Borealis Enterprises LLC awarded $24.9M DHS contract for Niagara Falls Border Patrol Station design/build

Contract Overview

Contract Amount: $24,907,592 ($24.9M)

Contractor: Borealis Enterprises LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-29

End Date: 2026-09-08

Contract Duration: 1,075 days

Daily Burn Rate: $23.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE TWO DESIGN/BUILD CONTRACT FOR THE NIAGARA FALLS BORDER PATROL STATION.

Place of Performance

Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14301

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.9 million to BOREALIS ENTERPRISES LLC for work described as: PHASE TWO DESIGN/BUILD CONTRACT FOR THE NIAGARA FALLS BORDER PATROL STATION. Key points: 1. Contract focuses on design and construction for a critical border infrastructure project. 2. Sole-source award raises questions about potential cost efficiencies and market engagement. 3. Project duration of nearly three years suggests a complex undertaking. 4. Fixed-price contract type aims to control costs, but initial award value is substantial. 5. Geographic focus on New York border highlights strategic importance. 6. Lack of competition may limit opportunities for other qualified contractors.

Value Assessment

Rating: fair

The contract value of $24.9 million for a design/build project of this nature requires careful benchmarking against similar federal construction projects. Without specific details on the scope of work, it is difficult to definitively assess value for money. However, the sole-source nature of the award means there was no direct price competition to establish a market-driven benchmark. Further analysis would involve comparing the per-square-foot cost and complexity of this project to other border station constructions or similar institutional buildings.

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 responsible source is available or authorized by statute. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or offered innovative solutions from multiple firms. The justification for this sole-source award would need to be thoroughly reviewed to understand why other qualified contractors were not considered.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. This could potentially lead to higher overall costs for the project compared to an open competition scenario.

Public Impact

The primary beneficiaries are the U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who will receive a new facility to support border operations. The contract will deliver design and construction services for the Niagara Falls Border Patrol Station. The geographic impact is concentrated in Niagara Falls, New York, enhancing federal presence and operational capabilities in this specific border region. The project is expected to create jobs in the construction sector within New York, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to sole-source justification.
Potential for cost overruns if scope is not tightly managed, given the fixed-price nature.
Limited opportunity for small businesses to participate directly in this prime contract.

Positive Signals

Firm fixed-price contract aims to provide cost certainty for the government.
Project addresses a critical infrastructure need for border security operations.
Award to a single entity may streamline project management and execution.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of projects, from small renovations to large-scale public facilities. Federal spending in this area is significant, supporting national infrastructure and agency operational needs. Benchmarking this contract's value would involve comparing its cost per square foot and complexity to similar government-funded construction projects, considering factors like specialized security requirements and site-specific challenges.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further limits direct opportunities for small businesses to participate as prime contractors. While Borealis Enterprises LLC may engage small businesses for subcontracting, the absence of a set-aside or a competitive process focused on small business participation means a reduced direct impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection (CBP) contracting officer and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules tied to milestones. Transparency may be limited due to the sole-source nature of the award, with justifications for the procurement method being key to assessing openness. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Border Infrastructure Projects
Federal Building Construction
Department of Homeland Security Contracts
Customs and Border Protection Facilities

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated costs due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.9 million to BOREALIS ENTERPRISES LLC. PHASE TWO DESIGN/BUILD CONTRACT FOR THE NIAGARA FALLS BORDER PATROL STATION.

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 $24.9 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-08.

What is the specific justification for the sole-source award of this contract to Borealis Enterprises LLC?

The provided data indicates the contract was awarded on a sole-source basis ('NOT AVAILABLE FOR COMPETITION'). A full justification would typically be documented by the agency (Department of Homeland Security, U.S. Customs and Border Protection) and would need to outline why only Borealis Enterprises LLC could fulfill the requirement. Common reasons include unique capabilities, urgent needs where competition is impractical, or specific statutory authorities. Without access to the official justification document (e.g., a Justification and Approval - J&A), the precise rationale remains unknown. This lack of competition is a key area for scrutiny regarding potential value for taxpayers.

How does the $24.9 million contract value compare to similar border station design/build projects?

Direct comparison is challenging without detailed project scope, square footage, and specific construction complexities. However, $24.9 million for a design/build project suggests a significant undertaking. Similar federal border station projects can range widely in cost depending on location, security features, and size. For instance, smaller stations might cost under $10 million, while larger, more complex facilities, especially in remote or challenging terrains, could exceed $50 million. The Niagara Falls location and the 'Phase Two Design/Build' designation imply a substantial facility. A detailed cost-per-square-foot analysis against comparable projects would be necessary for a robust value assessment.

What are the key performance indicators (KPIs) and risk mitigation strategies for this contract?

Key performance indicators would likely revolve around adherence to the design specifications, construction quality, timely completion of milestones, and adherence to the budget. Risk mitigation strategies would be detailed in the contract itself. For a design/build project, risks include design errors, unforeseen site conditions, labor shortages, material cost fluctuations, and delays. The firm fixed-price nature shifts some cost risk to the contractor, Borealis Enterprises LLC. The agency (CBP) would likely employ regular progress reviews, site inspections, and potentially performance bonds to mitigate risks and ensure successful project delivery.

What is the historical spending pattern for the U.S. Customs and Border Protection (CBP) on border station construction?

Historical spending by CBP on border station construction is substantial and has likely increased over time due to evolving security needs and infrastructure upgrades. While specific aggregate data for 'border station construction' isn't provided here, CBP manages a vast portfolio of facilities. Annual budgets often include significant allocations for construction, renovation, and maintenance of ports of entry, patrol stations, and related infrastructure. Examining past solicitations and awards for similar projects, particularly in regions like New York, would reveal trends in contract values, types of services procured (design, build, renovation), and the prevalence of competitive versus sole-source awards.

What is the track record of Borealis Enterprises LLC in performing federal design/build contracts?

Assessing the track record of Borealis Enterprises LLC requires reviewing their past performance on federal contracts, specifically those involving design and build capabilities. Information such as past performance ratings, contract completion history (on-time, within budget), and any history of disputes or litigation would be crucial. Federal procurement databases (like SAM.gov or FPDS) often contain contract award histories and sometimes performance information. Without specific data on Borealis Enterprises LLC's past federal projects, it's difficult to definitively assess their capability and reliability for this significant $24.9 million contract.

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: 70B01C23R00000145

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: $24,907,592

Exercised Options: $24,907,592

Current Obligation: $24,907,592

Actual Outlays: $10,088,271

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $17,890,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline