DHS Awards $33M Laredo AMO Facilities Construction Contract to Chitina Diversified - Ames 1 JV LLC

Contract Overview

Contract Amount: $33,061,978 ($33.1M)

Contractor: Chitina Diversified -Ames 1 JV LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-22

End Date: 2026-07-06

Contract Duration: 1,018 days

Daily Burn Rate: $32.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LAREDO PHASE 2 AMO FACILITIES CONSTRUCTION

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78040

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.1 million to CHITINA DIVERSIFIED -AMES 1 JV LLC for work described as: LAREDO PHASE 2 AMO FACILITIES CONSTRUCTION Key points: 1. Contract awarded for construction of AMO facilities in Laredo, Texas. 2. Chitina Diversified - Ames 1 JV LLC is the sole awardee. 3. The contract is a firm-fixed-price definitive contract. 4. Project duration is 1018 days, ending July 2026. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $33,061,977.95 for commercial and institutional building construction is within a reasonable range for a project of this scope and duration. However, without specific details on the facility's size and complexity, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract.

Public Impact

Construction of new facilities at the Laredo border crossing. Potential impact on border operations and infrastructure. Job creation in the construction sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
No small business participation.
Long project duration.

Positive Signals

Addresses critical infrastructure needs for CBP.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on government needs for infrastructure, facilities, and operational support. Benchmarks are highly project-specific.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). This suggests a missed opportunity to support small business participation in federal contracting for this significant construction project.

Oversight & Accountability

The award of a sole-source contract warrants oversight to ensure fair pricing and adherence to project timelines. Transparency regarding the justification for the sole-source award is crucial for accountability.

Related Government Programs

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

Risk Flags

Lack of competition may lead to inflated costs.
No small business participation noted.
Potential for cost overruns due to long project duration.
Sole-source award requires strong justification and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.1 million to CHITINA DIVERSIFIED -AMES 1 JV LLC. LAREDO PHASE 2 AMO FACILITIES CONSTRUCTION

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 $33.1 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-07-06.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Agencies must conduct market research and price analyses to ensure the negotiated price is fair and reasonable, even without competition. Documentation of these efforts is key to oversight and accountability.

What are the key performance indicators (KPIs) for this construction project, and how will their achievement be monitored to ensure taxpayer value?

Key performance indicators for construction projects often include adherence to schedule, budget, quality standards, and safety regulations. Monitoring involves regular site inspections, progress reports, and milestone reviews. Performance metrics should be clearly defined in the contract to ensure accountability and taxpayer value.

How will the new facilities enhance the operational effectiveness of U.S. Customs and Border Protection in Laredo?

The new AMO facilities are likely designed to improve operational efficiency, provide better working conditions for personnel, and potentially increase capacity for processing goods and individuals. Enhanced infrastructure can lead to more streamlined border operations, improved security, and better resource management.

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

Solicitation ID: 70B01C23R00000120

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 821 N ST, 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: $33,061,978

Exercised Options: $33,061,978

Current Obligation: $33,061,978

Actual Outlays: $16,759,551

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $26,874,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline