Secret Service training center awarded to Olgoonik Enterprises for $397.7M, a significant investment in federal law enforcement facilities

Contract Overview

Contract Amount: $3,977,441 ($4.0M)

Contractor: Olgoonik Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-12

End Date: 2026-06-04

Contract Duration: 996 days

Daily Burn Rate: $4.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BUILD PROJECT TO PROVIDE A NEW TRAINING CENTER FOR THE UNITED STATES SECRET SERVICE AT FLETC GLYNCO. PROJECT SHALL INCLUDE A TURNKEY BUILDING, AND ALL THE FURNITURE REQUIRED FOR THE FACILITY. THE BUILDING SHALL BE CONSTRUCTED USING A 30 TO 32

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.0 million to OLGOONIK ENTERPRISES, LLC for work described as: DESIGN-BUILD PROJECT TO PROVIDE A NEW TRAINING CENTER FOR THE UNITED STATES SECRET SERVICE AT FLETC GLYNCO. PROJECT SHALL INCLUDE A TURNKEY BUILDING, AND ALL THE FURNITURE REQUIRED FOR THE FACILITY. THE BUILDING SHALL BE CONSTRUCTED USING A 30 TO 32 Key points: 1. This project represents a substantial capital investment in critical infrastructure for the Secret Service. 2. The firm-fixed-price contract structure aims to control costs, but requires careful monitoring of scope changes. 3. The sole-source award raises questions about potential cost efficiencies and market-driven pricing. 4. Construction of a turnkey facility with furniture indicates a comprehensive approach to readiness. 5. The project's success hinges on timely completion and adherence to the specified construction standards. 6. Geographic concentration in Georgia may have localized economic impacts.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its specific nature as a turnkey training facility for a federal law enforcement agency. The total award of $397.7 million for a 30-32 month construction period suggests a high per-square-foot cost, typical for specialized government facilities. Without comparable sole-source projects or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature provides some cost certainty for the government, assuming no significant scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. This approach is typically justified when only one vendor possesses the unique capabilities, security clearances, or specialized knowledge required for the project. The lack of competition means the government did not benefit from a bidding process that could drive down prices through market forces. The justification for this sole-source award would need to be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: The absence of competition for this significant contract means taxpayers may not have received the most cost-effective solution available in the market. Without competitive bids, there's a risk that the price may be higher than what could have been achieved through an open solicitation.

Public Impact

The primary beneficiary is the United States Secret Service, which will gain a new, modern training facility. The facility will support enhanced training capabilities for agents and personnel, improving operational readiness. The project is located in Glynn County, Georgia, potentially creating local construction jobs and economic activity. The construction itself will involve a workforce skilled in commercial and institutional building. The new training center is expected to improve the effectiveness and efficiency of Secret Service operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Firm-fixed-price contracts can become costly if scope changes are not managed rigorously.
Construction projects of this scale carry inherent risks of delays and cost overruns.
Dependence on a single contractor for a critical facility requires robust oversight.

Positive Signals

Turnkey approach ensures all aspects of the facility, including furnishings, are delivered.
Firm-fixed-price contract provides cost certainty if scope is well-defined and managed.
Project is for a critical national security function (Secret Service training).
Location in Georgia may leverage existing regional construction expertise.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the U.S. economy. This contract falls within the specialized niche of government facility construction, which often involves stringent security, design, and performance requirements. Federal spending in this area can be substantial, particularly for agencies like Homeland Security that require dedicated training and operational infrastructure. Comparable projects might include other agency training centers or secure facility constructions, though direct comparisons are difficult due to unique specifications and sole-source awards.

Small Business Impact

This contract was not awarded to a small business and there is no indication of small business subcontracting requirements being a primary focus in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate directly. While the prime contractor may engage subcontractors, the absence of a set-aside or specific subcontracting goals means the direct impact on the small business ecosystem is likely minimal unless proactively managed by the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Law Enforcement Training Center (FLETC) within the Department of Homeland Security. Given the project's scale and importance, regular progress reviews, site inspections, and financial audits are expected. The firm-fixed-price nature necessitates close monitoring of the contractor's performance against the contract schedule and specifications. Transparency would be enhanced through public reporting on project milestones and any significant deviations from the plan.

Related Government Programs

Federal Law Enforcement Training Centers
Department of Homeland Security Facilities
Secret Service Operations Support
Government Construction Projects
Secure Facility Design and Construction

Risk Flags

Sole-source award requires strong justification.
Potential for cost overruns if scope changes are not managed.
Construction project risks (delays, unforeseen conditions).
Contractor performance history needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.0 million to OLGOONIK ENTERPRISES, LLC. DESIGN-BUILD PROJECT TO PROVIDE A NEW TRAINING CENTER FOR THE UNITED STATES SECRET SERVICE AT FLETC GLYNCO. PROJECT SHALL INCLUDE A TURNKEY BUILDING, AND ALL THE FURNITURE REQUIRED FOR THE FACILITY. THE BUILDING SHALL BE CONSTRUCTED USING A 30 TO 32

Who is the contractor on this award?

The obligated recipient is OLGOONIK ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2023-09-12. End: 2026-06-04.

What is the specific justification for the sole-source award to Olgoonik Enterprises, LLC?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Typically, such justifications are based on factors like unique capabilities, specialized knowledge, urgent needs, or the unavailability of other responsible sources. For a project like a specialized training center, the justification might stem from Olgoonik Enterprises possessing specific security clearances, proprietary technology, or extensive experience with the Secret Service's unique training requirements that other firms lack. A formal Justification for Other Than Full and Open Competition (JOFOC) would detail these reasons and would be required for a sole-source award of this magnitude.

How does the cost per square foot for this training center compare to similar government construction projects?

Without the total square footage of the planned training center, a precise cost per square foot cannot be calculated. However, the total contract value of $397.7 million over a 30-32 month period suggests a significant investment. Government construction projects, especially those involving specialized facilities like training centers with high security and specific technological requirements, often have higher per-square-foot costs than standard commercial buildings. Factors such as specialized HVAC, security systems, training rooms, and durable finishes contribute to this. Benchmarking would require access to detailed architectural plans and cost breakdowns, as well as data on comparable sole-source or competed federal training facility projects.

What are the key performance indicators (KPIs) being used to monitor the progress and success of this construction project?

While specific KPIs are not detailed in the provided data, typical performance indicators for a large-scale construction project like this would include adherence to the project schedule (milestone completion dates), quality of construction (meeting design specifications and building codes), safety compliance (incident rates), budget management (tracking expenditures against the fixed price), and timely delivery of the turnkey facility with all specified furnishings. The contracting officer and project managers at FLETC would be responsible for monitoring these KPIs and ensuring Olgoonik Enterprises meets its contractual obligations.

What is the track record of Olgoonik Enterprises, LLC in completing large-scale federal construction projects?

Olgoonik Enterprises, LLC is identified as the contractor. Information regarding their specific track record on large-scale federal construction projects, particularly those of similar complexity and value to this Secret Service training center, is not detailed in the provided data. A thorough assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of project delays, cost overruns, or disputes on federal projects. Their experience with government facilities and adherence to security protocols would be critical factors.

What are the potential risks associated with a firm-fixed-price contract for a project of this duration and complexity?

Firm-fixed-price (FFP) contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, for a complex, multi-year construction project, the primary risk lies in scope creep. If the government requests changes or additions to the original scope, these can lead to significant cost increases and schedule delays, potentially negating the FFP benefit. The contractor also bears the risk of cost overruns if their estimates are inaccurate or unforeseen issues arise. Robust change order management processes are crucial to mitigate these risks.

How does this spending compare to historical federal investments in law enforcement training facilities?

The $397.7 million award for a new Secret Service training center represents a substantial, single investment. Historical federal spending on law enforcement training facilities varies widely depending on agency needs, infrastructure modernization cycles, and budget allocations. Without specific data on past FLETC expansions or similar projects for other agencies (e.g., FBI Academy, DEA training facilities), a direct comparison is difficult. However, large-scale, purpose-built facilities like this are infrequent and represent significant capital outlays, often undertaken when existing infrastructure is deemed inadequate or outdated.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70LGLY23RSSB00009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 S TEJON ST STE G, COLORADO SPRINGS, CO, 80903

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,977,441

Exercised Options: $3,977,441

Current Obligation: $3,977,441

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline