GOEX INDUSTRIES LLC Awarded $17.2M for Black Powder Facility Repairs at Camp Minden, Louisiana

Contract Overview

Contract Amount: $17,235,626 ($17.2M)

Contractor: Goex Industries LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-12

End Date: 2026-09-30

Contract Duration: 779 days

Daily Burn Rate: $22.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPAIR AND IMPROVEMENTS TO THE CAMP MINDEN BLACK POWDER FACILITY.

Place of Performance

Location: MINDEN, WEBSTER County, LOUISIANA, 71055

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to GOEX INDUSTRIES LLC for work described as: REPAIR AND IMPROVEMENTS TO THE CAMP MINDEN BLACK POWDER FACILITY. Key points: 1. Contract awarded for essential repairs and improvements to a critical explosives manufacturing facility. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term contract duration (779 days) suggests significant scope of work. 4. Fixed-price contract type aims to control costs, but scope creep could impact final price. 5. Geographic concentration in Louisiana may have localized economic benefits. 6. Facility's focus on black powder production indicates a specialized and potentially high-risk operation.

Value Assessment

Rating: fair

The contract value of $17.2 million for repairs and improvements to a black powder facility appears substantial. Without specific benchmarks for similar specialized facility upgrades, a direct value-for-money assessment is challenging. However, the sole-source nature of the award means there was no direct price competition to establish a market-based rate. The firm-fixed-price structure is intended to provide cost certainty, but the long duration and specialized nature of the work could introduce unforeseen costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, GOEX INDUSTRIES LLC, was solicited. This approach bypasses the competitive bidding process, which typically leads to better pricing and innovation. The lack of competition limits the government's ability to explore alternative solutions or secure the most cost-effective services available in the market.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This could result in higher overall costs compared to a scenario where multiple vendors vied for the contract.

Public Impact

The primary beneficiary is the Department of the Army, ensuring the operational readiness of the Camp Minden Black Powder Facility. Services delivered include repairs and improvements crucial for the safe and efficient manufacturing of black powder. The geographic impact is concentrated in Louisiana, potentially creating local employment opportunities during the contract period. Workforce implications may include the need for specialized labor skilled in explosives manufacturing facility maintenance and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Specialized nature of black powder facility may present unique safety and operational risks.
Long contract duration increases exposure to potential cost overruns if scope is not tightly managed.

Positive Signals

Firm-fixed-price contract type provides cost certainty if scope is well-defined.
Award to an established entity (GOEX INDUSTRIES LLC) may indicate specialized expertise.
Location in Louisiana could provide economic benefits to the local community.

Sector Analysis

The defense industrial base relies on specialized facilities for the production of essential materials like explosives. The market for black powder manufacturing facilities is highly concentrated, often involving a limited number of specialized contractors. This contract fits within the broader defense sector's need for secure and reliable supply chains for munitions components. Benchmarking is difficult due to the niche nature of the services.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature further limits opportunities for small business participation. The primary contractor, GOEX INDUSTRIES LLC, is likely a specialized entity, and its size relative to small business definitions is not provided.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and relevant personnel within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which obligates the contractor to deliver specified work within the agreed price. Transparency is limited by the sole-source award, as the justification for not competing is not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Explosives Manufacturing Support
Army Ammunition Plant Operations
Specialized Industrial Construction

Risk Flags

Sole-source award justification required.
Potential for cost escalation due to specialized nature and long duration.
Safety and environmental risks inherent in explosives manufacturing facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to GOEX INDUSTRIES LLC. REPAIR AND IMPROVEMENTS TO THE CAMP MINDEN BLACK POWDER FACILITY.

Who is the contractor on this award?

The obligated recipient is GOEX INDUSTRIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2024-08-12. End: 2026-09-30.

What is the track record of GOEX INDUSTRIES LLC in performing similar sole-source contracts for the Department of Defense?

Information regarding GOEX INDUSTRIES LLC's specific track record with sole-source contracts for the Department of Defense is not readily available in the provided data. A deeper dive into contract databases and performance reports would be necessary to assess their history. However, the award of this contract suggests they possess the necessary qualifications and capabilities for this specialized work. It is crucial to examine past performance reviews, any documented disputes or contract modifications, and the overall success rate of their previous government engagements to fully understand their reliability and expertise in handling such critical infrastructure projects.

How does the $17.2 million contract value compare to similar repairs or improvements for explosives manufacturing facilities?

Benchmarking the $17.2 million contract value against similar repairs or improvements for explosives manufacturing facilities is challenging due to the highly specialized and niche nature of such infrastructure. Publicly available data on comparable projects is scarce, as these facilities often involve sensitive operations and proprietary information. Without specific details on the scope of work, the extent of the repairs, and the specific types of explosives handled, a direct comparison is difficult. However, given the critical nature of explosives manufacturing and the potential safety and security requirements, substantial investment in maintenance and upgrades is expected. The sole-source award further complicates direct cost comparisons, as competitive market forces were not applied.

What are the primary risks associated with the repair and improvement of a black powder facility, and how are they mitigated in this contract?

The primary risks associated with repairing and improving a black powder facility include safety hazards (explosions, fires), environmental contamination, operational disruptions, and potential cost overruns due to unforeseen complexities. This contract attempts to mitigate these risks through a firm-fixed-price structure, which places the financial responsibility for cost overruns on the contractor, GOEX INDUSTRIES LLC, provided the scope of work remains unchanged. The long duration (779 days) necessitates robust project management and oversight to ensure adherence to safety protocols and timelines. The specialized nature of the work implies that the contractor should possess specific expertise in handling hazardous materials and operating within such environments. However, the sole-source nature means the government relies heavily on the contractor's self-assessment of risk and mitigation strategies.

What is the historical spending pattern for repairs and improvements at the Camp Minden Black Powder Facility?

Historical spending data for repairs and improvements specifically at the Camp Minden Black Powder Facility is not provided in the current dataset. To understand historical spending patterns, one would need to access and analyze past contract awards and expenditures related to this specific facility over several fiscal years. This analysis would reveal trends in maintenance costs, the frequency of major repair projects, and the types of contractors previously engaged. Such information is crucial for assessing whether the current $17.2 million award represents a significant increase or decrease compared to historical investments and for identifying any patterns of recurring issues or escalating maintenance needs at the facility.

What are the implications of this contract being awarded on a sole-source basis for the government's ability to ensure best value?

Awarding this contract on a sole-source basis has significant implications for the government's ability to ensure best value. The absence of competition means that the government did not benefit from the price reductions, innovative solutions, or enhanced service offerings that typically arise when multiple vendors compete. Without a competitive bidding process, it is more difficult to ascertain if the $17.2 million price reflects a fair market value or if a lower price could have been achieved through open competition. While the firm-fixed-price structure aims for cost control, the lack of competitive pressure could lead to less aggressive pricing from the sole awardee. Therefore, ensuring best value in this scenario relies heavily on the government's pre-award due diligence in justifying the sole-source selection and negotiating the most favorable terms possible.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9649 HIGHWAY 80, MINDEN, LA, 71055

Business Categories: Category Business, Manufacturer of Goods, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,235,626

Exercised Options: $17,235,626

Current Obligation: $17,235,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline