DoD's $23M BRAC Equipment Purchase and Rehab contract awarded to NI Industries, Inc. for facilities support

Contract Overview

Contract Amount: $22,994,285 ($23.0M)

Contractor: NI Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2014-03-31

Contract Duration: 2,376 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BRAC EQUIPMENT PURCHASE AND REHAB FOR RIA MOVE.

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to NI INDUSTRIES, INC. for work described as: BRAC EQUIPMENT PURCHASE AND REHAB FOR RIA MOVE. Key points: 1. The contract's value of $22.99 million for facilities support services appears substantial, warranting a close examination of its cost-effectiveness. 2. Awarded as 'Not Competed,' this contract raises questions about the extent of competition and potential impacts on pricing. 3. The duration of nearly 8 years (2376 days) suggests a long-term commitment, requiring assessment of sustained value and performance. 4. The contract type, Cost Plus Fixed Fee (CPFF), can incentivize cost overruns if not managed diligently. 5. The geographic focus on Illinois (IL) indicates a localized impact for this specific BRAC initiative. 6. The absence of small business set-aside flags suggests limited direct opportunities for small businesses within this prime contract.

Value Assessment

Rating: fair

The contract's total value of $22.99 million for facilities support services, specifically for BRAC equipment purchase and rehabilitation, is significant. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively benchmark its value. However, the CPFF contract type carries inherent risks of cost escalation, which could impact overall value for money if not rigorously managed. The fixed fee component provides some cost certainty for the contractor's profit, but the base cost is subject to variation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Competed' procurement, indicating a sole-source or limited competition scenario. The specific justification for this approach is not detailed in the provided data. Sole-source awards can sometimes be necessary for specialized services or urgent requirements, but they typically limit price discovery and may result in higher costs compared to fully competed contracts. The lack of multiple bidders means potential savings from competitive bidding were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price for the required services.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other entities involved in the Base Realignment and Closure (BRAC) process, ensuring necessary facilities are prepared. The services delivered include the purchase and rehabilitation of equipment essential for facility readiness and operational capacity. The geographic impact is concentrated in Illinois (IL), where the facilities requiring rehabilitation are located. Workforce implications may include the creation or sustainment of jobs in facilities management, construction, and equipment operation within the Illinois region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Not Competed' award raises concerns about potential lack of competitive pricing and value for taxpayer dollars.
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored and controlled.
The long contract duration (nearly 8 years) increases the risk of scope creep or evolving requirements not being optimally managed.
Lack of transparency regarding the justification for sole-source award limits understanding of procurement decisions.

Positive Signals

The contract addresses specific needs related to the Base Realignment and Closure (BRAC) initiative, indicating a strategic government objective.
NI Industries, Inc. was awarded the contract, suggesting they possess the necessary capabilities for facilities support and equipment rehabilitation.
The contract specifies a fixed fee, which provides a defined profit margin for the contractor, potentially aiding in budget predictability for that component.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing maintenance, repair, and operational support for government facilities. The market for such services is substantial, driven by ongoing government needs for infrastructure upkeep and modernization. This specific award is tied to the Base Realignment and Closure (BRAC) program, a unique government initiative involving the consolidation and relocation of military bases, which often requires significant facilities work. Comparable spending benchmarks would typically involve analyzing other large-scale facilities support contracts awarded by the Department of Defense or other federal agencies for similar BRAC-related activities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was awarded to a large business, NI Industries, Inc. There is no explicit information on subcontracting plans or goals for small businesses. Consequently, the direct impact on the small business ecosystem from this prime contract appears limited, although the contractor may engage small businesses for specific support roles not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the awarding agency, the Department of the Army, and potentially the Department of Defense's Inspector General. Given the 'Not Competed' nature and CPFF structure, rigorous oversight of cost, performance, and adherence to the contract scope would be crucial. Transparency regarding the justification for the sole-source award and regular performance reviews would be key accountability measures. The contract's long duration necessitates sustained oversight to ensure continued alignment with government objectives.

Related Government Programs

Base Realignment and Closure (BRAC) Program
Department of Defense Facilities Management
Army Facilities Engineering
Government Equipment Procurement
Facilities Support Services Contracts

Risk Flags

Sole-source award justification unclear
Potential for cost overruns due to CPFF structure
Limited transparency on competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to NI INDUSTRIES, INC.. BRAC EQUIPMENT PURCHASE AND REHAB FOR RIA MOVE.

Who is the contractor on this award?

The obligated recipient is NI INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2007-09-28. End: 2014-03-31.

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

The provided data indicates the contract was 'Not Competed' (ct: NOT COMPETED), suggesting a sole-source or limited competition award. However, the specific justification for this procurement approach is not detailed in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further documentation from the Department of the Army, the precise rationale remains unclear. This lack of transparency can raise concerns about whether full and open competition was explored or if specific circumstances genuinely precluded it, potentially impacting the final price paid by taxpayers.

How does the cost of this contract compare to similar BRAC-related facilities support contracts?

Benchmarking the cost of this $22.99 million contract against similar BRAC-related facilities support contracts is challenging without access to a broader dataset of comparable awards. Factors such as the specific scope of work (equipment purchase vs. rehabilitation), geographic location, duration, and complexity of the facilities involved can significantly influence pricing. The contract type (Cost Plus Fixed Fee) also introduces variability in total cost compared to fixed-price contracts. A comprehensive analysis would require identifying contracts with similar objectives, scale, and service requirements, and then adjusting for known variables to establish a fair comparison.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this BRAC equipment purchase and rehabilitation project is the potential for cost overruns. While the fixed fee provides a predictable profit margin for the contractor (NI Industries, Inc.), the 'cost' portion of the contract is reimbursable. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total project expenditure. Effective oversight by the Department of the Army is crucial to scrutinize allowable costs, prevent unnecessary spending, and ensure the project stays within budgetary expectations. Without stringent cost controls and performance monitoring, the total contract value could exceed initial estimates.

What is the track record of NI Industries, Inc. in performing similar facilities support contracts for the federal government?

Information regarding NI Industries, Inc.'s specific track record in performing similar facilities support contracts for the federal government is not provided in the data snippet. To assess their capability and past performance, one would typically need to consult federal procurement databases (like SAM.gov or FPDS) for historical contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A review of their past performance would help determine their reliability, efficiency, and ability to manage complex projects like BRAC equipment rehabilitation within budget and schedule.

How has federal spending on facilities support services evolved, and where does this contract fit within that trend?

Federal spending on facilities support services is a significant and consistent component of government expenditures, driven by the need to maintain and operate a vast portfolio of real property. This spending fluctuates based on agency priorities, infrastructure needs, and specific initiatives like BRAC. This $22.99 million contract represents a specific allocation towards the BRAC program's objectives in Illinois. While it's a substantial amount for a single contract, it must be viewed within the broader context of annual federal outlays for facilities maintenance, repair, and modernization across all agencies, which often run into billions of dollars. The trend is generally towards optimizing facility usage and ensuring operational readiness, with contracts like this supporting those goals.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trimas Corporation (UEI: 175591072)

Address: 5300 CLAUS RD, MODESTO, CA, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,994,285

Exercised Options: $22,994,285

Current Obligation: $22,994,285

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J04G0007

IDV Type: IDC

Timeline