At South Bay Community Center Interfaith Shelter, it’s common to meet single mothers, drifters, or young families. The homeless shelter hosts an assortment of people plagued by bad luck, poor choices, or both.
Victor Ogunniyi is not someone I’d expect to find in a shelter. Born in Nigeria in 1956, he came to the US to earn a Master’s Degree in civil engineering. After graduation, he worked for Shell Oil in Nigeria, London, and Holland before transferring to Louisiana. At Shell, Victor was an offshore installation manager; 225,000 barrels of oil passed through his facility daily. His job was to keep oil flowing smoothly and cleanly. In the event of an equipment failure, not only would money be lost, but “Lives are in your hands. The nearest helicopter is a half hour away.”
When Victor retired from Shell in 2004, he founded a company, CommSolGlobal, specializing in stainless steel tanks through which oil is filtered to help hydraulic systems run cleanly and safely. “This system is a Cadillac compared to any system that runs currently. It’s designed to a higher standard than industry standards.” He knew his award-winning work could save money and lives, benefitting any industry which relies on heavy machinery.
In 2012, Victor was approached by the US Navy, and awarded a $108,000,000 contract. The five-year contract was contingent on him moving from Louisiana to California, bringing trained workers. It required him to build specialized equipment specific to Navy ships, and to commit to working exclusively for the Navy for the length of the contract. The Navy impressed upon him the great workload that awaited him; they worried he wouldn’t be able to meet the demand. At the post-award contract meeting, Victor assured them that he could complete the massive flow of work he was promised.
Using his retirement money from Shell and borrowing from friends and family, he built two stainless steel prototypes, at a cost of $250,000 each. He moved four workers out to California with him, and eagerly awaited the call to begin working.
Navy officials never contacted him.
His state-of-the-art machinery has never been used.
If the Navy called Victor to work today, an investment of at least $100,000 would be required to begin. “I would need a $24,000 insurance policy just to enter the shipyard, and $30,000 worth of oil,” he explains. Add to that the price of replacing hoses, O-rings, valves, and filters that have degraded from lack of use, and the cost to find and train a crew.
The Small Business Act sets a goal of awarding at least 23% of federal contracting dollars to small businesses.
However, Victor says, there is no accountability to insure those contracts are honored. Furthermore, a clause in the contract – the Indefinite Delivery/Indefinite Quantity clause — states the Navy isn’t obligated to give contractors work if there is no work. Victor claims that the work he was contracted to do is instead being handled by large shipyards. Meanwhile he has earned no income since the contract was signed, and is deeply in debt.
Seeking recourse, he spoke with multiple congressional representatives. Despite having no money to pay an attorney, he filed claims for breach of contract, hoping to recuperate lost profit. He has taken his case to the Supreme Court, and waits to find out if they will hear it. Without a permanent address, he worries, the Supreme Court’s decision will not reach him.
In January, Victor was evicted from his rental home. Because most shelters allow residents only two bags of clothes, Victor lost most of his possessions. Worse, his expensive prototype machines are still at his former residence. He has no way to move them and nowhere to store them.
Of those who lent him money to build the prototypes, Victor says, “I feel the burden of them investing in me. I can’t face them any longer.” His wife, still in Louisiana, will not speak to him.
For now he has a bed at the shelter, unsure what he’ll do when his allowed eight-week term there ends. He looks for work; at age 60, he is considered too old or overqualified for most jobs.
He is more defiant than bitter. “I never in my wildest dreams imagined that something like this could happen here. This is the dream of the common man, to come here and make it. I thought this country wanted entrepreneurs.”
According to Victor, there are many businesses in similar situations that have given up trying to fight the government.
Even if the Supreme Court doesn’t hear his case, he is committed to keep fighting for other small business owners.
“If I walk away, I have disappointed middle America. It’s not just for me. Even if I lose everything, I win if I defend the people that come behind me.”
