DHS Awards $13.5M to Teya Enterprises for Minnesota Port of Entry Modernization

Contract Overview

Contract Amount: $13,499,460 ($13.5M)

Contractor: Teya Enterprises LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION TO MODERNIZE THE LANCASTER AND ROSEAU LAND PORTS OF ENTRY IN MINNESOTA TO THE LATEST CBP DESIGN STANDARDS AND TO ADDRESS THE FACILITY ISSUES THAT HAVE DEVELOPED.

Place of Performance

Location: LANCASTER, KITTSON County, MINNESOTA, 56735

State: Minnesota Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.5 million to TEYA ENTERPRISES LLC for work described as: CONSTRUCTION TO MODERNIZE THE LANCASTER AND ROSEAU LAND PORTS OF ENTRY IN MINNESOTA TO THE LATEST CBP DESIGN STANDARDS AND TO ADDRESS THE FACILITY ISSUES THAT HAVE DEVELOPED. Key points: 1. Contract awarded for modernization of Lancaster and Roseau Land Ports of Entry. 2. Focus on meeting latest CBP design standards and addressing facility issues. 3. Project duration is 1095 days, with a firm fixed price contract. 4. No small business participation noted in this award.

Value Assessment

Rating: fair

The contract value of $13.5 million for port of entry modernization appears within a reasonable range for such infrastructure projects. However, without specific benchmarks for similar CBP modernization efforts, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection process. This approach may impact price discovery and potentially lead to higher costs compared to a fully competitive environment.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at border crossings, which is a necessary government function. The lack of competition warrants scrutiny to ensure value for money.

Public Impact

Modernized ports of entry will improve border security and efficiency. Infrastructure upgrades are crucial for managing trade and travel flows. Investment in border infrastructure supports national security objectives. Local economy may see some benefit from construction-related jobs. Potential for improved working conditions for CBP personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about cost-effectiveness.
Lack of small business participation.

Positive Signals

Addresses critical infrastructure needs.
Clear project scope and objectives.

Sector Analysis

Construction spending in the Commercial and Institutional Building sector is significant. This project falls under general building construction, with specific requirements for government facilities. Benchmarks for similar port modernization projects are not readily available, but the value is substantial for a single contract.

Small Business Impact

This contract was awarded without small business participation. Efforts to include small businesses in future similar procurements could be explored to promote economic opportunity.

Oversight & Accountability

The Department of Homeland Security is responsible for overseeing this contract. Standard oversight mechanisms should be in place to monitor progress, quality, and adherence to the contract terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Limited competition
No small business participation
Potential for cost overruns due to lack of competition
Contract duration is substantial, requiring ongoing monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.5 million to TEYA ENTERPRISES LLC. CONSTRUCTION TO MODERNIZE THE LANCASTER AND ROSEAU LAND PORTS OF ENTRY IN MINNESOTA TO THE LATEST CBP DESIGN STANDARDS AND TO ADDRESS THE FACILITY ISSUES THAT HAVE DEVELOPED.

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 $13.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What specific factors led to the limited competition for this port modernization contract?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' This suggests potential reasons such as a need for specialized expertise, urgency, or a prior relationship with the contractor that justified a sole-source or limited-source award. Further investigation into the justification for this procurement approach would be necessary to fully understand the circumstances.

How does the $13.5 million cost compare to similar port of entry modernization projects?

Without access to a database of comparable port of entry modernization projects, a direct cost comparison is challenging. The value of $13.5 million is significant, but the complexity, scope, and specific design standards required for CBP facilities can vary widely, making direct comparisons difficult without detailed project specifications.

What are the potential risks associated with a limited competition award for this construction project?

The primary risk of limited competition is the potential for inflated costs due to a lack of price pressure from multiple bidders. There's also a risk that the chosen contractor may not be the most innovative or efficient option available. Ensuring robust oversight and clear performance metrics becomes even more critical in such scenarios.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B01C23R00000131

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVE STE 9BMS-04, 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, 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: $13,499,460

Exercised Options: $13,499,460

Current Obligation: $13,499,460

Actual Outlays: $9,308,382

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline