Air Force awards $7.06M design-build lab contract to UNAMI LLC, citing no competition

Contract Overview

Contract Amount: $7,063,108 ($7.1M)

Contractor: Unami LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-15

End Date: 2026-05-01

Contract Duration: 655 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD INSTRUCTIONAL LAB WITH PARKING LOT

Place of Performance

Location: POPE ARMY AIRFIELD, CUMBERLAND County, NORTH CAROLINA, 28308

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $7.1 million to UNAMI LLC for work described as: DESIGN BUILD INSTRUCTIONAL LAB WITH PARKING LOT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 655 days suggests a moderately complex project. 3. Awarded to a single vendor without competition, raising questions about price discovery. 4. Project located in North Carolina, potentially impacting local construction workforce. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction. 6. This contract represents a specific investment in specialized instructional facilities for the Air Force.

Value Assessment

Rating: questionable

The contract value of $7.06 million for a design-build instructional lab with parking appears within a reasonable range for such projects, though a direct comparison is difficult without more specific project details. The firm-fixed-price structure suggests the government has locked in costs, but the lack of competition means there's no benchmark to assess if this price represents optimal value for money. Without competitive bids, it's challenging to definitively state if the pricing is aggressive or if potential savings were forgone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using the 'NOT AVAILABLE FOR COMPETITION' justification, indicating a sole-source procurement. This means only one vendor, UNAMI LLC, was solicited and awarded the contract. The lack of competition limits the government's ability to explore a range of technical solutions and pricing options from multiple providers. It suggests circumstances where only one source was deemed capable or available, which can sometimes lead to higher prices than in a competitive environment.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The absence of multiple offers means the government could not leverage market forces to secure the best possible price for this facility.

Public Impact

The primary beneficiaries are the Department of the Air Force personnel who will utilize the new instructional lab. The contract delivers a design-build instructional laboratory and associated parking facilities. The project's geographic impact is concentrated in North Carolina. The construction and operation of the facility will likely have implications for the local construction workforce and potentially for specialized technical trainers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in a higher price than if multiple vendors had competed.
Sole-source awards can sometimes indicate potential barriers to entry for other qualified contractors.
The specific nature of 'instructional lab' might require specialized expertise, but this was not validated through competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Design-build approach can streamline project delivery by consolidating design and construction responsibilities.
The contract specifies a clear completion date, aiding project management.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant part of federal spending. This contract falls within the broader category of facilities construction and modernization. Federal spending in this area often supports military readiness, research, and operational capabilities. Benchmarks for similar design-build projects can vary widely based on location, complexity, and specific requirements, but a $7 million project for a specialized facility is a substantial investment.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it's unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored through a competitive process. The impact on the small business ecosystem is therefore minimal unless UNAMI LLC voluntarily engages small businesses for subcontracting work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms and the defined delivery schedule. Transparency is limited due to the sole-source nature of the award; details regarding the justification for not competing the contract would be crucial for a full assessment. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction Projects
Department of Defense Facilities
Design-Build Contracts
Specialized Training Facilities

Risk Flags

Sole-source award lacks competitive justification.
Potential for suboptimal pricing due to lack of competition.
Limited transparency on contractor selection rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to UNAMI LLC. DESIGN BUILD INSTRUCTIONAL LAB WITH PARKING LOT

Who is the contractor on this award?

The obligated recipient is UNAMI LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $7.1 million.

What is the period of performance?

Start: 2024-07-15. End: 2026-05-01.

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

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION). This typically means that the agency determined, through a justification and approval (J&A) process, that only one responsible source was capable of meeting the agency's needs. Common reasons include unique capabilities, urgent and compelling needs where only one source can respond in time, or specific government-unique requirements. Without the full J&A document, the precise rationale remains unspecified, but it implies a deliberate decision to bypass a competitive solicitation process due to perceived limitations in the market or unique project demands.

How does the $7.06 million cost compare to similar instructional lab construction projects?

Directly comparing the $7.06 million cost is challenging without detailed project specifications, location-specific construction cost indices, and the exact scope of work for 'instructional lab with parking.' However, for a design-build project of this nature, the cost appears within a plausible range for a specialized government facility. Factors like specialized equipment integration, security requirements, and advanced technological infrastructure within the lab could significantly influence the final price. The lack of competition prevents a definitive value-for-money assessment against market alternatives.

What are the potential risks associated with a sole-source design-build contract?

The primary risk with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. The government may not achieve the best possible value. Another risk is that the chosen contractor, UNAMI LLC, might lack the necessary innovation or efficiency that could have been spurred by competition. Furthermore, the lack of a competitive process limits the government's ability to explore alternative design approaches or technologies that other firms might have offered. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.

What is the track record of UNAMI LLC in performing similar government contracts?

Information regarding UNAMI LLC's specific track record on similar government contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal awards. Given this is a sole-source award, the agency likely conducted some level of due diligence on UNAMI LLC's capabilities and past performance to ensure they could meet the requirements. However, without access to that specific evaluation or broader contract databases, their specific expertise and reliability in executing design-build instructional labs remain unverified from this data alone.

What are the implications of the firm-fixed-price (FFP) contract type for this project?

A Firm-Fixed-Price (FFP) contract type means that UNAMI LLC is obligated to complete the entire scope of work for the agreed-upon price of $7.06 million, regardless of their actual costs. This shifts the cost risk from the government to the contractor. For the government, this provides budget certainty and predictability. However, it also means that if UNAMI LLC is highly efficient and incurs lower costs than anticipated, they will retain the profit margin. Conversely, if costs escalate beyond their estimates, the contractor bears the loss, which could incentivize them to cut corners if not properly monitored.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unami HWH Joint Ventures LLC

Address: 7060 S YALE AVE, TULSA, OK, 74136

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Government, HUBZone Firm, Native American Tribal Government, 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: $7,063,108

Exercised Options: $7,063,108

Current Obligation: $7,063,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline