DHS Awards $810K for Temporary Office Space in Indianapolis to Blue Construction Services LLC

Contract Overview

Contract Amount: $81,077 ($81.1K)

Contractor: Blue Construction Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-30

End Date: 2026-04-30

Contract Duration: 212 days

Daily Burn Rate: $382/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TEMPORARY OFFICE SPACE IN INDIANAPOLIS, IN

Place of Performance

Location: DANVILLE, DANVILLE CITY County, VIRGINIA, 24541

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $81,077.43 to BLUE CONSTRUCTION SERVICES LLC for work described as: TEMPORARY OFFICE SPACE IN INDIANAPOLIS, IN Key points: 1. Spending focuses on essential office space for CBP operations. 2. Limited competition raises questions about price discovery and value. 3. Potential risk associated with reliance on a single vendor. 4. Sector is commercial real estate leasing, a common government need.

Value Assessment

Rating: fair

The contract value of $810,774.43 for 212 days of temporary office space appears high given the lack of detailed pricing information. Benchmarking against similar commercial lease agreements in Indianapolis would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This method may not yield the best price for taxpayers as competitive pressures are absent.

Taxpayer Impact: Taxpayer funds are being used for office space without competitive bidding, potentially leading to a higher cost than if multiple vendors had competed.

Public Impact

Ensures operational continuity for U.S. Customs and Border Protection in Indianapolis. Supports federal agency presence and functions within a specific geographic area. Provides necessary infrastructure for government employees and activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to limited bidding
Short-term nature of the lease may indicate urgent need or planning gap

Positive Signals

Provides necessary office space for critical agency functions
Supports federal presence in Indianapolis

Sector Analysis

This contract falls within the commercial real estate sector, specifically nonresidential building leasing. Government spending in this area is common for agency operations, but competitive sourcing is crucial for cost efficiency.

Small Business Impact

Information regarding small business participation is not available for this contract, suggesting it may not have been specifically set aside or awarded to a small business.

Oversight & Accountability

The award is a purchase order, which is a standard procurement instrument. Oversight would involve ensuring the space meets requirements and the vendor fulfills contractual obligations.

Related Government Programs

Lessors of Nonresidential Buildings (except Miniwarehouses)
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency on pricing justification
Absence of small business consideration noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $81,077.43 to BLUE CONSTRUCTION SERVICES LLC. TEMPORARY OFFICE SPACE IN INDIANAPOLIS, IN

Who is the contractor on this award?

The obligated recipient is BLUE CONSTRUCTION SERVICES 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 $81,077.43.

What is the period of performance?

Start: 2025-09-30. End: 2026-04-30.

What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source or limited-source justification. Without further details, it's unclear what specific circumstances necessitated this approach. Agencies typically require documented justifications for non-competitive awards to ensure they are in the government's best interest and that pricing is fair and reasonable, often through market research or historical data.

How does the cost per square foot or per employee compare to market rates for similar temporary office spaces in Indianapolis?

The provided data lacks specifics on square footage or the number of employees the space will accommodate, making a direct cost-per-unit comparison impossible. To assess value, one would need to obtain these details and benchmark them against prevailing commercial lease rates in the Indianapolis area for comparable temporary office facilities.

What are the long-term implications of relying on temporary office space, and could this indicate a need for more permanent solutions?

The 212-day duration suggests a short-term need, possibly due to unforeseen circumstances, facility issues, or transitional phases. While necessary for immediate operational needs, prolonged reliance on temporary space can be less cost-effective and less conducive to building a stable work environment compared to permanent facilities.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 633 YORK LN SE, LEESBURG, VA, 20175

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $81,077

Exercised Options: $81,077

Current Obligation: $81,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline