EPA awards $20.3M for SCIF construction, with 3 bidders competing for the fixed-price contract

Contract Overview

Contract Amount: $2,027,238 ($2.0M)

Contractor: Modular Management Group Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2023-11-27

End Date: 2026-04-09

Contract Duration: 864 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SENSITIVE COMPARTMENTED INFORMATION FACILITY (SCIF) PROJECT

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.0 million to MODULAR MANAGEMENT GROUP INC for work described as: SENSITIVE COMPARTMENTED INFORMATION FACILITY (SCIF) PROJECT Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type shifts performance risk to the contractor. 3. The project involves the construction of a Sensitive Compartmented Information Facility (SCIF). 4. The contract duration is approximately 2.8 years, aligning with typical construction project timelines. 5. The North Carolina location may indicate regional economic impact and workforce implications. 6. The NAICS code 332311 points to the prefabricated metal building manufacturing sector.

Value Assessment

Rating: good

The contract value of $20.3 million for a SCIF project appears reasonable given the specialized nature of such facilities, which often require enhanced security and construction standards. Benchmarking against similar SCIF construction projects is difficult without more specific project details, but the competitive bidding process suggests that pricing was vetted against market rates. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bidders submitting proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of multiple bidders indicates that the market has suppliers capable of meeting the requirements for SCIF construction.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are likely federal agencies requiring secure facilities for classified information, such as those within the Environmental Protection Agency (EPA). The contract will result in the construction of a specialized Sensitive Compartmented Information Facility (SCIF). The project's geographic impact is concentrated in North Carolina, potentially creating local construction jobs and supporting regional businesses. Workforce implications include demand for skilled labor in construction, specialized trades, and potentially security-related services during the facility's operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or specialized security requirements emerge during construction.
Risk of schedule delays due to the complexity of SCIF construction and potential supply chain issues for specialized materials.
Ensuring compliance with stringent security protocols throughout the construction process can be challenging.

Positive Signals

The firm fixed-price contract structure transfers significant cost risk to the contractor.
Full and open competition with three bidders suggests a robust market response and potential for competitive pricing.
The contract duration appears adequate for the scope of work, allowing for planned construction phases.

Sector Analysis

The contract falls within the construction and manufacturing sector, specifically related to prefabricated metal buildings and components (NAICS 332311). The market for specialized secure facilities like SCIFs is a niche within the broader construction industry, often involving government contractors with specific security clearances and expertise. Comparable spending benchmarks are difficult to establish without detailed project specifications, but government spending on secure facilities is substantial across various agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. However, the prime contractor, Modular Management Group Inc., may engage small businesses for subcontracting opportunities to fulfill various aspects of the construction project, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Environmental Protection Agency's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability for cost control. Transparency may be limited due to the sensitive nature of SCIF facilities, but contract award details and performance reporting should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Secure Facility Construction
Department of Defense Construction Contracts
General Services Administration (GSA) Public Buildings Service
Environmental Protection Agency (EPA) Capital Construction

Risk Flags

Security Compliance Risk
Construction Schedule Risk
Cost Overrun Risk
Supply Chain Disruption Risk

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.0 million to MODULAR MANAGEMENT GROUP INC. SENSITIVE COMPARTMENTED INFORMATION FACILITY (SCIF) PROJECT

Who is the contractor on this award?

The obligated recipient is MODULAR MANAGEMENT GROUP INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-11-27. End: 2026-04-09.

What is the track record of Modular Management Group Inc. with federal SCIF construction projects?

Information regarding Modular Management Group Inc.'s specific track record with federal SCIF construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government contracts, including project scope, value, timeliness, and client satisfaction. Federal procurement databases like SAM.gov or FPDS might contain historical contract awards and performance evaluations for this contractor. Understanding their experience with secure facility construction, adherence to security protocols, and ability to manage complex projects is crucial for evaluating their capability to successfully execute this SCIF project.

How does the $20.3 million contract value compare to similar SCIF construction projects?

Direct comparison of the $20.3 million contract value to similar SCIF construction projects is challenging without detailed project specifications, such as square footage, security levels, specific technological integrations, and geographic location. SCIF construction costs can vary significantly based on these factors. However, the value appears within a plausible range for specialized government facilities. A thorough benchmark analysis would involve identifying comparable projects awarded by agencies like the DoD, Intelligence Community, or GSA, and adjusting for differences in scope, complexity, and prevailing market conditions at the time of award. The competitive bidding process suggests the price was vetted against market expectations.

What are the primary risks associated with constructing a SCIF, and how are they mitigated in this contract?

Primary risks in SCIF construction include adherence to stringent security requirements (e.g., TEMPEST, acoustic, structural), potential for unforeseen site conditions, integration of specialized technical systems, and managing a highly regulated construction environment. This contract mitigates some risks through its firm fixed-price structure, which shifts cost overruns to the contractor. The full and open competition with three bidders also suggests a capable contractor pool. However, risks related to security compliance, specialized material sourcing, and potential delays due to government security reviews remain. Robust project management, clear communication channels, and rigorous quality assurance by the EPA will be critical for successful mitigation.

What is the expected effectiveness of this SCIF project in meeting the EPA's classified information needs?

The effectiveness of this SCIF project hinges on its successful completion according to specified security, technical, and functional requirements. A well-constructed SCIF will provide a secure environment necessary for the EPA to handle classified information, enabling critical operations and decision-making that require such protection. The effectiveness will be measured by the facility's ability to meet all accreditation standards, support the intended operational tempo, and provide a secure workspace for authorized personnel. The EPA's program managers will be responsible for ensuring the final facility meets its intended purpose and security mandates.

What are the historical spending patterns for SCIF construction by the EPA or similar agencies?

Historical spending patterns for SCIF construction by the EPA and similar agencies indicate a consistent need for secure facilities across various federal departments. While specific EPA SCIF spending data isn't provided, agencies like the Department of Defense, Intelligence Community, and others regularly invest in secure construction projects. These investments can range from millions to tens or hundreds of millions of dollars, depending on the scale and complexity of the facility. Analyzing past contract awards for SCIFs can reveal trends in project size, cost per square foot, and the types of contractors most frequently engaged, providing context for the current $20.3 million award.

What are the implications of the 'Prefabricated Metal Building and Component Manufacturing' NAICS code for this SCIF project?

The assignment of NAICS code 332311 ('Prefabricated Metal Building and Component Manufacturing') suggests that a significant portion of the SCIF's construction will involve the fabrication and assembly of prefabricated metal structures and their components. This approach can offer advantages such as faster on-site assembly, controlled factory production for quality, and potentially cost efficiencies. However, it also implies that the final SCIF structure will be largely derived from manufactured metal elements. The integration of specialized SCIF security features (e.g., shielding, soundproofing) within a prefabricated metal framework will be a key aspect of the project's design and execution.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 68HERC22R0051

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6602 PLAZA PKWY, FORT WORTH, TX, 76116

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,027,238

Exercised Options: $2,027,238

Current Obligation: $2,027,238

Actual Outlays: $1,579,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0222X

IDV Type: FSS

Timeline