DHS awards $2M for tactical training house, raising questions on competition and value

Contract Overview

Contract Amount: $1,999,875 ($2.0M)

Contractor: Cheroenhaka Nottoway Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2026-04-30

Contract Duration: 577 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO BUILD A TACTICAL RAID DYNAMIC TRAINING HOUSE IN ACCORDING WITH THE TERMS AND CONDITIONS OF IDIQ CONTRACT NUMBER 70US0923D70092044.

Place of Performance

Location: LAUREL, PRINCE GEORGES County, MARYLAND, 20708

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to CHEROENHAKA NOTTOWAY ENTERPRISES, LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO BUILD A TACTICAL RAID DYNAMIC TRAINING HOUSE IN ACCORDING WITH THE TERMS AND CONDITIONS OF IDIQ CONTRACT NUMBER 70US0923D70092044. Key points: 1. Contract awarded via delivery order under an existing IDIQ, suggesting a pre-vetted contractor. 2. Limited competition or sole-source award could impact price competitiveness. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of 577 days indicates a significant construction undertaking. 5. The specific need for a 'tactical raid dynamic training house' points to specialized requirements. 6. Geographic location in Maryland may influence labor and material costs.

Value Assessment

Rating: fair

The contract value of approximately $2 million for a specialized training facility requires careful benchmarking. Without comparable projects or detailed cost breakdowns, assessing value for money is challenging. The fixed-price nature provides some cost certainty, but the absence of competitive bidding means the government may not have secured the lowest possible price. Further analysis of the scope of work against industry standards for similar construction projects is needed to confirm fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an existing IDIQ contract (70US0923D70092044), and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests that either the IDIQ itself was not broadly competed, or this specific delivery order was set aside for a particular reason, potentially related to the contractor's unique qualifications or a specific requirement that only they could meet. The lack of open competition limits the government's ability to solicit multiple bids and potentially drive down costs through a competitive process.

Taxpayer Impact: The absence of competition for this $2 million contract means taxpayers may not be benefiting from the most cost-effective solution. Without a competitive bidding process, there's a risk that the price paid is higher than what could have been achieved in an open market scenario.

Public Impact

The U.S. Secret Service will benefit from enhanced training capabilities for its personnel. The project will deliver a specialized facility designed for tactical raid dynamic training. The construction will take place in Maryland, potentially impacting the local construction workforce and material suppliers. Improved training facilities can lead to more effective law enforcement operations and officer safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and suboptimal value.
The specific nature of the training facility might lead to cost overruns if unforeseen complexities arise during construction.
Reliance on a single contractor for a critical training asset could pose risks if performance issues emerge.

Positive Signals

Fixed-price contract type helps control costs and mitigate risk of budget overruns.
Awarding under an existing IDIQ suggests the contractor has already passed initial vetting and demonstrated capability.
The project addresses a clear operational need for the U.S. Secret Service, indicating strategic alignment.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for specialized government facilities. The market for such construction is competitive, but projects with unique tactical or security requirements can sometimes limit the pool of qualified contractors. Benchmarking would involve comparing the cost per square foot and overall project cost against similar government-funded specialized training facilities, considering factors like complexity, materials, and location.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Given the 'NOT AVAILABLE FOR COMPETITION' status, it is less likely that small businesses were specifically targeted through set-asides for this particular delivery order. Further investigation into the IDIQ contract's overall small business utilization plan would be necessary to assess broader impacts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the U.S. Secret Service contracting and program management offices. The fixed-price nature of the contract shifts some risk to the contractor, but regular progress monitoring, site inspections, and adherence to contract milestones are crucial. Transparency regarding the justification for the sole-source award and detailed cost breakdowns would enhance accountability.

Related Government Programs

Department of Homeland Security Construction Contracts
U.S. Secret Service Facilities
Tactical Training Facilities
IDIQ Contract Delivery Orders
Commercial and Institutional Building Construction

Risk Flags

Sole-source award justification unclear
Potential for inflated pricing due to lack of competition
Scope definition critical for fixed-price contract success
Specialized construction may introduce unforeseen risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to CHEROENHAKA NOTTOWAY ENTERPRISES, LLC. THE PURPOSE OF THIS DELIVERY ORDER IS TO BUILD A TACTICAL RAID DYNAMIC TRAINING HOUSE IN ACCORDING WITH THE TERMS AND CONDITIONS OF IDIQ CONTRACT NUMBER 70US0923D70092044.

Who is the contractor on this award?

The obligated recipient is CHEROENHAKA NOTTOWAY ENTERPRISES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-04-30.

What is the specific justification for awarding this delivery order on a sole-source basis?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION'. This typically implies that only one responsible source is capable of providing the required supplies or services, or that a compelling justification exists for a sole-source award, such as urgency, unique capabilities, or a follow-on effort to a previously competed contract where the original contractor holds proprietary data. For this specific contract, the U.S. Secret Service would need to provide documentation detailing the rationale, which could involve specialized construction techniques, proprietary designs, or an urgent operational need that could not be met through a competitive process within the required timeframe. Without this detailed justification, it is difficult to fully assess the necessity of the sole-source award.

How does the cost of this training facility compare to similar government-funded tactical training constructions?

Benchmarking the cost of this $2 million tactical raid dynamic training house against similar government projects is challenging without more detailed cost breakdowns and specifications. Factors such as the size of the facility, the complexity of the 'dynamic' training elements (e.g., simulated environments, advanced technology integration), materials used, and geographic location significantly influence construction costs. Typically, specialized facilities command higher prices due to unique requirements. A comprehensive comparison would involve analyzing cost per square foot, the inclusion of specialized systems, and the overall scope of work against projects of comparable complexity awarded by agencies like the Department of Defense or other law enforcement entities. The lack of competitive bidding further complicates a direct value assessment.

What are the key performance indicators (KPIs) for the successful completion of this training facility?

Key performance indicators for the successful completion of this tactical raid dynamic training house would likely include adherence to the specified design and construction standards, timely completion within the 577-day duration, and meeting all safety and quality requirements. Specific performance metrics might involve the functionality of specialized training features, the durability of the structure under simulated operational stress, and the successful integration of any required technology. The U.S. Secret Service would establish these KPIs in the contract's Performance Work Statement (PWS). Successful completion would be formally accepted upon verification that the facility meets all technical specifications and is ready for operational use, with no significant defects or deficiencies.

What is the historical spending pattern for tactical training facilities by the Department of Homeland Security or U.S. Secret Service?

Analyzing historical spending patterns for tactical training facilities by DHS or the U.S. Secret Service is crucial for context. This involves reviewing past contracts for similar facilities, noting their size, complexity, cost, and procurement method (competitive vs. sole-source). If DHS has a history of awarding such contracts competitively and at lower price points, this sole-source award might warrant closer scrutiny. Conversely, if similar specialized facilities have consistently been sole-sourced or have commanded similar price points due to unique requirements, it provides a degree of justification. A review of historical data would reveal trends in spending, contractor performance, and the typical duration and cost associated with developing specialized training infrastructure.

What are the potential risks associated with constructing a specialized training facility under a fixed-price contract?

While a fixed-price contract generally benefits the government by capping costs, risks can still arise, particularly with specialized construction. If the scope of work is not precisely defined or if unforeseen site conditions or technical challenges emerge during construction, the contractor may seek change orders, potentially increasing the overall cost or leading to disputes. For a 'dynamic training house,' the complexity of integrated systems (e.g., simulated environments, audio-visual feedback, safety mechanisms) could introduce unforeseen technical hurdles. The contractor bears the risk of cost overruns due to poor estimation or execution, but the government risks paying a premium if the initial price was inflated due to the contractor's anticipation of such issues, especially in a sole-source scenario.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27345 AQUIA PATH DR, COURTLAND, VA, 23837

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,999,875

Exercised Options: $1,999,875

Current Obligation: $1,999,875

Actual Outlays: $286,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70US0923D70092044

IDV Type: IDC

Timeline