Department of the Army awards $1.88B facilities support contract to NI Industries, Inc. without competition

Contract Overview

Contract Amount: $18,830,500 ($18.8M)

Contractor: NI Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-03

End Date: 2014-03-31

Contract Duration: 2,097 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BRAC MOVE TO RIA.

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to NI INDUSTRIES, INC. for work described as: BRAC MOVE TO RIA. Key points: 1. The contract's significant value raises questions about the absence of a competitive bidding process. 2. Lack of competition may have led to suboptimal pricing and reduced value for taxpayer funds. 3. The 'NOT COMPETED' status is a key risk indicator, suggesting potential for inflated costs. 4. This contract represents a substantial portion of facilities support services spending for the Army. 5. The duration of the contract (2097 days) indicates a long-term commitment to a single provider.

Value Assessment

Rating: questionable

Given the contract was not competed, a direct value-for-money assessment is challenging. Without benchmark pricing from competing offers, it's difficult to ascertain if NI Industries, Inc. provided a fair price. The 'COST PLUS FIXED FEE' structure, while common, can sometimes lead to cost overruns if not rigorously managed. The total award amount of $1.88 billion over its term suggests a high unit cost, but without specific service breakdowns and market comparisons, a definitive value judgment is premature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT COMPETED' basis, indicating that a full and open competition was not conducted. The specific justification for this sole-source award is not provided in the data. Typically, sole-source awards are reserved for situations where only one responsible source can provide the required services, such as unique capabilities or urgent needs. The absence of competition limits the government's ability to explore alternative solutions and potentially secure better pricing.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that a competitive bidding process could have generated. This could translate to higher overall expenditure for the services rendered.

Public Impact

The Department of the Army is the primary beneficiary, receiving facilities support services. Services likely include maintenance, repair, and operational support for Army facilities. The contract's geographic impact is concentrated in Illinois (IL), where the contractor is located. Workforce implications include potential job creation or retention within NI Industries, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value.
The sole-source nature limits transparency and accountability in the procurement process.
Long contract duration without competition could entrench a single provider, hindering future innovation.
Cost-plus fixed-fee contracts require robust oversight to prevent contractor inefficiencies from increasing costs.

Positive Signals

The contract award to NI Industries, Inc. ensures continuity of essential facilities support services for the Army.
The fixed-fee component of the contract provides some level of cost predictability.
The award is for a significant duration, suggesting a strategic long-term need being met.

Sector Analysis

Facilities Support Services is a broad category encompassing a wide range of services essential for the operation and maintenance of government and commercial properties. This sector includes services like janitorial, security, maintenance, repair, and groundskeeping. The market is typically characterized by a mix of large, diversified service providers and smaller, specialized firms. Government contracts in this area are substantial due to the extensive real estate holdings of federal agencies. Benchmarking this contract's value against similar large-scale facilities support contracts would require detailed service scope comparisons.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award ('sb': false, 'ss': false). There is no indication of small business set-aside provisions or subcontracting goals. This suggests that the contract was not structured to specifically benefit small businesses, and their role in fulfilling these services is likely minimal or non-existent unless NI Industries, Inc. voluntarily engages them.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and potentially an Inspector General's office. Given the sole-source nature, rigorous oversight is crucial to ensure that the contractor is performing efficiently and that costs are reasonable. Transparency is limited due to the lack of competitive bidding. Accountability would primarily rest on the contractor's performance against the contract's terms and conditions, with the government having recourse for non-performance.

Related Government Programs

Base Operations Support (BOS)
Logistics and Facilities Management
Government Property Management
Public Works and Engineering Services

Risk Flags

Non-competitive award
High contract value
Lack of detailed service scope
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to NI INDUSTRIES, INC.. BRAC MOVE TO RIA.

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 $18.8 million.

What is the period of performance?

Start: 2008-07-03. End: 2014-03-31.

What specific services are included under this $1.88 billion facilities support contract?

The provided data classifies this contract under NAICS code 561210, which corresponds to Facilities Support Services. This broad category typically encompasses a wide array of services essential for the operation and maintenance of physical infrastructure. While specific line items are not detailed, common services include building operations and maintenance, groundskeeping, custodial services, pest control, security services, and potentially minor repair and renovation work. The substantial award amount suggests that these services are likely comprehensive and cover a significant portfolio of Army facilities within the specified region (Illinois).

Why was this contract awarded on a 'NOT COMPETED' basis?

The data explicitly states 'NOT COMPETED' for the contract type, indicating a sole-source procurement. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements where competition is not feasible. Without further documentation or justification from the Department of the Army, the precise reason for bypassing full and open competition remains unknown. This lack of transparency is a common concern with sole-source awards, as it limits the opportunity to assess if competition could have yielded better value or explored alternative solutions.

How does the $1.88 billion award compare to typical spending on facilities support services?

The $1.88 billion award is a substantial sum, indicative of a large-scale, long-term contract for facilities support. To benchmark this effectively, one would need to compare it against similar contracts awarded by the Department of Defense or other federal agencies for comparable services, scope, and duration. Factors such as the geographic region, the types of facilities supported (e.g., barracks, administrative buildings, training grounds), and the specific service mix heavily influence contract values. Without these comparative data points, it's difficult to definitively state whether this represents high or low spending relative to market norms, though its magnitude warrants scrutiny, especially given the non-competitive award.

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

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the contractor may have less incentive to offer the most competitive pricing. Additionally, there's a risk of reduced innovation and service quality, as the government is locked into a single provider for an extended period. Oversight becomes critically important to mitigate these risks, ensuring that the contractor is performing efficiently and that costs remain reasonable and justifiable. The lack of competition also limits the government's flexibility to switch providers if performance issues arise or if better solutions become available.

What is the track record of NI INDUSTRIES, INC. in performing federal contracts, particularly for facilities support?

The provided data identifies NI INDUSTRIES, INC. as the contractor for this significant facilities support contract. However, it does not offer details on the company's past performance, contract history, or specific experience in facilities management. A thorough assessment of the contractor's track record would require accessing historical contract databases to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without this information, it is challenging to evaluate NI INDUSTRIES, INC.'s capability and reliability in fulfilling the extensive requirements of this large-scale contract.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

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: $18,830,500

Exercised Options: $18,830,500

Current Obligation: $18,830,500

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J04G0007

IDV Type: IDC

Timeline