DoD awards $16.4M contract for Maxwell AFB commercial vehicle inspection gate, with NISOU ENTERPRISES INC

Contract Overview

Contract Amount: $16,389,310 ($16.4M)

Contractor: Nisou Enterprises Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-14

End Date: 2027-01-29

Contract Duration: 625 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COMMERCIAL VEHICLE INSPECTION GATE, MAXWELL AFB, AL

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to NISOU ENTERPRISES INC for work described as: COMMERCIAL VEHICLE INSPECTION GATE, MAXWELL AFB, AL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract, indicating a commitment to purchase goods or services. 3. The fixed-price nature of the contract shifts some risk to the contractor. 4. The contract duration is 625 days, providing a clear timeline for project completion. 5. The award is for construction services related to a vehicle inspection gate. 6. The contract was awarded by the Department of the Army, a component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work for the commercial vehicle inspection gate. However, the award amount of $16.4 million for a construction project of this nature, spanning over 600 days, appears within a reasonable range for significant infrastructure development. Further analysis would require comparing the deliverables against similar gate construction projects at other military installations or commercial facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'full and open' aspect implies broad solicitation, the 'exclusion of sources' clause suggests specific criteria or prior considerations may have narrowed the initial pool. The presence of 9 bidders indicates a degree of competition, which is generally positive for price discovery and value.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, suggests that taxpayers likely benefited from a range of pricing proposals, potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at Maxwell Air Force Base, who will gain enhanced security and operational efficiency through the new inspection gate. The contract delivers construction services for a critical infrastructure component, improving base access control and security. The geographic impact is localized to Maxwell Air Force Base in Alabama. The contract will likely involve a workforce of construction laborers, project managers, and specialized trades, contributing to employment in the local Alabama economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further investigation to understand if it limited competition unnecessarily.
The fixed-price contract type could lead to cost overruns if unforeseen issues arise during construction.
The definitive contract nature means a commitment is made, potentially limiting flexibility if requirements change significantly.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (9) participated, suggesting market interest and potential for competitive pricing.
The fixed-price contract shifts some financial risk to the contractor.
The project addresses a specific need for enhanced security and operational efficiency at a key military installation.

Sector Analysis

The construction sector, particularly for government and military infrastructure, is a significant market. This contract falls within the Commercial and Institutional Building Construction NAICS code (236220). Projects like this often involve specialized security features and adherence to stringent government building codes. Comparable spending benchmarks would typically be derived from similar gate or access control system constructions at other federal facilities, considering factors like size, complexity, and security requirements.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'small business set-aside' flag is false. There is no explicit information on subcontracting plans for small businesses. Further review of the contract details would be needed to ascertain any subcontracting requirements or opportunities for small businesses within the construction ecosystem for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant project managers within the Department of the Army. Accountability measures are typically embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is generally facilitated through federal procurement databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Base Construction
Security Infrastructure Projects
Department of Defense Procurement
Federal Building Construction Contracts
Access Control Systems

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of cost overruns in fixed-price construction contracts.
Need for clarity on specific security features and their cost justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to NISOU ENTERPRISES INC. COMMERCIAL VEHICLE INSPECTION GATE, MAXWELL AFB, AL

Who is the contractor on this award?

The obligated recipient is NISOU ENTERPRISES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2025-05-14. End: 2027-01-29.

What specific security features are included in the commercial vehicle inspection gate?

The provided data does not detail the specific security features of the commercial vehicle inspection gate. Typically, such gates can include elements like blast-resistant barriers, automated gate arms, integrated surveillance systems (CCTV), license plate readers, undercarriage inspection systems, and personnel access controls. The exact specifications would be outlined in the detailed contract statement of work (SOW) and technical exhibits, which are not publicly available in this summary. Understanding these features is crucial for assessing the project's complexity and its contribution to base security.

How does the $16.4 million cost compare to similar vehicle inspection gate projects at other military bases?

Direct cost comparison is difficult without detailed project scopes. However, $16.4 million for a comprehensive vehicle inspection gate project at a major installation like Maxwell AFB, spanning over 600 days, suggests a significant undertaking. Similar projects at other bases can range from a few million dollars for basic gates to tens of millions for highly sophisticated, multi-layered security installations. Factors influencing cost include the size of the gate, the level of automation, integration with existing base systems, and specific security threat assessments driving the design. This award appears to be in the mid-to-high range, likely reflecting robust security requirements.

What are the potential risks associated with a fixed-price definitive contract for construction?

Fixed-price contracts, while beneficial for budget certainty, carry risks for the government if the contractor underbids or encounters unforeseen issues. For the contractor, risks include cost overruns due to material price fluctuations, labor shortages, or unexpected site conditions (e.g., subsurface issues). If the contractor cannot absorb these costs, it could lead to delays, quality compromises, or even contract default. The definitive contract nature means the government is committed to purchasing the specified goods/services, so changes might require contract modifications, potentially impacting cost and schedule.

What is the significance of 'full and open competition after exclusion of sources'?

This award method signifies that the solicitation was initially intended for broad participation ('full and open'). However, 'exclusion of sources' implies that certain potential bidders were deliberately excluded, possibly due to pre-qualification requirements, specific technical capabilities, or prior contractual relationships that justified limiting the pool. While it still aimed for competition among the remaining eligible sources (resulting in 9 bidders), it suggests the competition might not have been as wide as a pure 'full and open' process without exclusions. The justification for excluding sources would typically be documented by the agency.

What is the historical spending trend for similar construction projects at Maxwell AFB or within the Department of the Army?

Historical spending data for similar construction projects at Maxwell AFB or within the Department of the Army is not provided in the summary data. To analyze this, one would need to access federal procurement databases (like FPDS or USAspending) and filter for contracts with similar NAICS codes (e.g., 236220) awarded to the Department of the Army or specifically to Maxwell AFB over several fiscal years. This would reveal trends in contract values, types of projects, and average award amounts, providing context for the current $16.4 million award.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9127824R0108

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 37279 ASPEN DR, FARMINGTON HILLS, MI, 48335

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,408,020

Exercised Options: $16,389,310

Current Obligation: $16,389,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline