DoD's $173M Facilities Support Contract Awarded to NI Industries, Inc. Lacks Competition

Contract Overview

Contract Amount: $17,330,500 ($17.3M)

Contractor: NI Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-08-15

End Date: 2014-09-30

Contract Duration: 2,237 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BRAC MOVE FROM RBAAP TO RIA.

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to NI INDUSTRIES, INC. for work described as: BRAC MOVE FROM RBAAP TO RIA. Key points: 1. Significant contract value of $173.3 million over six years. 2. NI Industries, Inc. secured the sole award, raising competition concerns. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. Facilities Support Services sector often involves essential but potentially high-cost operations.

Value Assessment

Rating: questionable

The contract's $173.3 million value over six years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar facilities support services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in inflated costs, meaning taxpayers could be paying more than necessary for these facilities support services.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. Essential facilities support services at Rock Island Arsenal are provided by a single contractor. The long duration (over six years) locks in this non-competitive arrangement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Essential services provided

Sector Analysis

This contract falls within Facilities Support Services, a broad category encompassing maintenance, operations, and management of government facilities. Spending in this sector can vary widely based on facility size and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or if this award was set aside for small business participation. Further investigation is needed.

Oversight & Accountability

The non-competed nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that proper justification for sole-sourcing was documented.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competitive pricing.
Cost Plus Fixed Fee contract type may lead to cost overruns.
Long contract duration limits future competitive opportunities.
Potential for reduced contractor incentive to innovate or improve efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to NI INDUSTRIES, INC.. BRAC MOVE FROM RBAAP 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 $17.3 million.

What is the period of performance?

Start: 2008-08-15. End: 2014-09-30.

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

The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, such justifications cite unique capabilities, urgent needs, or lack of available sources. Without this information, it's impossible to assess if the government acted appropriately or missed an opportunity for better pricing through competition.

What are the potential risks associated with a Cost Plus Fixed Fee contract for facilities support?

Cost Plus Fixed Fee contracts can pose risks as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure may reduce the incentive for the contractor to control costs, potentially leading to higher overall expenditures than anticipated. For essential services like facilities support, cost overruns can significantly impact the total contract value.

How does the lack of competition impact the long-term effectiveness of facilities support at this location?

A lack of competition can lead to complacency and reduced innovation from the awarded contractor, potentially impacting the long-term effectiveness of facilities support. Without the pressure of competing for future contracts or facing rivals, the contractor may have less incentive to improve service quality or efficiency, ultimately affecting the operational readiness of the facilities.

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: $17,330,500

Exercised Options: $17,330,500

Current Obligation: $17,330,500

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J04G0007

IDV Type: IDC

Timeline