Coast Guard awards $140K for St. Ignace facility remodel, highlighting construction needs in remote locations

Contract Overview

Contract Amount: $140,441 ($140.4K)

Contractor: Ojibwe Hazardous Abatement, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-01

End Date: 2026-08-19

Contract Duration: 140 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REMODEL FEMALE BATHROOM AND LAUNDRY ROOM, U.S. COAST GUARD STATION SAINT IGNACE, MI

Place of Performance

Location: SAINT IGNACE, MACKINAC County, MICHIGAN, 49781

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $140,441 to OJIBWE HAZARDOUS ABATEMENT, LLC for work described as: REMODEL FEMALE BATHROOM AND LAUNDRY ROOM, U.S. COAST GUARD STATION SAINT IGNACE, MI Key points: 1. The contract addresses essential facility maintenance and upgrades for operational readiness. 2. Fixed-price contract type suggests a defined scope and cost certainty. 3. The award to a single vendor may indicate limited local capacity or specific expertise required. 4. Performance period is relatively short, indicating a focused project timeline. 5. Geographic location in Michigan's Upper Peninsula might influence contractor availability and pricing. 6. The project falls under general building construction, a common requirement for federal facilities.

Value Assessment

Rating: fair

The contract value of $140,441 for a bathroom and laundry room remodel appears reasonable for a federal facility project, especially considering potential prevailing wage requirements and the specialized nature of hazardous abatement services that may have been included or required. Benchmarking against similar-sized renovation projects for federal installations is difficult without more specific scope details. However, the fixed-price nature provides cost control for the government. The award to a single entity, Ojibwe Hazardous Abatement, LLC, suggests either a specialized capability or a limited competitive landscape for this specific project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of meeting the government's needs, often due to specialized skills, unique circumstances, or limited availability. 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 sole-source awards needs careful review to ensure it aligns with federal acquisition regulations.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not have the benefit of competitive pricing. It also limits opportunities for other qualified businesses to secure federal contracts.

Public Impact

Personnel at U.S. Coast Guard Station St. Ignace, MI, will benefit from improved living and working facilities. The project delivers essential renovation services to maintain and upgrade federal infrastructure. The geographic impact is localized to St. Ignace, Michigan, supporting federal presence in the region. The contract supports the construction sector workforce, potentially including specialized abatement technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the sole-source justification could mask underlying issues.
Performance risk is concentrated with a single contractor, increasing reliance on their capabilities.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to a company with 'Hazardous Abatement' in its name suggests capability in handling potentially complex site conditions.
Project addresses necessary facility upgrades for operational effectiveness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses firms that build new residential, commercial, and institutional buildings, as well as those that perform additions, alterations, and repairs. Federal spending in this sector is substantial, supporting infrastructure across various agencies. The specific project involves renovation, a common subset of construction services. Benchmarks for similar federal renovation projects vary widely based on scope, location, and complexity, but this award appears to be on the smaller end for facility upgrades.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award went to Ojibwe Hazardous Abatement, LLC, which may or may not be a small business itself. Without further information on the contractor's size and the presence of subcontracting plans, the direct impact on the small business ecosystem is unclear, though the lack of a set-aside limits direct opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard, a component of the Department of Homeland Security. Standard contract administration processes, including performance monitoring and payment verification, would be in place. Given the sole-source nature, a thorough review of the justification and compliance with procurement regulations would be a key oversight function. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Facility Maintenance
U.S. Coast Guard Infrastructure Projects
Federal Building Renovations
Sole-Source Construction Contracts

Risk Flags

Sole-source award requires careful justification and oversight.
Potential for higher costs due to lack of competition.
Reliance on a single contractor increases performance risk.
Need to verify contractor's specific expertise in hazardous abatement if applicable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $140,441 to OJIBWE HAZARDOUS ABATEMENT, LLC. REMODEL FEMALE BATHROOM AND LAUNDRY ROOM, U.S. COAST GUARD STATION SAINT IGNACE, MI

Who is the contractor on this award?

The obligated recipient is OJIBWE HAZARDOUS ABATEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $140,441.

What is the period of performance?

Start: 2026-04-01. End: 2026-08-19.

What is the track record of Ojibwe Hazardous Abatement, LLC with federal contracts, particularly with the Department of Homeland Security or U.S. Coast Guard?

Information regarding the specific track record of Ojibwe Hazardous Abatement, LLC with federal contracts, especially with the Department of Homeland Security or the U.S. Coast Guard, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to analyze past performance, contract values, and any reported issues. Understanding their history with similar projects, adherence to schedules, and quality of work is crucial for assessing future performance risk. Without this data, it's difficult to definitively gauge their reliability beyond the current award.

How does the $140,441 contract value compare to similar facility renovation projects undertaken by the U.S. Coast Guard in remote or less populated areas?

Benchmarking the $140,441 contract value against similar U.S. Coast Guard facility renovation projects in remote areas is challenging without more specific comparative data. Projects in locations like St. Ignace, MI, can incur higher costs due to increased logistical challenges, potentially limited contractor availability, and the need to meet federal construction standards. While $140K is a modest sum for a federal contract, the 'value for money' depends heavily on the scope of work, the inclusion of specialized services like hazardous abatement, and prevailing local labor and material costs. A detailed cost breakdown and comparison with other small-to-medium renovation projects at similar installations would be needed for a robust assessment.

What specific risks are associated with a sole-source award for this type of construction project?

The primary risk associated with a sole-source award for this construction project is the potential for inflated pricing due to the lack of competitive bidding. Without multiple offers, the government may not achieve the most favorable price. Additionally, there's a risk that the chosen contractor may not possess the best available skills or innovative solutions compared to a broader pool of bidders. Performance risk is also concentrated; if the sole-source contractor underperforms, experiences delays, or faces financial difficulties, the project's success is jeopardized with fewer alternatives. Ensuring the sole-source justification was robust and that the contractor is fully capable is paramount to mitigating these risks.

What is the expected impact of this renovation on the operational effectiveness of U.S. Coast Guard Station St. Ignace?

This renovation project is expected to positively impact the operational effectiveness of U.S. Coast Guard Station St. Ignace by improving essential living and working facilities. Modernized bathrooms and laundry rooms contribute to crew morale, well-being, and retention, which are critical for maintaining a ready and effective workforce. Furthermore, ensuring facilities are up-to-date and well-maintained reduces the risk of operational disruptions caused by infrastructure failures. This investment supports the station's ability to fulfill its mission requirements by providing a functional and supportive environment for its personnel.

Are there any historical spending patterns with Ojibwe Hazardous Abatement, LLC or for similar construction projects at this specific Coast Guard station?

The provided data does not include historical spending patterns for Ojibwe Hazardous Abatement, LLC or for construction projects at U.S. Coast Guard Station St. Ignace. To analyze historical spending, one would need to query federal procurement databases for previous contracts awarded to this specific company and for work performed at this installation. Understanding if this is a recurring need, if the company has previously performed work there, and the cost trends of similar projects over time would provide valuable context for assessing the current award's appropriateness and value.

What specific hazardous materials might have necessitated the inclusion of 'Hazardous Abatement' in the contractor's name for this remodel?

While the data indicates 'Ojibwe Hazardous Abatement, LLC' as the contractor, it does not specify the exact hazardous materials involved in the remodel of the female bathroom and laundry room at U.S. Coast Guard Station St. Ignace. Common hazardous materials found in older building renovations include asbestos (in insulation, tiles, or pipe wrap), lead-based paint, and potentially mold. The presence of such materials requires specialized handling, containment, and disposal procedures to protect workers and the environment, justifying the need for a contractor with specific expertise in hazardous abatement.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ojibwe Hazardous Abatement LLC

Address: 531 ASHMUN ST, SAULT SAINTE MARIE, MI, 49783

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

Financial Breakdown

Contract Ceiling: $140,441

Exercised Options: $140,441

Current Obligation: $140,441

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline