DHS Awards $23.8M Laredo Air Unit Facility Construction to Chitina Diversified - Ames 1 JV LLC

Contract Overview

Contract Amount: $23,784,263 ($23.8M)

Contractor: Chitina Diversified -Ames 1 JV LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-06-16

End Date: 2026-07-01

Contract Duration: 1,476 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT NEW LAREDO AIR UNIT FACILITY, LAREDO, TX

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78041

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.8 million to CHITINA DIVERSIFIED -AMES 1 JV LLC for work described as: CONSTRUCT NEW LAREDO AIR UNIT FACILITY, LAREDO, TX Key points: 1. The contract is for the construction of a new air unit facility in Laredo, Texas. 2. The awardee is CHITINA DIVERSIFIED - AMES 1 JV LLC. 3. The contract type is Firm Fixed Price, awarded by the Department of Homeland Security (U.S. Customs and Border Protection). 4. The project duration is 1476 days, with an estimated completion date of July 1, 2026. 5. The contract was not available for competition.

Value Assessment

Rating: fair

The contract value of $23.8 million for a new air unit facility appears within a reasonable range for large-scale construction projects of this nature. However, without specific details on the facility's size, scope, and complexity, a precise benchmark is difficult to establish.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This method may impact price discovery, potentially leading to higher costs than if full and open competition had been utilized.

Taxpayer Impact: The limited competition approach could result in a higher taxpayer cost compared to a fully competitive bid process.

Public Impact

Construction of a new facility will create jobs in the Laredo, Texas area. The new air unit facility is expected to enhance border security operations for U.S. Customs and Border Protection. The long duration of the contract (over 4 years) suggests a complex and significant construction undertaking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Long project duration increases risk of cost overruns and delays.

Positive Signals

Supports critical infrastructure for border security.
Firm Fixed Price contract provides cost certainty if scope is well-defined.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on economic conditions, infrastructure needs, and government priorities. Benchmarks for similar facilities would require detailed project specifications.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Homeland Security is responsible for overseeing this contract. Accountability will depend on robust project management, regular progress reporting, and adherence to contract terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Limited competition
Long contract duration
Potential for cost overruns
Lack of transparency in competition justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.8 million to CHITINA DIVERSIFIED -AMES 1 JV LLC. CONSTRUCT NEW LAREDO AIR UNIT FACILITY, LAREDO, TX

Who is the contractor on this award?

The obligated recipient is CHITINA DIVERSIFIED -AMES 1 JV 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 $23.8 million.

What is the period of performance?

Start: 2022-06-16. End: 2026-07-01.

What specific factors led to the determination that this contract was not available for competition?

The determination that a contract is not available for full and open competition typically stems from specific circumstances such as urgent and compelling needs, the unique capabilities of a single source, or national security requirements. Without further documentation, the exact justification for this limited competition remains unclear and warrants further investigation to ensure fair and efficient use of taxpayer funds.

How will the long project duration (1476 days) be managed to mitigate risks of cost escalation and schedule slippage?

Managing a project of this duration requires rigorous oversight, including detailed milestone tracking, regular performance reviews, and proactive risk management. The contracting agency should implement strict change control processes to prevent scope creep and ensure timely resolution of any issues that arise. Performance incentives or penalties tied to schedule adherence could also be considered to motivate the contractor.

What are the key performance indicators (KPIs) for this facility construction, and how will their achievement be measured?

Key performance indicators for this construction project would likely include adherence to the approved budget, completion within the established timeline, quality of construction meeting specified standards, and safety compliance on site. The contracting officer's representative (COR) and quality assurance personnel will be crucial in monitoring progress against these KPIs through site inspections, progress reports, and final acceptance testing.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF 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: 821 N ST STE 204, ANCHORAGE, AK, 99501

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $93,571,710

Exercised Options: $93,272,930

Current Obligation: $23,784,263

Actual Outlays: $21,656,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline