Army Awards $23M Firm Fixed Price Contract for Survey and Design Services to Bering Straits Global Innovations, LLC

Contract Overview

Contract Amount: $22,993,413 ($23.0M)

Contractor: Bering Straits Global Innovations, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-09-04

Contract Duration: 1,070 days

Daily Burn Rate: $21.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE BID 1_SURVEY AND DESIGN

Place of Performance

Location: MARCH ARB, RIVERSIDE County, CALIFORNIA, 92518

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to BERING STRAITS GLOBAL INNOVATIONS, LLC for work described as: BASE BID 1_SURVEY AND DESIGN Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. The contract is for survey and design services, a critical component of construction projects. 3. The firm fixed price structure aims to control costs, but the lack of competition may inflate the price. 4. The sector is Commercial and Institutional Building Construction, with a significant contract value.

Value Assessment

Rating: questionable

The contract value is $23,000,000. Without comparable contract data or a competitive bidding process, it is difficult to assess if this price is reasonable. The lack of competition is a primary concern for price validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This approach can be justified for specific needs but often leads to higher prices due to the absence of market-driven cost discovery.

Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying a premium for these services, as the selected contractor faces no price pressure from potential competitors.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The project's success hinges on the quality of the survey and design, impacting future construction phases. The Department of the Army is investing a significant sum in preliminary project stages.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award process

Positive Signals

Firm fixed price contract type
Clear contract duration and end date

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is substantial, and effective procurement practices are crucial for managing taxpayer funds, especially for foundational services like survey and design.

Small Business Impact

Information regarding small business participation is not available in the provided data. Further analysis would be needed to determine if small businesses were involved or had opportunities to compete.

Oversight & Accountability

The award was made under a definitive contract, suggesting a structured procurement process. However, the 'not available for competition' status warrants scrutiny to ensure the justification for limited competition was sound and properly documented.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Full and Open Competition
Potential for Price Inflation
Limited Transparency in Award Justification
No Small Business Set-Aside Indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to BERING STRAITS GLOBAL INNOVATIONS, LLC. BASE BID 1_SURVEY AND DESIGN

Who is the contractor on this award?

The obligated recipient is BERING STRAITS GLOBAL INNOVATIONS, 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 $23.0 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-04.

What was the specific justification for awarding this contract on a limited or sole-source basis, and was it adequately documented?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a limited or sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification (e.g., unique capabilities, urgent need) and confirm it meets regulatory requirements for limiting competition. Without this documentation, it's difficult to assess the validity of the procurement approach.

How does the awarded price compare to industry benchmarks for similar survey and design services, considering the lack of competitive bids?

Benchmarking this price is challenging without competitive data. The absence of competition means the $23 million price lacks a market-driven validation. An independent cost analysis or comparison with similar, competitively awarded contracts (if available) would be needed to assess potential overpricing. The firm fixed price offers cost certainty but doesn't guarantee cost-effectiveness without competition.

What are the potential risks associated with awarding a large contract for critical design services without full and open competition?

The primary risk is paying an inflated price due to the lack of competitive pressure. Other risks include potentially receiving suboptimal design solutions if the chosen contractor is not the most innovative or cost-effective provider. Furthermore, it could set a precedent for future limited competitions, potentially eroding trust in the fairness of the procurement process.

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

Solicitation ID: W912DY23R0094

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,993,413

Exercised Options: $22,993,413

Current Obligation: $22,993,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline