DHS awards $4.16M construction contract for air and marine facilities, raising questions on competition

Contract Overview

Contract Amount: $4,156,520 ($4.2M)

Contractor: CCI Prime Contractors, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-30

End Date: 2026-06-30

Contract Duration: 273 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION REQUIREMENT FOR VARIOUS REPAIRS AT THE JACKSONVILLE AIR AND MARINE BRANCH OFFICE AND HANGAR FACILITIES, AND THE NEW ORLEANS AIR AND MARNE BRANCH SITE FACILITIES.

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.2 million to CCI PRIME CONTRACTORS, LLC for work described as: CONSTRUCTION REQUIREMENT FOR VARIOUS REPAIRS AT THE JACKSONVILLE AIR AND MARINE BRANCH OFFICE AND HANGAR FACILITIES, AND THE NEW ORLEANS AIR AND MARNE BRANCH SITE FACILITIES. Key points: 1. Contract focuses on essential repairs and facility upgrades for critical air and marine operations. 2. The award was not competed, indicating potential limitations in market engagement. 3. Pricing appears to be a firm fixed price, offering cost certainty but potentially limiting flexibility. 4. The contract duration of 273 days suggests a focused scope of work. 5. Geographic focus on Florida and Louisiana highlights regional operational needs. 6. The contractor, CCI Prime Contractors, LLC, will be responsible for delivering the specified construction services.

Value Assessment

Rating: fair

The contract value of $4.16 million for construction services at air and marine facilities appears within a reasonable range for specialized industrial building construction. However, without specific details on the scope of repairs and upgrades, a precise value-for-money assessment is challenging. Benchmarking against similar projects for government facilities of comparable size and complexity would be necessary for a more definitive evaluation. The firm fixed-price structure provides cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple bidders. The justification for this approach is not provided in the available data. Sole-source awards can sometimes lead to higher prices due to the lack of competitive pressure, but may be justified in specific circumstances where only one contractor can meet the unique requirements.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the potentially lower prices that could have resulted from a bidding process. This approach requires careful justification to ensure fair pricing and efficient use of funds.

Public Impact

The primary beneficiaries are the U.S. Customs and Border Protection (CBP) and its air and marine operations, which will receive improved and maintained facilities. Services delivered include construction for repairs and upgrades at the Jacksonville Air and Marine Branch Office, hangar facilities, and the New Orleans Air and Marine Branch Site. The geographic impact is concentrated in Florida and Louisiana, supporting critical border security infrastructure in these regions. Workforce implications include employment opportunities for construction labor and specialized trades involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for cost overruns if the scope of repairs is underestimated in the fixed-price contract.

Positive Signals

Addresses critical infrastructure needs for essential government operations.
Firm fixed-price contract provides budget certainty.
Clear end dates for project completion.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on specialized facilities. The market for government construction contracts is often competitive, but specific requirements, such as those for secure or specialized operational facilities, can sometimes lead to limited competition or sole-source awards. Benchmarking against similar government construction projects for operational facilities can provide context for the awarded value.

Small Business Impact

The data indicates that small business participation was not a stated requirement for this contract (ss: false, sb: false). There is no information provided regarding subcontracting opportunities for small businesses. Without specific set-aside goals or subcontracting plans, the direct impact on the small business ecosystem for this particular award is unclear, though larger prime contractors may engage small businesses for specific tasks.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and contracting oversight mechanisms, as well as potentially the U.S. Customs and Border Protection's program management. Transparency is limited by the sole-source nature of the award and the lack of detailed justification publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

Federal Building and Facilities Construction
Department of Homeland Security Infrastructure Projects
Air and Marine Operations Support Contracts
Government Facility Maintenance and Repair

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on scope of work.
Potential for non-competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.2 million to CCI PRIME CONTRACTORS, LLC. CONSTRUCTION REQUIREMENT FOR VARIOUS REPAIRS AT THE JACKSONVILLE AIR AND MARINE BRANCH OFFICE AND HANGAR FACILITIES, AND THE NEW ORLEANS AIR AND MARNE BRANCH SITE FACILITIES.

Who is the contractor on this award?

The obligated recipient is CCI PRIME CONTRACTORS, 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 $4.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-06-30.

What is the specific scope of repairs and upgrades included in this construction contract?

The provided data describes the contract as a 'CONSTRUCTION REQUIREMENT FOR VARIOUS REPAIRS AT THE JACKSONVILLE AIR AND MARINE BRANCH OFFICE AND HANGAR FACILITIES, AND THE NEW ORLEANS AIR AND MARNE BRANCH SITE FACILITIES.' However, the exact nature and extent of these 'various repairs' are not detailed. This could range from minor maintenance to significant structural upgrades. A more granular breakdown of the Statement of Work (SOW) would be necessary to fully understand the project's scope, assess its complexity, and benchmark the pricing effectively against similar construction projects.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Government agencies typically justify sole-source awards when only one responsible source is available or capable of meeting the agency's needs. Common reasons include unique capabilities, urgent and compelling needs where competition is impractical, or specific technical requirements that only one contractor can fulfill. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the specific rationale behind this sole-source decision. This lack of transparency can raise concerns about whether taxpayers received the best possible value.

How does the contract value of $4.16 million compare to similar construction projects for government air and marine facilities?

Benchmarking the $4.16 million contract value requires comparing it to similar projects in terms of scope, complexity, location, and type of facility. Projects involving repairs and upgrades to specialized government operational facilities, such as airfields and hangars, can vary significantly in cost. Factors like the specific types of repairs (e.g., roofing, HVAC, structural, electrical), the size of the facilities, and local construction market rates in Florida and Louisiana would influence the price. A comprehensive comparison would involve analyzing data from previously awarded federal contracts for similar industrial building construction, considering the number of bidders and the final negotiated prices.

What are the potential risks associated with a sole-source construction contract of this magnitude?

The primary risk associated with a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, the government may not achieve the most cost-effective outcome. Other risks include a lack of innovation that might be spurred by competition, and potential challenges in ensuring the contractor is performing optimally without the direct comparison of competing proposals. Furthermore, if the sole-source justification is weak or based on incomplete information, it could lead to scrutiny regarding the fairness and efficiency of the procurement process.

What is the track record of CCI Prime Contractors, LLC in performing similar government construction contracts?

Information regarding the specific track record of CCI Prime Contractors, LLC in performing similar government construction contracts is not provided in the data. To assess their reliability and past performance, one would typically review their contract history, including past performance evaluations, any reported disputes or claims, and the successful completion of projects of comparable size and complexity. Federal procurement databases often contain this information, which is crucial for evaluating a contractor's ability to meet the requirements of this new award.

What is the historical spending by the Department of Homeland Security (DHS) on industrial building construction?

Historical spending data for DHS on industrial building construction is not provided in the current dataset. However, federal agencies like DHS consistently invest in maintaining and upgrading their operational facilities, which include offices, hangars, and specialized sites. Annual reports, budget documents, and federal procurement databases (like USASpending.gov) would offer insights into the overall trends and magnitude of DHS spending in this category over time. This contract represents a portion of that broader spending pattern.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 WEST 16TH AVE, ANCHORAGE, AK, 99501

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: $4,156,520

Exercised Options: $4,156,520

Current Obligation: $4,156,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline