DoD's $24.5M Advanced Metering Project for Naval Base Kitsap Saw Strong Competition

Contract Overview

Contract Amount: $24,511,234 ($24.5M)

Contractor: Schneider Electric USA, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-07-15

End Date: 2014-11-03

Contract Duration: 1,937 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::17 1805::TAS RECOVERYPROJECT#::RM09-1432::RP# ADVANCED METERING INSTALLATIONS NB KITSAP WA ARRA::YES::ARRA

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to SCHNEIDER ELECTRIC USA, INC. for work described as: TAS::17 1805::TAS RECOVERYPROJECT#::RM09-1432::RP# ADVANCED METERING INSTALLATIONS NB KITSAP WA ARRA::YES::ARRA Key points: 1. The contract aimed to install advanced metering infrastructure, enhancing energy efficiency and management. 2. A firm-fixed-price structure was used, indicating a clear scope and predictable costs. 3. The project was awarded under ARRA, suggesting a focus on economic stimulus and infrastructure improvement. 4. The duration of the contract (nearly 2000 days) suggests a complex, multi-phase installation. 5. The award value is moderate for a large-scale infrastructure project of this nature. 6. The use of a delivery order under a larger contract indicates a phased approach to procurement.

Value Assessment

Rating: good

The contract value of $24.5 million for advanced metering installations appears reasonable given the project's scope and duration. Benchmarking against similar large-scale smart grid or energy management system installations for federal facilities suggests that this price falls within a typical range. The firm-fixed-price contract type generally provides good value by shifting cost risk to the contractor, encouraging efficient execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is expected to drive down prices and ensure the government receives the best value. The presence of 3 bids suggests a healthy level of interest and competition for this type of infrastructure project.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that contract awards are based on the most competitive pricing and best technical solutions available, preventing potential overspending associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the Department of Defense and the Navy, gaining improved energy management capabilities at Naval Base Kitsap. The project delivered advanced metering infrastructure, enabling more precise tracking and control of energy consumption. The geographic impact is localized to Naval Base Kitsap in Washington state. The project likely involved a workforce of electricians, project managers, and technicians for installation and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could indicate potential for scope creep or unforeseen delays impacting final cost.
Firm-fixed-price contracts can sometimes lead to contractor pressure to cut corners if not closely monitored.
Reliance on a single vendor for advanced metering technology might raise concerns about long-term interoperability or vendor lock-in.

Positive Signals

Awarded under ARRA signifies a commitment to economic stimulus and modernization.
Full and open competition suggests a robust procurement process and potential for cost savings.
The firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs for energy efficiency at a military installation.

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210). This sector is crucial for modernizing infrastructure, particularly in areas like smart grid technology and energy management systems. The market for such services is substantial, driven by government mandates for energy efficiency and infrastructure upgrades, as well as private sector demand for smart building solutions. Comparable spending benchmarks for large-scale utility or infrastructure modernization projects can vary widely but often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Schneider Electric USA, Inc., a large corporation. There is no explicit indication of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engaged small businesses for specialized services or materials.

Oversight & Accountability

The contract was awarded under a firm-fixed-price structure, which inherently provides a degree of cost control. Oversight would typically involve project management by the Department of the Navy to ensure adherence to specifications, timelines, and quality standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

ARRA Energy Efficiency and Conservation Block Grants
Department of Defense Energy Resilience and Efficiency Programs
Navy Shore Infrastructure Improvement Program
Smart Grid Technology Deployment Contracts
Federal Building Modernization Initiatives

Risk Flags

Potential for technology obsolescence due to long project duration.
Risk of cost overruns if scope creep occurs over the 5+ year timeline.
Need for robust oversight to ensure quality and adherence to specifications throughout the extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to SCHNEIDER ELECTRIC USA, INC.. TAS::17 1805::TAS RECOVERYPROJECT#::RM09-1432::RP# ADVANCED METERING INSTALLATIONS NB KITSAP WA ARRA::YES::ARRA

Who is the contractor on this award?

The obligated recipient is SCHNEIDER ELECTRIC USA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2009-07-15. End: 2014-11-03.

What was the specific scope of work for the advanced metering installations at Naval Base Kitsap?

The contract data indicates the project involved 'ADVANCED METERING INSTALLATIONS NB KITSAP WA ARRA'. This suggests the installation of smart meters and associated network infrastructure across Naval Base Kitsap. The goal was likely to enable real-time monitoring, data collection, and potentially automated control of energy consumption (electricity, water, gas) for various facilities on the base. This technology supports improved energy management, identification of inefficiencies, and potentially integration with broader smart grid initiatives for enhanced operational resilience and cost savings.

How does the $24.5 million award compare to other similar federal infrastructure projects?

The $24.5 million award for advanced metering installations is a significant but not extraordinary sum for a large federal facility like Naval Base Kitsap. Similar projects involving smart grid technology, energy retrofits, or utility system upgrades at military bases or large government installations can range from several million to tens of millions of dollars, depending on the scale, complexity, and specific technologies deployed. For instance, comprehensive energy resilience projects or the installation of building automation systems across multiple buildings could easily exceed this amount. The firm-fixed-price nature and full competition suggest this value was considered competitive at the time of award.

What are the potential risks associated with a contract of this duration (1937 days)?

A contract duration of 1937 days (over 5 years) presents several potential risks. Firstly, there's an increased risk of scope creep, where additional requirements or changes are introduced over time, potentially leading to cost overruns if not managed strictly through change orders. Secondly, technology obsolescence is a concern; advanced metering technology can evolve rapidly, and a system installed over several years might not represent the latest standards by its completion. Thirdly, contractor performance and quality control can degrade over extended periods if oversight is not consistent. Finally, long durations increase the likelihood of unforeseen external factors (e.g., regulatory changes, economic shifts) impacting project execution and cost.

What does the fact that this was awarded under ARRA imply about the project's objectives?

The 'ARRA::YES' designation signifies that this contract was funded under the American Recovery and Reinvestment Act of 2009. This legislation was enacted in response to the late 2000s recession, with a primary goal of stimulating the economy through investments in infrastructure, energy, and technology. Therefore, this project likely had dual objectives: modernizing energy infrastructure at a critical military installation for long-term efficiency and resilience, while also providing immediate economic benefits through job creation and contractor spending during a period of economic downturn.

How might the 'Delivery Order' (AW) award type affect project management and cost?

The 'Delivery Order' award type suggests this contract was likely a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar master agreement. This approach allows the government to procure specific services or supplies as needed, often with pre-negotiated terms and pricing. For this project, it implies a phased approach to the installation of advanced metering. While it offers flexibility, it can sometimes complicate overall project management if multiple delivery orders are managed concurrently or if the total scope isn't clearly defined upfront. Cost control is generally maintained through the pre-negotiated rates, but the total expenditure depends on the number and value of the delivery orders issued.

What is the significance of the NAICS code 238210 for this contract?

The North American Industry Classification System (NAICS) code 238210 identifies 'Electrical Contractors and Other Wiring Installation Contractors'. This classification is highly relevant as it defines the primary industry and scope of work for the contractor, Schneider Electric USA, Inc. It signifies that the core service provided was the installation of electrical systems and wiring. In the context of advanced metering, this includes the physical installation of meters, sensors, communication networks, and related control systems, requiring specialized electrical and low-voltage wiring expertise.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Schneider Electric SE (UEI: 275136398)

Address: 1415 SOUTH ROSELLE RD, PALATINE, IL, 60067

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,511,234

Exercised Options: $24,511,234

Current Obligation: $24,511,234

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6258308D0137

IDV Type: IDC

Timeline