01

End Date: 2026-11-23

Contract Duration: 1,302 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CMA CXA SERVICES TO OVERSEE/MONITOR THE NEW NIAGARA BPS BUILD

Place of Performance

Location: ANADARKO, CADDO County, OKLAHOMA, 73005

State: Oklahoma Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.8 million to UNAMI HWH JOINT VENTURES, LLC for work described as: CMA CXA SERVICES TO OVERSEE/MONITOR THE NEW NIAGARA BPS BUILD Key points: 1. Contract awarded for specialized engineering services to monitor a significant border infrastructure project. 2. The contract's firm-fixed-price structure aims to control costs for the duration of the project. 3. Limited competition raises questions about potential price discovery and value for taxpayer funds. 4. The duration of over 1000 days suggests a long-term commitment to oversight. 5. The specific nature of the services indicates a need for specialized engineering expertise. 6. Performance will be critical to ensuring the successful and compliant execution of the Niagara BPS build.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar oversight contracts for large infrastructure projects. The firm-fixed-price nature suggests an attempt to cap costs, but the absence of competitive bidding limits the ability to assess if the price is truly optimal. Further analysis of the specific tasks and deliverables against industry standards for engineering oversight would be needed to provide a more definitive value assessment.

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. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the specific task, or in urgent situations. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers as the potential for competitive pressure to drive down prices is absent.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who will receive critical oversight for the Niagara Border Patrol Station (BPS) build. The services delivered will ensure the proper monitoring and execution of the construction project, contributing to border security infrastructure. The geographic impact is focused on the border region where the Niagara BPS is located. The contract supports specialized engineering and project management roles, potentially impacting the workforce in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract had been competed.
Sole-source awards can reduce transparency and accountability in the procurement process.
The long duration of the contract could introduce risks related to scope creep or changing requirements if not managed carefully.
Dependence on a single contractor for critical oversight could pose a risk if performance issues arise.

Positive Signals

The contract is for essential oversight services for a significant border infrastructure project.
The firm-fixed-price contract type helps to establish cost certainty for the government.
The contractor, Unami HWH Joint Ventures, LLC, is being tasked with a critical role in project execution.
The contract duration aligns with the expected timeline for a large construction project.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to construction oversight and project management for government infrastructure. The market for such specialized services is often characterized by a mix of large engineering firms and smaller, specialized joint ventures. Government spending in this area is driven by the need for expert technical guidance and independent monitoring of complex projects to ensure compliance, quality, and cost control. Comparable spending benchmarks would typically involve analyzing other large-scale federal construction oversight contracts.

Small Business Impact

This contract was awarded to Unami HWH Joint Ventures, LLC, which may or may not include small business participation within the joint venture structure. As it was not competed and awarded directly to this entity, there is no explicit small business set-aside. The subcontracting implications would depend on the internal structure and subcontracting plans of Unami HWH Joint Ventures, LLC. Further investigation into the composition of the joint venture would be needed to assess its direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within U.S. Customs and Border Protection. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract. Transparency may be limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Border Infrastructure Projects
Engineering and Technical Services
Construction Management Contracts
Department of Homeland Security Procurement
U.S. Customs and Border Protection Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns if scope is not tightly managed.
Risk of performance degradation over the long contract duration.
Limited transparency due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.8 million to UNAMI HWH JOINT VENTURES, LLC. CMA CXA SERVICES TO OVERSEE/MONITOR THE NEW NIAGARA BPS BUILD

Who is the contractor on this award?

The obligated recipient is UNAMI HWH JOINT VENTURES, 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 $2.8 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-11-23.

What is the specific expertise Unami HWH Joint Ventures, LLC brings to justify a sole-source award for engineering oversight of the Niagara BPS build?

The justification for a sole-source award typically rests on the unique capabilities, specialized knowledge, or proprietary technology possessed by the contractor that are essential for the contract's success. For the Niagara BPS build oversight, Unami HWH Joint Ventures, LLC may have demonstrated specific experience with the particular construction methods, materials, or security requirements relevant to this border infrastructure project. Alternatively, they might possess specialized engineering certifications or a proven track record on similar, complex DHS projects that makes them the only viable option. Without the full justification documentation, it is difficult to pinpoint the exact reasons, but it would likely center on highly specialized, non-readily available expertise crucial for ensuring the integrity and compliance of the build.

How does the firm-fixed-price contract type mitigate risks for the government in this sole-source award?

A firm-fixed-price (FFP) contract type is generally advantageous for the government, especially in sole-source situations, as it establishes a ceiling on the total cost the contractor can claim. This structure shifts the risk of cost overruns from the government to the contractor. For the Niagara BPS build oversight, the FFP award means that Unami HWH Joint Ventures, LLC is responsible for managing its costs to stay within the agreed-upon price. This provides cost certainty for the Department of Homeland Security and incentivizes the contractor to be efficient. However, it does not guarantee the 'best' price, as the absence of competition means the baseline price itself might be higher than in a competitive scenario.

What are the potential risks associated with the long duration (1302 days) of this contract?

The extended duration of 1302 days for this contract presents several potential risks. Firstly, there's the risk of scope creep, where the requirements or tasks may expand beyond the original intent, potentially leading to cost increases if not managed strictly within the FFP framework or through formal contract modifications. Secondly, the contractor's key personnel might change over such a long period, potentially impacting the continuity and quality of oversight. Thirdly, technological advancements or changes in regulatory requirements during the contract term could necessitate adjustments, adding complexity. Finally, maintaining consistent performance and engagement from the contractor over more than three years requires robust contract management and oversight from the government side to ensure objectives remain aligned and performance doesn't degrade.

How can the government ensure adequate performance and value from a sole-source contractor over an extended period?

Ensuring adequate performance and value from a sole-source contractor over an extended period requires diligent contract management. The government must establish clear, measurable performance standards and key performance indicators (KPIs) within the contract. Regular performance reviews, site visits, and progress reports are crucial. A strong relationship between the contracting officer's representative (COR) and the contractor is vital for proactive issue resolution. Furthermore, the government should maintain market awareness to periodically assess if the contractor's pricing remains reasonable relative to evolving market conditions, even without direct competition. Utilizing contract clauses that allow for adjustments based on objective criteria or performance incentives can also help maintain focus on value and quality.

What are the implications of this contract being awarded to a joint venture for small business participation?

The implications for small business participation when a contract is awarded to a joint venture, especially on a sole-source basis, are complex. If Unami HWH Joint Ventures, LLC is structured with significant small business ownership or participation, it could be a positive outcome for those small businesses involved. However, without knowing the specific ownership structure or if there were specific small business subcontracting goals mandated in the sole-source justification, it's difficult to assess the direct impact. Typically, sole-source awards bypass the standard competitive process where small business set-asides are common. The government's focus would be on ensuring the joint venture itself has the capability, and any small business benefit would likely stem from the joint venture's internal subcontracting plans or the composition of the venture itself.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B01C22R00000135

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unami HWH Joint Ventures LLC

Address: 1617 INDUSTRIAL RD, ANADARKO, OK, 73005

Business Categories: Category Business, Corporate Entity Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,772,616

Exercised Options: $2,772,616

Current Obligation: $2,772,616

Actual Outlays: $1,632,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline